gments of
the population. Macau's traditional manufacturing industry has been
in a slow decline. In 2006, exports of textiles and garments
generated only $1.8 billion compared to $6.9 billion in gross gaming
receipts. Macau's textile industry will continue to move to the
mainland because of the termination in 2005 of the Multi-Fiber
Agreement, which provided a near guarantee of export markets,
leaving the territory more dependent on gambling and trade-related
services to generate growth. However, the Closer Economic
Partnership Agreement (CEPA) between Macau and mainland China that
came into effect on 1 January 2004 offers many Macau-made products
tariff-free access to the mainland. Macau's currency, the Pataca, is
closely tied to the Hong Kong dollar, which is also freely accepted
in the territory.

Macedonia
At independence in September 1991, Macedonia was the least
developed of the Yugoslav republics, producing a mere 5% of the
total federal output of goods and services. The collapse of
Yugoslavia ended transfer payments from the central government and
eliminated advantages from inclusion in a de facto free trade area.
An absence of infrastructure, UN sanctions on the downsized
Yugoslavia, and a Greek economic embargo over a dispute about the
country's constitutional name and flag hindered economic growth
until 1996. GDP subsequently rose each year through 2000. In 2001,
during a civil conflict, the economy shrank 4.5% because of
decreased trade, intermittent border closures, increased deficit
spending on security needs, and investor uncertainty. Growth barely
recovered in 2002 to 0.9%, then averaged 4% per year during 2003-07,
expanding to 5.1% in 2007. Macedonia has maintained macroeconomic
stability with low inflation, but it has so far lagged the region in
attracting foreign investment and creating jobs, despite making
extensive fiscal and business sector reforms. Official unemployment
remains high at nearly 35%, but may be overstated based on the
existence of an extensive gray market, estimated to be more than 20
percent of GDP, that is not captured by official statistics.

Madagascar
Having discarded past socialist economic policies,
Madagascar has since the mid 1990s followed a World Bank- and
IMF-led policy of privatization and liberalization. This strategy
placed the country on a slow and steady growth path from an
extremely low