pe has been cut sharply.

Latvia:
In 2000, Latvia's transitional economy recovered from the
1998 Russian financial crisis, largely due to the SKELE government's
budget stringency and a gradual reorientation of exports toward EU
countries, lessening Latvia's trade dependency on Russia. Latvia
officially joined the World Trade Organization in February 1999 -
the first Baltic state to join - and was invited at the Helsinki EU
Summit in December 1999 to begin accession talks in early 2000.
Unemployment fell to 7.8% in 2000, down from 9.6% in 1999, and 9.2%
in 1998. Privatization of large state-owned utilities and the
shipping industry faced more delays in 2000, and political
instability will continue to delay completion of the privatization
process over the next year. Latvia projects 6% GDP growth, 2.5%-3.0%
inflation, and a 1.7% fiscal deficit in 2001. Preparing for EU
membership over the next few years remains a top foreign policy goal.

Lebanon:
The 1975-91 civil war seriously damaged Lebanon's economic
infrastructure, cut national output by half, and all but ended
Lebanon's position as a Middle Eastern entrepot and banking hub.
Peace enabled the central government to restore control in Beirut,
begin collecting taxes, and regain access to key port and government
facilities. Economic recovery was helped by a financially sound
banking system and resilient small- and medium-scale manufacturers.
Family remittances, banking services, manufactured and farm exports,
and international aid provided the main sources of foreign exchange.
Lebanon's economy has made impressive gains since the launch in 1993
of "Horizon 2000," the government's $20 billion reconstruction
program. Real GDP grew 8% in 1994, 7% in 1995, 4% per year in 1996
and 1997 but slowed to 2% in 1998, -1% in 1999, and 1% in 2000.
Annual inflation fell during the course of the 1990s from more than
100% to 0%, and foreign exchange reserves jumped from $1.4 billion
to more than $6 billion. Burgeoning capital inflows have generated
foreign payments surpluses, and the Lebanese pound has remained very
stable for the past two years. Lebanon has rebuilt much of its
war-torn physical and financial infrastructure. Solidere, a
$2-billion firm, has managed the reconstruction of Beirut's central
business district; the stock market reopened in January 1996; and
international banks and insurance companies a