ountry to graduate from borrower status
to donor partner at the World Bank. Privatization of the economy
proceeded at an accelerated pace in 2002-03, and the budget deficit
dropped from 3.0% of GDP in 2002 to 1.6% in 2003. Despite the
economic slowdown in Europe in 2001-03, Slovenia maintained 3%
growth. Structural reforms to improve the business environment allow
for greater foreign participation in Slovenia's economy and help to
lower unemployment. Further measures to curb inflation are also
needed. Corruption and the high degree of coordination between
government, business, and central bank policy are issues of concern
in the run-up to Slovenia's scheduled 1 May 2004 accession to the
European Union.

Solomon Islands
The bulk of the population depends on agriculture,
fishing, and forestry for at least part of their livelihood. Most
manufactured goods and petroleum products must be imported. The
islands are rich in undeveloped mineral resources such as lead,
zinc, nickel, and gold. However, severe ethnic violence, the closing
of key business enterprises, and an empty government treasury have
led to serious economic disarray, indeed near collapse. Tanker
deliveries of crucial fuel supplies (including those for electrical
generation) have become sporadic due to the government's inability
to pay and attacks against ships. Telecommunications are threatened
by the nonpayment of bills and by the lack of technical and
maintenance staff many of whom have left the country. The
disintegration of law and order left the economy in tatters by
mid-2003, and on 24 July 2003 more than 2000 Australian soldiers
entered the Solomon Islands to restore order and to facilitate the
restoration of basic services.

Somalia
Somalia's economic fortunes are being driven by its deep
political divisions. The northern area has declared its independence
as "Somaliland"; the central area, Puntland, is a self-declared
autonomous state; and the remaining southern portion is riddled with
the struggles of rival factions. Economic life continues, in part
because much activity is local and relatively easily protected.
Agriculture is the most important sector, with livestock normally
accounting for about 40% of GDP and about 65% of export earnings,
but Saudi Arabia's recent ban on Somali livestock, because of Rift
Valley Fever concerns, has severely hampered the sector. Nomads and