tries
in the republic with the result that Bosnia hosted a large share of
Yugoslavia's defense plants. The bitter interethnic warfare in
Bosnia caused production to plummet by 80% from 1990 to 1995,
unemployment to soar, and human misery to multiply. With an uneasy
peace in place, output recovered in 1996-98 at high percentage rates
from a low base; but output growth slowed appreciably in 1999 and
2000, and GDP remains far below the 1990 level. Economic data are of
limited use because, although both entities issue figures,
national-level statistics are not available. Moreover, official data
do not capture the large share of activity that occurs on the black
market. The marka - the national currency introduced in 1998 - has
gained wide acceptance, and the Central Bank of Bosnia and
Herzegovina has dramatically increased its reserve holdings.
Implementation of privatization, however, has been slower than
anticipated. Banking reform accelerated in early 2001 as all the
communist-era payments bureaus were shut down. The country receives
substantial amounts of reconstruction assistance and humanitarian
aid from the international community but will have to prepare for an
era of declining assistance.

Botswana:
Botswana has maintained one of the world's highest growth
rates since independence in 1966. Through fiscal discipline and
sound management, Botswana has transformed itself from one of the
poorest countries in the world to a middle-income country with a per
capita GDP of $6,600 in 2000. Diamond mining has fueled much of
Botswana's economic expansion and currently accounts for more than
one-third of GDP and for three-fourths of export earnings. Tourism,
subsistence farming, and cattle raising are other key sectors. The
government must deal with high rates of unemployment and poverty.
Unemployment officially is 19%, but unofficial estimates place it
closer to 40%. HIV/AIDS infection rates are the highest in the world
and threaten Botswana's impressive economic gains.

Bouvet Island:
no economic activity; declared a nature reserve

Brazil:
Possessing large and well-developed agricultural, mining,
manufacturing, and service sectors, Brazil's economy outweighs that
of all other South American countries and is expanding its presence
in world markets. In the late eighties and early nineties, high
inflation hindered economic activity and investment.