Recent Political Developments

The post-World War II years saw tremendous economic growth in Japan, with the political system dominated by the Liberal Democratic Party (LDP). That total domination lasted until the Diet lower house elections in July 1993, in which the LDP failed for the first time to win a majority. The LDP returned to power in 1994, with majorities in both houses of the Diet. In elections in July 2007, the LDP lost its majority in the upper house, with the DPJ now holding the largest number of seats but with no party possessing a clear majority. Currently, the LDP maintains a majority in the lower house.

Shinzo Abe was elected Prime Minister in a Diet vote in September 2006. Abe was the first prime minister to be born after World War II and the youngest prime minister since the war. However, Abe resigned abruptly on September 12, 2007, not long after the LDP lost control of the upper house in the July 2007 elections in which the LDP's handing of domestic issues was a leading issue. Yasuo Fukuda of the LDP was elected Prime Minister by the Diet on September 25, 2007 to replace Abe. Fukuda, whose father served as Prime Minister in the late 1970s, is known as a moderate and for his experience building consensus behind the scenes.

ECONOMY

Japan's industrialized, free market economy is the second-largest in the world. Its economy is highly efficient and competitive in areas linked to international trade, but productivity is far lower in protected areas such as agriculture, distribution, and services. After achieving one of the highest economic growth rates in the world from the 1960s through the 1980s, the Japanese economy slowed dramatically in the early 1990s, when the "bubble economy" collapsed, marked by plummeting stock and real estate prices.

Japan's reservoir of industrial leadership and technicians, well-educated and industrious work force, high savings and investment rates, and intensive promotion of industrial development and foreign trade produced a mature industrial economy. Japan has few natural resources, and trade helps it earn the foreign exchange needed to purchase raw materials for its economy.

Japan's long-term economic prospects are considered good, and it has largely recovered from its worst period of economic stagnation since World War II. Real GDP in Japan grew at an average of roughly 1% yearly in the 1990s, compared to growth in the 1980s of about 4% per year. The Japanese economy is now in its longest postwar expansion after more than a decade of stagnation. Real growth in 2006 was 2.2% and was 1.9% in 2007.

Agriculture, Energy, and Minerals

Only 15% of Japan's land is arable. The agricultural economy is highly subsidized and protected. With per hectare crop yields among the highest in the world, Japan maintains an overall agricultural self-sufficiency rate of about 40% on fewer than 5.6 million cultivated hectares (14 million acres). Japan normally produces a slight surplus of rice but imports large quantities of wheat, corn, sorghum, and soybeans, primarily from the United States. Japan is the largest market for U.S. agricultural exports.

Given its heavy dependence on imported energy, Japan has aimed to diversify its sources and maintain high levels of energy efficiency. Since the oil shocks of the 1970s, Japan has reduced dependence on petroleum as a source of energy from more than 75% in 1973 to about 52% in 2000. Other important energy sources are coal, liquefied natural gas, nuclear power, and hydropower. Today Japan enjoys one of the most energy-efficient developed economies in the world.

Deposits of gold, magnesium, and silver meet current industrial demands, but Japan is dependent on foreign sources for many of the minerals essential to modern industry. Iron ore, coke, copper, and bauxite must be imported, as must many forest products.

Labor

Japan's labor force consists of some 66.07 million workers, 40% of whom are women. Labor union membership was estimated to be about 10 million in 2006.

FOREIGN RELATIONS

Japan is the world's second-largest economy and a major economic power both in Asia and globally. Japan has diplomatic relations with nearly all independent nations and has been an active member of the United Nations since 1956. Japanese foreign policy has aimed to promote peace and prosperity for the Japanese people by working closely with the West and supporting the United Nations.

In recent years, the Japanese public has shown a substantially greater awareness of security issues and increasing support for the Self Defense Forces. This is in part due to the Self Defense Forces' success in disaster relief efforts at home, and its participation in peacekeeping operations such as in Cambodia in the early 1990s and Iraq in 2005-2006. However, there are still significant political and psychological constraints on strengthening Japan's security profile. Although a military role for Japan in international affairs is highly constrained by its constitution and government policy, Japanese cooperation with the United States through the 1960 U.S.-Japan Security Treaty has been important to the peace and stability of East Asia. Currently, there are domestic discussions about possible reinterpretation or revision of Article 9 of the Japanese constitution. Prime Minister Abe made revising or reinterpreting the Japanese constitution a priority of his administration. All postwar Japanese governments have relied on a close relationship with the United States as the foundation of their foreign policy and have depended on the Mutual Security Treaty for strategic protection.

While maintaining its relationship with the United States, Japan has diversified and expanded its ties with other nations. Good relations with its neighbors continue to be of vital interest. After the signing of a peace and friendship treaty with China in 1978, ties between the two countries developed rapidly. Japan extended significant economic assistance to the Chinese in various modernization projects and supported Chinese membership in the World Trade Organization (WTO). Japan's economic assistance to China is now declining. In recent years, however, Chinese exploitation of gas fields in the East China Sea has raised Japanese concerns given disagreement over the demarcation of their maritime boundary. Prime Minister Abe's October 2006 visits to Beijing and Seoul helped improve relations with China and South Korea that had been strained following Prime Minister Koizumi's visits to Yasukuni Shrine. At the same time, Japan maintains economic and cultural but not diplomatic relations with Taiwan, with which a strong bilateral trade relationship thrives.

Japanese officials believe the February 25, 2008 inauguration of Republic of Korea President Lee Myung-bak marks a "new era" in Japan-South Korea relations, as Tokyo and Seoul look to develop "future-oriented" ties while avoiding contentious historical differences. Those historical differences include territorial disputes involving the Liancourt Rocks, use of Korean females as "Comfort Women" during World War II, and historical and ethnic animosities that continue to complicate Japan's political relations with South Korea despite growing economic and cultural ties.

A surprise visit by Prime Minister Koizumi to Pyongyang, North Korea on September 17, 2002, resulted in renewed discussions on contentious bilateral issues--especially that of abductions to North Korea of Japanese citizens--and Japan's agreement to resume normalization talks in the near future. In October 2002, five abductees returned to Japan, but soon after negotiations reached a stalemate over the fate of abductees' families in North Korea. Japan's economic and commercial ties with North Korea plummeted following Kim Jong-il's 2002 admission that D.P.R.K. agents abducted Japanese citizens. Japan strongly supported the United States in its efforts to encourage Pyongyang to abide by the nuclear Non-Proliferation Treaty and its agreements with the International Atomic Energy Agency (IAEA). In 2006, Japan responded to North Korea's July missile launches and October nuclear test by imposing sanctions and working with the United Nations Security Council. The U.S., Japan, and South Korea closely coordinate and consult trilaterally on policy toward North Korea, and Japan participates in the Six-Party Talks to end North Korea's nuclear arms ambitions. Tokyo, however, refuses to provide assistance called for under the February 13, 2007 Six-Party Talks agreement until North Korea takes satisfactory steps to resolve the abduction issue.

Japan's relations with Russia are hampered by the two sides' inability to resolve their territorial dispute over the islands that make up the Northern Territories (Southern Kuriles) seized by the U.S.S.R. at the end of World War II. The stalemate over territorial issues has prevented conclusion of a peace treaty formally ending the war between Japan and Russia. The United States supports Japan on the Northern Territories issue and recognizes Japanese sovereignty over the islands. Russian Coast Guard boats sometimes seize Japanese fishing vessels operating in waters surrounding the disputed area. In August 2006, a Russian patrol shot at a Japanese fishing vessel, claiming the vessel was in Russian waters, killing one crewmember and taking three seamen into custody. In October 2007, Russia raised objections to U.S.-Japan cooperation on missile defense, and in February 2008, Tokyo protested the incursion into Japanese airspace of a Russian bomber. Despite the lack of progress in resolving the Northern Territories and other disputes, however, Japan and Russia continue to develop other aspects of the overall relationship, including two large, multi-billion dollar oil-natural gas consortium projects on Sakhalin Island.

Japan has pursued a more active foreign policy in recent years, recognizing the responsibility that accompanies its economic strength. It has expanded ties with the Middle East, which provides most of its oil, and has been the second-largest assistance donor (behind the U.S.) to Iraq and Afghanistan. In 2006, Japan's Ground Self Defense Force completed a successful two-year mission in Iraq, and the Diet extended the Anti-Terrorism Special Measures Law which allowed for Japan's Maritime Self Defense Force refueling activities in support of Operation Enduring Freedom in the Indian Ocean. On July 10, 2007 the Japanese Government decided to extend the Air Self-Defense Force's (ASDF) airlift support mission in Iraq to July 31, 2008. Under the Iraq Special Measures Law a wing of the ASDF's C-130 transport planes, based in Kuwait, will continue to carry personnel and supplies for the U.S.-led multinational forces and the United Nations in Iraq. The law has been extended to July 31, 2009 and will be voted on again in 2008.

Japan increasingly is active in Africa and Latin America--recently concluding negotiations with Mexico and Chile on an Economic Partnership Agreement (EPA)--and has extended significant support to development projects in both regions. A Japanese-conceived peace plan became the foundation for nationwide elections in Cambodia in 1998. Japan's economic engagement with its neighbors is increasing, as evidenced by the conclusion of an EPA with Singapore and the Philippines, and its ongoing negotiations for EPAs with Thailand and Malaysia.

In May 2007, just prior to the G8 Summit in Heiligendamm, Prime Minister Abe announced an initiative to address greenhouse gas emissions and seek to mitigate the impact of energy consumption on climate. At the January 2008 World Economic Forum in Davos, Switzerland, Prime Minister Fukuda reiterated his commitment to this plan. As host of the G8 Summit in July 2008, Japan will focus on four themes: environment and climate change, development and Africa, the world economy, and political issues including non-proliferation.

U.S.-JAPAN RELATIONS

The U.S.-Japan alliance is the cornerstone of U.S. security interests in Asia and is fundamental to regional stability and prosperity. Despite the changes in the post-Cold War strategic landscape, the U.S.-Japan alliance continues to be based on shared vital interests and values. These include stability in the Asia-Pacific region, the preservation and promotion of political and economic freedoms, support for human rights and democratic institutions, and securing of prosperity for the people of both countries and the international community as a whole.

Japan provides bases and financial and material support to U.S. forward-deployed forces, which are essential for maintaining stability in the region. Under the U.S.-Japan Treaty of Mutual Cooperation and Security, Japan hosts a carrier battle group, the III Marine Expeditionary Force, the 5th Air Force, and elements of the Army's I Corps. The United States currently maintains approximately 50,000 troops in Japan, about half of whom are stationed in Okinawa.

Over the past decade the alliance has been strengthened through revised Defense Guidelines, which expand Japan's noncombatant role in a regional contingency, the renewal of our agreement on Host Nation Support of U.S. forces stationed in Japan, and an ongoing process called the Defense Policy Review Initiative (DPRI). The DPRI redefines roles, missions, and capabilities of alliance forces and outlines key realignment and transformation initiatives, including reducing the number of troops stationed in Okinawa, enhancing interoperability and communication between our respective commands, and broadening our cooperation in the area of ballistic missile defense.

Implementation of these agreements will strengthen our capabilities and make our alliance more sustainable. After the tragic events of September 11, 2001, Japan has participated significantly with the global war on terrorism by providing major logistical support for U.S. and coalition forces in the Indian Ocean.

Because of the two countries' combined economic and technological impact on the world, the U.S.-Japan relationship has become global in scope. The United States and Japan cooperate on a broad range of global issues, including development assistance, combating communicable disease such as the spread of HIV/AIDS and avian influenza, and protecting the environment and natural resources. Both countries also collaborate in science and technology in such areas as mapping the human genome, research on aging, and international space exploration. As one of Asia's most successful democracies and its largest economy, Japan contributes irreplaceable political, financial, and moral support to U.S.-Japan diplomatic efforts. The United States consults closely with Japan and the Republic of Korea on policy regarding North Korea. In Southeast Asia, U.S.-Japan cooperation is vital for stability and for political and economic reform. Outside Asia, Japanese political and financial support has substantially strengthened the U.S. position on a variety of global geopolitical problems, including the Gulf, Middle East peace efforts, and the Balkans. Japan is an indispensable partner on UN reform and the second largest contributor to the UN budget. Japan broadly supports the United States on nonproliferation and nuclear issues. The U.S. supports Japan's aspiration to become a permanent member of the United Nations Security Council.

Economic Relations

U.S. economic policy toward Japan is aimed at increasing access to Japan's markets and two-way investment, stimulating domestic demand-led economic growth, promoting economic restructuring, improving the climate for U.S. investors, and raising the standard of living in both the United States and Japan. The U.S.-Japan bilateral economic relationship--based on enormous flows of trade, investment, and finance--is strong, mature, and increasingly interdependent. Further, it is firmly rooted in the shared interest and responsibility of the United States and Japan to promote global growth, open markets, and a vital world trading system. In addition to bilateral economic ties, the U.S. and Japan cooperate closely in multilateral fora such as the WTO, Organization for Economic Cooperation and Development, the World Bank, and the International Monetary Fund, and regionally in the Asia-Pacific Economic Cooperation forum (APEC).

Japan is a major market for many U.S. products, including chemicals, pharmaceuticals, films and music, commercial aircraft, nonferrous metals, plastics, and medical and scientific supplies. Japan also is the largest foreign market for U.S. agricultural products, with total agricultural exports valued at $10.1 billion in 2007, a 20% increase over the $8.39 billion in agricultural exports recorded by the U.S. Department of Agriculture in 2006. Revenues from Japanese tourism to the United States reached nearly $13 billion in 2005.

Trade between the United States and Japan remained strong in 2006. Total trade grew about 0.2% year-on-year. U.S. exports to Japan reached $62.7 billion in 2007, up from $59.6 billion in 2006. U.S. imports from Japan totaled $145.5 billion in 2007 ($148.1 billion in 2006).

U.S. foreign direct investment in Japan reached $91.8 billion in 2006, up from $79.3 billion in 2005, according to data compiled by the U.S. Department of Commerce's Bureau of Economic Analysis. New U.S. investment was especially significant in financial services, Internet services, and software, generating new export opportunities for U.S. firms and employment for U.S. workers.

TRAVEL AND BUSINESS INFORMATION

The U.S. Department of State's Consular Information Program advises Americans traveling and residing abroad through Country Specific Information, Travel Alerts, and Travel Warnings. Country Specific Information exists for all countries and includes information on entry and exit requirements, currency regulations, health conditions, safety and security, crime, political disturbances, and the addresses of the U.S. embassies and consulates abroad. Travel Alerts are issued to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas that pose significant risks to the security of American travelers. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country because the situation is dangerous or unstable.

http://www.state.gov/r/pa/ei/bgn/4142.htm

OFFICIAL NAME

Hashemite Kingdom of Jordan

Geography

Area: 89,342 sq. km. (34,495 sq. mi.).
Cities: Capital--Amman (pop. 2.5 million). Other cities--Irbid (272,681), Az-Zarqa (472,830).

People

Nationality: Noun and adjective--Jordanian(s).
Population (2007 est.): 6.05 million.
Religions (2001 est.): Sunni Muslim 92%, Christian 6%, other 2%.
Languages: Arabic (official), English.
Education (2006, according to Jordan's Department of Statistics): Literacy--90.9%.
Health (2003): Infant mortality rate--16/1,000. Life expectancy--78 yrs.
Ethnic groups: Mostly Arab but small communities of Circassians, Armenians, and Kurds.
Work force (1.3 million, of which 260 thousand are registered guest workers): public sector 17%, services 36%, manufacturing 20%, education 12%, health and social services 10%, primary industries 5%.
Unemployment rate (2007): 13% of economically active Jordanians.

Government

Type: Constitutional monarchy.
Independence: May 25, 1946.
Constitution: January 8, 1952.
Branches: Executive--King (chief of state), Prime Minister (head of government), Council of Ministers (cabinet). Legislative--bicameral National Assembly (appointed Senate, elected Chamber of Deputies). Judicial--civil, religious, special courts.
Political parties: Wide spectrum of parties legalized in 1992.
Suffrage: Universal at 18.
Administrative subdivisions: Twelve governorates--Irbid, Jarash, Ajloun, al-'Aqaba, Madaba, al-Mafraq, al-Zarqa, Amman, al-Balqa, al-Karak, al-Tafilah, and Ma'an.

Economy

Nominal GDP (2007): $13.55 billion.
Annual real growth rate (2007): 5.7%.
Per capita GDP (2007): $4,700.
Natural resources: Phosphate, potash.
Agriculture: Products--citrus, tomatoes, cucumbers, olives, sheep, poultry, stone fruits, strawberries, melons, dairy. Land--10% arable; 5% cultivated.
Industry (26.5% of GDP in 2006): Types--clothing, phosphate mining, fertilizers, pharmaceuticals, petroleum refining, cement, potash, inorganic chemicals, light manufacturing, and tourism.
Trade: Exports (2007 est.)--$5.708 billion: garments, pharmaceutical products, fertilizers, vegetables, phosphates, and potash. Major markets--U.S., Iraq, India, Saudi Arabia, U.A.E., Syria, Israel, Kuwait. Imports (2007 est.)--$13.5 billion: crude petroleum and derivatives, fabrics and textiles, machinery and equipment, manufactured goods, iron, and cereals. Major suppliers-- Saudi Arabia (mainly crude oil and derivatives), EU, China, U.S., Egypt, South Korea, Japan, Turkey.

Note: From 1949 to 1967, Jordan administered the West Bank. Since the 1967 war, when Israel took control of this territory, the United States has considered the West Bank to be territory occupied by Israel. The United States believes that the final status of the West Bank can be determined only through negotiations among the concerned parties based on UN Security Council Resolutions 242 and 338.

PEOPLE

Jordanians are Arabs, except for a few small communities of Circassians, Armenians, and Kurds who have adapted to Arab culture. The official language is Arabic, but English is used widely in commerce and government. About 70% of Jordan's population is urban; less than 6% of the rural population is nomadic or semi-nomadic. Most of the population lives where rainfall can support agriculture. Approximately 1.7 million registered Palestinian refugees and other displaced persons reside in Jordan, many as citizens.

HISTORY

The land that became Jordan is part of the richly historical Fertile Crescent region. Around 2000 B.C., Semitic Amorites settled around the Jordan River in the area called Canaan. Subsequent invaders and settlers included Hittites, Egyptians, Israelites, Assyrians, Babylonians, Persians, Greeks, Romans, Arab Muslims, Christian Crusaders, Mameluks, Ottoman Turks, and, finally, the British. At the end of World War I, the League of Nations awarded the territory now comprising Israel, Jordan, the West Bank, Gaza, and Jerusalem to the United Kingdom as the mandate for Palestine and Transjordan. In 1922, the British divided the mandate by establishing the semiautonomous Emirate of Transjordan, ruled by the Hashemite Prince Abdullah, while continuing the administration of Palestine under a British High Commissioner. The mandate over Transjordan ended on May 22, 1946; on May 25, the country became the independent Hashemite Kingdom of Transjordan. It ended its special defense treaty relationship with the United Kingdom in 1957.

Transjordan was one of the Arab states which moved to assist Palestinian nationalists opposed to the creation of Israel in May 1948, and took part in the warfare between the Arab states and the newly founded State of Israel. The armistice agreements of April 3, 1949 left Jordan in control of the West Bank and provided that the armistice demarcation lines were without prejudice to future territorial settlements or boundary lines.

In 1950, the country was renamed the Hashemite Kingdom of Jordan to include those portions of Palestine annexed by King Abdullah I. While recognizing Jordanian administration over the West Bank, the United States maintained the position that ultimate sovereignty was subject to future agreement.

Jordan signed a mutual defense pact in May 1967 with Egypt, and it participated in the June 1967 war between Israel and the Arab states of Syria, Egypt, and Iraq. During the war, Israel gained control of the West Bank and all of Jerusalem. In 1988, Jordan renounced all claims to the West Bank but retained an administrative role pending a final settlement, and its 1994 treaty with Israel allowed for a continuing Jordanian role in Muslim holy places in Jerusalem. The U.S. Government considers the West Bank to be territory occupied by Israel and believes that its final status should be determined through direct negotiations among the parties concerned on the basis of UN Security Council Resolutions 242 and 338.

The 1967 war led to a dramatic increase in the number of Palestinians living in Jordan. Its Palestinian refugee population--700,000 in 1966--grew by another 300,000 from the West Bank. The period following the 1967 war saw an upsurge in the power and importance of Palestinian resistance elements (fedayeen) in Jordan. The heavily armed fedayeen constituted a growing threat to the sovereignty and security of the Hashemite state, and open fighting erupted in June 1970.

No fighting occurred along the 1967 Jordan River cease-fire line during the October 1973 Arab-Israeli war, but Jordan sent a brigade to Syria to fight Israeli units on Syrian territory. Jordan did not participate in the Gulf war of 1990-91. In 1991, Jordan agreed, along with Syria, Lebanon, and Palestinian representatives, to participate in direct peace negotiations with Israel sponsored by the U.S. and Russia. It negotiated an end to hostilities with Israel and signed a peace treaty in 1994. Jordan has since sought to remain at peace with all of its neighbors.

GOVERNMENT

Jordan is a constitutional monarchy based on the constitution promulgated on January 8, 1952. Executive authority is vested in the King and his Council of Ministers. The King signs and executes all laws. His veto power may be overridden by a two-thirds vote of both houses of the National Assembly. He appoints and may dismiss all judges by decree, approves amendments to the constitution, declares war, and commands the armed forces. Cabinet decisions, court judgments, and the national currency are issued in his name. The King, who may dismiss other cabinet members at the prime minister's request, appoints the council of ministers, led by a prime minister. The cabinet is responsible to the Chamber of Deputies on matters of general policy and can be forced to resign by a two-thirds vote of "no confidence" by that body.

Legislative power rests in the bicameral National Assembly. The number of deputies in the current Chamber of Deputies is 110, with a number of seats reserved for various religions, ethnicities, and women. The Chamber, elected by universal suffrage to a 4-year term, is subject to dissolution by the King. The King appoints the 55-member Senate for a 4-year term. Elections for municipal councils and mayors were held in July 2007; 20% of the council seats were reserved by quota for women. Parliamentary elections were held in November 2007, with the majority of seats going to independent, pro-government candidates. Eight seats in the parliament are reserved by quota for women, and a ninth woman won a seat outside the quota.

The constitution provides for three categories of courts--civil, religious, and special. Administratively, Jordan is divided into 12 governorates, each headed by a governor appointed by the King. They are the sole authorities for all government departments and development projects in their respective areas.

POLITICAL CONDITIONS

King Hussein ruled Jordan from 1953 to 1999, surviving a number of challenges to his rule, drawing on the loyalty of his military, and serving as a symbol of unity and stability for both the East Bank and Palestinian communities in Jordan. In 1989 and 1993, Jordan held free and fair parliamentary elections. Controversial changes in the election law led Islamist parties to boycott the 1997 elections. King Hussein ended martial law in 1991 and legalized political parties in 1992.

King Abdullah II succeeded his father Hussein following the latter's death in February 1999. Abdullah moved quickly to reaffirm Jordan's peace treaty with Israel and its relations with the U.S., and has since focused the government's agenda on economic reform, political development, and poverty alleviation.

Jordan's continuing structural economic difficulties, burgeoning population, and more open political environment have led to the emergence of a variety of small political parties. Moving toward greater independence, Jordan's parliament has investigated corruption charges against several regime figures and has become the major forum in which differing political views, including those of political Islamists, are expressed. Parliamentary elections were most recently held in November 2007. The Islamist opposition lost many of the seats it had gained in 2003, with the vast majority of seats being won by independent, pro-government candidates. Following the elections, in December 2007, the King appointed the current cabinet with a clear mandate to push forward economic reform and job creation.

ECONOMY

Jordan is a small country with limited natural resources. It is among the four most water-poor countries in the world. The country is currently exploring ways to expand its limited water supply and use its existing water resources more efficiently, including through regional cooperation. Jordan also depends on external sources for the majority of its energy requirements. During the 1990s, its crude petroleum needs were met through imports from neighboring Iraq, often at concessionary prices. Since early 2003, Jordan has imported oil primarily from Saudi Arabia at concessionary and market prices. In addition, a natural gas pipeline from Egypt to Jordan through the southern port city of Aqaba is now operational. The pipeline has reached northern Jordan and construction to connect it to Syria and beyond is underway. Jordan developed a new energy strategy in 2007 that aims to develop more indigenous and renewable energy sources, including oil shale, nuclear energy, wind, and solar power.

Under King Abdullah, Jordan has undertaken a program of economic reform. The government has taken the initiative for the phased elimination of fuel subsidies, passed legislation targeting corruption, and begun tax reform. It has also worked to liberalize trade, joining the World Trade Organization (WTO) in 2000, signing an Association Agreement with the European Union (EU) in 2001, and signing the first bilateral Free Trade Agreement (FTA) between the U.S. and an Arab country in 2001 (www.jordanusfta.com). The U.S.-Jordan FTA will phase out duties on nearly all goods and services by 2010. The agreement also provides for more open markets in communications, construction, finance, health, transportation, and services, as well as strict application of international standards for the protection of intellectual property. In 1996, the U.S. Congress created Qualifying Industrial Zones (QIZ) to support the peace process. QIZ goods, which must contain a certain percentage of Israeli input and enter the United States tariff- and quota-free, have also driven economic growth, particularly in the export of light manufactured products such as garments. Jordan exported $6.9 million in goods to the U.S. in 1997, when two-way trade was $395 million; according to the U.S. International Trade Commission, it exported $1.33 billion in 2007, with two-way trade at $2.19 billion. In 2007, Jordan's economy continued to grow but was hurt by high oil prices, leading to an unexpectedly high budget deficit. Fuel subsidies were eliminated in 2008, and barley subsidies are scheduled to be replaced by a program that offsets livestock rather than feed costs.

In 1996, Jordan and the United States signed a civil aviation agreement that provides for "open skies" between the two countries, and a U.S.-Jordan Bilateral Investment Treaty (BIT) for the protection and encouragement of bilateral investment entered into force in 2003. The United States and Jordan also signed in 2007 a Science and Technology Cooperation Agreement to facilitate and strengthen scientific cooperation between the two countries, as well as a memorandum of understanding on nuclear energy cooperation. Such agreements bolster efforts to help diversify Jordan's economy and promote growth, and at the same time lessen reliance on exports of phosphates, potash, and recently textiles; overseas remittances; and foreign aid. The government has emphasized the information technology (IT) and tourism sectors as other promising growth sectors. The low tax and low regulation Aqaba Special Economic Zone (ASEZ) is considered a model of a government-provided framework for private sector-led economic growth.

Jordan is classified by the World Bank as a "lower middle income country." The per capita GDP is $4,700. According to Jordan's Department of Statistics, 13% of the economically active Jordanian population residing in Jordan was unemployed in 2007, although unofficial estimates cite a 30% unemployment rate. Education and literacy rates and measures of social well-being are relatively high compared to other countries with similar incomes. Jordan's population growth rate has declined in recent years and is currently 2.3% as reported by the Jordanian government. One of the most important factors in the government's efforts to improve the well-being of its citizens is the macroeconomic stability that has been achieved since the 1990s. The rate of inflation in 2007 was 5.7%; the currency has been stable with an exchange rate fixed to the U.S. dollar since 1995 at JD 0.708-0.710 to the dollar. In 2007, Jordan negotiated a Paris Club debt buyback agreement to retire at least $2 billion. This buyback will reduce the percentage of external debt to GDP from 46% to 32%.

While pursuing economic reform and increased trade, Jordan's economy will continue to be vulnerable to external shocks and regional unrest. Without calm in the region, economic growth seems destined to stay below its potential.

FOREIGN RELATIONS

Jordan has consistently followed a pro-Western foreign policy and traditionally has had close relations with the United States. These relations were damaged by support in Jordan for Iraq during the first Gulf war (1991). Although the Government of Jordan stated its opposition to the Iraqi occupation of Kuwait, popular support for Iraq was driven by Jordan's Palestinian community, which favored Saddam as a champion against Western supporters of Israel.

Following the first Gulf war, Jordan largely restored its relations with Western countries through its participation in the Middle East peace process and enforcement of UN sanctions against Iraq. Relations between Jordan and the Gulf countries improved substantially after King Hussein's death. Since the 2003 fall of the Iraqi regime, Jordan has played a pivotal role in supporting the restoration of stability and security to Iraq. The Government of Jordan has facilitated the training of over 50,000 Iraqi police cadets and corrections officers at a Jordanian facility near Amman. Jordan also plays host to several hundred thousand Iraqi refugees and has worked closely with donor agencies and the international community to address their humanitarian needs.

Jordan signed a nonbelligerency agreement with Israel (the Washington Declaration) in Washington, DC, on July 25, 1994. Jordan and Israel signed a historic peace treaty on October 26, 1994, witnessed by President Clinton. The U.S. has participated with Jordan and Israel in trilateral development discussions in which key issues have been water-sharing and security; cooperation on Jordan Rift Valley development; infrastructure projects; and trade, finance, and banking issues. Jordan also participates in multilateral peace talks. Jordan belongs to the UN and several of its specialized and related agencies, including the World Trade Organization (WTO), the International Meteorological Organization (IMO), Food and Agriculture Organization (FAO), International Atomic Energy Agency (IAEA), International Civil Aviation Organization (ICAO), and World Health Organization (WHO). Jordan also is a member of the World Bank, International Monetary Fund (IMF), Organization of the Islamic Conference (OIC), Nonaligned Movement, and Arab League.

Since the outbreak of the second Intifada in September 2000, Jordan has worked to maintain lines of communication between the Israelis and the Palestinians to counsel moderation and to return the parties to negotiations of outstanding permanent status issues. These efforts bore fruit with the resumption of Israeli-Palestinian peace negotiations at the November 2007 Annapolis conference.

U.S.-JORDANIAN RELATIONS

Relations between the U.S. and Jordan have been close for six decades, with 2009 marking the 60th anniversary of U.S.-Jordan ties. A primary objective of U.S. policy has been the achievement of a comprehensive, just, and lasting peace in the Middle East.

U.S. policy seeks to reinforce Jordan's commitment to peace, stability, and moderation. The peace process and Jordan's opposition to terrorism parallel and indirectly assist wider U.S. interests. Accordingly, through economic and military assistance and through close political cooperation, the United States has helped Jordan maintain its stability and prosperity.

Since 1952 the United States has worked closely with Jordan to improve the lives of Jordanian citizens. Total development assistance exceeds $5 billion and has funded a range of projects: health care, education, construction to increase water availability, and support for microeconomic policy shifts toward a more completely free market system. Additionally, the U.S. has provided both grants and loans for the acquisition of U.S. agriculture commodities. These programs have been successful and have contributed to Jordanian stability while strengthening the bilateral relationship. A strong U.S. military assistance program is designed to meet Jordan's legitimate defense needs, including preservation of border integrity and regional stability through the provision of materiel and training. Jordan signed a Threshold Agreement with the Millennium Challenge Corporation (MCC) in October 2006, and was subsequently deemed by the MCC to be eligible for a Compact Agreement in recognition of the country's progress on economic, social, and political reform indicators.

TRAVEL AND BUSINESS INFORMATION

The U.S. Department of State's Consular Information Program advises Americans traveling and residing abroad through Country Specific Information, Travel Alerts, and Travel Warnings. Country Specific Information exists for all countries and includes information on entry and exit requirements, currency regulations, health conditions, safety and security, crime, political disturbances, and the addresses of the U.S. embassies and consulates abroad. Travel Alerts are issued to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas that pose significant risks to the security of American travelers. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country because the situation is dangerous or unstable.

http://www.state.gov/r/pa/ei/bgn/3464.htm

__________________
~Time owns each and everything~
~Useless youth if not useful for Pakistan~

OFFICIAL NAME

Republic of Kazakhstan

Geography

Area: 2.7 million sq. km. (1.05 million sq. mi.); ninth-largest nation in the world; the size of Western Europe.
Major cities: Astana (capital, June 1998), Almaty (former capital), Karaganda, and Shymkent.
Terrain: Extends east to west from the Caspian Sea to the Altay Mountains and north to south from the plains of Western Siberia to the oasis and desert of Central Asia.
Climate: Continental, cold winters and hot summers; arid and semi-arid.
Border lengths: Russia 6,846 km., Uzbekistan 2,203 km., China 1,533 km., Kyrgyzstan 1,051 km., and Turkmenistan 379 km.

People

Nationality: Kazakhstani.
Population (January 2008 est.): 15.6 million--down from 16.2 million in 1989; second most-populated country in Central Asia. Large-scale emigration of ethnic Russians, Germans, and Ukrainians accounts for most of the population decrease since 1989.
Population growth rate (2007 est.): 1.08%.
Population distribution: 52.8 % of population lives in urban areas. The largest cities include Astana (capital) with a population of 602,480, Almaty (former capital) 1.3 million, Karaganda 453,400, Shymkent 545,400, Taraz 340,000, Ust-Kamenogorsk 310,000, Pavlodar 300,000.
Population density: 14.5 people per sq. mi. (U.S. density, 2000: 79.6 people per sq. mi.).
Ethnic groups (2002): Kazakh 55.8%, Russian 28.3%, Ukrainian 3.3%, Uzbek 2.6%, German 1.8%, Uyghur 1.5%, other 5.0%.
Religion: Sunni Muslim 47%, Russian Orthodox 44%, Protestant 2%, other 7%.
Language: Kazakhstan is a bilingual country. Kazakh language has the status of the "state" language, while Russian is declared the "official" language. Russian is used routinely in business; 64.4% of population speaks the Kazakh language.
Health (2007 est.): Infant mortality rate--27.4/1,000. Life expectancy--67.22 years (male 61.9 yrs.; female 72.84 yrs.). Health care (2005 est.)--30.3 doctors and 68.2 hospital beds per 10,000 persons.
Education: Mandatory universal secondary education. School system consists of kindergarten, primary school (grades 1-4), secondary school (grades 5-9), and high school (grades 10-11). Literacy rate--98.4%.
Work force (2007 est., 8.16 million): Industry and construction--18.1%; agriculture and fishing--32.9%; services--49%.

Government

Type: Republic.
Independence: December 16, 1991 (from the Soviet Union).
Declaration of sovereignty: October 25, 1990.
Constitution: August 30, 1995 constitution adopted by referendum replaced a 1993 constitution.
Branches: Executive--president, prime minister, Council of Ministers. Legislative--Senate and Mazhilis. Judicial--Supreme Court.
Administrative subdivisions: 14 oblasts plus 2 cities--Almaty, the former capital, and Astana, the current capital; and the territory of Baykonur, which contains the space launch center that the Russians built and now lease.
Ten political parties are registered: Nur Otan ("The Light of Fatherland" in Kazakh), Azat ("Free"; formerly known as True Ak Zhol), the National Social Democratic Party, Ak Zhol (Bright Path), Auyl (Farm), the Communist Party of Kazakhstan, the Communist People's Party, Party of Patriots, Adilet (Justice), and Rukhaniyat (Spirituality).
Suffrage: Universal, 18 years of age.

Economy

GDP (2007): $102.5 billion.
Exchange rate (period average): 122.55 KZT/U.S. $1 in 2007.
GDP growth rate: 9.5% (2002); 9.2% (2003); 9.6% (2004 est.); 9.7% (2005 est.); 10.7% (2006); 8.5% (2007).
GDP per capita (2007, purchasing power parity): $11,100.
Inflation rate: 6.6% (2002); 6.8% (2003); 6.7% (2004 est.); 7.5% (2005); 8.4% (2006); 18.8% (2007 year-over-year); 10.8% (2007 average).
Trade: Exports (2007 est.)--$44.88 billion. Imports (2007 est.)--$29.91 billion.
Gross external debt: $18.2 billion (2002); $22.9 billion (2003); $32.71 billion (2004); $43.40 billion (2005); $73.46 billion (2006); $96.37 billion (2007).
Central Bank's foreign exchange reserves: $4.96 billion (2003); $7.07 billion (2005 est.); $19.04 billion (Feb. 2008).
National (oil) fund reserves: $3.6 billion (2003); $5.1 billion (2004); $10.1 billion (2006); $22.6 billion (Feb. 2008).
Officially recognized unemployment rate: 8.7% (2003); 8.4% (2004 est.); 8.1% (2005 est.); 7.4% (2006 est.); 7.1% (2007 est.).
Population below poverty line: 13.8% (2007).

PEOPLE AND HISTORY

Kazakhstan is very ethnically diverse, with only a slight majority of Kazakhstanis being ethnic Kazakh. Other ethnic groups include Russian, Ukrainian, Uzbek, German, and Uyghur. Religions are Sunni Muslim, Russian Orthodox, Protestant, and other. Kazakhstan is a bilingual country. The Kazakh language has the status of the "state" language, while Russian is declared the "official" language. Russian is used routinely in business; 64.4% of the population speaks the Kazakh language. Education is universal and mandatory through the secondary level, and the literacy rate is 98.4%.

Nomadic tribes have been living in the region that is now Kazakhstan since the first century BC, although the land has been inhabited at least as far back as the Stone Age. From the fourth century AD through the beginning of the 13th century, the territory of Kazakhstan was ruled by a series of nomadic nations. Following the Mongolian invasion in the early 13th century, administrative districts were established under the Mongol Empire, which eventually became the territories of the Kazakh Khanate. The major medieval cities of Taraz and Turkestan were founded along the northern route of the Great Silk Road during this period.

Traditional nomadic life on the vast steppe and semi-desert lands was characterized by a constant search for new pasture to support the livestock-based economy. The Kazakhs emerged from a mixture of tribes living in the region in about the 15th century and by the middle of the 16th century had developed a common language, culture, and economy. In the early 1600s, the Kazakh Khanate separated into the Great, Middle and Little (or Small) Hordes--confederations based on extended family networks. Political disunion, competition among the hordes, and a lack of an internal market weakened the Kazakh Khanate. The beginning of the 18th century marked the zenith of the Kazakh Khanate. The following 150 years saw the gradual colonization of the Kazakh-controlled territories by tsarist Russia.

The process of colonization was a combination of voluntary integration into the Russian Empire and outright seizure. The Little Horde and part of the Middle Horde signed treaties of protection with Russia in the 1730s and 1740s. Major parts of the northeast and central Kazakh territories were incorporated into the Russian Empire by 1840. With the Russian seizure of territories belonging to the Senior Horde in the 1860s, the tsars effectively ruled over most of the territory belonging to what is now the Republic of Kazakhstan.

The Russian Empire introduced a system of administration and built military garrisons in its effort to establish a presence in Central Asia in the so-called "Great Game" between it and Great Britain. Russian efforts to impose its system aroused the resentment of the Kazakh people, and by the 1860s, most Kazakhs resisted Russia's annexation largely because of the disruption it wrought upon the traditional nomadic lifestyle and livestock-based economy. The Kazakh national movement, which began in the late 1800s, sought to preserve the Kazakh language and identity. There were uprisings against colonial rule during the final years of tsarist Russia, with the most serious occurring in 1916. The destruction of the nomadic life, prior to and during the Communist period, created a Kazakh diaspora in neighboring countries, especially western China. Since independence in 1991, the government has encouraged the return of ethnic Kazakhs by offering subsidies for returnees.

Although there was a brief period of autonomy during the tumultuous period following the collapse of the Russian Empire, the Kazakhs eventually succumbed to Soviet rule. In 1920, the area of present-day Kazakhstan became an autonomous republic within Russia and, in 1936, a Soviet republic.

Soviet repression of the traditional elites, along with forced collectivization in late 1920s-1930s, brought about mass hunger and starvation, leading to civil unrest. Soviet rule, however, took hold, and a communist apparatus steadily worked to fully integrate Kazakhstan into the Soviet system. Kazakhstan experienced population inflows of thousands exiled from other parts of the Soviet Union during the 1930s and later became home for hundreds of thousands evacuated from the Second World War battlefields. The Kazakh Soviet Socialist Republic (SSR) contributed five national divisions to the Soviet Union's World War II effort.

The period of the Second World War marked an increase in industrialization and increased mineral extraction in support of the war effort. At the time of Soviet leader Josif Stalin's death, however, Kazakhstan still had an overwhelmingly agricultural-based economy. In 1953, Soviet leader Nikita Khrushchev initiated the ambitious "Virgin Lands" program to turn the traditional pasturelands of Kazakhstan into a major grain-producing region for the Soviet Union. The Virgin Lands policy, along with later modernizations under Soviet leader Leonid Brezhnev, sped up the development of the agricultural sector, which to this day remains the source of livelihood for a large percentage of Kazakhstan's population.

Growing tensions within Soviet society led to a demand for political and economic reforms, which came to a head in the 1980s. In December 1986, mass demonstrations by young ethnic Kazakhs took place in Almaty to protest Moscow's installment of a non-Kazakhstani First Secretary as leader. Soviet troops suppressed the unrest, and dozens of demonstrators were jailed. In the waning days of Soviet rule, discontent continued to grow and find expression under Soviet leader Mikhail Gorbachev's policy of glasnost. Caught up in the groundswell of Soviet republics seeking greater autonomy, Kazakhstan declared its sovereignty as a republic within the Union of Soviet Socialist Republics (U.S.S.R.) in October 1990. Following the August 1991 abortive coup attempt in Moscow and the subsequent dissolution of the Soviet Union, Kazakhstan declared independence on December 16, 1991.

The years following independence have been marked by significant reforms to the Soviet command-economy and political monopoly on power. Under Nursultan Nazarbayev, who initially came to power in 1989 as the head of the Kazakh Communist Party and was eventually elected President in 1991, Kazakhstan has made significant progress toward developing a market economy, for which it was recognized by the United States in 2002. The country has enjoyed significant economic growth since 2000, partly due to its large oil, gas, and mineral reserves.

GOVERNMENT AND POLITICAL CONDITIONS

Kazakhstan is a constitutional republic with a strong presidency. It is divided into 14 oblasts and the two municipal districts of Almaty and Astana. Each is headed by an akim (provincial governor) appointed by the president. Municipal akims are appointed by oblast akims. The Government of Kazakhstan transferred its capital from Almaty to Astana on June 10, 1998.

The president is the head of state. The president also is the commander in chief of the armed forces and may veto legislation that has been passed by the Parliament. President Nursultan Nazarbayev has been in office since Kazakhstan became independent. In 1995, President Nazarbayev called for a referendum that expanded his presidential powers: only he can initiate constitutional amendments, appoint and dismiss the government, dissolve Parliament, call referenda, and appoint administrative heads of regions and Astana and Almaty. The prime minister, who serves at the pleasure of the president, chairs the Cabinet of Ministers and serves as Kazakhstan's head of government. There are two deputy prime ministers and 17 ministers in the Cabinet.

In December 2005, President Nazarbayev won a new 7-year term in an election that the Organization for Security and Cooperation in Europe said fell short of international standards. Official results gave the president 91% of the vote, although independent exit polls found this figure to be somewhat inflated. Opposition candidates Zharmakhan Tuyakbay (For a Just Kazakhstan) and Alikhan Baymenov (Ak Zhol) were able to compete freely in this election.

Kazakhstan has a bicameral Parliament, comprised of a lower house (the Mazhilis) and upper house (the Senate). Ninety-eight members of the Mazhilis are elected by a party-list vote. Nine members of the Mazhilis are elected by the Assembly of Peoples of Kazakhstan. The Senate has 47 members. Two senators are selected by each of the elected assemblies (Maslikhats) of Kazakhstan's 16 principal administrative divisions (14 regions, or oblasts, plus the cities of Astana and Almaty). The president appoints the remaining fifteen senators. Mazhilis deputies, the government, and the president have the right of legislative initiative, though the government proposes most legislation considered by the Parliament.

President Nazarbayev's Nur Otan party won the August 2007 elections to the Mazhilis. None of the remaining political parties won a seat during the elections, which the Organization for Security and Cooperation in Europe said fell short of international standards.

__________________
~Time owns each and everything~
~Useless youth if not useful for Pakistan~

ECONOMY

Kazakhstan's economy grew by 8.5% in 2007. Gross domestic product (GDP) grew 10.7% in 2006, 9.7% in 2005, 9.6% in 2004, 9.2% in 2003, and 9.5% in 2002.

Kazakhstan's monetary policy has been largely well managed. However, in 2007, rapid increases in global commodity prices helped push inflation rates as high as 18.8%. Prior to this, inflation had remained relatively steady at 9.5%, up from 8.4% in 2006. Inflation from 2002-2004 was 6.6%, 6.8%, and 6.7%, respectively. Because of its strong macroeconomic performance and financial health, Kazakhstan became the first former Soviet republic to repay all of its debt to the International Monetary Fund (IMF) in 2000, 7 years ahead of schedule. In March 2002, the U.S. Department of Commerce graduated Kazakhstan to market economy status under U.S. trade law. The change in status recognized substantive market economy reforms in the areas of currency convertibility, wage rate determination, openness to foreign investment, and government control over the means of production and allocation of resources.

In September 2002, Kazakhstan became the first country in the former Soviet Union to receive an investment-grade credit rating from a major international credit rating agency. Estimated level of external debt in 2006 was $73.46 billion. In 2005, Kazakhstan's gross foreign debt was about $43.40 billion. Kazakhstan has been successful in reducing the ratio of government debt to GDP in recent years. In 2007, total governmental debt was $5.7 billion, which amounts to 5.5% of GDP. In 2000, total government debt equaled 21.7% of GDP. While government debt has continued to decrease, several years of aggressive private-sector borrowing and lending practices contributed to a liquidity and credit crunch in 2007. Total external debt (public and private) increased dramatically from $73.46 billion (2006) to $96.37 billion (2007), now equivalent to 94.4% of GDP. An upturn in economic growth, combined with the results of earlier tax and financial sector reforms, dramatically improved government finances from the 1999 budget deficit level of 3.5% of GDP to a deficit of 0.5% of GDP in 2005. However, the budget deficit level in 2007 was $1.8 billion, or approximately 1.7% of GDP. Government revenues grew from 19.8% of GDP in 1999 to 22.6% of GDP in 2001 to 25.7% of GDP in 2005. Government revenues in 2007, like other sectors of the economy, declined slightly to 22.7% of GDP. In 2000, Kazakhstan adopted a new tax code in an effort to consolidate these gains. On November 29, 2003 the Law on Changes to Tax Code was adopted, which reduced the value added tax (from 16% to 13%), the social tax (from 21% to 13%), and the personal income tax (from 20% to 10%). Kazakhstan furthered its reforms by adopting a new land code on June 20, 2003 and a customs code on April 5, 2003. Further revisions to the customs code are expected to be adopted in 2008.

Oil and gas is the leading economic sector. Production of oil and gas condensate in Kazakhstan amounted to 67.2 million tons in 2007, an increase from 64.5 million tons in 2006. Kazakhstan exported 60.2 million tons of oil and gas condensate in 2007. Natural gas production in Kazakhstan in 2007 amounted to 16.6 billion cubic meters. Kazakhstan holds about 4 billion tons of proven recoverable oil reserves and 3 trillion cubic meters of gas. Industry analysts believe that planned expansion of oil production, coupled with the development of new fields, will enable the country to produce as much as 3 million barrels per day by 2015, lifting Kazakhstan into the ranks of the world's top 10 oil-producing nations. Kazakhstan's 2005 oil exports were valued at $17.4 billion, representing over 70% of overall exports. Major oil and gas fields and their recoverable oil reserves are Tengiz (7 billion barrels); Karachaganak (8 billion barrels and 1,350 billion cubic meters of natural gas); and Kashagan (7-9 billion barrels). Starting in 2004, the Government of Kazakhstan increased its take of oil deals by increasing taxation of new oil projects. In 2007, the government amended the "Law on Subsoil and Subsoil Use." The amendments give the government the right to annul or amend subsoil contracts if the contracts pose a danger to the country's national economic security interests. The government insisted it would not use the amendments retroactively to annul existing contracts.

Kazakhstan instituted an ambitious pension reform program in 1998. There are 14 saving pension funds, one of which is state controlled. The National Bank oversees and regulates the pension funds. The pension funds' growing demand for quality investment outlets triggered rapid development of the debt securities market. Pension fund capital is being invested almost exclusively in corporate and government bonds, including Government of Kazakhstan Eurobonds. The Kazakhstani banking system is developing rapidly. Its capitalization now exceeds $1 billion. The National Bank has introduced deposit insurance in its campaign to strengthen the banking sector. Several major foreign banks have branches in Kazakhstan, including ABN-AMRO, Citibank, and HSBC.

Agriculture

Agriculture accounted for 5.82% of Kazakhstan's GDP in 2007. Grain (Kazakhstan is the seventh-largest producer of wheat in the world) and livestock are the most important agricultural commodities. Agricultural land occupies more than 220 million hectares, about 68% of which consists of pasture and hay land. Chief livestock products are dairy goods, leather, meat, and wool. The country's major crops include wheat, barley, cotton, and rice. Wheat is the leading agricultural commodity in Kazakhstan's export trade. Kazakhstan harvests 14-15 million tons of wheat per year.

Natural Resources

Oil, gas, and mineral exports are key to Kazakhstan's economic success. Since 1993, Kazakhstan's extractive industries have attracted $30.7 billion in foreign investment, which represents almost 76% of the total foreign direct investment in Kazakhstan for that period. Kazakhstan has significant deposits of coal, iron ore, copper, zinc, uranium, and gold.

FOREIGN RELATIONS

Kazakhstan has stable relationships with all of its neighbors. Kazakhstan is a member of the United Nations, Organization for Security and Cooperation in Europe, and North Atlantic Cooperation Council, and will serve as chairman in office of the Organization for Security and Cooperation in Europe in 2010. It also is an active participant in the North Atlantic Treaty Organization's (NATO) Partnership for Peace program. Kazakhstan also is a member of the Commonwealth of Independent States and the Shanghai Cooperation Organization along with Russia, China, Kyrgyzstan, Tajikistan, and Uzbekistan. Kazakhstan, Russia, Belarus, Kyrgyzstan, and Tajikistan established the Eurasian Economic Community in 2000 to re-energize earlier efforts at harmonizing trade tariffs and the creation of a free trade zone under a customs union. Kazakhstan is the founding member of the Conference for Interaction and Confidence in Asia. Kazakhstan also engages in regional security dialogue with ASEAN (Association of South East Asian Nations).

U.S.-KAZAKHSTAN RELATIONS

The United States was the first country to recognize Kazakhstan, on December 25, 1991, and opened its Embassy in Almaty in January 1992; the Embassy moved to Astana in 2006. In the years since Kazakhstan's independence, the two countries have developed a wide-ranging bilateral relationship. The current Ambassador is John Ordway, who assumed his post in September 2004.

U.S.-Kazakhstani cooperation in security and non-proliferation has been a cornerstone of the relationship. Kazakhstan showed leadership when it renounced nuclear weapons in 1993. The United States has assisted Kazakhstan in the removal of nuclear warheads, weapons-grade materials, and their supporting infrastructure. In 1994, Kazakhstan transferred more than a half-ton of weapons-grade uranium to the United States. In 1995 Kazakhstan removed its last nuclear warheads and, with U.S. assistance, completed the sealing of 181 nuclear test tunnels in May 2000. Kazakhstan has signed the Conventional Armed Forces in Europe Treaty (1992), the START Treaty (1992), the nuclear Non-Proliferation Treaty (1993), the Chemical Weapons Convention, and the Comprehensive Test Ban Treaty (2001). Under the Cooperative Threat Reduction program, the United States has spent $240 million to assist Kazakhstan in eliminating weapons of mass destruction and weapons of mass destruction-related infrastructure.

Economic Relations

U.S. foreign direct investment (FDI) was 24.6% of total FDI in Kazakhstan in the first half of 2007. American companies have invested about $14.3 billion in Kazakhstan since 1993. These companies are concentrated in the oil and gas, business services, telecommunications, and electrical energy sectors. Kazakhstan has made progress in creating a favorable investment climate although serious problems, including arbitrary enforcement of laws, remain. A U.S.-Kazakhstan Bilateral Investment Treaty and a Treaty on the Avoidance of Dual Taxation have been in place since 1994 and 1996, respectively. In 2001, Kazakhstan and the United States established the U.S.-Kazakhstan Energy Partnership.

Sections 402 and 409 of the United States 1974 Trade Act require that the President submit semi-annually a report to Congress on continued compliance with the Act's freedom of emigration provisions by those countries, including Kazakhstan, that fall under the Trade Act's Jackson-Vanik Amendment. Bilateral trade in 2005 was valued at $1.64 billion, a 91% increase from 2004.

U.S. Assistance

Between 1992 and 2005, the United States provided roughly $1.205 billion in technical assistance and investment support in Kazakhstan. The programs were designed to promote market reform, to establish a foundation for an open, prosperous, and democratic society, and to address security issues.

Since 1993, the U.S. Agency for International Development (USAID) has administered technical assistance programs to support Kazakhstan's transition to a market economy, fully integrated into the world trade system. These programs include cooperation in privatization, fiscal, and financial policy; commercial law; energy; health care; and environmental protection. In 2006, Kazakhstan became the first country to share directly in the cost of a U.S. Government's foreign assistance program. Through 2009, the Government of Kazakhstan will contribute over $15 million to a $40 million USAID economic development project aimed at strengthening Kazakhstan's capacity to achieve its development goals. The U.S. Commercial Service provides U.S. business internships for Kazakhstanis, supports Kazakhstani businesses through a matchmaker program and disseminates information on U.S. goods and services. Additional information is available on its website: www.buyusa.gov/kazakhstan/en/. The Peace Corps has about 140 volunteers working throughout Kazakhstan in business education, English teaching, and the development of environmental non-governmental organizations. Since 2001 and the advent of the war on terror, the U.S. has assisted Kazakhstan to combat illegal narcotics, improve border security, and, more recently combat money laundering and trafficking in persons.

The United States supports increased citizen participation in the public arena through support for non-governmental organizations (NGOs). Dozens of grants have been provided to support NGOs that promote an independent media, legal reform, women's rights, civic education, and legislative oversight. USAID also has provided training courses for leaders and professionals.

[Fact sheet on FY 2008 U.S. Assistance to Kazakhstan.]

Military Cooperation

Kazakhstan's military participates in the U.S.'s International Military Education and Training program, Foreign Military Financing, as well as NATO's Partnership for Peace program. In 2005, U.S. Central Command conducted approximately 45 bilateral, military cooperation events with the Ministry of Defense of Kazakhstan and other agencies, an increase of more than 100% since 2002. Events vary in size and scope, ranging from information exchanges to military exercises.

Environmental Issues

Kazakhstan has identified a number of major ecological problems within its borders--desiccation of the Aral Sea, protection of the fragile Caspian ecosystem, remediation of the Semipalatinsk nuclear testing range, cleanup of the Baykonur launching facility, extremely polluted cities, desertification, and development of mechanisms for regional transboundary water management.

To address the water management problem of the Syr Darya River, Kazakhstan and other basin states, with technical assistance from USAID/Central Asia, established the 1998 Framework Agreement on the Use of Water and Energy Resources of the Syr Darya Basin. Kazakhstan became a signatory to the Convention on International Trade in Endangered Species (CITES) in 1999.

The United States and the European Union worked together with the Ministry of Environmental Protection to establish an independent, nonprofit, and nonpolitical Regional Environmental Center (REC) in Almaty in 2001. The mission of the REC is to strengthen civil society and support sustainable development by promoting public awareness and participation in environmental decision-making among the countries of Central Asia. In 2002, the U.S. Environmental Protection Agency, U.S. Embassy, and Ministry of Environmental Protection signed a memorandum of understanding to provide the REC with funding for its grants program.

TRAVEL AND BUSINESS INFORMATION

The U.S. Department of State's Consular Information Program advises Americans traveling and residing abroad through Country Specific Information, Travel Alerts, and Travel Warnings. Country Specific Information exists for all countries and includes information on entry and exit requirements, currency regulations, health conditions, safety and security, crime, political disturbances, and the addresses of the U.S. embassies and consulates abroad. Travel Alerts are issued to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas that pose significant risks to the security of American travelers. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country because the situation is dangerous or unstable.

http://www.state.gov/r/pa/ei/bgn/5487.htm

__________________
~Time owns each and everything~
~Useless youth if not useful for Pakistan~

OFFICIAL NAME

Republic of Kenya

Geography

Area: 582,646 sq. km. (224,960 sq mi.); slightly smaller than Texas.
Cities: Capital--Nairobi (pop. 2.9 million; 2007 est.). Other cities--Mombasa (828,500; 2006 est.), Kisumu (322,000; 1999), Nakuru (219,366; 1999), Eldoret (193,830; 1999).
Terrain: Kenya rises from a low coastal plain on the Indian Ocean in a series of mountain ridges and plateaus which stand above 3,000 meters (9,000 ft.) in the center of the country. The Rift Valley bisects the country above Nairobi, opening up to a broad arid plain in the north. Highlands cover the south before descending to the shores of Lake Victoria in the west.
Climate: Tropical in south, west, and central regions; arid and semi-arid in the north and the northeast.

People

Nationality: Noun and adjective--Kenyan(s).
Population (June 2007 est.): 37.9 million.
Major ethnic groups: Kikuyu 22%, Luyia 14%, Luo 14%, Kalenjin 11%, Kamba 11%, Kisii 6%, Meru 5%.
Religions: Christian 80%, Muslim 10%, traditional African religions 9%, Hindu/Sikh/Baha'i/Jewish 1%.
Languages: English (official), Swahili (national), over 40 other languages from the Bantu, Nilotic, and Cushitic linguistic groups.
Education: First 8 years of primary school are provided tuition-free by the government. In January 2008, the government began offering a program of free secondary education, subject to some restrictions. Attendance--92% for primary grades. Adult literacy rate--85.1%.
Health: Infant mortality rate--57.4/1,000. Life expectancy--55.3 yrs (2007 est.).
Work force (1.95 million wage earners): public sector 30%; private sector 70%. Informal sector workers--6.4 million. Services--45%; industry and commerce--35%; agriculture--20%.

Government

Type: Republic.
Independence: December 12, 1963.
Constitution: 1963.
Branches: Executive--president (chief of state, commander in chief of armed forces), prime minister (head of government), and two deputy prime ministers. Legislative--unicameral National Assembly (parliament). Judicial--Court of Appeal, High Court, various lower and special courts, includes Kadhi (Sharia) courts.
Administrative subdivisions: 69 districts, joined to form 7 rural provinces. The Nairobi area has special provincial status. The government has gazetted 37 new districts. The process of establishing these districts is ongoing.
Political parties: Over 100 registered political parties. Two coalitions, the Party of National Unity (PNU) and the Orange Democratic Movement (ODM), dominate the political party scene. PNU membership is filled by parties representing Kikuyu and closely related ethnic groups; ODM membership ranks are filled by parties representing nearly everybody else. PNU and ODM agreed in February 2008 to form a grand coalition government in a power-sharing arrangement that ended the political crisis erupting after highly controversial national elections in December 2007.
Suffrage: Universal at 18.

Economy

GDP (2007 est.): $29.3 billion.
Annual growth rate (2006): 6.1%.
Gross national income per capita (2006): $455.
Natural resources: Wildlife, soda ash, land.
Agriculture: Products--tea, coffee, sugarcane, horticultural products, corn, wheat, rice, sisal, pineapples, pyrethrum, dairy products, meat and meat products, hides, skins. Arable land--5%.
Industry: Types--petroleum products, grain and sugar milling, cement, beer, soft drinks, textiles, vehicle assembly, paper and light manufacturing.
Trade (2006): Exports--$3.1 billion: tea, coffee, horticultural products, petroleum products, cement, pyrethrum, soda ash, sisal, hides and skins, fluorspar. Major markets--Uganda, Tanzania, United Kingdom, Germany, Netherlands, Ethiopia, Rwanda, Egypt, South Africa, United States. Imports--$7.2 billion: machinery, vehicles, crude petroleum, iron and steel, resins and plastic materials, refined petroleum products, pharmaceuticals, paper and paper products, fertilizers, wheat. Major suppliers--U.K., Japan, South Africa, Germany, United Arab Emirates, Italy, India, France, United States, Saudi Arabia.

PEOPLE

Kenya has a very diverse population that includes three of Africa's major sociolinguistic groups: Bantu (67%), Nilotic (30%), and Cushitic (3%). Kenyans are deeply religious. About 80% of Kenyans are Christian, 10% Muslim, and 10% follow traditional African religions or other faiths. Most city residents retain links with their rural, extended families and leave the city periodically to help work on the family farm. About 75% of the work force is engaged in agriculture, mainly as subsistence farmers. The national motto of Kenya is Harambee, meaning "pull together." In that spirit, volunteers in hundreds of communities build schools, clinics, and other facilities each year and collect funds to send students abroad. The six state universities enroll about 45,000 students, representing some 25% of the Kenyan students who qualify for admission. There are six private universities.

HISTORY

Fossils found in East Africa suggest that protohumans roamed the area more than 20 million years ago. Recent finds near Kenya's Lake Turkana indicate that hominids lived in the area 2.6 million years ago.

Cushitic-speaking people from what is now Sudan and Ethiopia moved into the area that is now Kenya beginning around 2000 BC. Arab traders began frequenting the Kenya coast around the first century AD. Kenya's proximity to the Arabian Peninsula invited colonization, and Arab and Persian settlements sprouted along the coast by the eighth century. During the first millennium AD, Nilotic and Bantu peoples moved into the region, and the latter now comprise two thirds of Kenya's population. The Swahili language, a Bantu language with significant Arabic vocabulary, developed as a trade language for the region.

Arab dominance on the coast was interrupted for about 150 years following the arrival of the Portuguese in 1498. British exploration of East Africa in the mid-1800s eventually led to the establishment of Britain's East African Protectorate in 1895. The Protectorate promoted settlement of the fertile central highlands by Europeans, dispossessing the Kikuyu and others of their land. Some fertile and well watered parts of the Rift Valley inhabited by the Maasai and the western highlands inhabited by the Kalenjin were also handed over to European settlers. For other Kenyan communities, the British presence was slight, especially in the arid northern half of the country. The settlers were allowed a voice in government even before Kenya was officially made a British colony in 1920, but Africans were prohibited from direct political participation until 1944 when a few appointed (but not elected) African representatives were permitted to sit in the legislature.

From 1952 to 1959, Kenya was under a state of emergency arising from the "Mau Mau" insurgency against British colonial rule in general and its land policies in particular. This rebellion took place almost exclusively in the highlands of central Kenya among the Kikuyu people. Tens of thousands of Kikuyu died in the fighting or in the detention camps and restricted villages. British losses were about 650. During this period, African participation in the political process increased rapidly.

The first direct elections for Africans to the Legislative Council took place in 1957. Kenya became independent on December 12, 1963, and the next year joined the Commonwealth. Jomo Kenyatta, an ethnic Kikuyu and head of the Kenya African National Union (KANU), became Kenya's first President. The minority party, Kenya African Democratic Union (KADU), representing a coalition of small ethnic groups that had feared dominance by larger ones, dissolved itself in 1964 and joined KANU.

A small but significant leftist opposition party, the Kenya People's Union (KPU), was formed in 1966, led by Jaramogi Oginga Odinga, a former Vice President and Luo elder. The KPU was banned shortly thereafter, however, and its leader detained. KANU became Kenya's sole political party. At Kenyatta's death in August 1978, Vice President Daniel arap Moi, a Kalenjin from Rift Valley province, became interim President. By October of that year, Moi became President formally after he was elected head of KANU and designated its sole nominee for the presidential election.

In June 1982, the National Assembly amended the constitution, making Kenya officially a one-party state. Two months later, young military officers in league with some opposition elements attempted to overthrow the government in a violent but ultimately unsuccessful coup. In response to street protests and donor pressure, Parliament repealed the one-party section of the constitution in December 1991. In 1992, independent Kenya's first multiparty elections were held. Divisions in the opposition contributed to Moi's retention of the presidency in 1992 and again in the 1997 election. Following the 1997 election Kenya experienced its first coalition government as KANU was forced to cobble together a majority by bringing into government a few minor parties.

In October 2002, a coalition of opposition parties formed the National Rainbow Coalition (NARC). In December 2002, the NARC candidate, Mwai Kibaki, was elected the country's third President. President Kibaki received 62% of the vote, and NARC also won 59% of the parliamentary seats. Kibaki, a Kikuyu from Central province, had served as a member of parliament since Kenya's independence in 1963. He served in senior posts in both the Kenyatta and Moi governments, including Vice President and Finance Minister. In 2003, internal conflicts disrupted the NARC government. These conflicts came into the open when the government put its draft constitution to a public referendum. Key government ministers organized the opposition to the draft constitution, which was defeated soundly. Two principal leaders of the movement to defeat the draft constitution, Raila Odinga and Kalonzo Musyoka--both former Kibaki allies--were presidential candidates for the Orange Democratic Movement (ODM) party and the Orange Democratic Movement-Kenya (ODM-K) party, respectively. In September 2007, President Kibaki and his allies formed the coalition Party of National Unity (PNU). KANU joined the PNU coalition, although it served in parliament as the official opposition party.

On December 27, 2007, Kenya held presidential, parliamentary, and local government elections. While the parliamentary and local government elections were largely credible, the presidential election was seriously flawed, with irregularities in the vote tabulation process as well as turnout in excess of 100% in some constituencies. On December 30, the chairman of the Electoral Commission of Kenya declared incumbent Mwai Kibaki as the winner of the presidential election. Violence erupted in different parts of Kenya as supporters of opposition candidate Raila Odinga and supporters of Kibaki clashed with police and each other. The post-election crisis left more than 1,000 Kenyans dead and about 600,000 people became refugees or were internally displaced. In order to resolve the crisis, negotiation teams representing PNU and ODM began talks under the auspices of former UN Secretary General Kofi Annan and the Panel of Eminent African Persons (Benjamin Mkapa of Tanzania and Graca Machel of Mozambique). On February 28, 2008, President Kibaki and Raila Odinga signed a power-sharing agreement, which provided for the establishment of a prime minister position (to be filled by Odinga) and two deputy prime minister positions, as well as the division of cabinet posts according to the parties' proportional representation in parliament. On March 18, 2008, the Kenyan parliament amended the constitution and adopted legislation to give legal force to the agreement. On April 17, 2008 the new coalition cabinet and Prime Minister Odinga were sworn in. Negotiations are ongoing regarding longer-term reform issues, including constitutional reform, land tenure reform, judicial reform, and the need to address poverty and inequality.

GOVERNMENT
The unicameral National Assembly consists of 210 members elected to a term of 5 years from single-member constituencies, plus 12 members nominated by political parties on a proportional representation basis. The president appoints the vice president; under the power-sharing agreement, the president with the agreement of the prime minister makes the initial appointment of cabinet members from among those elected to the assembly. Subsequent cabinet appointments are made by the president in consultation with the prime minister, in accord with the power-sharing agreement's proportional division of cabinet positions. The attorney general and the speaker are ex-officio members of the National Assembly.

The judiciary is headed by a High Court, consisting of a Chief Justice and High Court judges and judges of Kenya's Court of Appeal, all appointed by the president.

Local administration is divided among 69 rural districts, each headed by a commissioner appointed by the president. The government has proposed 37 more districts, but these are not yet ratified by parliament. The districts are joined to form seven rural provinces. Nairobi has special provincial status. The Ministry of State in charge of Provincial Administration and Internal Security supervises the administration of districts and provinces.

POLITICAL CONDITIONS

Until post-election political unrest struck in early 2008, Kenya had, since independence, maintained remarkable stability despite changes in its political system and crises in neighboring countries. This had been particularly true since the re-emergence of multiparty democracy and the accompanying increase in freedom (including freedom of speech, the press, and assembly).

In December 2002, Kenyans held democratic and open elections, which were judged free and fair by international observers. The 2002 elections marked an important turning point in Kenya's democratic evolution as the presidency and the parliamentary majority passed from the party that had ruled Kenya since independence to a coalition of new political parties. The government lost a referendum over its draft constitution in November 2005. This vote too was widely accepted as free, fair, and credible.

Under the first presidency of Mwai Kibaki, the NARC coalition promised to focus its efforts on generating economic growth, improving and expanding education, combating corruption, and rewriting the constitution. The first two goals were largely met, but progress toward the second two goals was limited. President Kibaki's cabinet from 2002-2005 consisted of members of parliament from allied parties and others recruited from opposition parties who joined the cabinet without the approval of their party leaderships.

In early 2006, revelations from investigative reports of two major government-linked corruption scandals rocked Kenya and led to resignations, including three ministers (one of whom was later re-appointed). In March 2006, another major scandal was uncovered involving money laundering and tax evasion in the Kenyan banking system. The government's March 2006 raid on the Standard Group media house conducted by masked Kenyan police was internationally condemned and was met with outrage by Kenya media and civil society. The government did not provide a sufficient explanation. No one has been held accountable.

The December 2007 elections were marred by serious irregularities, and set off a wave of violence throughout Kenya. Following the February 2008 signing of a power-sharing agreement between President Kibaki and the opposition, a new coalition cabinet was sworn in April 2008, headed by Prime Minister Odinga. The 42-member cabinet is the largest in Kenya's history and includes new ministries for cooperative development, Northern Kenya development, and Nairobi metropolitan development. Several ministries were also subdivided, creating a number of new cabinet positions.

With the creation of the coalition government, the Kenyan Government will focus its attention on achieving its ambitious reform agenda, aimed at avoiding a repeat of early 2008's post-election political and tribal violence. The government also plans to draft a new constitution by April 2009, specifically to address land rights issues and to restructure the government by strengthening institutions to create a more effective system of checks and balances.

__________________
~Time owns each and everything~
~Useless youth if not useful for Pakistan~

ECONOMY

After independence, Kenya promoted rapid economic growth through public investment, encouragement of smallholder agricultural production, and incentives for private (often foreign) industrial investment. Gross domestic product (GDP) grew at an annual average of 6.6% from 1963 to 1973. Agricultural production grew by 4.7% annually during the same period, stimulated by redistributing estates, diffusing new crop strains, and opening new areas to cultivation. After experiencing moderately high growth rates during the 1960s and 1970s, Kenya's economic performance during the 1980s and 1990s was far below its potential. The economy grew by an annual average of only 1.5% between 1997 and 2002, which was below the population growth estimated at 2.5% per annum, leading to a decline in per capita incomes. The decline in economic performance in the last two decades was largely due to inappropriate agricultural policies, inadequate credit, and poor international terms of trade contributing to the decline in agriculture. Kenya's inward-looking policy of import substitution and rising oil prices made Kenya's manufacturing sector uncompetitive. The government began a massive intrusion in the private sector. Lack of export incentives, tight import controls, and foreign exchange controls made the domestic environment for investment even less attractive.

From 1991 to 1993, Kenya had its worst economic performance since independence. Growth in GDP stagnated, and agricultural production shrank at an annual rate of 3.9%. Inflation reached a record 100% in August 1993, and the government's budget deficit was over 10% of GDP. As a result of these combined problems, bilateral and multilateral donors suspended program aid to Kenya in 1991. In the 1990s, the government implemented economic reform measures to stabilize the economy and restore sustainable growth. In 1994, nearly all administrative controls on producer and retail prices, imports, foreign exchange and grain marketing were removed. The Government of Kenya privatized a range of publicly owned companies, reduced the number of civil servants, and introduced conservative fiscal and monetary policies. By the mid-1990s, the government lifted price controls on petroleum products. In 1995, foreigners were allowed to invest in the Nairobi Stock Exchange (NSE). In July 1997, the Government of Kenya refused to meet commitments made earlier to the International Monetary Fund (IMF) on governance reforms. As a result, the IMF suspended lending for 3 years, and the World Bank also put a $90-million structural adjustment credit on hold.

The Government of Kenya took some positive steps on reform, including the establishment of the Kenyan Anti-Corruption Authority in 1999, and the adoption of measures to improve the transparency of government procurements and reduce the government payroll. In July 2000, the IMF signed a $150 million Poverty Reduction and Growth Facility (PRGF), and the World Bank followed suit shortly after with a $157 million Economic and Public Sector Reform credit. The Anti-Corruption Authority was declared unconstitutional in December 2000, and other parts of the reform effort faltered in 2001. The IMF and World Bank again suspended their programs.

Net foreign direct investment (FDI) was negative from 2000-2003, but started trickling back in 2004, as demonstrated by an increase in the number of enterprises operating in Export Processing Zones (EPZs) from 66 to 74 between 2003 and 2004. The value of total investments increased from Ksh18.7 billion (U.S. $247.3 million) in 2005 to Ksh20.1 billion (over U.S. $278.3 million) in 2006. Following the end of the Multifiber Arrangement (MFA) textile agreement in January 2005, several textile and apparel factories closed, leaving 68 EPZ enterprises. In 2006, this number increased to 70 EPZ enterprises. According to the World Bank's Migrations and Remittances Factbook 2008, remittances rose from U.S. $338.3 million in 2004 to U.S. $1.3 billion in 2007, equivalent to 5.3% of the GDP.

The economy began to recover after 2002, registering 2.8% growth in 2003, 4.3% in 2004, 5.8% in 2005, 6.1% in 2006, and 7.0% in 2007. However, the violence that broke out after the December 27, 2007 general election paralyzed the economy in January and early February 2008 and closed the Northern Corridor in Rift Valley province, cutting off vital shipments of fuel and other goods to Uganda, Rwanda, Burundi, eastern Democratic Republic of the Congo and South Sudan. Tourists fled, and agricultural production in the breadbasket Rift Valley region was crippled. The manufacturing sector had to cut back operations by 70%, as unsafe roads prevented movement of workers, inputs, or products, and congestion at the Port of Mombasa slowed imports and exports. The signing of a reconciliation agreement on February 28 put the economy back on track, but the damage in the first quarter to agriculture, tourism, consumption, investment, and the financial, transport, and construction sectors is expected to shave 2008 economic growth from the 8% forecast to the 4%-6% level. Governments in major source countries for tourists to Kenya have lifted their travel advisories, and the Kenyan Government and tourism industry will make strenuous efforts to bring tourists back, but revenues will be a small fraction of the approximately $1 billion earned in 2007.

During President Kibaki's first term in office (2003-2007), the Government of Kenya began an ambitious economic reform program and resumed its cooperation with the World Bank and the IMF. The National Rainbow Coalition (NARC) government enacted the Anti-Corruption and Economic Crimes Act and Public Officers Ethics Act in May 2003 aimed at fighting graft in public offices. There was some movement to reduce corruption in 2003, but the government did not sustain that momentum. Other reforms, especially in the judiciary, public procurement, etc., led to the unlocking of donor aid and a renewed hope of economic revival.

In November 2003, following the signing into law of key anti-corruption legislation and other reforms by the Kibaki government, donors reengaged as the IMF approved a three-year $250 million Poverty Reduction and Growth Facility (PRGF) and donors committed $4.2 billion in support over 4 years. In December 2004, the IMF approved Kenya's Poverty Reduction and Growth Facility arrangement equivalent to U.S. $252.8 million to support the government's economic and governance reforms. However, the government's ability to stimulate economic demand through fiscal and monetary policy remains fairly limited, while the pace at which the government is pursuing reforms in other key areas remains slow. The Privatization Law was enacted in 2005, but only became operational as of January 1, 2008. Parastatals Kenya Electricity Generating Company (KenGen), Kenya Railways, Telkom Kenya, and Kenya Re-Insurance have been privatized, and the government sold 25% of Safaricom (10 billion shares) in 2008, reducing its share to 35%. Accelerating growth to achieve Kenya's potential and reduce the poverty that afflicts about 46% of its population will require continued de-regulation of business, improved delivery of government services, addressing structural reforms, massive investment in new infrastructure (especially roads), reduction of chronic insecurity caused by crime, and improved economic governance generally. The government's Vision 2030 plan calls for these reforms, but implementation will be delayed by the reconstruction effort, coalition politics, and line ministries' limited capacity. In June 2008, the government introduced a revised but still ambitious Vision 2030 plan that seeks to address the economic challenges stemming from the political crisis while still striving to meet growth benchmarks.

Economic expansion is fairly broad-based and is built on a stable macro-environment fostered by government, and the resilience, resourcefulness, and improved confidence of the private sector. Despite the post-election crisis, Nairobi continues to be the primary communication and financial hub of East Africa. It enjoys the region's best transportation linkages, communications infrastructure, and trained personnel, although these advantages are less prominent than in past years. On January 31, 2007, the government signed a $2.7 million contract with Tyco Telecommunications to perform an undersea survey for the construction of a fiber-optic cable to Fujairah in the United Arab Emirates (U.A.E.) called the East African Marine Systems (TEAMS). Two other fiber-optic cables projects are being pursued to link Kenya to the rest of East Africa and India. Once TEAMS and the domestic fiber-optic cables planned by the government are completed, the economy is expected to benefit significantly from reduced internet access prices and improved capacity. A wide range of foreign firms maintain regional branches or representative offices in the city. In March 1996, the Presidents of Kenya, Tanzania, and Uganda re-established the East African Community (EAC). The EAC's objectives include harmonizing tariffs and customs regimes, free movement of people, and improving regional infrastructures. In March 2004, the three East African countries signed a Customs Union Agreement paving the way for a common market. The Customs Union and a Common External Tariff were established on January 1, 2005, but the EAC countries are still working out exceptions to the tariff. Rwanda and Burundi joined the community in July 2007. In May 2007, during a Common Market for Eastern and Southern Africa (COMESA) Summit, 13 heads of state endorsed a move to adopt a COMESA customs union and set December 8, 2008 as the target date for its adoption.

In 2007, horticulture exports rose 65% to U.S. $1.12 billion, surpassing tourism as the largest foreign exchange earner. Tourism earned Kenya U.S. $972 million in 2007, up from U.S. $803 million in 2006, followed by tea exports of U.S. $638.9 million. Africa is Kenya's largest export market, followed by the European Union (EU). Kenya benefits significantly from the African Growth and Opportunity Act (AGOA), but the apparel industry is struggling to hold its ground against Asian competition. Ninety-eight percent of AGOA exports are garments, and Kenya's AGOA exports fell from U.S. $265 million in 2006 to U.S. $250 million in 2007.

Kenya faces profound environmental challenges brought on by high population growth, deforestation, shifting climate patterns, and the overgrazing of cattle in marginal areas in the north and west of the country. Significant portions of the population will continue to require emergency food assistance in the coming years.

Media

The key independent print media in Kenya are the Nation Media Group, the Standard Group, People Limited, and the Times Media Group. The Nation Media Group publications, which include the Daily Nation, the Sunday Nation, the Business Daily, the weekly East African, and the only Swahili publications, Taifa Leo and Taifa Jumapili, have the largest circulations. The Standard and the Sunday Standard, published by the Standard Group, are also popular newspapers, although with smaller circulations. Approximately 120 foreign correspondents representing 100 media organizations report from Nairobi. There is no government-owned or controlled newspaper.

Major independent radio and television media are the Kenya Television Network (KTN), the broadcast media arm of the Standard Group; Nation Radio/TV, owned by the Nation Media Group; and Citizen Radio/Television, owned by Royal Media Services. The government owns and controls the Kenya Broadcasting Corporation (KBC) and its subsidiaries. KBC is the only national radio and television network.

Kenya also has hundreds of FM radio stations, some broadcasting in Swahili or in local languages. Radio has a wide reach in Kenya, especially in rural areas. Some major international broadcasters, including British Broadcasting Corporation (BBC), Voice of America (VOA) and Radio France Internationale (RFI), rebroadcast their programming in Kenya.

FOREIGN RELATIONS

Despite internal tensions in Sudan and Ethiopia, Kenya has maintained good relations with its northern neighbors. Recent relations with Uganda and Tanzania have improved as the three countries work for mutual economic benefit.

Kenya has hosted and played an active role in the negotiations to resolve the civil war in Sudan and to reinstate a central government authority in Somalia. The Sudan peace negotiations have made major progress, resulting in the signing in Kenya of agreements between the Khartoum Government and the southern Sudan rebels to put an end to the two-decade-long war. On January 9, 2005 a Sudan North-South Comprehensive Peace Accord was signed in Nairobi. Negotiations in the Somali National Reconciliation Conference resulted at the end of 2004 in the establishing of Somali Transitional Federal Institutions (Assembly, President, Prime Minister, and Government). Until early 2005, Kenya served as a major host both for these institutions and for refugees from Somalia as well as Sudan. Between May and June 2005, members of the Somalia Transitional Federal Institutions relocated to Somalia.

Kenya maintains a moderate profile in Third World politics. Kenya's relations with Western countries are generally friendly, although current political and economic instabilities are sometimes blamed on Western pressures.

U.S.-KENYAN RELATIONS
The United States and Kenya have enjoyed cordial relations since Kenya's independence. Relations became even closer after Kenya's democratic transition of 2002 and subsequent improvements in human rights.

More than 9,000 U.S. citizens are registered with the U.S. Embassy as residents of Kenya. In 2007 almost 100,000 Americans visited Kenya, up 18% from 2006. About two-thirds of resident Americans are missionaries and their families. U.S. business investment is estimated to be more than $285 million, primarily in commerce, light manufacturing, and the tourism industry.

Al Qaeda terrorists bombed the U.S. Embassy in Nairobi on August 7, 1998, taking hundreds of lives and maiming thousands more. Since that event, the Kenyan and U.S. Governments have intensified cooperation to address all forms of insecurity in Kenya, including terrorism. The United States provides equipment and training to Kenyan security forces, both civilian and military. In its dialog with the Kenyan Government, the United States urges effective action against corruption and insecurity as the two greatest impediments to Kenya achieving sustained, rapid economic growth.

U.S. assistance to Kenya is substantial. It promotes broad-based economic development as the basis for continued progress in political, social, and related areas of national life. The U.S. assistance strategy is built around five broad objectives: Fighting disease and improving healthcare; fighting poverty and promoting private sector-led prosperity; advancing shared democratic values, human rights, and good governance; cooperating to fight insecurity and terrorism; and collaborating to foster peace and stability in East Africa. The Peace Corps, which usually has 150 volunteers in Kenya, is integral to the overall U.S. assistance strategy in Kenya. Peace Corps volunteers were withdrawn from Kenya due to instability and civil unrest in early 2008, but the program resumed Kenya operations within a few months.

TRAVEL AND BUSINESS INFORMATION

The U.S. Department of State's Consular Information Program advises Americans traveling and residing abroad through Country Specific Information, Travel Alerts, and Travel Warnings. Country Specific Information exists for all countries and includes information on entry and exit requirements, currency regulations, health conditions, safety and security, crime, political disturbances, and the addresses of the U.S. embassies and consulates abroad. Travel Alerts are issued to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas that pose significant risks to the security of American travelers. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country because the situation is dangerous or unstable.

http://www.state.gov/r/pa/ei/bgn/2962.htm

__________________
~Time owns each and everything~
~Useless youth if not useful for Pakistan~

OFFICIAL NAME

Republic of Kiribati

Geography

Area: 719 sq. km (266 sq. mi.) on 32 atolls and one island.
Cities: Capital--Tarawa (pop. 30,000).
Terrain: Archipelagos of low-lying coral atolls surrounded by extensive reefs.
Climate: Maritime equatorial or tropical.

People

Nationality: Noun and adjective--I-Kiribati (for both singular and plural, pronounced "ee-keer-ah-bhass").
Population (2006): 93,706. Age structure (2006 est.)--36.5% under 15; 3.48% over 65.
Population growth rate (2006-2010 est.): 1.9%.
Ethnic groups: Micronesian 99%.
Religion: Roman Catholic 55%, Kiribati Protestant 36%, other 9%.
Languages: English (official), Gilbertese/I-Kiribati (de facto).
Education (2000): Literacy--95%
Health (2005): Life expectancy--62.82 years. Infant mortality rate (2005)--48/1,000.
Work force (2000): Majority engaged in subsistence activities; subsistence workers 30,712, cash workers 9,197.

Government

Type: Republic.
Independence (from United Kingdom): July 12, 1979.
Constitution: July 12, 1979.
Branches: Executive--president (head of state and government), vice president, cabinet. Legislative--unicameral House of Assembly. Judicial--High Court, Court of Appeal, magistrates' courts.
Major political parties: Parties are only very loosely organized--Boutokanto Koaava (Pillars of Truth), Maneaban Te Mauri (Protect the Maneaba), Maurin Kiribati Pati.

Economy (all figures in U.S. $)

GDP (2006, estimate): $68.2 million.
GDP per capita (2006): $723.64.
GDP composition by sector (2006): Services 73.8%, agriculture 6.0%, industry 5.5%.
Industry: Types--tourism, copra, fish.
Trade (2006): Exports--$6.306 million: copra, pet fish, seaweed, shark fins. Export markets--Japan, Malaysia, Taiwan, United States, Australia, Belgium, Denmark. Imports--$63.42 million: food, manufactured goods, machinery and transport equipment. Import sources--Australia, Fiji, Japan, France, New Zealand, United States, Korea, China, Thailand.
Currency: Australian dollar (A$).

GEOGRAPHY AND PEOPLE

Kiribati (pronounced "keer-ah-bhass") consists of 32 low-lying atolls and one raised island scattered over an expanse of ocean equivalent in size to the continental United States. The islands straddle the Equator and lie roughly halfway between Hawaii and Australia. The three main groupings are the Gilbert Islands, Phoenix Islands, and Line Islands. In 1995 Kiribati unilaterally moved the International Date Line to include its easternmost islands, making it the same day throughout the country.

Kiribati includes Kiritimati (Christmas Island), the largest coral atoll in the world, and Banaba (Ocean Island), one of the three great phosphate islands in the Pacific. Except on Banaba, very little land is more than three meters above sea level.

The original inhabitants of Kiribati are Gilbertese, a Micronesian people. Approximately 90% of the population of Kiribati lives on the atolls of the Gilbert Islands. Although the Line Islands are about 2,000 miles east of the Gilbert Islands, most inhabitants of the Line Islands are also Gilbertese. Owing to severe overcrowding in the capital on South Tarawa, in the 1990s a program of directed migration moved nearly 5,000 inhabitants to outlying atolls, mainly in the Line Islands. The Phoenix Islands have never had any significant permanent population. A British effort to settle Gilbertese there in the 1930s lasted until the 1960s when it was determined the inhabitants could not be self-sustaining.

HISTORY

The I-Kiribati people settled what would become known as the Gilbert Islands between 1000 and 1300 AD. Subsequent invasions by Fijians and Tongans introduced Melanesian and Polynesian elements to the Micronesian culture, but extensive intermarriage has produced a population reasonably homogeneous in appearance and traditions.

European contact began in the 16th century. Whalers, slave traders, and merchant vessels arrived in great numbers in the 1800s, fomenting local tribal conflicts and introducing often-fatal European diseases. In an effort to restore a measure of order, the Gilbert and Ellice Islands (the Ellice Islands are now the independent country of Tuvalu) consented to becoming British protectorates in 1892. Banaba (Ocean Island) was annexed in 1900 after the discovery of phosphate-rich guano deposits, and the entire group was made a British colony in 1916. The Line and Phoenix Islands were incorporated piecemeal over the next 20 years.

Japan seized some of the islands during World War II. In November 1943, U.S. forces assaulted heavily fortified Japanese positions on Tarawa Atoll in the Gilberts, resulting in some of the bloodiest fighting of the Pacific campaign. The battle was a turning point for the war in the Central Pacific.

Britain began expanding self-government in the islands during the 1960s. In 1975 the Ellice Islands separated from the colony and in 1978 declared their independence. The Gilberts obtained internal self-government in 1977, and became an independent nation on July 12, 1979, under the name of Kiribati.

Post-independence politics were initially dominated by Ieremia Tabai, Kiribati's first President, who served from 1979 to 1991, stepping down due to Kiribati's three-term limit for presidents. The tenure of Teburoro Tito, Kiribati's second-longest serving President, was from 1994 to 2003. His third term lasted only a matter of months before he lost a no confidence motion in Parliament. (See the next section for an explanation of Kiribati's unique presidential system.) In July 2003, Anote Tong defeated his elder brother, Harry Tong, who was backed by former President Tito and his allies. Tong was re-elected for a second term as president in October 2007.

GOVERNMENT

The constitution promulgated at independence establishes Kiribati as a sovereign democratic republic and guarantees the fundamental rights of its citizens.

The unicameral House of Assembly (Maneaba) has 45 members: 43 elected representatives, one appointed member by the Banaban community on Rabi Island in Fiji, and the Attorney General on an ex officio basis. All of the members of the Maneaba serve 4-year terms. The speaker for the legislature is elected by the Maneaba from outside of its membership and is not a voting member of Parliament.

After each general election, the new Maneaba nominates at least three but not more than four of its members to stand as candidates for president. The voting public then elects the president from among these candidates. The president appoints a cabinet of up to 10 members from among the members of the Maneaba. Although popularly elected, the president can be deposed by a majority vote in Parliament. If a no confidence motion passes, a new election for President must be held. An individual can serve as president for only three terms, no matter how short each term is. As a result of this provision, former Presidents Tabai and Tito are constitutionally forbidden from serving as president again.

The judicial system consists of the High Court, a court of appeal, and magistrates' courts. The president makes all judicial appointments.

POLITICAL CONDITIONS

Political parties exist but are more similar to informal coalitions in behavior. Parties do not have official platforms or party structures. Most candidates formally present themselves as independents. Campaigning is by word of mouth and informal gatherings in traditional meetinghouses.

President Anote Tong won re-election by a comfortable margin in late 2007 and enjoys a comfortable majority in Parliament. The biggest political issue today is employment opportunities for a crowded and growing population.

ECONOMY

Kiribati's per capita GDP, at approximately U.S. $720 in 2006, is one of the lowest in the world. Only 16% of the workforce participates in the formal wage economy and over 60% of all formal jobs are in South Tarawa. The monetary economy of Kiribati is dominated by the services sector, representing a GDP share of over 73%, and the public sector which provides 80% of monetary remuneration.

The end of phosphate revenue from Banaba in 1979 had a devastating impact on the economy. Receipts from phosphates had accounted for roughly 80% of export earnings and 50% of government revenue. Per capita GDP declined by more than half between 1979 and 1981. The Revenue Equalization Reserve Fund, a trust fund financed by phosphate earnings over the years, is still an important part of the government's assets and contained more than U.S. $554 million in 2006. Kiribati has prudently managed the reserve fund, which is vital for the long-term welfare of the country.

In one form or another, Kiribati gets a large portion of its income from abroad. Examples include fishing licenses, development assistance, tourism, and worker remittances. External sources of financing are crucial to Kiribati, given the limited domestic production ability and the need to import nearly all essential foodstuffs and manufactured items. Historically, the I-Kiribati were notable seafarers, and today about 1,400 I-Kiribati are trained, certified, and active as seafarers. Remittances from seafarers are a major source of income for families in the country, and there is a steady annual uptake of young I-Kiribati men to the Kiribati Maritime Training Institute.

Fishing fleets from South Korea, Japan, China, Taiwan, and the United States pay licensing fees to operate in Kiribati's territorial waters. These licenses produce revenue worth U.S. $20 million to $35 million annually. Kiribati's exclusive economic zone comprises more than 3.55 million square kilometers (1.37 million square miles) and is very difficult to police given Kiribati's small land mass and limited means. Kiribati probably loses millions of dollars per year from illegal, unlicensed, and unreported fishing in its exclusive economic zone.

Official development assistance amounts to between U.S. $15 million and $20 million per year. The largest donors are Japan, the EC, Australia, New Zealand, and Taiwan. U.S. assistance is provided through multilateral institutions. Remittances from Kiribati workers living abroad provide more than $11 million annually.

Tourism is a relatively small, but important domestic sector. Attractions include World War II battle sites, game fishing, and ecotourism. The vast majority of American tourists only visit Christmas Island in the Line Islands on fishing and diving vacations.

Most islanders engage in subsistence activities such as fishing and growing of food crops like bananas, breadfruit, and papaya. The leading export is the coconut product, copra, which accounts for about two-thirds of export revenue. Other exports include pet fish, shark fins, and seaweed. Kiribati's principal trading partners are Australia and Japan.

Transportation and communications are a challenge for Kiribati. Air Pacific, Air Marshall Islands, and the former Air Nauru, now known as Our Airline, provide international air links to the capital of Tarawa. Air Kiribati provides service to most of the populated atolls in the Gilberts using small planes flying from Tarawa. Small ships serve outlying islands, including in the Line Islands, with irregular schedules. A joint venture between Air Pacific and the government of Kiribati operates a flight linking Christmas Island to Fiji and Honolulu.

Telecommunications are expensive, and service is mediocre.

FOREIGN RELATIONS

Kiribati maintains friendly relations with most countries and has particularly close ties to its Pacific neighbors--Japan, Australia, New Zealand, and Fiji. Australia, Taiwan, New Zealand, and Cuba maintain resident diplomatic missions in Kiribati.

U.S.-KIRIBATI RELATIONS

Relations between Kiribati and the United States are excellent. Kiribati signed a treaty of friendship with the United States after independence in 1979. The United States has no consular or diplomatic facilities in the country. Officers of the American Embassy in Suva, Fiji, are concurrently accredited to Kiribati and make periodic visits. The U.S. Peace Corps has maintained a program in Kiribati since 1967. Currently there are about 40 Peace Corps volunteers serving in the country.

Kiribati became a member of the United Nations in 1999, and in September 2003, President Tong requested authority from Parliament to establish a UN mission. Currently, however, Kiribati does not maintain a resident ambassador in New York, and its vote is typically cast by New Zealand in a proxy arrangement. Kiribati also is a member of the Pacific Islands Forum, Asian Development Bank, the Commonwealth, International Monetary Fund, the Pacific Community, and the World Bank. Kiribati is particularly active in the Pacific Islands Forum. The only Kiribati diplomatic missions overseas are a high commission in Fiji and an honorary consulate in Honolulu.

TRAVEL AND BUSINESS INFORMATION

The U.S. Department of State's Consular Information Program advises Americans traveling and residing abroad through Country Specific Information, Travel Alerts, and Travel Warnings. Country Specific Information exists for all countries and includes information on entry and exit requirements, currency regulations, health conditions, safety and security, crime, political disturbances, and the addresses of the U.S. embassies and consulates abroad. Travel Alerts are issued to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas that pose significant risks to the security of American travelers. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country because the situation is dangerous or unstable.

http://www.state.gov/r/pa/ei/bgn/1836.htm

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OFFICIAL NAME

Republic of Kosovo

Geography

Area: 10,887 square kilometers (4,203 square miles), slightly smaller than Connecticut.
Capital: Pristina.
Terrain: Varied.
Climate: Temperate.

People

Nationality: Adjective--Kosovo national.
Population (2000 est.): 2.1 million.
Ethnic groups: 90% ethnic Albanians, 6% ethnic Serbs, 2% Bosniaks, Gorani, 1.5% Roma, Ashkali, Egyptians, 1% Turks.
Religion: The majority ethnic Albanian population, as well as the Bosniak, Gorani, and Turkish communities, and some of the Roma/Ashkalia/Egyptian communities are adherents of Islam. The ethnic Serb population is largely Serb Orthodox. Approximately 3% of ethnic Albanians are Roman Catholic.
Languages: Albanian (official), Serbian (official), Roma, Turkish (official only in municipality of Prizren), Bosniak, English.
Education: Adult literacy rates (2004 est.): 94.12% (men 97.30%, women 91.30%). Enrollment (2003 est.)--96% of children ages 7-15 enrolled in primary school.
Health: Infant mortality rate--23.7/1000. Total fertility rate, births per woman (2000 est.)--2.7. Life expectancy (2003 est.)--75 years.

Government

Type: Republic.
Constitution: The Kosovo Assembly approved a new constitution on April 9, 2008. It came into force on June 15, 2008.
Branches: Executive--president (head of state); prime minister (head of government). Legislative--unicameral Assembly (120 seats, 4-year terms; 100 seats generally elected, 10 seats reserved for ethnic Serbs, 10 seats reserved for other ethnic minorities). Judicial--Supreme Court.
Subdivisions: 30 municipalities (names given in Albanian, then Serbian)--Leposaviq (Leposavic), Novo Brdo (Novobërdë), Podujevo (Podujevë), Istog (Istok), Kamenice (Kamenicë), Deçan (Decani), Gllogovc (Glogovac), Ferizaj (Uroševac), Fushë Kosovë (Kosovo Polje), Gjakovë (Ðakovica), Gjilan (Gnjilane), Kaçanik (Kacanik), Obiliq (Obilic), Klinë (Klina), Lipjan (Lipljan), Malishevë (Mališevo), Mitrovicë (Mitrovica), Pejë (Pec), Prishtinë (Priština), Prizren (Prizren), Rahovec (Orahovac), Skenderaj (Srbica), Dragash (Dragaš), Shtërpcë (Štrpce), Shtime (Štimlje), Suharekë (Suva Reka), Viti (Vitina), Vushtrri (Vucitrn), Zubin Potok (Zubin Potok), Zvecan (Zveçan).
Political parties: Albanian Christian Democratic Party of Kosovo (PShDK) [Mark KRASNIQI]; Alliance for the Future of Kosovo (AAK) [Ramush HARADINAJ]; Alliance of Independent Social Democrats of Kososvo and Metohija (SDSKIM) [Ljubisa Zivic]; Autonomous Liberal Party (SLS) [Slobodan PETROVIC]; Bosniak Vakat Coalition (DSV) [Sadik Idrizi]; Citizens' Initiative of Gora (GIG) [Murselj HALJILJI]; Democratic League of Dardania (LDD) [Nexhat DACI]; Democratic League of Kosovo (LDK) [Fatmir SEJDIU]; Democratic Party of Ashkali of Kosovo (PDAK) [Sabit RAHMANI]; Democratic Party of Kosovo (PDK) [Hashim THACI]; Kosovo Democratic Turkish Party (KDTP) [Mahir YAGCILAR]; New Democratic Initiative of Kosovo (IRDK) [Xhevdet NEZIRAJ]; New Democratic Party (ND) [Branislav GRBIC]; New Kosovo Alliance (AKR) [Behxhet PACOLLI]; Popular Movement of Kosovo (LPK) [Emrush XHEMAJLI]; Reform Party Ora [Teuta SAHATQIJA]; Serb National Party (SNS) [Mihailo SCEPANOVIC]; Serbian Kosovo and Metohija Party (SKMS) [Dragisa MIRIC]; United Roma Party of Kosovo (PREBK) [Haxhi Zylfi MERXHA]; Democratic Action Party (SDA) [Numan BALIC]; Serbian List for Kosovo and Metohija [Oliver IVANOVIC]; Serbian National Council of Northern Kosovo and Metohija (SNV) [Milan IVANOVIC]; Democratic Party of Bosniaks [Dzezair MURATI]; Serbian Democratic Party of Kosovo and Metohija (SDS KiM) [Slavisa PETKOVIC].
Suffrage: Universal at age 18.

Economy

GDP (2007 est.): $4 billion.
Per capita GDP at PPP (2007 est.): $1,755.
GDP composition by sector: Agriculture 25%, industry 20%, services 55%.
Agriculture: Products--Fruits and vegetables (potatoes, berries), wheat, corn, wine, beef.
Industry: Mineral mining, energy, telecommunications, forestry, agriculture, metal processing, construction materials, base metals, leather, machinery, appliances.
Income and employment (2001 est.): 53% of the Kosovo labor force is unemployed; 50.3% of Kosovo's citizens live below the poverty line, and 12% live in extreme poverty.

HISTORY

Kosovo has been inhabited since the Neolithic Era. During the medieval period, Kosovo became home to many important Serb religious sites, including many architecturally significant Serbian Orthodox monasteries. It was the site of a 14th-century battle in which invading Ottoman Turks defeated an army led by a Serbian Prince named Lazar.

The Ottomans ruled Kosovo for more than four centuries, until Serbia acquired the territory during the First Balkan War in 1912-13. First partitioned in 1913 between Serbia and Montenegro, Kosovo was then incorporated into the Kingdom of the Serbs, Croats, and Slovenes (later named Yugoslavia) after World War I. During World War II, parts of Kosovo were absorbed into Italian-occupied Albania. After the Italian capitulation, Nazi Germany assumed control over Kosovo until Tito's Yugoslav Partisans entered at the end of the war.

After World War II, Kosovo became an autonomous province of Serbia in the Socialist Federal Republic of Yugoslavia (S.F.R.Y.). The 1974 Yugoslav Constitution gave Kosovo (along with Vojvodina) the status of a Socialist Autonomous Province within Serbia. As such, it possessed nearly equal rights as the six constituent Socialist Republics of the S.F.R.Y. In 1981, riots broke out and were violently suppressed after Kosovo Albanians demonstrated to demand that Kosovo be granted full Republic status.

The Kosovo Conflict and NATO Intervention
In the late 1980s, Slobodan Milosevic propelled himself to power in Belgrade by exploiting the fears of the Serbian minority in Kosovo. In 1989, he eliminated Kosovo's autonomy and imposed direct rule from Belgrade. Belgrade ordered the firing of most ethnic Albanian state employees, whose jobs were then assumed by Serbs.

In response, Kosovo Albanian leaders began a peaceful resistance movement in the early 1990s, led by Ibrahim Rugova. They established a parallel government funded mainly by the Albanian diaspora. When this movement failed to yield results, an armed resistance emerged in 1997 in the form of the Kosovo Liberation Army (KLA). The KLA's main goal was to secure the independence of Kosovo.

In late 1998, Milosevic unleashed a brutal police and military campaign against the KLA, which included widespread atrocities against civilians. As Milosevic's ethnic cleansing campaign progressed, over 800,000 ethnic Albanians were forced from their homes in Kosovo. Intense international mediation efforts led to the Rambouillet Accords, which called for Kosovo autonomy and the insertion of NATO troops to preserve the peace. Milosevic's failure to agree to the Rambouillet Accords triggered a NATO military campaign to halt the violence in Kosovo. This campaign consisted primarily of aerial bombing of the Federal Republic of Yugoslavia (F.R.Y.), including Belgrade, and continued from March through June 1999. After 78 days of bombing, Milosevic capitulated. Shortly thereafter, the UN Security Council adopted Resolution 1244 (1999), which suspended Belgrade's governance over Kosovo, and under which Kosovo was placed under the administration of the United Nations Interim Administration Mission in Kosovo (UNMIK), and which authorized a NATO peacekeeping force. Resolution 1244 also envisioned a political process designed to determine Kosovo's future status.

As ethnic Albanians returned to their homes, elements of the KLA conducted reprisal killings and abductions of ethnic Serbs and Roma in Kosovo. Thousands of ethnic Serbs, Roma, and other minorities fled from their homes during the latter half of 1999, and many remain displaced.

Kosovo Under UN Administration

The UN established the UN Interim Administration Mission in Kosovo (UNMIK), under the control of a Special Representative of the Secretary General (SRSG). In 2001, UNMIK promulgated a Constitutional Framework that provided for the establishment of Provisional Institutions of Self-Government (PISG).

Under UNMIK's guidance, Kosovo established new institutions (both at the municipal and central levels), held free elections, and established a multi-ethnic Kosovo Police Service (KPS). The KLA was demobilized, with many of its members incorporated into the Kosovo Protection Corps (KPC), a civilian emergency services organization. UNMIK gradually turned over more governing competences to local authorities.

In March 2004, Kosovo experienced its worst inter-ethnic violence since the Kosovo war. The unrest in 2004 was sparked by a series of minor events that soon cascaded into large-scale riots. Kosovo Serb communities and Serbian Orthodox churches were targeted in the violence.

After many years of international administration, Kosovo Albanian authorities continued to press the international community to begin a process to define Kosovo's future status.

In October 2004, Kosovo held elections for the second 3-year term of the Kosovo Assembly. For the first time, Kosovo's own Central Election Commission administered these elections, under Organization for Security and Cooperation in Europe (OSCE) guidance. The main ethnic Albanian political parties were the same as in the 2001 elections, but with the addition of the new party ORA, led by Veton Surroi, and two new Kosovo Serb parties: the Serbian List for Kosovo and Metohija (SLKM) led by Oliver Ivanovic, and the Citizens Initiative of Serbia led by Slavisa Petkovic.. In contrast to the previous Kosovo Government, this election produced a "narrow" coalition of two parties, the LDK and AAK. The December 3, 2004 inaugural session of the Kosovo Assembly re-elected Ibrahim Rugova as President and Ramush Haradinaj as Prime Minister.

In March 2005, Haradinaj resigned as Prime Minister after he was indicted for war crimes by the International Criminal Tribunal for the former Yugoslavia (ICTY); Haradinaj voluntarily surrendered to authorities and traveled to The Hague to face charges. (Haradinaj was acquitted of all charges on April 3, 2008.) The Kosovo Assembly subsequently elected Bajram Kosumi (AAK) as Prime Minister; Kosumi's resignation in March 2006 led to his replacement with Agim Ceku. After President Rugova's death in January 2006, he was replaced by Fatmir Sejdiu.

Kosovo's Status Process

In 2005, a UN envoy, Norwegian diplomat Kai Eide, was appointed to review progress in Kosovo. Eide reported uneven progress on many key issues, especially with respect to promoting multi-ethnicity in Kosovo, but said that there was no advantage to be gained by further delaying a future status process.

In November 2005, the Contact Group (France, Germany, Italy, Russia, the United Kingdom, and the United States) produced a set of "Guiding Principles" for the resolution of Kosovo's future status. Some key principles included: no return to the situation prior to 1999, no changes in Kosovo's borders, and no partition or union of Kosovo with a neighboring state. The Contact Group later said that Kosovo's future status had to be acceptable to the people of Kosovo.

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The Ahtisaari Process

In November 2005, United Nations Secretary General Kofi Annan appointed Martti Ahtisaari, former president of Finland, to lead a future status process. Special Envoy Ahtisaari's diplomatic efforts addressed a broad range of issues important to Kosovo's future, including decentralization of local government, protecting Kosovo's cultural and religious heritage in Kosovo, economic issues, and safeguarding the rights of minorities. Over the course of 2006 and early 2007, Ahtisaari brought together officials from Belgrade and Pristina to discuss these practical issues and the question of status itself.

Ahtisaari subsequently developed a comprehensive proposal for Kosovo's future status, which set forth a series of recommendations on Kosovo's democratic governance and substantial protections for minorities. Ahtisaari also recommended that Kosovo become independent, subject to a period of international supervision. He proposed that a new International Civilian Office (ICO) be established to supervise Kosovo's implementation of its obligations under the Ahtisaari Plan. A European Union (EU)-led rule of law mission (subsequently named EULEX) would also be deployed to focus on the police and justice sector, while a NATO-led stabilization force would continue to provide for a safe and secure environment. Pristina accepted the Ahtisaari recommendations, but Belgrade rejected them.

On April 3, 2007, Ahtisaari presented his plan to the UN Security Council. Due to Russian opposition, the Security Council could not reach agreement on a new Security Council resolution that would pave the way for the implementation of the Ahtisaari recommendations.

After several months of inconclusive discussions in the Security Council, the Contact Group agreed to support a new period of intensive engagement to try to find an agreement between Belgrade and Pristina on Kosovo's status. A "Troika" of representatives from the European Union, the Russian Federation, and the United States, began this effort in August 2007. UN Secretary General Ban Ki-moon asked them to report on their efforts no later than December 10, 2007. The German ambassador to the United Kingdom, Wolfgang Ischinger, represented the EU; Alexander Botsan-Kharchenko represented the Russian Federation; and Ambassador Frank Wisner represented the United States.

After an intense series of Troika-led negotiations, including a high-level conference in Baden, Austria, the Troika's mandate ended in December without an agreement between the parties. In its final report, the Troika explained that it explored with the parties every realistic option for an agreement, but it was not possible to find a mutually acceptable outcome.

Independence

Kosovo declared its independence from Serbia on February 17, 2008. In its declaration of independence, Kosovo committed to fulfilling its obligations under the Ahtisaari Plan, to embrace multi-ethnicity as a fundamental principle of good governance, and to welcome a period of international supervision.

The United States formally recognized Kosovo as a sovereign and independent state on February 18. To date, Kosovo has been recognized by a robust majority of European states, the United States, Japan, and Canada, and by other states from the Americas, Africa, and Asia. Shortly after independence, a number of states established an International Steering Group (ISG) for Kosovo that appointed Dutch diplomat Pieter Feith as Kosovo's first International Civilian Representative (ICR).

As part of its commitment to the Ahtisaari Plan, the Kosovo Government rapidly enacted after independence laws on minority protection, decentralization, special protection zones for Serb cultural and religious sites, local self-government, and municipal boundaries.

The Kosovo Assembly approved a constitution in April, and it entered into force on June 15, 2008. ICR Feith certified that the constitution was in accordance with the Ahtisaari Plan. At the time of certification, ICR Feith also congratulated Kosovo on a modern constitution that "provides comprehensive rights for members of communities as well as effective guarantees for the protection of the national, linguistic and religious identity of all communities." More information on the role of the ICO in post-status Kosovo can be found at: http://www.ico-kos.org/en/

GOVERNMENT AND POLITICAL CONDITIONS
In 2001, UNMIK promulgated a Constitutional Framework that established Provisional Institutions of Self-Government (PISG) for Kosovo. Under the Constitutional Framework, the President of Kosovo is the head of state and serves a term of 5 years with the right to one re-election. The Prime Minister is the head of government and is elected by the Kosovo Assembly.

The unicameral Kosovo Assembly consists of 120 seats, 10 seats of which are reserved for ethnic Serbs, and 10 seats for other minorities (4 seats for the Roma, Ashkali and Egyptian communities (RAE), 3 seats for the Bosniak community, 2 seats for the Turkish community, and 1 seat for the Gorani community). Three of the remaining 100 seats are also held by minority members (for a total of 13). All members serve 4-year terms. Jakup Krasniqi (PDK party) is President of the Assembly.

These arrangements were superseded by Kosovo's new constitution, which entered into force on June 15, 2008. Under the new constitution, which enshrines the relevant provisions of the Ahtisaari Plan, Kosovo will undergo a comprehensive shift in governance from the Constitutional Framework of 2001 to a legal charter based upon its new status as an independent state.

The main political parties in Kosovo include the Democratic League of Kosovo (LDK), formerly led by Ibrahim Rugova and now led by Kosovo President Fatmir Sejdiu; Democratic Party of Kosovo (PDK), led by former KLA political chief Hashim Thaci; and the Alliance for the Future of Kosovo (AAK), led by former KLA commander Ramush Haradinaj. Kosovo held its first parliamentary elections in November 2001. After significant political wrangling, politicians agreed to establish a coalition government in March 2002, with Bajram Rexhepi (PDK) as Prime Minister and Ibrahim Rugova (LDK) as President. In the same year, the Kosovo Assembly began to function and pass its first laws. Beginning in 2003, UNMIK began transferring governing competencies to these ministries.

On November 17, 2007, Kosovo held parliamentary and municipal elections. These elections were deemed free and fair by international observers. The PDK gained 34.3% of the vote, the LDK gained 22.6%, the New Kosovo Alliance (AKR) won 12.3%, the Democratic League of Dardania (LDD) won 10%, and the AAK won 9.6%. Smaller minority parties also made some small gains. These elections led to a coalition between the LDK and the PDK and to the elevation of Hashim Thaci as Prime Minister of Kosovo. At the behest of Serbian leaders in Belgrade, virtually all Kosovo Serbs again boycotted the vote.

In June 2008, UN Secretary General Ban decided to "reconfigure" UNMIK and reduce the size of the UN presence in Kosovo, effectively ending the UN's role as administrator of Kosovo and welcoming EU deployment of its Rule of Law Mission (EULEX). As Ban stated in his report to the Security Council, "UNMIK will no longer be able to perform effectively the vast majority of its tasks as an international administration." The EU will gradually assume increasing responsibility in the areas of policing, justice, and customs throughout Kosovo.

The Kosovo judicial system started adapting to the new legal charter on June 15, 2008. Supreme Court judges and prosecutors, district court judges, and municipal courts judges already appointed by the SRSG will continue to serve in their posts until the expiry of their appointment. After the transfer of rule of law functions to the Government of Kosovo, the Kosovo Judicial Council (KJC) will propose to the President of Kosovo candidates for appointment or reappointment as judges and prosecutors.

ECONOMY

Kosovo's economy has shown significant progress since the conflict of the 1990s; it is, however, still significantly 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 approximately $1,800, about one-third the level of neighboring Albania. 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.

As a result of international assistance, Kosovo has been able to privatize 50% of its state-owned enterprises (SOE) by number, and over 90% of SOEs by value. Privatized companies have been able to increase sales sevenfold and attract more than 450,000 Euros (approximately $688,500) in new investment. Technical assistance to the Kosovo Electricity Corporation (KEK) has helped improve procedures for billings and collections, increased revenues, strengthened internal accounting procedures and controls, and rationalized budgeting and investment planning. The installation of bulk meters at the sub-station level is facilitating greater accountability for collection performance at the district level. The U.S. Government has cooperated with the World Bank to prepare a commercial tender for the development of new generation and mining capacity. The capacity of KEK's workforce was bolstered by continuing on-the-job training provided to 325 employees.

Economic growth is largely driven by the private sector, mostly small-scale retail businesses. The official currency of Kosovo is the Euro, but the Serbian dinar is also used in Northern Kosovo and other areas where ethnic Serbs predominate. Kosovo's use of the Euro has helped keep inflation low. Kosovo has maintained a budget surplus as a result of efficient tax collection and inefficient budget execution. 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).

Some of the commodities that Kosovo exports are: mineral products, base metals, leather products, machinery, and appliances. Its main export partners are countries that are members of CEFTA. Some of the products that it imports include: live animals and animal products, fruit and vegetable products, minerals, food products, base materials, machinery, appliances and electrical equipment, textiles and related products, wood and wood products, stone, ceramic and glass products, and chemical products. Its main import partners are the EU, Macedonia, Serbia, Turkey, and Albania.

Trade and Industry
Kosovo has been laying the foundations of a market-oriented economy for the past eight years but is still struggling to develop viable and productive domestic industries. Kosovo has one of the lowest export/import rates in the region. In 2007, Kosovo imported $2.3 billion in goods and services and exported only $151 million, resulting in a trade deficit close to 65% of Kosovo's GDP. This deficit is largely financed through foreign assistance and remittances from Kosovo's diaspora. Kosovo's leading industries are mining, energy, and telecommunications.

Agriculture

Agricultural land comprises 53% of Kosovo's total land area and forests 41%. According to data from the Food and Agriculture Organization, 741,316 acres of land are under cultivation and 444,789 acres are upland pasture. The majority of agricultural land is privately owned (80%), providing subsistence farming for individual households. Although Kosovo's agricultural sector is generally characterized by small farms, low productivity, and the absence of advisory services, agriculture contributes around 25% of Kosovo's overall GDP. Agriculture is the largest employment sector in Kosovo, providing jobs for 25% to 35% of the population, primarily on an informal basis. The agricultural sector also accounts for 16% of total export value and remains an important creator of national wealth, although Kosovo is still an importer of many agricultural products, which accounted for 24% of overall imports ($448.7 million) in 2005. Forestry in Kosovo is minimal; wood-processing and wood products (flooring and furniture) are industry contributors, although not yet in significant numbers.

FOREIGN RELATIONS

In March 2008, Kosovo passed legislation to establish a foreign ministry. This legislation went into effect on June 15, 2008. The Government of Kosovo appointed Skender Hyseni as its first foreign minister. The Government of Kosovo has not yet established diplomatic missions overseas but is expected to do so soon.

U.S.-KOSOVO RELATIONS

The United States and Kosovo established diplomatic relations on February 18, 2008. The strong bilateral ties the United States shares with Kosovo are maintained through the U.S. Embassy in Pristina, which was opened on April 8, 2008 by then-Charge d'Affaires ad interim Tina Kaidanow. Prior to independence, the United States maintained U.S. Office Pristina (USOP), with a chief of mission. The U.S. also continues to contribute troops to the Kosovo Force (KFOR), and will be providing staff to the ICO and EULEX missions.

During a European Commission-hosted international Donors' Conference on July 11, 2008 the United States pledged $400 million for 2008-2009 to support, among many other things, helping relieve debt Kosovo may inherit. U.S. assistance in Kosovo continues to support good governance through strengthening civil society and political processes, especially targeting minority communities, and will strengthen economic institutions and help private enterprise grow.

TRAVEL AND BUSINESS INFORMATION

The U.S. Department of State's Consular Information Program advises Americans traveling and residing abroad through Country Specific Information, Travel Alerts, and Travel Warnings. Country Specific Information exists for all countries and includes information on entry and exit requirements, currency regulations, health conditions, safety and security, crime, political disturbances, and the addresses of the U.S. embassies and consulates abroad. Travel Alerts are issued to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas that pose significant risks to the security of American travelers. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country because the situation is dangerous or unstable.

http://www.state.gov/r/pa/ei/bgn/100931.htmCon

__________________
~Time owns each and everything~
~Useless youth if not useful for Pakistan~

__________________
~Time owns each and everything~
~Useless youth if not useful for Pakistan~