s primary sector exports and widespread opposition to
privatization. Growth was 10.6% in 2004, 5.5% in 2005, 7.5% in 2006,
and 9.9% in 2007 largely because of high copper prices and new gold
production. Mongolia is experiencing its highest inflation rate in
over a decade as consumer prices in 2007 rose 15%, largely because
of increased fuel and food costs. Mongolia's economy continues to be
heavily influenced by its neighbors. For example, Mongolia purchases
95% of its petroleum products and a substantial amount of electric
power from Russia, leaving it vulnerable to price increases. Trade
with China represents more than half of Mongolia's total external
trade - China receives about 70% of Mongolia's exports. Remittances
from Mongolians working abroad both legally and illegally are
sizable, and money laundering is a growing concern. Mongolia settled
its $11 billion debt with Russia at the end of 2003 on favorable
terms. Mongolia, which joined the World Trade Organization in 1997,
seeks to expand its participation and integration into Asian
regional economic and trade regimes.

Montenegro
Montenegro severed its economy from federal control and
from Serbia during the MILOSEVIC era and maintained its own central
bank, used the euro instead of the Yugoslav dinar as official
currency, collected customs tariffs, and managed its own budget. The
dissolution of the loose political union between Serbia and
Montenegro in 2006 led to separate membership in several
international financial institutions, such as the European Bank for
Reconstruction and Development. On 18 January 2007, Montenegro
joined the World Bank and IMF. Montenegro is pursuing its own
membership in the World Trade Organization as well as negotiating a
Stabilization and Association agreement with the European Union in
anticipation of eventual membership. Severe unemployment remains a
key political and economic problem for this entire region.
Montenegro has privatized its large aluminum complex - the dominant
industry - as well as most of its financial sector, and has begun to
attract foreign direct investment in the tourism sector.

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 inhabita