, internal civil strife continued,
hampering both domestic economic policies and international aid
efforts. Numerical data are likely to be either unavailable or
unreliable. Afghanistan was by far the largest producer of opium
poppies in 2000, and narcotics trafficking is a major source of
revenue.
Albania:
Poor by European standards, Albania is making the difficult
transition to a more open-market economy. The economy rebounded in
1993-95 after a severe depression accompanying the end of the
previous centrally planned system in 1990 and 1991. However, a
weakening of government resolve to maintain stabilization policies
in the election year of 1996 contributed to renewal of inflationary
pressures, spurred by the budget deficit which exceeded 12% of GDP.
The collapse of financial pyramid schemes in early 1997 - which had
attracted deposits from a substantial portion of Albania's
population - triggered severe social unrest which led to more than
1,500 deaths, widespread destruction of property, and a 7% drop in
GDP. The government has taken measures to curb violent crime and to
revive economic activity and trade. The economy is bolstered by
remittances from some 20% of the labor force that works abroad,
mostly in Greece and Italy. These remittances supplement GDP and
help offset the large foreign trade deficit. Most agricultural land
was privatized in 1992, substantially improving peasant incomes. In
1998, Albania recovered the 7% drop in GDP of 1997 and pushed ahead
by 8% in 1999 and by 7.5% in 2000. International aid helped defray
the high costs of receiving and returning refugees from the Kosovo
conflict. Privatization scored some successes in 2000, but other
reforms lagged.
Algeria:
The hydrocarbons sector is the backbone of the economy,
accounting for roughly 60% of budget revenues, 30% of GDP, and over
95% of export earnings. Algeria has the fifth-largest reserves of
natural gas in the world and is the second largest gas exporter; it
ranks fourteenth for oil reserves. Algiers' efforts to reform one of
the most centrally planned economies in the Arab world stalled in
1992 as the country became embroiled in political turmoil. Algeria's
financial and economic indicators improved during the mid-1990s, in
part because of policy reforms supported by the IMF and debt
rescheduling from the Paris Club. Algeria's finances in 2000
benefited from
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