near-term prospect. However,
unexploited offshore oil reserves could provide much-needed revenue
in the long run. The inequality of income distribution is one of the
most extreme in the world. The government and international donors
continue to work out plans to forward economic development from a
lamentably low base. In December 2003, the World Bank, IMF, and UNDP
were forced to step in to provide emergency budgetary support in the
amount of $107 million for 2004, representing over 80% of the total
national budget. Government drift and indecision, however, have
resulted in continued low growth in 2004.

Guyana
The Guyanese economy exhibited moderate economic growth in
2001-02, based on expansion in the agricultural and mining sectors,
a more favorable atmosphere for business initiatives, a more
realistic exchange rate, fairly low inflation, and the continued
support of international organizations. Growth then slowed in 2003
and came back gradually in 2004, buoyed largely by increased export
earnings. Chronic problems include a shortage of skilled labor and a
deficient infrastructure. The government is juggling a sizable
external debt against the urgent need for expanded public
investment. The bauxite mining sector should benefit in the near
term from restructuring and partial privatization.

Haiti
In this poorest country in the Western Hemisphere, 80% of the
population lives in abject poverty, and natural disasters frequently
sweep the nation. Two-thirds of all Haitians depend on the
agriculture sector, which consists mainly of small-scale subsistence
farming. Following legislative elections in May 2000, fraught with
irregularities, international donors - including the US and EU -
suspended almost all aid to Haiti. The economy shrank an estimated
1.2% in 2001, 0.9% in 2002, grew 0.4% in 2003, and shrank by 3.5% in
2004. Suspended aid and loan disbursements totaled more than $500
million at the start of 2003. Haiti also suffers from rampant
inflation, a lack of investment, and a severe trade deficit. In
early 2005 Haiti paid its arrears to the World Bank, paving the way
to reengagement with the Bank. The resumption of aid flows from all
donors is alleviating but not ending the nation's bitter economic
problems. Civil strife in 2004 combined with extensive damage from
flooding in southern Haiti in May 2004 and Tropical Storm Jeanne in
northwes