rism. Growth was positive
in 2005-06, as economic conditions in the US and Europe moderately
improved.

Bassas da India
no economic activity

Belarus
Belarus's economy in 2006 posted more than 8% growth. The
government has succeeded in lowering inflation over the past several
years. Trade with Russia - by far its largest single trade partner -
decreased in 2006, largely as a result of a change in the way the
Value Added Tax (VAT) on trade was collected. Trade with European
countries increased. Belarus has seen little structural reform since
1995, when President LUKASHENKO launched the country on the path of
"market socialism." In keeping with this policy, LUKASHENKO
reimposed administrative controls over prices and currency exchange
rates and expanded the state's right to intervene in the management
of private enterprises. Since 2005, the government has
re-nationalized a number of private companies. In addition,
businesses have been subject to pressure by central and local
governments, e.g., arbitrary changes in regulations, numerous
rigorous inspections, retroactive application of new business
regulations, and arrests of "disruptive" businessmen and factory
owners. A wide range of redistributive policies has helped those at
the bottom of the ladder; the Gini coefficient is among the lowest
in the world. Because of these restrictive economic policies,
Belarus has had trouble attracting foreign investment, which remains
low. Growth has been strong in recent years, despite the roadblocks
in a tough, centrally directed economy with a high, but decreasing,
rate of inflation. Belarus receives heavily discounted oil and
natural gas from Russia and much of Belarus' growth can be
attributed to the re-export of Russian oil at market prices. This
growth will be threatened in 2007, however, when Russia raises
energy prices closer to world market prices for Belarus. Russia is
planning to increase Belarusian gas prices from $47 per thousand
cubic meters (tcm) to $200 per tcm and introduce a first-time export
duty of $180 per ton on oil shipped to Belarus.

Belgium
This modern, private-enterprise economy has capitalized on
its central geographic location, highly developed transport network,
and diversified industrial and commercial base. Industry is
concentrated mainly in the populous Flemish area in the north. With
few natural resources, Belgium must