prosperous regions of Italy, which supplies much of its food.

Sao Tome and Principe
This small poor island economy has become
increasingly dependent on cocoa since independence 29 years ago.
Cocoa production has substantially declined in recent years because
of drought and mismanagement, but strengthening prices helped boost
export earnings in 2003. Sao Tome has to import all fuels, most
manufactured goods, consumer goods, and a substantial amount of
food. Over the years, it has been unable to service its external
debt and has had to depend on concessional aid and debt
rescheduling. Sao Tome benefited from $200 million in debt relief in
December 2000 under the Highly Indebted Poor Countries (HIPC)
program. Sao Tome's success in implementing structural reforms has
been rewarded by international donors, who pledged increased
assistance in 2001. Considerable potential exists for development of
a tourist industry, and the government has taken steps to expand
facilities in recent years. The government also has attempted to
reduce price controls and subsidies. Sao Tome is optimistic about
the development of petroleum resources in its territorial waters in
the oil-rich Gulf of Guinea; production could begin as early as 2004.

Saudi Arabia
This is an oil-based economy with strong government
controls over major economic activities. Saudi Arabia has the
largest reserves of petroleum in the world (25% of the proved
reserves), ranks as the largest exporter of petroleum, and plays a
leading role in OPEC. The petroleum sector accounts for roughly 75%
of budget revenues, 45% of GDP, and 90% of export earnings. About
40% of GDP comes from the private sector. Roughly five and a half
million foreign workers play an important role in the Saudi economy,
for example, in the oil and service sectors. The government in 1999
announced plans to begin privatizing the electricity companies,
which follows the ongoing privatization of the telecommunications
company. The government is encouraging private sector growth to
lessen the kingdom's dependence on oil and increase employment
opportunities for the swelling Saudi population. Priorities for
government spending in the short term include additional funds for
education and for the water and sewage systems. Economic reforms
proceed cautiously because of deep-rooted political and social
conservatism.

Senegal
In Janu