he territory, which will
boost GDP growth. Much of Macau's textile industry may move to the
mainland as the Multi-Fiber Agreement is phased out. The territory
may have to rely more on gambling and trade-related services to
generate growth. Two new casinos were opened by new foreign gambling
licensees in 2004; development of new infrastructure and facilities
in preparation for Macau's hosting of the 2005 East Asian Games will
bolster the construction sector. The Closer Economic Partnership
Agreement (CEPA) between Macau and mainland China that came into
effect on 1 January 2004 offers many Macau-made products tariff-free
access to the mainland, and the range of products covered by CEPA
was to be expanded on 1 January 2005.

Macedonia
At independence in September 1991, Macedonia was the least
developed of the Yugoslav republics, producing a mere 5% of the
total federal output of goods and services. The collapse of
Yugoslavia ended transfer payments from the center and eliminated
advantages from inclusion in a de facto free trade area. An absence
of infrastructure, UN sanctions on the down-sized Yugoslavia, one of
its largest markets, and a Greek economic embargo over a dispute
about the country's constitutional name and flag hindered economic
growth until 1996. GDP subsequently rose each year through 2000.
However, the leadership's commitment to economic reform, free trade,
and regional integration was undermined by the ethnic Albanian
insurgency of 2001. The economy shrank 4.5% because of decreased
trade, intermittent border closures, increased deficit spending on
security needs, and investor uncertainty. Growth barely recovered in
2002 to 0.9%, then rose by a moderate 3.4% in 2003, and is estimated
at 1.3% in 2004. Unemployment at one-third of the workforce remains
a critical economic problem. Much of the extensive grey market
activity falls outside official statistics.

Madagascar
Having discarded past socialist economic policies,
Madagascar has since the mid 1990s followed a World Bank and IMF led
policy of privatization and liberalization. This strategy has placed
the country on a slow and steady growth path from an extremely low
level. Agriculture, including fishing and forestry, is a mainstay of
the economy, accounting for more than one-fourth of GDP and
employing 80% of the population. Exports of apparel have boomed in
recent years prima