r and sewage
systems. Economic reforms proceed cautiously because of deep-rooted
political and social conservatism.

Senegal
In January 1994, Senegal undertook a bold and ambitious
economic reform program with the support of the international donor
community. This reform began with a 50% devaluation of Senegal's
currency, the CFA franc, which was linked at a fixed rate to the
French franc. Government price controls and subsidies have been
steadily dismantled. After seeing its economy contract by 2.1% in
1993, Senegal made an important turnaround, thanks to the reform
program, with real growth in GDP averaging 5% annually during
1995-2003. Annual inflation had been pushed down to the low single
digits. As a member of the West African Economic and Monetary Union
(WAEMU), Senegal is working toward greater regional integration with
a unified external tariff and a more stable monetary policy. Senegal
still relies heavily upon outside donor assistance, however. Under
the IMF's Highly Indebted Poor Countries debt relief program,
Senegal will benefit from eradication of two-thirds of its
bilateral, multilateral, and private sector debt.

Serbia and Montenegro
MILOSEVIC-era mismanagement of the economy, an
extended period of economic sanctions, and the damage to
Yugoslavia's infrastructure and industry during the NATO airstrikes
in 1999 left the economy only half the size it was in 1990. After
the ousting of former Federal Yugoslav President MILOSEVIC in
October 2000, the Democratic Opposition of Serbia (DOS) coalition
government implemented stabilization measures and embarked on an
aggressive market reform program. After renewing its membership in
the IMF in December 2000, a down-sized Yugoslavia continued to
reintegrate into the international community by rejoining the World
Bank (IBRD) and the European Bank for Reconstruction and Development
(EBRD). A World Bank-European Commission sponsored Donors'
Conference held in June 2001 raised $1.3 billion for economic
restructuring. An agreement rescheduling the country's $4.5 billion
Paris Club government debts was concluded in November 2001 - it
wrote off 66% of the debt - and the London Club of private creditors
forgave $1.7 billion of debt, just over half the total owed, in July
2004. The smaller republic of Montenegro severed its economy from
federal control and from Serbia during the MILOSEVIC era and