ion that much-needed corporate and financial reforms had
stalled. Led by consumer spending and exports, growth in 2002 was an
impressive 7%, despite anemic global growth. Between 2003 and 2006,
growth moderated to about 4-5%. A downturn in consumer spending was
offset by rapid export growth. Moderate inflation, low unemployment,
an export surplus, and fairly equal distribution of income
characterize this solid economy.

Kuwait
Kuwait is a small, rich, relatively open economy with
self-reported crude oil reserves of about 96 billion barrels - 10%
of world reserves. Petroleum accounts for nearly half of GDP, 95% of
export revenues, and 80% of government income. Kuwait's climate
limits agricultural development. Consequently, with the exception of
fish, it depends almost wholly on food imports. About 75% of potable
water must be distilled or imported. Kuwait continues its
discussions with foreign oil companies to develop fields in the
northern part of the country. High oil prices in recent years have
helped build Kuwait's budget and trade surpluses and foreign
reserves. As a result of this positive fiscal situation, the need
for economic reforms is less urgent and the government has not
earnestly pushed through new initiatives.

Kyrgyzstan
Kyrgyzstan is a poor, mountainous country with a
predominantly agricultural economy. Cotton, tobacco, wool, and meat
are the main agricultural products, although only tobacco and cotton
are exported in any quantity. Industrial exports include gold,
mercury, uranium, natural gas, and electricity. Following
independence Kyrgyzstan was progressive in carrying out market
reforms, such as an improved regulatory system and land reform, but
political instability during 2005-06 has undercut the investment
climate. Kyrgyzstan was the first CIS country to be accepted into
the World Trade Organization. Much of the government's stock in
enterprises has been sold. Drops in production had been severe after
the breakup of the Soviet Union in December 1991, but by mid-1995,
production began to recover and exports began to increase. The
economy is heavily weighted toward gold export and a drop in output
at the main Kumtor gold mine sparked a 0.5% decline in GDP in 2002,
but GDP growth bounced back the following year. In 2005 Kyrgyzstan
again experienced a decline in GDP, this time 0.6%. The government
has made steady strides in