de agreements with
countries in Latin America and Asia to lessen its dependence on the
US.

Micronesia, Federated States of:
Economic activity consists
primarily of subsistence farming and fishing. The islands have few
mineral deposits worth exploiting, except for high-grade phosphate.
The potential for a tourist industry exists, but the remoteness of
the location and a lack of adequate facilities hinder development.
In 1996, the country experienced a 20% reduction in revenues from
the Compact of Free Association - the agreement between the US and
Micronesia in which Micronesia receives $1.3 billion in financial
and technical assistance over a 15-year period until 2001 - as a
result of the second step-down under the agreement. Since these
revenues accounted for 57% of consolidated government revenues,
reduced Compact funding resulted in a severe depression. While
Micronesia's economy appears to have bottomed out in 1999, the
country's medium-term economic outlook remains fragile due to likely
further reductions in external grants made under the US Compact
funding. Geographical isolation and a poorly developed
infrastructure remain major impediments to long-term growth.

Midway Islands:
The economy is based on providing support services
for the national wildlife refuge activities located on the islands.
All food and manufactured goods must be imported.

Moldova:
Moldova enjoys a favorable climate and good farmland but
has no major mineral deposits. As a result, the economy depends
heavily on agriculture, featuring fruits, vegetables, wine, and
tobacco. Moldova must import all of its supplies of oil, coal, and
natural gas, largely from Russia. Energy shortages contributed to
sharp production declines after the breakup of the Soviet Union in
1991. As part of an ambitious reform effort, Moldova introduced a
convertible currency, freed all prices, stopped issuing preferential
credits to state enterprises, backed steady land privatization,
removed export controls, and freed interest rates. Yet these efforts
could not offset the impact of political and economic difficulties,
both internal and regional. In 1998, the economic troubles of
Russia, by far Moldova's leading trade partner, were a major cause
of the 8.6% drop in GDP. In 1999, GDP fell again, by 4.4%, the fifth
drop in the past seven years; exports were down, and energy supplies
continue