exporter and
fifth largest producer; it relies heavily on cotton production as
the major source of export earnings. Other major export earners
include gold, natural gas, and oil. Following independence in
September 1991, the government sought to prop up its Soviet-style
command economy with subsidies and tight controls on production and
prices. While aware of the need to improve the investment climate,
the government still sponsors measures that often increase, not
decrease, its control over business decisions. A sharp increase in
the inequality of income distribution has hurt the lower ranks of
society since independence. In 2003, the government accepted Article
VIII obligations under the IMF, providing for full currency
convertibility. However, strict currency controls and tightening of
borders have lessened the effects of convertibility and have also
led to some shortages that have further stifled economic activity.
The Central Bank often delays or restricts convertibility,
especially for consumer goods. Potential investment by Russia and
China in Uzbekistan's gas and oil industry may boost growth
prospects. In November 2005, Russian President Vladimir PUTIN and
Uzbekistan President KARIMOV signed an "alliance," which included
provisions for economic and business cooperation. Russian businesses
have shown increased interest in Uzbekistan, especially in mining,
telecom, and oil and gas. In 2006, Uzbekistan took steps to rejoin
the Collective Security Treaty Organization (CSTO) and the Eurasian
Economic Community (EurASEC), both organizations dominated by
Russia. Uzbek authorities have accused US and other foreign
companies operating in Uzbekistan of violating Uzbek tax laws and
have frozen their assets.

Vanuatu
This South Pacific island economy is based primarily on
small-scale agriculture, which provides a living for 65% of the
population. Fishing, offshore financial services, and tourism, with
more than 60,000 visitors in 2005, are other mainstays of the
economy. Mineral deposits are negligible; the country has no known
petroleum deposits. A small light industry sector caters to the
local market. Tax revenues come mainly from import duties. Economic
development is hindered by dependence on relatively few commodity
exports, vulnerability to natural disasters, and long distances from
main markets and between constituent islands. In response t