developing the
private sector and attracting foreign investment to diversify the
economy. Prospects for 2001 depend heavily on the maintenance of aid
flows, remittances, and the momentum of the government's development
program.

Cayman Islands:
With no direct taxation, the islands are a thriving
offshore financial center. More than 40,000 companies were
registered in the Cayman Islands as of 1997, including almost 600
banks and trust companies; banking assets exceed $500 billion. A
stock exchange was opened in 1997. Tourism is also a mainstay,
accounting for about 70% of GDP and 75% of foreign currency
earnings. The tourist industry is aimed at the luxury market and
caters mainly to visitors from North America. Total tourist arrivals
exceeded 1.2 million visitors in 1997. About 90% of the islands'
food and consumer goods must be imported. The Caymanians enjoy one
of the highest outputs per capita and one of the highest standards
of living in the world.

Central African Republic:
Subsistence agriculture, together with
forestry, remains the backbone of the economy of the Central African
Republic (CAR), with more than 70% of the population living in
outlying areas. The agricultural sector generates half of GDP.
Timber has accounted for about 16% of export earnings and the
diamond industry for nearly 54%. Important constraints to economic
development include the CAR's landlocked position, a poor
transportation system, a largely unskilled work force, and a legacy
of misdirected macroeconomic policies. The 50% devaluation of the
currencies of 14 Francophone African nations on 12 January 1994 had
mixed effects on the CAR's economy. Diamond, timber, coffee, and
cotton exports increased, leading an estimated rise of GDP of 7% in
1994 and nearly 5% in 1995. Military rebellions and social unrest in
1996 were accompanied by widespread destruction of property and a
drop in GDP of 2%. The IMF approved an Extended Structure Adjustment
Facility in 1998 and the World Bank extended further credits in 1999
and approved a $10 million loan in early 2001. The government has
set targets of 3.5% GDP growth in 2001 and 2002. As of January 2001,
many civil servants were owed as much as 30 months pay, leading them
to go on strike and further damaging the economy.

Chad:
Landlocked Chad's economic development suffers from its
geographic remoteness, drought, lack of