ewise,
its diversified heavy industry supplied the unique equipment (for
example, large diameter pipes) and raw materials to industrial and
mining sites (vertical drilling apparatus) in other regions of the
former USSR. Ukraine depends on imports of energy, especially
natural gas, to meet some 85% of its annual energy requirements.
Shortly after independence in December 1991, the Ukrainian
Government liberalized most prices and erected a legal framework for
privatization, but widespread resistance to reform within the
government and the legislature soon stalled reform efforts and led
to some backtracking. Output by 1999 had fallen to less than 40% of
the 1991 level. Loose monetary policies pushed inflation to
hyperinflationary levels in late 1993. Ukraine's dependence on
Russia for energy supplies and the lack of significant structural
reform have made the Ukrainian economy vulnerable to external
shocks. Ukrainian government officials have taken some steps to
reform the country's Byzantine tax code, such as the implementation
of lower tax rates aimed at bringing more economic activity out of
Ukraine's large shadow economy, but more improvements are needed,
including closing tax loopholes and eliminating tax privileges and
exemptions. Reforms in the more politically sensitive areas of
structural reform and land privatization are still lagging. Outside
institutions - particularly the IMF - have encouraged Ukraine to
quicken the pace and scope of reforms. GDP in 2000 showed strong
export-based growth of 6% - the first growth since independence -
and industrial production grew 12.9%. The economy continued to
expand in 2001 as real GDP rose 9% and industrial output grew by
over 14%. Growth of 4.6% in 2002 was more moderate, in part a
reflection of faltering growth in the developed world. In general,
growth has been undergirded by strong domestic demand, low
inflation, and solid consumer and investor confidence. Growth was a
sturdy 9.3% in 2003 and a remarkable 12% in 2004, despite a loss of
momentum in needed economic reforms.

United Arab Emirates
The UAE has an open economy with a high per
capita income and a sizable annual trade surplus. Its wealth is
based on oil and gas output (about 30% of GDP), and the fortunes of
the economy fluctuate with the prices of those commodities. Since
the discovery of oil in the UAE more than 30 years ago, the UAE h