developed industrial
north, dominated by private companies, and a less-developed,
welfare-dependent, agricultural south, with 20% unemployment. Most
raw materials needed by industry and more than 75% of energy
requirements are imported. Over the past decade, Italy has pursued a
tight fiscal policy in order to meet the requirements of the
Economic and Monetary Unions and has benefited from lower interest
and inflation rates. The current government has enacted numerous
short-term reforms aimed at improving competitiveness and long-term
growth. Italy has moved slowly, however, on implementing needed
structural reforms, such as lightening the high tax burden and
overhauling Italy's rigid labor market and over-generous pension
system, because of the current economic slowdown and opposition from
labor unions. But the leadership faces a severe economic constraint:
the budget deficit has breached the 3% EU ceiling. The economy
experienced low growth in 2006, and unemployment remained at a high
level.

Jamaica
The Jamaican economy is heavily dependent on services, which
now account for 60% of GDP. The country continues to derive most of
its foreign exchange from remittances, tourism, and bauxite/alumina.
Jamaica's economy, already saddled with a record of relatively low
growth, was hit hard by Hurricane Ivan in late 2004, and is making a
gradual recovery. But the economy faces serious long-term problems:
high interest rates, increased foreign competition, exchange rate
instability, a sizable merchandise trade deficit, large-scale
unemployment and underemployment, and a high debt burden - the
result of government bailouts to ailing sectors of the economy, most
notably the financial sector in the mid-1990s. Following a strategy
begun in 2004, Jamaica has reduced its public debt to 130% of GDP.
Inflation has declined to 9%. Uncertain economic conditions have led
to increased civil unrest, including gang violence fueled by the
drug trade. The government faces the difficult prospect of having to
achieve fiscal discipline in order to maintain debt payments while
simultaneously attacking a serious and growing crime problem that is
hampering economic growth.

Jan Mayen
Jan Mayen is a volcanic island with no exploitable natural
resources. Economic activity is limited to providing services for
employees of Norway's radio and meteorological stations on the
is