ue to
concerted reform efforts, collection rates have improved
considerably to roughly 60%, both in T'bilisi and throughout the
regions. Continued reform in the management of state-owned power
entities is essential to successful privatization and onward
sustainability in this sector. The country is pinning its hopes for
long-term growth on its role as a transit state for pipelines and
trade. The construction on the Baku-T'bilisi-Ceyhan oil pipeline and
the Baku-T'bilisi-Erzerum gas pipeline have brought much-needed
investment and job opportunities. Nevertheless, high energy prices
have compounded the pressure on the country's inefficient energy
sector. Restructuring the sector and finding energy supply
alternatives to Russia remain major challenges.

Germany
Germany's affluent and technologically powerful economy -
the fifth largest in the world - has become one of the slowest
growing economies in the euro zone. A quick turnaround is not in the
offing in the foreseeable future; however, stronger growth this year
has improved employment considerably. Growth in 2001-03 fell short
of 1%, rising to 1.7% in 2004, falling back to 0.9% in 2005, and
increasing to 2.2% in 2006. Unemployment fell to 7.1% in October
2006, based on the Internation Labor Organization's measurement. The
modernization and integration of the eastern German economy
continues to be a costly long-term process, with annual transfers
from west to east amounting to roughly $70 billion. Germany's aging
population, combined with high chronic unemployment, has pushed
social security outlays to a level exceeding contributions from
workers. Structural rigidities in the labor market - including
strict regulations on laying off workers and the setting of wages on
a national basis - and a lack of competition in the sevice sectors
have made slow growth a chronic problem. Corporate restructuring and
growing capital markets are setting the foundations that could help
Germany meet the long-term challenges of European economic
integration and globalization; however, the current government has
failed to pass meaningful economic reform that would improve growth
prospects. Higher government revenues from the cyclical upturn in
2006 reduced Germany's budget deficit to within the EU's 3% debt
limit.

Ghana
Well endowed with natural resources, Ghana has roughly twice
the per capita output of the p