structure, improved incentives for production
and exports, reduced inflation, gradually improved domestic
security, and the return of exiled Indian-Ugandan entrepreneurs.
Corruption within the government and slippage in the government's
determination to press reforms raise doubts about the continuation
of strong growth. In 2000, Uganda qualified for enhanced Highly
Indebted Poor Countries (HIPC) debt relief worth $1.3 billion and
Paris Club debt relief worth $145 million. These amounts combined
with the original HIPC debt relief added up to about $2 billion.
Growth for 2001-02 was solid despite continued decline in the price
of coffee, Uganda's principal export. Solid growth in 2003 reflected
an upturn in Uganda's export markets.

Ukraine
After Russia, the Ukrainian republic was far and away the
most important economic component of the former Soviet Union,
producing about four times the output of the next-ranking republic.
Its fertile black soil generated more than one-fourth of Soviet
agricultural output, and its farms provided substantial quantities
of meat, milk, grain, and vegetables to other republics. Likewise,
its diversified heavy industry supplied the unique equipment (for
example, large diameter pipes) and raw materials to industrial and
mining sites (vertical drilling apparatus) in other regions of the
former USSR. Ukraine depends on imports of energy, especially
natural gas, to meet some 85% of its annual energy requirements.
Shortly after independence in December 1991, the Ukrainian
Government liberalized most prices and erected a legal framework for
privatization, but widespread resistance to reform within the
government and the legislature soon stalled reform efforts and led
to some backtracking. Output by 1999 had fallen to less than 40% of
the 1991 level. Loose monetary policies pushed inflation to
hyperinflationary levels in late 1993. Ukraine's dependence on
Russia for energy supplies and the lack of significant structural
reform have made the Ukrainian economy vulnerable to external
shocks. President KUCHMA had pledged to reduce the number of
government agencies, streamline the regulatory process, create a
legal environment to encourage entrepreneurs, and enact a
comprehensive tax overhaul. Reforms in the more politically
sensitive areas of structural reform and land privatization are
still lagging. Outside institutions - par