omic activity in Mongolia has traditionally been based
on herding and agriculture. Mongolia has extensive mineral deposits;
copper, coal, molybdenum, tin, tungsten and gold account for a large
part of industrial production. Soviet assistance, at its height
one-third of GDP, disappeared almost overnight in 1990 and 1991 at
the time of the dismantlement of the USSR. The following decade saw
Mongolia endure both deep recession due to political inaction and
natural disasters, as well as economic growth due to reform
embracing free-market economics and extensive privatization of the
formerly state-run economy. Severe winters and summer droughts in
2000, 2001, and 2002 resulted in massive livestock die-off and zero
or negative GDP growth. This was compounded by falling prices for
Mongolia's primary sector exports and widespread opposition to
privatization. Growth improved from 2002 at 4% to 2003 at 5%, due
largely to high copper prices and new gold production, with the
government claiming a 10.6% growth rate for 2004 that is
unconfirmed. Mongolia's economy continues to be heavily impacted by
its neighbors. For example, Mongolia purchases 80% of its petroleum
products and a substantial amount of electric power from Russia,
leaving it vulnerable to price increases. China is Mongolia's chief
export partner and a main source of the "shadow" or "grey" economy.
The World Bank and other international financial institutions
estimate the grey economy to be at least equal to that of the
official economy. The actual size of this grey - largely cash -
economy is difficult to calculate since the money does not pass
through the hands of tax authorities or the banking sector.
Remittances from Mongolians working abroad both legally and
illegally constitute a sizeable portion. Money laundering is growing
as an accompanying concern. Mongolia settled its $11 billion debt
with Russia at the end of 2003 on very favorable terms. Mongolia,
which joined the World Trade Organization in 1997, seeks to expand
its participation and integration into Asian regional economic and
trade regimes.

Montserrat
Severe volcanic activity, which began in July 1995, has
put a damper on this small, open economy. A catastrophic eruption in
June 1997 closed the airports and seaports, causing further economic
and social dislocation. Two-thirds of the 12,000 inhabitants fled
the island. Some bega