ended on its sister
republics for large amounts of energy and manufactures. Wide
differences in climate, mineral resources, and levels of technology
among the republics accentuated this interdependence, as did the
communist practice of concentrating much industrial output in a
small number of giant plants. The breakup of many of the trade
links, the sharp drop in output as industrial plants lost suppliers
and markets, and the destruction of physical assets in the fighting
all have contributed to the economic difficulties of the republics.
Hyperinflation ended with the establishment of a new currency unit
in June 1993; prices were relatively stable from 1995 through 1997,
but inflationary pressures resurged in 1998. Reliable statistics
continue to be hard to come by, and the GDP estimate is extremely
rough. The economic boom anticipated by the government after the
suspension of UN sanctions in December 1995 has failed to
materialize. Government mismanagement of the economy is largely to
blame, but the damage to Yugoslavia's infrastructure and industry by
the NATO bombing during the war in Kosovo have added to problems.
All sanctions now have been lifted. Yugoslavia is in the first stage
of economic reform. Severe electricity shortages are chronic, the
result of lack of investment by former regimes, depleted hydropower
reservoirs due to extended drought, and lack of funds. GDP growth in
2000 was perhaps 15%, which made up for a large part of the 20%
decline of 1999.

Zambia:
Despite progress in privatization and budgetary reform,
Zambia's economy has a long way to go. Privatization of
government-owned copper mines relieved the government from covering
mammoth losses generated by the industry and greatly improved the
chances for copper mining to return to profitability and spur
economic growth. In late 2000, Zambia was determined to be eligible
for debt relief under the Heavily Indebted Poor Countries (HIPC)
initiative. Inflation and unemployment rates remain high, but the
GDP growth rate should rise in 2001.

Zimbabwe:
The government of Zimbabwe faces a wide variety of
difficult economic problems as it struggles to consolidate earlier
moves to develop a market-oriented economy. Its involvement in the
war in the Democratic Republic of the Congo, for example, has
already drained hundreds of millions of dollars from the economy.
Badly needed sup