teral aid. The IMF and World
Bank cut off most assistance in 2003. Growth should strengthen in
2004, however, because of a slowly improving security situation and
increased investor confidence.

Guinea-Bissau
One of the 10 poorest countries in the world,
Guinea-Bissau depends mainly on farming and fishing. Cashew crops
have increased remarkably in recent years, and the country now ranks
sixth in cashew production. Guinea-Bissau exports fish and seafood
along with small amounts of peanuts, palm kernels, and timber. Rice
is the major crop and staple food. However, intermittent fighting
between Senegalese-backed government troops and a military junta
destroyed much of the country's infrastructure and caused widespread
damage to the economy in 1998; the civil war led to a 28% drop in
GDP that year, with partial recovery in 1999-2002. Before the war,
trade reform and price liberalization were the most successful part
of the country's structural adjustment program under IMF
sponsorship. The tightening of monetary policy and the development
of the private sector had also begun to reinvigorate the economy.
Because of high costs, the development of petroleum, phosphate, and
other mineral resources is not a near-term prospect. However,
unexploited offshore oil reserves could provide much-needed revenue
in the long run. The inequality of income distribution is one of the
most extreme in the world. The government and international donors
continue to work out plans to forward economic development from a
lamentably low base. Government drift and indecision, however, have
resulted in low growth in 2002-03 and dim prospects for 2004.

Guyana
The Guyanese economy exhibited moderate economic growth in
2001-02, based on expansion in the agricultural and mining sectors,
a more favorable atmosphere for business initiatives, a more
realistic exchange rate, fairly low inflation, and the continued
support of international organizations. Growth then slowed in 2003.
Chronic problems include a shortage of skilled labor and a deficient
infrastructure. The government is juggling a sizable external debt
against the urgent need for expanded public investment. The bauxite
mining sector should benefit in the near term by restructuring and
partial privatization.

Haiti
In this poorest country in the Western Hemisphere, 80% of the
population lives in abject poverty. Two-third