n long-term external debt and has been struggling to
meet the stipulations of foreign aid donors.

Dominica
The Dominican economy depends on agriculture, primarily
bananas, and remains highly vulnerable to climatic conditions and
international economic developments. Production of bananas dropped
precipitously in 2003, a major reason for the 1% decline in GDP.
Tourism increased in 2003 as the government sought to promote
Dominica as an "ecotourism" destination. Development of the tourism
industry remains difficult, however, because of the rugged
coastline, lack of beaches, and the absence of an international
airport. The government began a comprehensive restructuring of the
economy in 2003 - including elimination of price controls,
privatization of the state banana company, and tax increases - to
address Dominica's economic crisis and to meet IMF targets. In order
to diversify the island's production base the government is
attempting to develop an offshore financial sector and is planning
to construct an oil refinery on the eastern part of the island.

Dominican Republic
The Dominican Republic is a Caribbean
representative democracy which enjoyed GDP growth of more than 7% in
1998-2000. Growth subsequently plummeted as part of the global
economic slowdown. Although the country has long been viewed
primarily as an exporter of sugar, coffee, and tobacco, in recent
years the service sector has overtaken agriculture as the economy's
largest employer, due to growth in tourism and free trade zones. The
country suffers from marked income inequality; the poorest half of
the population receives less than one-fifth of GNP, while the
richest 10% enjoys nearly 40% of national income. Growth turned
negative in 2003 with reduced tourism, a major bank fraud, and
limited growth in the US economy, the source of 87% of export
revenues. Resumption of a badly needed IMF loan was slowed due to
government repurchase of electrical power plants.

East Timor
In late 1999, about 70% of the economic infrastructure of
East Timor was laid waste by Indonesian troops and anti-independence
militias, and 260,000 people fled westward. Over the next three
years, however, a massive international program, manned by 5,000
peacekeepers (8,000 at peak) and 1,300 police officers, led to
substantial reconstruction in both urban and rural areas. By
mid-2002, all but about 50,000 of th