1997.
The international donor community pledged over $300 million per year
at the last Consultative Group Meeting, held in Ulaanbaatar in June
1999. The MPRP government, elected in July 2000, is anxious to
improve the investment climate; it must also deal with a heavy
burden of external debt.

Montserrat:
Severe volcanic activity, which began in July 1995, has
put a damper on this small, open economy. A catastrophic eruption in
June 1997 closed the airports and seaports, causing further economic
and social dislocation. Two-thirds of the 12,000 inhabitants fled
the island. Some began to return in 1998, but lack of housing
limited the number. The agriculture sector continued to be affected
by the lack of suitable land for farming and the destruction of
crops. Prospects for the economy depend largely on developments in
relation to the volcano and on public sector construction activity.
The UK committed to a three year $125 million aid program in 1999 to
help reconstruct the economy.

Morocco:
Morocco faces the problems typical of developing countries
- restraining government spending, reducing constraints on private
activity and foreign trade, and achieving sustainable economic
growth. Following structural adjustment programs supported by the
IMF, World Bank, and the Paris Club, the dirham is now fully
convertible for current account transactions, and reforms of the
financial sector have been implemented. Drought conditions depressed
activity in the key agricultural sector and contributed to a
stagnant economy in 1999 and 2000. During that time, however,
Morocco reported large foreign exchange inflows from the sale of a
mobile telephone license and partial privatization of the
state-owned telecommunications company. Favorable rainfalls have led
Morocco to predict a growth of 1% for 2001. Formidable long-term
challenges include: servicing the external debt; preparing the
economy for freer trade with the EU; and improving education and
attracting foreign investment to boost living standards and job
prospects for Morocco's youthful population.

Mozambique:
Before the peace accord of October 1992, Mozambique's
economy was devastated by a protracted civil war and socialist
mismanagement. In 1994, it ranked as one of the poorest countries in
the world. Since then, Mozambique has undertaken a series of
economic reforms. Almost all aspects of the e