of 11 September 2001. The islands had more than 160,000
tourist arrivals in 2005, mostly to the Grenadines. Saint Vincent is
home to a small offshore banking sector and has moved to adopt
international regulatory standards. Saint Vincent is also a producer
of marijuana and is being used as a transshipment point for illegal
narcotics from South America.

Samoa
The economy of Samoa has traditionally been dependent on
development aid, family remittances from overseas, agriculture, and
fishing. The country is vulnerable to devastating storms.
Agriculture employs two-thirds of the labor force, and furnishes 90%
of exports, featuring coconut cream, coconut oil, and copra. The
fish catch declined during the El Nino of 2002-03, but returned to
normal by mid-2005. The manufacturing sector mainly processes
agricultural products. One factory in the Foreign Trade Zone employs
3,000 people to make automobile electrical harnesses for an assembly
plant in Australia. Tourism is an expanding sector, accounting for
25% of GDP; about 100,000 tourists visited the islands in 2005. The
Samoan Government has called for deregulation of the financial
sector, encouragement of investment, and continued fiscal
discipline, while at the same time protecting the environment.
Observers point to the flexibility of the labor market as a basic
strength for future economic advances. Foreign reserves are in a
relatively healthy state, the external debt is stable, and inflation
is low.

San Marino
The tourist sector contributes over 50% of GDP. In 2006
more than 2.1 million tourists visited San Marino. The key
industries are banking, wearing apparel, electronics, and ceramics.
Main agricultural products are wine and cheeses. The per capita
level of output and standard of living are comparable to those of
the most prosperous regions of Italy, which supplies much of its
food.

Sao Tome and Principe
This small, poor island economy has become
increasingly dependent on cocoa since independence in 1975. Cocoa
production has substantially declined in recent years because of
drought and mismanagement, but strengthening prices helped boost
export earnings in 2003. Sao Tome has to import all fuels, most
manufactured goods, consumer goods, and a substantial amount of
food. Over the years, it has had difficulty servicing its external
debt and has relied heavily on concessional aid and de