ary 1994, Senegal undertook a bold and ambitious
economic reform program with the support of the international donor
community. This reform began with a 50% devaluation of Senegal's
currency, the CFA franc, which was linked at a fixed rate to the
French franc. Government price controls and subsidies have been
steadily dismantled. After seeing its economy contract by 2.1% in
1993, Senegal made an important turnaround, thanks to the reform
program, with real growth in GDP averaging 5% annually during
1995-2003. Annual inflation had been pushed down to the low single
digits. As a member of the West African Economic and Monetary Union
(WAEMU), Senegal is working toward greater regional integration with
a unified external tariff. Senegal also realized full Internet
connectivity in 1996, creating a miniboom in information
technology-based services. Private activity now accounts for 82% of
GDP. On the negative side, Senegal faces deep-seated urban problems
of chronic unemployment, trade union militancy, juvenile
delinquency, and drug addiction.

Serbia and Montenegro
MILOSEVIC-era mismanagement of the economy, an
extended period of economic sanctions, and the damage to
Yugoslavia's infrastructure and industry during the NATO airstrikes
in 1999 have left the economy only half the size it was in 1990.
After the ousting of former Federal Yugoslav President MILOSEVIC in
October 2000, the Democratic Opposition of Serbia (DOS) coalition
government implemented stabilization measures and embarked on an
aggressive market reform program. After renewing its membership in
the IMF in December 2000, Yugoslavia continued to reintegrate into
the international community by rejoining the World Bank (IBRD) and
the European Bank for Reconstruction and Development (EBRD). A World
Bank-European Commission sponsored Donors' Conference held in June
2001 raised $1.3 billion for economic restructuring. An agreement
rescheduling the country's $4.5 billion Paris Club government debts
was concluded in November 2001; it wrote off 66% of the debt. The
smaller republic of Montenegro severed its economy from federal
control and from Serbia during the MILOSEVIC era and continues to
maintain its own central bank, uses the euro instead of the Yugoslav
dinar as official currency, collects customs tariffs, and manages
its own budget. Kosovo, while technically still part of the Federal
Repu