The 2008 CIA World Factbook, United States. Central Intelligence Agency [primary phonics books .TXT] 📗

id="id88469">Kenya
  The regional hub for trade and finance in East Africa, Kenya
  has been hampered by corruption and by reliance upon several primary
  goods whose prices have remained low. In 1997, the IMF suspended
  Kenya's Enhanced Structural Adjustment Program due to the
  government's failure to maintain reforms and curb corruption. A
  severe drought from 1999 to 2000 compounded Kenya's problems,
  causing water and energy rationing and reducing agricultural output.
  As a result, GDP contracted by 0.2% in 2000. The IMF, which had
  resumed loans in 2000 to help Kenya through the drought, again
  halted lending in 2001 when the government failed to institute
  several anticorruption measures. Despite the return of strong rains
  in 2001, weak commodity prices, endemic corruption, and low
  investment limited Kenya's economic growth to 1.2%. Growth lagged at
  1.1% in 2002 because of erratic rains, low investor confidence,
  meager donor support, and political infighting up to the elections.
  In the key December 2002 elections, Daniel Arap MOI's 24-year-old
  reign ended, and a new opposition government took on the formidable
  economic problems facing the nation. After some early progress in
  rooting out corruption and encouraging donor support, the KIBAKI
  government was rocked by high-level graft scandals in 2005 and 2006.
  In 2006 the World Bank and IMF delayed loans pending action by the
  government on corruption. The international financial institutions
  and donors have since resumed lending, despite little action on the
  government's part to deal with corruption. The scandals have not
  weighed down growth, with estimated real GDP growth at more than 6
  percent in 2007.

Kiribati
  A remote country of 33 scattered coral atolls, Kiribati has
  few natural resources. Commercially viable phosphate deposits were
  exhausted at the time of independence from the UK in 1979. Copra and
  fish now represent the bulk of production and exports. The economy
  has fluctuated widely in recent years. Economic development is
  constrained by a shortage of skilled workers, weak infrastructure,
  and remoteness from international markets. Tourism provides more
  than one-fifth of GDP. Private sector initiatives and a financial
  sector are in the early stages of development. Foreign financial aid
  from UK, Japan, Australia, New Zealand, and China equals more than
  10% of GDP. Remittances from seamen on merchant ships abroad account
  for more than $5 million each year. Kiribati receives around $15
  million annually for the government budget from an Australian trust
  fund.

Korea, North North Korea, one of the world's most centrally directed and least open economies, faces chronic economic problems. Industrial capital stock is nearly beyond repair as a result of years of underinvestment and shortages of spare parts. Industrial and power output have declined in parallel from pre-1990 levels. Due in part to severe summer flooding followed by dry weather conditions in the fall of 2006, the nation suffered its 13th year of food shortages because of on-going systemic problems including a lack of arable land, collective farming practices, and persistent shortages of tractors and fuel. During the summer of 2007, severe flooding again occurred. Large-scale international food aid deliveries have allowed the people of North Korea to escape widespread starvation since famine threatened in 1995, but the population continues to suffer from prolonged malnutrition and poor living conditions. Large-scale military spending draws off resources needed for investment and civilian consumption. Since 2002, the government has formalized an arrangement whereby private "farmers' markets" were allowed to begin selling a wider range of goods. It also permitted some private farming on an experimental basis in an effort to boost agricultural output. In October 2005, the government tried to reverse some of these policies by forbidding private sales of grains and reinstituting a centralized food rationing system. By December 2005, the government terminated most international humanitarian assistance operations in North Korea (calling instead for developmental assistance only) and restricted the activities of remaining international and non-governmental aid organizations such as the World Food Program. External food aid now comes primarily from China and South Korea in the form of grants and long-term concessional loans. During the October 2007 summit, South Korea also agreed to develop some of North Korea's infrastructure and natural resources and light industry. Firm political control remains the Communist government's overriding concern, which will likely inhibit the loosening of economic regulations.

Korea, South Since the 1960s, South Korea has achieved an incredible record of growth and integration into the high-tech modern world economy. Four decades ago, GDP per capita was comparable with levels in the poorer countries of Africa and Asia. In 2004, South Korea joined the trillion dollar club of world economies. Today its GDP per capita is roughly the same as that of Greece and Spain. This success was achieved by a system of close government/business ties including directed credit, import restrictions, sponsorship of specific industries, and a strong labor effort. The government promoted the import of raw materials and technology at the expense of consumer goods and encouraged savings and investment over consumption. The Asian financial crisis of 1997-98 exposed longstanding weaknesses in South Korea's development model including high debt/equity ratios, massive foreign borrowing, and an undisciplined financial sector. GDP plunged by 6.9% in 1998, then recovered by 9.5% in 1999 and 8.5% in 2000. Growth fell back to 3.3% in 2001 because of the slowing global economy, falling exports, and the perception that much-needed corporate and financial reforms had stalled. Led by consumer spending and exports, growth in 2002 was an impressive 7%, despite anemic global growth. Between 2003 and 2007, growth moderated to about 4-5% annually. A downturn in consumer spending was offset by rapid export growth. Moderate inflation, low unemployment, and an export surplus in 2007 characterize this solid economy, but inflation and unemployment are increasing in the face of rising oil prices.

Kosovo Over the past few years Kosovo's economy has shown significant progress in transitioning to a market-based system, but it is still highly dependent on the international community and the diaspora for financial and technical assistance. Remittances from the diaspora - located mainly in Germany and Switzerland - account for about 30% of GDP. Kosovo's citizens are the poorest in Europe with an average annual per capita income of only $1800 - about one-third the level of neighboring Albania. Unemployment - at more than 40% of the population - is a severe problem that encourages outward migration. Most of Kosovo's population lives in rural towns outside of the capital, Pristina. Inefficient, near-subsistence farming is common - the result of small plots, limited mechanization, and lack of technical expertise. Economic growth is largely driven by the private sector - mostly small-scale retail businesses. With international assistance, Kosovo has been able to privatize 50% of its state-owned enterprises (SOEs) by number, and over 90% of SOEs by value. Minerals and metals - including lignite, lead, zinc, nickel, chrome, aluminum, magnesium, and a wide variety of construction materials - once formed the backbone of industry, but output has declined because investment has been insufficient to replace ageing Eastern Bloc equipment. Technical and financial problems in the power sector also impedes industrial development. The US has worked with the World Bank to prepare a commercial tender for the development of new power generating and mining capacity. The official currency of Kosovo is the euro, but the Serbian dinar is also used in the Serb enclaves. Kosovo's tie to the euro has helped keep inflation low. Kosovo has maintained a budget surplus as a result of efficient tax collection and inefficient budget execution. While maintaining ultimate oversight, UNMIK continues to work with the EU and with Kosovo's government to accelerate economic growth, lower unemployment, and attract foreign investment. In order to help integrate Kosovo into regional economic structures, UNMIK signed (on behalf of Kosovo) its accession to the Central Europe Free Trade Area (CEFTA) in 2006. In February 2008, UNMIK also represented Kosovo at the newly established Regional Cooperation Council (RCC).

Kuwait
  Kuwait is a small, rich, relatively open economy with
  self-reported crude oil reserves of about 104 billion barrels - 10%
  of world reserves. Petroleum accounts for nearly half of GDP, 95% of
  export revenues, and 80% of government income. High oil prices in
  recent years have helped build Kuwait's budget and trade surpluses
  and foreign reserves. As a result of this positive fiscal situation,
  the need for economic reforms is less urgent and the government has
  not earnestly pushed through new initiatives. Despite its vast oil
  reserves, Kuwait experienced power outages during the summer months
  in 2006 and 2007 because demand exceeded power generating capacity.
  Power outages are likely to worsen, given its high population growth
  rates, unless the government can increase generating capacity. In
  May 2007 Kuwait changed its currency peg from the US dollar to a
  basket of currencies in order to curb inflation and to reduce its
  vulnerability to external shocks.

Kyrgyzstan
  Kyrgyzstan is a poor, mountainous country with a
  predominantly agricultural economy. Cotton, tobacco, wool, and meat
  are the main agricultural products, although only tobacco and cotton
  are exported in any quantity. Industrial exports include gold,
  mercury, uranium, natural gas, and electricity. Following
  independence, Kyrgyzstan was progressive in carrying out market
  reforms such as an improved regulatory system and land reform.
  Kyrgyzstan was the first Commonwealth of Independent States (CIS)
  country to be accepted into the World Trade Organization. Much of
  the government's stock in enterprises has been sold. Drops in
  production had been severe after the breakup of the Soviet Union in
  December 1991, but by mid-1995, production began to recover and
  exports began to increase. The economy is heavily weighted toward
  gold export and a drop in output at the main Kumtor gold mine
  sparked a 0.5% decline in GDP in 2002 and a 0.6% decline in 2005.
  GDP grew more than 6% in 2007, partly due to higher gold prices
  internationally. The government made steady strides in controlling
  its substantial fiscal deficit, nearly closing the gap between
  revenues and expenditures in 2006, before boosting expenditures more
  than 20% in 2007. The government and international financial
  institutions have been engaged in a comprehensive medium-term
  poverty reduction and economic growth strategy. In 2005, Bishkek
  agreed to pursue much-needed tax reform and, in 2006, became
  eligible for the heavily indebted poor countries (HIPC) initiative.
  Progress fighting corruption, further restructuring of domestic
  industry, and success in attracting foreign investment are keys to
  future growth.

Laos
  The government of Laos, one of the few remaining one-party
  Communist states, began decentralizing control and encouraging
  private enterprise in 1986. The results, starting from an extremely
  low base, were striking - growth averaged 6% per year in 1988-2007
  except during the short-lived drop caused by the Asian financial
  crisis beginning in 1997. Despite this high growth rate, Laos
  remains a country with a underdeveloped infrastructure, particularly
  in rural areas. It has no railroads, a rudimentary road system, and
  limited external and internal telecommunications, though the
  government is sponsoring major improvements in the road system with
  support from Japan and China. Electricity is available in urban
  areas and in most rural districts. Subsistence agriculture,
  dominated by rice, accounts for about 40% of GDP and provides 80% of
  total employment. The economy will continue to benefit from aid from
  international donors and from foreign investment in hydropower and
  mining. Construction will be another strong economic driver,
  especially as hydroelectric dam and road projects gain steam.
  Several policy changes since 2004 may help spur growth. In late
  2004, Laos gained Normal Trade Relations status with the US,
  allowing Laos-based producers to benefit from lower tariffs on
  exports. Laos is taking steps to join the World Trade Organization
  in the next few years; the resulting trade policy reforms will
  improve the business environment. On the fiscal side, a value-added
  tax (VAT) regime, slated to begin in 2008, should help streamline
  the government's inefficient tax system.

Latvia
  Latvia's economy experienced GDP growth of more than 10% per
  year during 2006-07. The majority of companies, banks, and real
  estate have been privatized, although the state still holds sizable
  stakes in a few large enterprises. Latvia officially joined the
  World Trade Organization in February 1999. EU