urces. However,
the economic and social infrastructure is not well developed, and
serious social disorders continue to hamper economic development,
following a 11-year civil war. About two-thirds of the working-age
population engages in subsistence agriculture. Manufacturing
consists mainly of the processing of raw materials and of light
manufacturing for the domestic market. Plans continue to reopen
bauxite and rutile mines shut down during the conflict. The major
source of hard currency consists of the mining of diamonds. The fate
of the economy depends upon the maintenance of domestic peace and
the continued receipt of substantial aid from abroad, which is
essential to offset the severe trade imbalance and to supplement
government revenues.

Singapore
Singapore, a highly developed and successful free market
economy, enjoys a remarkably open and corruption-free environment,
stable prices, and a high per capita GDP. The economy depends
heavily on exports, particularly in electronics and manufacturing.
It was hard hit in 2001-03 by the global recession and the slump in
the technology sector. The government hopes to establish a new
growth path that will be less vulnerable to the external business
cycle but is unlikely to abandon efforts to establish Singapore as
Southeast Asia's financial and high-tech hub. Fiscal stimulus, low
interest rates, and global economic recovery should lead to much
improved growth in 2004.

Slovakia
Slovakia has mastered much of the difficult transition from
a centrally planned economy to a modern market economy. The DZURINDA
government made excellent progress during 2001-03 in macroeconomic
stabilization and structural reform. Major privatizations are nearly
complete, the banking sector is almost completely in foreign hands,
and foreign investment has picked up. Slovakia's economy exceeded
expectations in 2001-03, despite the general European slowdown.
Unemployment, at an unacceptable 15% in 2003, remains the economy's
Achilles heel. The government faces other strong challenges in 2004,
especially cutting the budget deficit, containing inflation, and
strengthening the health care system.

Slovenia
Slovenia, with its historical ties to Western Europe,
enjoys a GDP per capita substantially higher than that of the other
transitioning economies of Central Europe. In March 2004, Slovenia
became the first transition c