reserves to offset the ultimate decline in oil
production. Since 2000, Qatar has consistently posted trade
surpluses largely because of high oil prices and increased natural
gas exports.

Reunion
The economy has traditionally been based on agriculture, but
services now dominate. Sugarcane has been the primary crop for more
than a century, and in some years it accounts for 85% of exports.
The government has been pushing the development of a tourist
industry to relieve high unemployment, which amounts to one-third of
the labor force. The gap in Reunion between the well-off and the
poor is extraordinary and accounts for the persistent social
tensions. The white and Indian communities are substantially better
off than other segments of the population, often approaching
European standards, whereas minority groups suffer the poverty and
unemployment typical of the poorer nations of the African continent.
The outbreak of severe rioting in February 1991 illustrates the
seriousness of socioeconomic tensions. The economic well-being of
Reunion depends heavily on continued financial assistance from
France.

Romania
Romania began the transition from Communism in 1989 with a
largely obsolete industrial base and a pattern of output unsuited to
the country's needs. The country emerged in 2000 from a punishing
three-year recession thanks to strong demand in EU export markets.
Despite the global slowdown in 2001-02, strong domestic activity in
construction, agriculture, and consumption have kept growth above
4%. An IMF standby agreement, signed in 2001, was accompanied by
slow but palpable gains in privatization, deficit reduction, and the
curbing of inflation. The IMF Board approved Romania's completion of
the standby agreement in October 2003, the first time Romania had
successfully concluded an IMF agreement since the 1989 revolution.
In July 2004, the Executive Board of the IMF approved a 24-month
standby arrangement for $367 million. The Romanian authorities do
not intend to draw on this arrangement, viewing it as a precaution.
Meanwhile, recent macroeconomic gains have done little to address
Romania's widespread poverty, and corruption and red tape handicap
the business environment.

Russia
Russia ended 2003 with its fifth straight year of growth,
averaging 6.5% annually since the financial crisis of 1998. Although
high oil prices and a relatively c