marginalization of Bengalis in Pakistani
politics - resulted in East Pakistan becoming the separate nation of
Bangladesh. In response to Indian nuclear weapons testing, Pakistan
conducted its own tests in 1998. The dispute over the state of
Kashmir is ongoing, but discussions and confidence-building measures
have led to decreased tensions since 2002. Mounting public
dissatisfaction with President MUSHARRAF, coupled with the
assassination of the prominent and popular political leader, Benazir
BHUTTO, in late 2007, and MUSHARRAF?s resignation in August 2008,
led to the September presidential election of Asif ZARDARI, BHUTTO?s
widower. Pakistani government and military leaders are struggling to
control Islamist militants, many of whom are located in the tribal
areas adjacent to the border with Afghanistan. The Pakistani
government is also faced with a deteriorating economy as foreign
exchange reserves decline, the currency depreciates, and the current
account deficit widens.

Palau
After three decades as part of the UN Trust Territory of the
Pacific under US administration, this westernmost cluster of the
Caroline Islands opted for independence in 1978 rather than join the
Federated States of Micronesia. A Compact of Free Association with
the US was approved in 1986, but not ratified until 1993. It entered
into force the following year, when the islands gained independence.

Panama
Explored and settled by the Spanish in the 16th century,
Panama broke with Spain in 1821 and joined a union of Colombia,
Ecuador, and Venezuela - named the Republic of Gran Colombia. When
the latter dissolved in 1830, Panama remained part of Colombia. With
US backing, Panama seceded from Colombia in 1903 and promptly signed
a treaty with the US allowing for the construction of a canal and US
sovereignty over a strip of land on either side of the structure
(the Panama Canal Zone). The Panama Canal was built by the US Army
Corps of Engineers between 1904 and 1914. In 1977, an agreement was
signed for the complete transfer of the Canal from the US to Panama
by the end of the century. Certain portions of the Zone and
increasing responsibility over the Canal were turned over in the
subsequent decades. With US help, dictator Manuel NORIEGA was
deposed in 1989. The entire Panama Canal, the area supporting the
Canal, and remaining US military bases were transferred to Panama by