service, and curb corruption. The IMF and World Bank renewed their
support to Kenya in mid-2000, but a number of setbacks to the
economic reform program in late 2000 have renewed donor and private
sector concern about the government's commitment to sound
governance. Long-term barriers to development include electricity
shortages, inefficient government dominance of key sectors, endemic
corruption, and high population growth.

Kingman Reef:
no economic activity

Kiribati:
A remote country of 33 scattered coral atolls, Kiribati
has few national resources. Commercially viable phosphate deposits
were exhausted at the time of independence from the UK in 1979.
Copra and fish now represent the bulk of production and exports. The
economy has fluctuated widely in recent years. Economic development
is constrained by a shortage of skilled workers, weak
infrastructure, and remoteness from international markets. Tourism
provides more than one-fifth of GDP. The financial sector is at an
early stage of development as is the expansion of private sector
initiatives. Foreign financial aid, largely from the UK and Japan,
is a critical supplement to GDP, equal to 25%-50% of GDP in recent
years. Remittances from workers abroad account for more than $5
million each year. Performance in 2000 fell short of the 2.5% growth
in 1999, which benefited from increased copra production and
exceptionally large revenues from fishing licenses.

Korea, North:
North Korea, one of the world's most centrally planned
and isolated economies, faces desperate economic conditions.
Industrial capital stock is nearly beyond repair as a result of
years of underinvestment and spare parts shortages. The nation faces
its seventh year of food shortages because of weather-related
problems, including major drought in 2000, and chronic shortages of
fertilizer and fuel. Massive international food aid deliveries have
allowed the regime to escape the major consequence of spreading
economic failure, such as mass starvation, but the population
remains vulnerable to prolonged malnutrition and deteriorating
living conditions. Large-scale military spending eats up resources
needed for expanding investment and consumption goods. In 2000, the
regime placed emphasis on expanding foreign trade links, embracing
modern technology, and attracting foreign investment, but in no way
at the expense of relinquis