l services - banking, fund management, insurance -
account for about 55% of total income in this tiny, prosperous
Channel Island economy. Tourism, manufacturing, and horticulture,
mainly tomatoes and cut flowers, have been declining. Light tax and
death duties make Guernsey a popular tax haven. The evolving
economic integration of the EU nations is changing the environment
under which Guernsey operates.

Guinea
Guinea possesses major mineral, hydropower, and agricultural
resources, yet remains an underdeveloped nation. The country
possesses over 30% of the world's bauxite reserves and is the
second-largest bauxite producer. The mining sector accounted for
about 75% of exports in 1999. Long-run improvements in government
fiscal arrangements, literacy, and the legal framework are needed if
the country is to move out of poverty. Fighting along the Sierra
Leonean and Liberian borders, as well as refugee movements, have
caused major economic disruptions, aggravating a loss in investor
confidence. Foreign mining companies have reduced expatriate staff.
Panic buying has created food shortages and inflation and caused
riots in local markets. Guinea is not receiving multilateral aid.
The IMF and World Bank cut off most assistance in 2003. Growth rose
slightly in 2004, primarily due to increases in global demand and
commodity prices on world markets.

Guinea-Bissau
One of the 10 poorest countries in the world,
Guinea-Bissau depends mainly on farming and fishing. Cashew crops
have increased remarkably in recent years, and the country now ranks
sixth in cashew production. Guinea-Bissau exports fish and seafood
along with small amounts of peanuts, palm kernels, and timber. Rice
is the major crop and staple food. However, intermittent fighting
between Senegalese-backed government troops and a military junta
destroyed much of the country's infrastructure and caused widespread
damage to the economy in 1998; the civil war led to a 28% drop in
GDP that year, with partial recovery in 1999-2002. Before the war,
trade reform and price liberalization were the most successful part
of the country's structural adjustment program under IMF
sponsorship. The tightening of monetary policy and the development
of the private sector had also begun to reinvigorate the economy.
Because of high costs, the development of petroleum, phosphate, and
other mineral resources is not a