vestock, although drought has decreased
agricultural activity. The extreme inequality in the distribution of
income remains a major drawback. Lesotho has signed an Interim
Poverty Reduction and Growth Facility with the IMF. In July 2007,
Lesotho signed a Millennium Challenge Account Compact with the US
worth $362.5 million.

Liberia
Civil war and government mismanagement destroyed much of
Liberia's economy, especially the infrastructure in and around the
capital, Monrovia. Many businesses fled the country, taking capital
and expertise with them, but with the conclusion of fighting and the
installation of a democratically-elected government in 2006, some
have returned. Richly endowed with water, mineral resources,
forests, and a climate favorable to agriculture, Liberia had been a
producer and exporter of basic products - primarily raw timber and
rubber. Local manufacturing, mainly foreign owned, had been small in
scope. President JOHNSON SIRLEAF, a Harvard-trained banker and
administrator, has taken steps to reduce corruption, build support
from international donors, and encourage private investment.
Embargos on timber and diamond exports have been lifted, opening new
sources of revenue for the government. The reconstruction of
infrastructure and the raising of incomes in this ravaged economy
will largely depend on generous financial and technical assistance
from donor countries and foreign investment in key sectors, such as
infrastructure and power generation.

Libya
The Libyan economy depends primarily upon revenues from the
oil sector, which contribute about 95% of export earnings, about
one-quarter of GDP, and 60% of public sector wages. Substantial
revenues from the energy sector coupled with a small population give
Libya one of the highest per capita GDPs in Africa, but little of
this income flows down to the lower orders of society. Libyan
officials in the past five years have made progress on economic
reforms as part of a broader campaign to reintegrate the country
into the international fold. This effort picked up steam after UN
sanctions were lifted in September 2003 and as Libya announced in
December 2003 that it would abandon programs to build weapons of
mass destruction. Almost all US unilateral sanctions against Libya
were removed in April 2004, helping Libya attract more foreign
direct investment, mostly in the energy sector. Li