economy of the Central African
Republic (CAR), with more than 70% of the population living in
outlying areas. The agricultural sector generates half of GDP.
Timber has accounted for about 16% of export earnings and the
diamond industry for 54%. Important constraints to economic
development include the CAR's landlocked position, a poor
transportation system, a largely unskilled work force, and a legacy
of misdirected macroeconomic policies. Factional fighting between
the government and its opponents remains a drag on economic
revitalization, with GDP likely to contract in 2004. Distribution of
income is extraordinarily unequal. Grants from France and the
international community can only partially meet humanitarian needs.

Chad
Chad's primarily agricultural economy will continue to be
boosted by major oilfield and pipeline projects that began in 2000.
Over 80% of Chad's population relies on subsistence farming and
stock raising for its livelihood. Cotton, cattle, and gum arabic
provide the bulk of Chad's export earnings, but Chad will begin to
export oil in 2004. Chad's economy has long been handicapped by its
landlocked position, high energy costs, and a history of
instability. Chad relies on foreign assistance and foreign capital
for most public and private sector investment projects. A consortium
led by two US companies has been investing $3.7 billion to develop
oil reserves estimated at 1 billion barrels in southern Chad. Oil
production came on stream in late 2003.

Chile
Chile has a market-oriented economy characterized by a high
level of foreign trade. During the early 1990s, Chile's reputation
as a role model for economic reform was strengthened when the
democratic government of Patricio AYLWIN - which took over from the
military in 1990 - deepened the economic reform initiated by the
military government. Growth in real GDP averaged 8% during 1991-97,
but fell to half that level in 1998 because of tight monetary
policies implemented to keep the current account deficit in check
and because of lower export earnings - the latter a product of the
global financial crisis. A severe drought exacerbated the recession
in 1999, reducing crop yields and causing hydroelectric shortfalls
and electricity rationing, and Chile experienced negative economic
growth for the first time in more than 15 years. Despite the effects
of the recession, Chile maint