alized
countries devote insufficient resources to deal effectively with the
poorer areas of the world, which, at least from an economic point of
view, are becoming further marginalized. The introduction of the
euro as the common currency of much of Western Europe in January
1999, while paving the way for an integrated economic powerhouse,
poses economic risks because of varying levels of income and
cultural and political differences among the participating nations.
The terrorist attacks on the US on 11 September 2001 accentuated a
growing risk to global prosperity, illustrated, for example, by the
reallocation of resources away from investment to anti-terrorist
programs. The opening of war in March 2003 between a US-led
coalition and Iraq added new uncertainties to global economic
prospects. After the initial coalition victory, the complex
political difficulties and the high economic cost of establishing
domestic order in Iraq became major global problems that continued
through 2007.

Yemen
Yemen, one of the poorest countries in the Arab world,
reported average annual growth in the range of 3-4% from 2000
through 2007. Its economic fortunes depend mostly on declining oil
resources, but the country is trying to diversify its earnings. In
2006 Yemen began an economic reform program designed to bolster
non-oil sectors of the economy and foreign investment. As a result
of the program, international donors pledged about $5 billion for
development projects. In addition, Yemen has made some progress on
reforms over the last year that will likely encourage foreign
investment. Oil revenues probably increased in 2007 as a result of
higher prices.

Zambia
Zambia's economy has experienced modest growth in recent
years, with real GDP growth in 2005-07 between 5-6% per year.
Privatization of government-owned copper mines in the 1990s relieved
the government from covering mammoth losses generated by the
industry and greatly improved the chances for copper mining to
return to profitability and spur economic growth. Copper output has
increased steadily since 2004, due to higher copper prices and
foreign investment. In 2005, Zambia qualified for debt relief under
the Highly Indebted Poor Country Initiative, consisting of
approximately USD 6 billion in debt relief. Zambia experienced a
bumper harvest in 2007, which helped to boost GDP and agricultural
expo