ping with this trend, some large, state-owned
banks and industrial firms are being privatized. Exports have
provided the primary impetus for industrialization. The island runs
a large trade surplus, and its foreign reserves are among the
world's largest. Despite restrictions on cross-strait links, China
has overtaken the US to become Taiwan's largest export market and
its second-largest source of imports after Japan. China is also the
island's number one destination for foreign direct investment.
Strong trade performance in 2007 pushed Taiwan's GDP growth rate
above 5%, and unemployment is below 4%.

Tajikistan
Tajikistan has one of the lowest per capita GDPs among
the 15 former Soviet republics. Only 7% of the land area is arable.
Cotton is the most important crop, but this sector is burdened with
debt and an obsolete infrastructure. Mineral resources include
silver, gold, uranium, and tungsten. Industry consists only of a
large aluminum plant, hydropower facilities, and small obsolete
factories mostly in light industry and food processing. The civil
war (1992-97) severely damaged the already weak economic
infrastructure and caused a sharp decline in industrial and
agricultural production. While Tajikistan has experienced steady
economic growth since 1997, nearly two-thirds of the population
continues to live in abject poverty. Economic growth reached 10.6%
in 2004, but dropped to 8% in 2005, 7% in 2006, and 7.8% in 2007.
Tajikistan's economic situation remains fragile due to uneven
implementation of structural reforms, corruption, weak governance,
widespread unemployment, seasonal power shortages, and the external
debt burden. Continued privatization of medium and large state-owned
enterprises could increase productivity. A debt restructuring
agreement was reached with Russia in December 2002 including a $250
million write-off of Tajikistan's $300 million debt. Tajikistan
ranks third in the world in terms of water resources per head, but
suffers winter power shortages due to poor management of water
levels in rivers and reservoirs. Completion of the Sangtuda I
hydropower dam - built with Russian investment - and the Sangtuda II
and Rogun dams will add substantially to electricity output. If
finished according to Tajik plans, Rogun will be the world's tallest
dam. Tajikistan has also received substantial infrastructure
development loans from th