losing control over their fishing resources. Iceland's
economy has been diversifying into manufacturing and service
industries in the last decade, and new developments in software
production, biotechnology, and financial services are taking place.
The tourism sector is also expanding, with the recent trends in
ecotourism and whale watching. Growth had been remarkably steady in
1996-2001 at 3%-5%, but could not be sustained in 2002 in an
environment of global recession. Growth resumed in 2003, and
estimates call for strong growth until 2007, slowly dropping until
the end of the decade.

India
India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern
industries, and a multitude of services. Services are the major
source of economic growth, though two-thirds of the workforce is in
agriculture. The UPA government has committed to furthering economic
reforms and developing basic infrastructure to improve the lives of
the rural poor and boost economic performance. Government controls
on foreign trade and investment have been reduced in some areas, but
high tariffs (averaging 20% in 2004) and limits on foreign direct
investment are still in place. The government has indicated it will
do more to liberalize investment in civil aviation, telecom, and
insurance sectors in the near term. Privatization of
government-owned industries has proceeded slowly, and continues to
generate political debate; continued social, political, and economic
rigidities hold back needed initiatives. The economy has posted an
excellent average growth rate of 6.8% since 1994, reducing poverty
by about 10 percentage points. India is capitalizing on its large
numbers of well-educated people skilled in the English language to
become a major exporter of software services and software workers.
Despite strong growth, the World Bank and others worry about the
combined state and federal budget deficit, running at approximately
9% of GDP. The huge and growing population is the fundamental
social, economic, and environmental problem. In late December 2004,
a major tsunami took nearly 11,000 lives, left almost 6,000 missing,
destroyed $1.2 billion worth of property, and severely damaged the
fishing fleet.

Indian Ocean
The Indian Ocean provides major sea routes connecting
the Middle East, Africa, and East Asia with Europe and t