heap ruble are important drivers
of this economic rebound, since 2000 investment and consumer-driven
demand have played a noticeably increasing role. Real fixed capital
investments have averaged gains greater than 10% over the last four
years and real personal incomes have averaged increases over 12%.
Russia has also improved its international financial position since
the 1998 financial crisis, with its foreign debt declining from 90%
of GDP to around 28%. Strong oil export earnings have allowed Russia
to increase its foreign reserves from only $12 billion to some $80
billion. These achievements, along with a renewed government effort
to advance structural reforms, have raised business and investor
confidence in Russia's economic prospects. Nevertheless, serious
problems persist. Oil, natural gas, metals, and timber account for
more than 80% of exports, leaving the country vulnerable to swings
in world prices. Russia's manufacturing base is dilapidated and must
be replaced or modernized if the country is to achieve broad-based
economic growth. Other problems include a weak banking system, a
poor business climate that discourages both domestic and foreign
investors, corruption, local and regional government intervention in
the courts, and widespread lack of trust in institutions. In
addition, a string of investigations launched against a major
Russian oil company, culminating with the arrest of its CEO in the
fall of 2003, have raised concerns by some observers that President
PUTIN is granting more influence to forces within his government
that desire to reassert state control over the economy.

Rwanda
Rwanda is a poor rural country with about 90% of the
population engaged in (mainly subsistence) agriculture. It is the
most densely populated country in Africa; landlocked with few
natural resources and minimal industry. Primary foreign exchange
earners are coffee and tea. The 1994 genocide decimated Rwanda's
fragile economic base, severely impoverished the population,
particularly women, and eroded the country's ability to attract
private and external investment. However, Rwanda has made
substantial progress in stabilizing and rehabilitating its economy
to pre-1994 levels, although poverty levels are higher now. GDP has
rebounded, and inflation has been curbed. Export earnings, however,
have been hindered by low beverage prices, depriving the country