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Country	Background
Afghanistan	Afghanistan's recent history is a story of war and civil unrest. The Soviet Union invaded in 1979, but was forced to withdraw 10 years later by anti-Communist mujahidin forces supplied and trained by the US, Saudi Arabia, Pakistan, and others. The Communist regime in Kabul fought on until collapsing in 1992. Fighting subsequently erupted among the various mujahidin factions, giving rise to a state of warlordism that eventually spawned the Taliban. Backed by foreign sponsors, the Taliban developed as a political force and ultimately seized power in 1996. The Taliban were able to capture most of the country, outside of Northern Alliance strongholds primarily in the northeast. Following the 11 September 2001 terrorist attacks, a US, Allied, and Northern Alliance military action toppled the Taliban. In late 2001, major leaders from the Afghan opposition groups and diaspora met in Bonn, Germany, and agreed on a plan for the formulation of a new government structure that resulted in the inauguration of Hamid KARZAI as Chairman of the Afghan Interim Authority (AIA) on 22 December 2001. The AIA held a nationwide Loya Jirga (Grand Assembly) in June 2002, and KARZAI was elected President by secret ballot of the Transitional Islamic State of Afghanistan (TISA). In December 2002, the TISA marked the one-year anniversary of the fall of the Taliban. The Transitional Authority convened a Constitutional Loya Jirga from 14 December 2003 until 4 January 2004 and ended with the approval of a new constitution. The constitution was signed on 16 January 2004 and highlights a strong executive branch, a moderate role for Islam, and basic protections for human rights. TISA's next task is to hold nationwide elections by June 2004, according to the Bonn Agreement timeline, but these may be delayed due to election preparations. National elections would formally dissolve the Transitional Authority and establish the Government of Afghanistan under the new constitution. In addition to occasionally violent political jockeying and ongoing military action to root out remaining terrorists and Taliban elements, the country suffers from enormous poverty, a lack of skilled and educated workers, a crumbling infrastructure, and widespread land mines.
Albania	Between 1990 and 1992 Albania ended 46 years of xenophobic Communist rule and established a multiparty democracy. The transition has proven difficult as successive governments have tried to deal with high unemployment, widespread corruption, a dilapidated infrastructure, powerful organized crime networks with links to high government officials, and disruptive political opponents. International observers judged parliamentary elections in 2001 to be acceptable and a step toward democratic development, but identified serious deficiencies. Some of these were addressed through reforms in the Albanian electoral code prior to the nationwide municipal elections in 2003.
Algeria	After a century of rule by France, and in the wake of 1948 elections rigged by French colonists to reverse the sweeping victory of a Muslim political party in 1947, Algerians fought through the 1950s to achieve independence in 1962. Algeria's primary political party, the National Liberation Front (FLN), has dominated politics ever since. Many Algerians in the subsequent generation were not satisified, however, and moved to counter the FLN's centrality in Algerian politics. The surprising first round success of the fundamentalist Islamic Salvation Front (FIS) in the December 1991 balloting spurred the army to intervene and postpone the second round of elections to prevent an extremist-led government from assuming power. The Algerian army began a crack down on the FIS, that resulted in a continuous low-grade civil conflict between Islamic activists and the secular state apparatus. The government later allowed elections featuring pro-government and moderate religiously-based parties, but did not appease the activists who progressively widened their attacks. Operations by the activists and the army resulted in nearly 100,000 deaths during the decade-long conflict. The government gained the uppper hand by the mid-1990s and FIS's armed wing, the Islamic Salvation Army, disbanded in January 2000. Many armed militants of other groups surrendered under an amnesty program designed to promote national reconciliation, but small numbers of armed militants persist in confronting government forces and conducting ambushes and occasional attacks on villages. Issues facing the winner of the April 2004 presidential election include Berber unrest, large-scale unemployment, a shortage of housing, the presence of a group in the southern regions of the country that kidnapped European tourists in 2003, as well as the need to diversify Algeria's petroleum-based economy. Algeria assumed a two-year seat on the UN Security Council in January 2004.
American Samoa	Settled as early as 1000 B.C., Samoa was "discovered" by European explorers in the 18th century. International rivalries in the latter half of the 19th century were settled by an 1899 treaty in which Germany and the US divided the Samoan archipelago. The US formally occupied its portion - a smaller group of eastern islands with the excellent harbor of Pago Pago - the following year.
Andorra	For 715 years, from 1278 to 1993, Andorrans lived under a unique co-principality, ruled by the French chief of state and the Spanish bishop of Urgel. In 1993, this feudal system was modified with the titular heads of state retained, but the government transformed into a parliamentary democracy. Long isolated and impoverished, mountainous Andorra achieved considerable prosperity since World War II through its tourist industry. Many immigrants (legal and illegal) are attracted to the thriving economy with its lack of income taxes.
Angola	Civil war has been the norm in Angola since independence from Portugal in 1975. A 1994 peace accord between the government and the National Union for the Total Independence of Angola (UNITA) provided for the integration of former UNITA insurgents into the government and armed forces. A national unity government was installed in April of 1997, but serious fighting resumed in late 1998, rendering hundreds of thousands of people homeless. Up to 1.5 million lives may have been lost in fighting over the past quarter century. The death of insurgent leader Jonas SAVIMBI in 2002 and a subsequent cease-fire with UNITA may bode well for the country.
Anguilla	Colonized by English settlers from Saint Kitts in 1650, Anguilla was administered by Great Britain until the early 19th century, when the island - against the wishes of the inhabitants - was incorporated into a single British dependency, along with Saint Kitts and Nevis. Several attempts at separation failed. In 1971, two years after a revolt, Anguilla was finally allowed to secede; this arrangement was formally recognized in 1980, with Anguilla becoming a separate British dependency.
Antarctica	Speculation over the existence of a "southern land" was not confirmed until the early 1820s when British and American commercial operators and British and Russian national expeditions began exploring the Antarctic Peninsula region and other areas south of the Antarctic Circle. Not until 1840 was it established that Antarctica was indeed a continent and not just a group of islands. Several exploration "firsts" were achieved in the early 20th century. Following World War II, there was an upsurge in scientific research on the continent. A number of countries have set up year-round research stations on Antarctica. Seven have made territorial claims, but not all countries recognize these claims. In order to form a legal framework for the activities of nations on the continent, an Antarctic Treaty was negotiated that neither denies nor gives recognition to existing territorial claims; signed in 1959, it entered into force in 1961.
Antigua and Barbuda	The Siboney were the first to inhabit the islands of Antigua and Barbuda in 2400 B.C., but Arawak and Carib Indians populated the islands when Columbus landed on his second voyage in 1493. Early settlements by the Spanish and French were succeeded by the English who formed a colony in 1667. Slavery, established to run the sugar plantations on Antigua, was abolished in 1834. The islands became an independent state within the British Commonwealth of Nations in 1981.
Arctic Ocean	The Arctic Ocean is the smallest of the world's five oceans (after the Pacific Ocean, Atlantic Ocean, Indian Ocean, and the recently delimited Southern Ocean). The Northwest Passage (US and Canada) and Northern Sea Route (Norway and Russia) are two important seasonal waterways. A sparse network of air, ocean, river, and land routes circumscribes the Arctic Ocean.
Argentina	Following independence from Spain in 1816, Argentina experienced periods of internal political conflict between conservatives and liberals and between civilian and military factions. After World War II, a long period of Peronist authoritarian rule and interference in subsequent governments was followed by a military junta that took power in 1976. Democracy returned in 1983, and numerous elections since then have underscored Argentina's progress in democratic consolidation.
Armenia	Armenia prides itself on being the first nation to formally adopt Christianity (early 4th century). Despite periods of autonomy, over the centuries Armenia came under the sway of various empires including the Roman, Byzantine, Arab, Persian, and Ottoman. It was incorporated into Russia in 1828 and the USSR in 1920. Armenian leaders remain preoccupied by the long conflict with Muslim Azerbaijan over Nagorno-Karabakh, a primarily Armenian-populated region, assigned to Soviet Azerbaijan in the 1920s by Moscow. Armenia and Azerbaijan began fighting over the area in 1988; the struggle escalated after both countries attained independence from the Soviet Union in 1991. By May 1994, when a cease-fire took hold, Armenian forces held not only Nagorno-Karabakh but also a significant portion of Azerbaijan proper. The economies of both sides have been hurt by their inability to make substantial progress toward a peaceful resolution. Turkey imposed an economic blockade on Armenia and closed the common border because of the Armenian occupation of Nagorno-Karabakh and surrounding areas.
Aruba	Discovered and claimed for Spain in 1499, Aruba was acquired by the Dutch in 1636. The island's economy has been dominated by three main industries. A 19th century gold rush was followed by prosperity brought on by the opening in 1924 of an oil refinery. The last decades of the 20th century saw a boom in the tourism industry. Aruba seceded from the Netherlands Antilles in 1986 and became a separate, autonomous member of the Kingdom of the Netherlands. Movement toward full independence was halted at Aruba's request in 1990.
Ashmore and Cartier Islands	These uninhabited islands came under Australian authority in 1931; formal administration began two years later. Ashmore Reef supports a rich and diverse avian and marine habitat; in 1983, it became a National Nature Reserve. Cartier Island, a former bombing range, is now a marine reserve.
Atlantic Ocean	The Atlantic Ocean is the second largest of the world's five oceans (after the Pacific Ocean, but larger than the Indian Ocean, Southern Ocean, and Arctic Ocean). The Kiel Canal (Germany), Oresund (Denmark-Sweden), Bosporus (Turkey), Strait of Gibraltar (Morocco-Spain), and the Saint Lawrence Seaway (Canada-US) are important strategic access waterways. The decision by the International Hydrographic Organization in the spring of 2000 to delimit a fifth world ocean, the Southern Ocean, removed the portion of the Atlantic Ocean south of 60 degrees south.
Australia	Aboriginal settlers arrived on the continent from Southeast Asia about 40,000 years before the first Europeans began exploration in the 17th century. No formal claims were made until 1770, when Capt. James COOK took possession in the name of Great Britain. Six colonies were created in the late 18th and 19th centuries; they federated and became the Commonwealth of Australia in 1901. The new country was able to take advantage of its natural resources in order to rapidly develop its agricultural and manufacturing industries and to make a major contribution to the British effort in World Wars I and II. Long-term concerns include pollution, particularly depletion of the ozone layer, and management and conservation of coastal areas, especially the Great Barrier Reef. A referendum to change Australia's status, from a commonwealth headed by the British monarch to a republic, was defeated in 1999.
Austria	Once the center of power for the large Austro-Hungarian Empire, Austria was reduced to a small republic after its defeat in World War I. Following annexation by Nazi Germany in 1938 and subsequent occupation by the victorious Allies in 1945, Austria's status remained unclear for a decade. A State Treaty signed in 1955 ended the occupation, recognized Austria's independence, and forbade unification with Germany. A constitutional law that same year declared the country's "perpetual neutrality" as a condition for Soviet military withdrawal. Following the Soviet Union's collapse in 1991 and Austria's entry into the European Union in 1995, some Austrian's have called into question this neutrality. A prosperous, democratic country, Austria entered the European Monetary Union in 1999.
Azerbaijan	Azerbaijan - a nation with a Turkic and majority-Muslim population - regained its independence after the collapse of the Soviet Union in 1991. Despite a 1994 cease-fire, Azerbaijan has yet to resolve its conflict with Armenia over the Azerbaijani Nagorno-Karabakh enclave (largely Armenian populated). Azerbaijan has lost 16% of its territory and must support some 800,000 refugees and internally displaced persons as a result of the conflict. Corruption is ubiquitous and the promise of widespread wealth from Azerbaijan's undeveloped petroleum resources remains largely unfulfilled.
Bahamas, The	Arawak Indians inhabited the islands when Christopher Columbus first set foot in the New World on San Salvador in 1492. British settlement of the islands began in 1647; the islands became a colony in 1783. Since attaining independence from the UK in 1973, The Bahamas have prospered through tourism and international banking and investment management. Because of its geography, the country is a major transshipment point for illegal drugs, particularly shipments to the US, and its territory is used for smuggling illegal migrants into the US.
Bahrain	Bahrain's small size and central location among Persian Gulf countries require it to play a delicate balancing act in foreign affairs among its larger neighbors. Facing declining oil reserves, Bahrain has turned to petroleum processing and refining and has transformed itself into an international banking center. The new amir, installed in 1999, has pushed economic and political reforms and has worked to improve relations with the Shi'a community. In February 2001, Bahraini voters approved a referendum on the National Action Charter - the centerpiece of the amir's political liberalization program. In February 2002, Amir HAMAD bin Isa Al Khalifa proclaimed himself king. In October 2002, Bahrainis elected members of the lower house of Bahrain's reconstituted bicameral legislature, the National Assembly.
Baker Island	The US took possession of the island in 1857, and its guano deposits were mined by US and British companies during the second half of the 19th century. In 1935, a short-lived attempt at colonization was begun on this island - as well as on nearby Howland Island - but was disrupted by World War II and thereafter abandoned. Presently the island is a National Wildlife Refuge run by the US Department of the Interior; a day beacon is situated near the middle of the west coast.
Bangladesh	Bangladesh came into existence in 1971 when Bengali East Pakistan seceded from its union with West Pakistan. About a third of this extremely poor country floods annually during the monsoon rainy season, hampering economic development.
Barbados	The island was uninhabited when first settled by the British in 1627. Slaves worked the sugar plantations established on the island until 1834 when slavery was abolished. The economy remained heavily dependent on sugar, rum, and molasses production through most of the 20th century. The gradual introduction of social and political reforms in the 1940s and 1950s led to complete independence from the UK in 1966. In the 1990s, tourism and manufacturing surpassed the sugar industry in economic importance.
Bassas da India	This atoll is a volcanic rock surrounded by reefs and is awash at high tide. A French possession since 1897, it was placed under the administration of a commissioner residing in Reunion in 1968.
Belarus	After seven decades as a constituent republic of the USSR, Belarus attained its independence in 1991. It has retained closer political and economic ties to Russia than any of the other former Soviet republics. Belarus and Russia signed a treaty on a two-state union on 8 December 1999 envisioning greater political and economic integration. Although Belarus agreed to a framework to carry out the accord, serious implementation has yet to take place.
Belgium	Belgium became independent from the Netherlands in 1830 and was occupied by Germany during World Wars I and II. It has prospered in the past half century as a modern, technologically advanced European state and member of NATO and the EU. Tensions between the Dutch-speaking Flemings of the north and the French-speaking Walloons of the south have led in recent years to constitutional amendments granting these regions formal recognition and autonomy.
Belize	Territorial disputes between the UK and Guatemala delayed the independence of Belize (formerly British Honduras) until 1981. Guatemala refused to recognize the new nation until 1992. Tourism has become the mainstay of the economy. The country remains plagued by high unemployment, growing involvement in the South American drug trade, and increased urban crime.
Benin	Present day Benin was the site of Dahomey, a prominent West African kingdom that rose in the 15th century. The territory became a French Colony in 1872 and achieved independence on 1 August 1960, as the Republic of Benin. A succession of military governments ended in 1972 with the rise to power of Mathieu KEREKOU and the establishment of a government based on Marxist-Leninist principles. A move to representative government began in 1989. Two years later, free elections ushered in former Prime Minister Nicephore SOGLO as president, marking the first successful transfer of power in Africa from a dictatorship to a democracy. KEREKOU was returned to power by elections held in 1996 and 2001, though some irregularities were alleged.
Bermuda	Bermuda was first settled in 1609 by shipwrecked English colonists headed for Virginia. Tourism to the island to escape North American winters first developed in Victorian times. Tourism continues to be important to the island's economy, although international business has overtaken it in recent years. Bermuda has developed into a highly successful offshore financial center. A referendum on independence was soundly defeated in 1995.
Bhutan	In 1865, Britain and Bhutan signed the Treaty of Sinchulu, under which Bhutan would receive an annual subsidy in exchange for ceding some border land. Under British influence, a monarchy was set up in 1907; three years later, a treaty was signed whereby the British agreed not to interfere in Bhutanese internal affairs and Bhutan allowed Britain to direct its foreign affairs. This role was assumed by independent India after 1947. Two years later, a formal Indo-Bhutanese accord returned the areas of Bhutan annexed by the British, formalized the annual subsidies the country received, and defined India's responsibilities in defense and foreign relations. A refugee issue of some 100,000 Bhutanese in Nepal remains unresolved; 90% of the refugees are housed in seven United Nations Office of the High Commissioner for Refugees (UNHCR) camps.
Bolivia	Bolivia, named after independence fighter Simon BOLIVAR, broke away from Spanish rule in 1825; much of its subsequent history has consisted of a series of nearly 200 coups and counter-coups. Comparatively democratic civilian rule was established in 1982, but leaders have faced difficult problems of deep-seated poverty, social unrest, and drug production. Current goals include attracting foreign investment, strengthening the educational system, resolving disputes with coca growers over Bolivia's counterdrug efforts, and waging an anticorruption campaign.
Bosnia and Herzegovina	Bosnia and Herzegovina's declaration of sovereignty in October 1991, was followed by a declaration of independence from the former Yugoslavia on 3 March 1992 after a referendum boycotted by ethnic Serbs. The Bosnian Serbs - supported by neighboring Serbia and Montenegro - responded with armed resistance aimed at partitioning the republic along ethnic lines and joining Serb-held areas to form a "greater Serbia." In March 1994, Bosniaks and Croats reduced the number of warring factions from three to two by signing an agreement creating a joint Bosniak/Croat Federation of Bosnia and Herzegovina. On 21 November 1995, in Dayton, Ohio, the warring parties initialed a peace agreement that brought to a halt three years of interethnic civil strife (the final agreement was signed in Paris on 14 December 1995). The Dayton Agreement retained Bosnia and Herzegovina's international boundaries and created a joint multi-ethnic and democratic government. This national government was charged with conducting foreign, diplomatic, and fiscal policy. Also recognized was a second tier of government comprised of two entities roughly equal in size: the Bosniak/Croat Federation of Bosnia and Herzegovina and the Bosnian Serb-led Republika Srpska (RS). The Federation and RS governments were charged with overseeing most government functions. The Office of the High Representative (OHR) was established to oversee the implementation of the civilian aspects of the agreement. In 1995-96, a NATO-led international peacekeeping force (IFOR) of 60,000 troops served in Bosnia to implement and monitor the military aspects of the agreement. IFOR was succeeded by a smaller, NATO-led Stabilization Force (SFOR) whose mission is to deter renewed hostilities. SFOR remains in place although troop levels are being reduced.
Botswana	Formerly the British protectorate of Bechuanaland, Botswana adopted its new name upon independence in 1966. Four decades of uninterrupted civilian leadership, progressive social policies, and significant capital investment have created one of the most dynamic economies in Africa. Mineral extraction, principally diamond mining, dominates economic activity, though tourism is a growing sector due to the country's conservation practices and extensive nature preserves. Botswana has the world's highest known rate of HIV/AIDS infection, but also one of Africa's most progressive and comprehensive programs for dealing with the disease.
Bouvet Island	This uninhabited volcanic island is almost entirely covered by glaciers and is difficult to approach. It was discovered in 1739 by a French naval officer after whom the island was named. No claim was made until 1825, when the British flag was raised. In 1928, the UK waived its claim in favor of Norway, which had occupied the island the previous year. In 1971, Bouvet Island and the adjacent territorial waters were designated a nature reserve. Since 1977, Norway has run an automated meteorological station on the island.
Brazil	Following three centuries under the rule of Portugal, Brazil became an independent nation in 1822. By far the largest and most populous country in South America, Brazil has overcome more than half a century of military intervention in the governance of the country to pursue industrial and agricultural growth and development of the interior. Exploiting vast natural resources and a large labor pool, Brazil is today South America's leading economic power and a regional leader. Highly unequal income distribution remains a pressing problem.
British Indian Ocean Territory	Established as a territory of the UK in 1965, a number of the British Indian Ocean Territory (BIOT) islands were transferred to the Seychelles when it attained independence in 1976. Subsequently, BIOT has consisted only of the six main island groups comprising the Chagos Archipelago. The largest and most southerly of the islands, Diego Garcia, contains a joint UK-US naval support facility. All of the remaining islands are uninhabited. Former agricultural workers, earlier residents in the islands, were relocated primarily to Mauritius but also to the Seychelles, between 1967 and 1973. In 2000, a British High Court ruling invalidated the local immigration order that had excluded them from the archipelago, but upheld the special military status of Diego Garcia.
British Virgin Islands	First settled by the Dutch in 1648, the islands were annexed in 1672 by the English. The economy is closely tied to the larger and more populous US Virgin Islands to the west; the US dollar is the legal currency.
Brunei	The Sultanate of Brunei's influence peaked between the 15th and 17th centuries when its control extended over coastal areas of northwest Borneo and the southern Philippines. Brunei subsequently entered a period of decline brought on by internal strife over royal succession, colonial expansion of European powers, and piracy. In 1888, Brunei became a British protectorate; independence was achieved in 1984. The same family has ruled Brunei for over six centuries. Brunei benefits from extensive petroleum and natural gas fields, the source of one of the highest per capita GDPs in the developing world.
Bulgaria	The Bulgars, a Central Asian Turkic tribe, merged with the local Slavic inhabitants in the late 7th century to form the first Bulgarian state. In succeeding centuries, Bulgaria struggled with the Byzantine Empire to assert its place in the Balkans, but by the end of the 14th century the country was overrun by the Ottoman Turks. Bulgaria regained its independence in 1878 but, having fought on the losing side in both World Wars, it fell within the Soviet sphere of influence and became a People's Republic in 1946. Communist domination ended in 1990, when Bulgaria held its first multiparty election since World War II and began the contentious process of moving toward political democracy and a market economy while combating inflation, unemployment, corruption, and crime. Today, reforms and democratization keep Bulgaria on a path toward eventual integration into NATO and the EU - with which it began accession negotiations in 2000.
Burkina Faso	Burkina Faso (formerly Upper Volta) achieved independence from France in 1960. Repeated military coups during the 1970s and 1980s were followed by multiparty elections in the early 1990s. Burkina Faso's high population density and limited natural resources result in poor economic prospects for the majority of its citizens. Recent unrest in Cote d'Ivoire and northern Ghana has hindered the ability of several hundred thousand seasonal Burkinabe farm workers to find employment in neighboring countries.
Burma	Britain conquered Burma over a period of 62 years (1824-1886) and incorporated it into its Indian Empire. Burma was administered as a province of India until 1937 when it became a separate, self-governing colony; independence outside of the Commonwealth was attained in 1948. Gen. NE WIN dominated the government from 1962 to 1988, first as military ruler, then as president, and later as political kingmaker. Despite multiparty elections in 1990 that resulted in the main opposition party - the National League for Democracy (NLD) - winning a landslide victory, the ruling junta refused to hand over power. NLD leader and Nobel Peace Prize recipient AUNG SAN SUU KYI, who was under house arrest from 1989 to 1995 and 2000 to 2002, was arrested in May 2003 and is currently under house arrest. Her supporters are routinely harassed or jailed.
Burundi	Burundi's first democratically elected president was assassinated in October 1993 after only four months in office. Since then, some 200,000 Burundians have perished in widespread, often intense ethnic violence between Hutu and Tutsi factions. Hundreds of thousands have been internally displaced or have become refugees in neighboring countries. Burundi troops, seeking to secure their borders, intervened in the conflict in the Democratic Republic of the Congo in 1998. More recently, many of these troops have been redeployed back to Burundi to deal with periodic upsurges in rebel activity. A new transitional government, inaugurated on 1 November 2001, was to be the first step toward holding national elections in three years. While the Government of Burundi signed a cease-fire agreement in December 2002 with three of Burundi's four Hutu rebel groups, implementation of the agreement has been problematic and one rebel group refuses to sign on, clouding prospects for a sustainable peace.
Cambodia	Following a five-year struggle, Communist Khmer Rouge forces captured Phnom Penh in April 1975 and ordered the evacuation of all cities and towns; over 1.5 million displaced people died from execution, enforced hardships, or starvation. A 1978 Vietnamese invasion drove the Khmer Rouge into the countryside and touched off almost 13 years of civil war. The 1991 Paris Peace Accords mandated democratic elections and a ceasefire, which was not fully respected by the Khmer Rouge. UN-sponsored elections in 1993 helped restore some semblance of normalcy and the final elements of the Khmer Rouge surrendered in early 1999. Factional fighting in 1997 ended the first coalition government, but a second round of national elections in 1998 led to the formation of another coalition government and renewed political stability. The July 2003 elections were relatively peaceful, but negotiations among contending political parties have yet to yield a new coalition government.
Cameroon	The former French Cameroon and part of British Cameroon merged in 1961 to form the present country. Cameroon has generally enjoyed stability, which has permitted the development of agriculture, roads, and railways, as well as a petroleum industry. Despite movement toward democratic reform, political power remains firmly in the hands of an ethnic oligarchy.
Canada	A land of vast distances and rich natural resources, Canada became a self-governing dominion in 1867 while retaining ties to the British crown. Economically and technologically the nation has developed in parallel with the US, its neighbor to the south across an unfortified border. Its paramount political problem continues to be the relationship of the province of Quebec, with its French-speaking residents and unique culture, to the remainder of the country.
Cape Verde	The uninhabited islands were discovered and colonized by the Portuguese in the 15th century; Cape Verde subsequently became a trading center for African slaves and later an important coaling and resupply stop for whaling and transatlantic shipping. Following independence in 1975, and a tentative interest in unification with Guinea-Bissau, a one-party system was established and maintained until multi-party elections were held in 1990. Cape Verde continues to exhibit one of Africa's most stable democratic governments. Repeated droughts during the second half of the 20th century caused significant hardship and prompted heavy emigration. As a result, Cape Verde's expatriate population is greater than its domestic one. Most Cape Verdeans have both African and Portuguese antecedents.
Cayman Islands	The Cayman Islands were colonized from Jamaica by the British during the 18th and 19th centuries. Administered by Jamaica since 1863, they remained a British dependency after 1962 when the former became independent.
Central African Republic	The former French colony of Ubangi-Shari became the Central African Republic upon independence in 1960. After three tumultuous decades of misrule - mostly by military governments - civilian rule was established in 1993 and lasted for one decade. In March 2003 a military coup led by General Francois BOZIZE deposed the civilian government of President Ange-Felix PATASSE and has since established a transitional government. Though the government has the tacit support of civil society groups and the main parties, this is likely to weaken in the run-up to municipal, legislative, and presidential elections scheduled for December 2004 or January 2005. The government still does not fully control the countryside, where pockets of lawlessness persist.
Chad	Chad, part of France's African holdings until 1960, endured three decades of ethnic warfare as well as invasions by Libya before a semblance of peace was finally restored in 1990. The government eventually suppressed or came to terms with most political-military groups, settled a territorial dispute with Libya on terms favorable to Chad, drafted a democratic constitution, and held multiparty presidential elections in 1996 and 1997. In 1998, a new rebellion broke out in northern Chad, which sporadically flares up despite two peace agreements signed in 2002 and 2003 between the government and the rebels. Despite movement toward democratic reform, power remains in the hands of a northern ethnic oligarchy.
Chile	A three-year-old Marxist government was overthrown in 1973 by a dictatorial military regime led by Augusto PINOCHET, who ruled until a freely elected president was installed in 1990. Sound economic policies, maintained consistently since the 1980s, have contributed to steady growth and have helped secure the country's commitment to democratic and representative government. Chile has increasingly assumed regional and international leadership roles befitting its status as a stable, democratic nation.
China	For centuries China stood as a leading civilization, outpacing the rest of the world in the arts and sciences. But in the 19th and early 20th centuries, China was beset by civil unrest, major famines, military defeats, and foreign occupation. After World War II, the Communists under MAO Zedong established a dictatorship that, while ensuring China's sovereignty, imposed strict controls over everyday life and cost the lives of tens of millions of people. After 1978, his successor DENG Xiaoping gradually introduced market-oriented reforms and decentralized economic decision making. Output quadrupled by 2000. Political controls remain tight while economic controls continue to be relaxed.
Christmas Island	Named in 1643 for the day of its discovery, the island was annexed and settlement was begun by the UK in 1888. Phosphate mining began in the 1890s. The UK transferred sovereignty to Australia in 1958. Almost two-thirds of the island has been declared a national park.
Clipperton Island	This isolated island was named for John CLIPPERTON, a pirate who made it his hideout early in the 18th century. Annexed by France in 1855, it was seized by Mexico in 1897. Arbitration eventually awarded the island to France, which took possession in 1935.
Cocos (Keeling) Islands	There are 27 coral islands in the group. Captain William KEELING discovered the islands in 1609, but they remained uninhabited until the 19th century. Annexed by the UK in 1857, they were transferred to the Australian Government in 1955. The population on the two inhabited islands generally is split between the ethnic Europeans on West Island and the ethnic Malays on Home Island.
Colombia	Colombia was one of the three countries that emerged from the collapse of Gran Colombia in 1830 (the others being Ecuador and Venezuela). A 40-year insurgent campaign to overthrow the Colombian Government escalated during the 1990s, undergirded in part by funds from the drug trade. Although the violence is deadly and large swaths of the countryside are under guerrilla influence, the movement lacks the military strength or popular support necessary to overthrow the government. An anti-insurgent army of paramilitaries has grown to be several thousand strong in recent years, challenging the insurgents for control of territory and illicit industries such as the drug trade and the government's ability to exert its dominion over rural areas. While Bogota steps up efforts to reassert government control throughout the country, neighboring countries worry about the violence spilling over their borders.
Comoros	Unstable Comoros has endured 19 coups or attempted coups since gaining independence from France in 1975. In 1997, the islands of Anjouan and Moheli declared their independence from Comoros. In 1999, military chief Col. AZALI seized power. He pledged to resolve the secessionist crisis through a confederal arrangement named the 2000 Fomboni Accord. In December 2001, voters approved a new constitution and presidential elections took place in the spring of 2002. Each island in the archipelago elected its own president and a new union president was sworn in on 26 May 2002.
Congo, Democratic Republic of the	Since 1997, the Democratic Republic of the Congo (DROC; formerly called Zaire) has been rent by ethnic strife and civil war, touched off by a massive inflow in 1994 of refugees from the fighting in Rwanda and Burundi. The government of former president MOBUTU Sese Seko was toppled by a rebellion led by Laurent KABILA in May 1997; his regime was subsequently challenged by a Rwanda- and Uganda-backed rebellion in August 1998. Troops from Zimbabwe, Angola, Namibia, Chad, and Sudan intervened to support the Kinshasa regime. A cease-fire was signed on 10 July 1999 by the DROC, Zimbabwe, Angola, Uganda, Namibia, Rwanda, and Congolese armed rebel groups, but sporadic fighting continued. KABILA was assassinated on 16 January 2001 and his son Joseph KABILA was named head of state ten days later. In October 2002, the new president was successful in getting occupying Rwandan forces to withdraw from eastern Congo; two months later, an agreement was signed by all remaining warring parties to end the fighting and set up a government of national unity.
Congo, Republic of the	Upon independence in 1960, the former French region of Middle Congo became the Republic of the Congo. A quarter century of experimentation with Marxism was abandoned in 1990 and a democratically elected government installed in 1992. A brief civil war in 1997 restored former Marxist President SASSOU-NGUESSO, but ushered in a period of ethnic unrest. Southern-based rebel groups agreed to a final peace accord in March 2003. The Republic of Congo is one of Africa's largest petroleum producers with significant potential for offshore development.
Cook Islands	Named after Captain Cook, who sighted them in 1770, the islands became a British protectorate in 1888. By 1900, administrative control was transferred to New Zealand; in 1965 residents chose self-government in free association with New Zealand. The emigration of skilled workers to New Zealand and government deficits are continuing problems.
Coral Sea Islands	Scattered over some 1 million square kilometers of ocean, the Coral Sea Islands were declared a territory of Australia in 1969. They are uninhabited except for a small meteorological staff on the Willis Islets. Automated weather stations, beacons, and a lighthouse occupy many other islands and reefs.
Costa Rica	Costa Rica is a Central American success story: since the late 19th century, only two brief periods of violence have marred its democratic development. Although still a largely agricultural country, it has expanded its economy to include strong technology and tourism sectors. The standard of living is relatively high. Land ownership is widespread.
Cote d'Ivoire	Close ties to France since independence in 1960, the development of cocoa production for export, and foreign investment made Cote d'Ivoire one of the most prosperous of the tropical African states, but did not protect it from political turmoil. On 25 December 1999, a military coup - the first ever in Cote d'Ivoire's history - overthrew the government led by President Henri Konan BEDIE. Junta leader Robert GUEI held elections in late 2000, but excluded prominent opposition leader Alassane OUATTARA, blatantly rigged the polling results, and declared himself winner. Popular protest forced GUEI to step aside and brought runner-up Laurent GBAGBO into power. GBAGBO spent his first two years in office trying to consolidate power to strengthen his weak mandate, but he was unable to appease his opponents, who launched a failed coup attempt in September 2002. Rebel forces claimed the northern half of the country and in January 2003 were granted ministerial positions in a unity government under the auspices of the Linas-Marcoussis Peace Accord. President GBAGBO and rebel forces resumed implementation of the peace accord in December 2003 after a three-month stalemate, but ethnically-charged issues that sparked the civil war, such as land reform and grounds for nationality remain unresolved. The central government has yet to exert control over the northern regions and tensions remain high between GBAGBO and rebel leaders. Several thousand French and West African troops remain in Cote d'Ivoire to maintain peace and facilitate the disarmament, demobilization, and rehabilitation process.
Croatia	The lands that today comprise Croatia were part of the Austro-Hungarian Empire until the close of World War I. In 1918, the Croats, Serbs, and Slovenes formed a kingdom known after 1929 as Yugoslavia. Following World War II, Yugoslavia became a federal independent Communist state under the strong hand of Marshal TITO. Although Croatia declared its independence from Yugoslavia in 1991, it took four years of sporadic, but often bitter, fighting before occupying Serb armies were mostly cleared from Croatian lands. Under UN supervision, the last Serb-held enclave in eastern Slavonia was returned to Croatia in 1998.
Cuba	The native Amerindian population of Cuba began to decline after the European discovery of the island by Christopher COLUMBUS in 1492 and following its development as a Spanish colony during the next several centuries. Large numbers of African slaves were imported to work the coffee and sugar plantations and Havana became the launching point for the annual treasure fleets bound for Spain from Mexico and Peru. Spanish rule was severe and exploitative and occasional rebellions were harshly suppressed. It was US intervention during the Spanish-American War in 1898 that finally overthrew Spanish rule. The subsequent Treaty of Paris established Cuban independence, which was granted in 1902 after a three-year transition period. Fidel CASTRO led a rebel army to victory in 1959; his iron rule has held the regime together since then. Cuba's Communist revolution, with Soviet support, was exported throughout Latin America and Africa during the 1960s, 1970s, and 1980s. The country is now slowly recovering from a severe economic recession in 1990, following the withdrawal of former Soviet subsidies, worth $4 billion to $6 billion annually. Cuba portrays its difficulties as the result of the US embargo in place since 1961. Illicit migration to the US - using homemade rafts, alien smugglers, air flights, or via the southwest border - is a continuing problem. Some 2,500 Cubans attempted the crossing of the Straits of Florida in 2003; the US Coast Guard apprehended about 60% of the individuals.
Cyprus	Independence from the UK was approved in 1960, with constitutional guarantees by the Greek Cypriot majority to the Turkish Cypriot minority. In 1974, a Greek-sponsored attempt to seize the government was met by military intervention from Turkey, which soon controlled almost 40% of the island. In 1983, the Turkish-held area declared itself the "Turkish Republic of Northern Cyprus," but it is recognized only by Turkey. UN-led direct talks between the two sides to reach a comprehensive settlement to the division of the island began in January 2002 and will reach a culmination when a referendum of all Cypriots is held on 21 April 2004, just 10 days before the Greek part of Cyprus is scheduled to join the EU.
Czech Republic	Following the First World War, the closely related Czechs and Slovaks of the former Austro-Hungarian Empire merged to form Czechoslovakia. During the interwar years, the new country's leaders were frequently preoccupied with meeting the demands of other ethnic minorities within the republic, most notably the Sudeten Germans and the Ruthenians (Ukrainians). After World War II, a truncated Czechoslovakia fell within the Soviet sphere of influence. In 1968, an invasion by Warsaw Pact troops ended the efforts of the country's leaders to liberalize Communist party rule and create "socialism with a human face." Anti-Soviet demonstrations the following year ushered in a period of harsh repression. With the collapse of Soviet authority in 1989, Czechoslovakia regained its freedom through a peaceful "Velvet Revolution." On 1 January 1993, the country underwent a "velvet divorce" into its two national components, the Czech Republic and Slovakia. Now a member of NATO, the Czech Republic has moved toward integration in world markets, a development that poses both opportunities and risks. In December 2002, the Czech Republic was invited to join the European Union (EU). It is expected that the Czech Republic will accede to the EU in 2004.
Denmark	Once the seat of Viking raiders and later a major north European power, Denmark has evolved into a modern, prosperous nation that is participating in the general political and economic integration of Europe. It joined NATO in 1949 and the EEC (now the EU) in 1973. However, the country has opted out of certain elements of the European Union's Maastricht Treaty, including the European Economic and Monetary Union (EMU) and issues concerning certain justice and home affairs.
Djibouti	The French Territory of the Afars and the Issas became Djibouti in 1977. Hassan Gouled APTIDON installed an authoritarian one-party state and proceeded to serve three consecutive six-year terms as president. Unrest among the Afars minority during the 1990s led to multi-party elections resulting in President Ismail Omar GUELLEH attaining office in May 1999. A peace accord in 2001 ended the final phases of a ten-year uprising by Afar rebels. Djibouti occupies a very strategic geographic location at the mouth of the Red Sea and serves as an important transshipment location for goods entering and leaving the east African highlands. GUELLEH favors close ties to France, which maintains a significant military presence in the country.
Dominica	Dominica was the last of the Caribbean islands to be colonized by Europeans, due chiefly to the fierce resistance of the native Caribs. France ceded possession to Great Britain in 1763, which made the island a colony in 1805. In 1980, two years after independence, Dominica's fortunes improved when a corrupt and tyrannical administration was replaced by that of Mary Eugenia CHARLES, the first female prime minister in the Caribbean, who remained in office for 15 years. Some 3,000 Carib Indians still living on Dominica are the only pre-Columbian population remaining in the eastern Caribbean.
Dominican Republic	Explored and claimed by Columbus on his first voyage in 1492, the island of Hispaniola became a springboard for Spanish conquest of the Caribbean and the American mainland. In 1697, Spain recognized French dominion over the western third of the island, which in 1804 became Haiti. The remainder of the island, by then known as Santo Domingo, sought to gain its own independence in 1821, but was conquered and ruled by the Haitians for 22 years; it finally attained independence as the Dominican Republic in 1844. A legacy of unsettled, mostly non-representative, rule for much of its subsequent history was brought to an end in 1966 when Joaquin BALAGUER became president. He maintained a tight grip on power for most of the next 30 years when international reaction to flawed elections forced him to curtail his term in 1996. Since then, regular competitive elections have been held in which opposition candidates have won the presidency. The Dominican economy has had one of the fastest growth rates in the hemisphere over the past decade.
East Timor	The Portuguese colony of Timor declared itself independent from Portugal on 28 November 1975 and was invaded and occupied by Indonesian forces nine days later. It was incorporated into Indonesia in July 1976 as the province of East Timor. A campaign of pacification followed over the next two decades, during which an estimated 100,000 to 250,000 individuals lost their lives. On 30 August 1999, in a UN-supervised popular referendum, the people of East Timor voted for independence from Indonesia. During 1999-2001, anti-independence militias - supported by Indonesia - conducted indiscriminate violence. On 20 May 2002, East Timor was internationally recognized as an independent state and the world's newest democracy.
Ecuador	The "Republic of the Equator" was one of three countries that emerged from the collapse of Gran Colombia in 1830 (the others being Colombia and Venezuela). Between 1904 and 1942, Ecuador lost territories in a series of conflicts with its neighbors. A border war with Peru that flared in 1995 was resolved in 1999.
Egypt	The regularity and richness of the annual Nile River flood, coupled with semi-isolation provided by deserts to the east and west, allowed for the development of one of the world's great civilizations. A unified kingdom arose circa 3200 B.C. and a series of dynasties ruled in Egypt for the next three millennia. The last native dynasty fell to the Persians in 341 B.C., who in turn were replaced by the Greeks, Romans, and Byzantines. It was the Arabs who introduced Islam and the Arabic language in the 7th century and who ruled for the next six centuries. A local military caste, the Mamluks took control about 1250 and continued to govern after the conquest of Egypt by the Ottoman Turks in 1517. Following the completion of the Suez Canal in 1869, Egypt became an important world transportation hub, but also fell heavily into debt. Ostensibly to protect its investments, Britain seized control of Egypt's government in 1882, but nominal allegiance to the Ottoman Empire continued until 1914. Partially independent from the UK in 1922, Egypt acquired full sovereignty following World War II. The completion of the Aswan High Dam in 1971 and the resultant Lake Nasser have altered the time-honored place of the Nile River in the agriculture and ecology of Egypt. A rapidly growing population (the largest in the Arab world), limited arable land, and dependence on the Nile all continue to overtax resources and stress society. The government has struggled to ready the economy for the new millennium through economic reform and massive investment in communications and physical infrastructure.
El Salvador	El Salvador achieved independence from Spain in 1821 and from the Central American Federation in 1839. A 12-year civil war, which cost about 75,000 lives, was brought to a close in 1992 when the government and leftist rebels signed a treaty that provided for military and political reforms.
Equatorial Guinea	Equatorial Guinea gained independence in 1968 after 190 years of Spanish rule. This tiny country, composed of a mainland portion plus five inhabited islands, is one of the smallest on the African continent. President OBIANG NGUEM MBASOGO has ruled the country for over two decades since seizing power from his uncle, then President MACIAS, in a 1979 coup. Although nominally a constitutional democracy since 1991, the 1996 and 2002 presidential elections - as well as the 1999 legislative elections - were widely seen as being flawed. The president controls most opposition parties through the judicious use of patronage. Despite the country's economic windfall from oil production resulting in a massive increase in government revenue in recent years, there have been few improvements in the country's living standards.
Eritrea	Eritrea was awarded to Ethiopia in 1952 as part of a federation. Ethiopia's annexation of Eritrea as a province 10 years later sparked a 30-year struggle for independence that ended in 1991 with Eritrean rebels defeating governmental forces; independence was overwhelmingly approved in a 1993 referendum. A two-and-a-half-year border war with Ethiopia that erupted in 1998 ended under UN auspices on 12 December 2000. Eritrea currently hosts a UN peacekeeping operation that is monitoring a 25 km-wide Temporary Security Zone on the border with Ethiopia. An international commission, organized to resolve the border dispute, posted its findings in 2002 but final demarcation is on hold due to Ethiopian objections.
Estonia	After centuries of Danish, Swedish, German, and Russian rule, Estonia attained independence in 1918. Forcibly incorporated into the USSR in 1940, it regained its freedom in 1991, with the collapse of the Soviet Union. Since the last Russian troops left in 1994, Estonia has been free to promote economic and political ties with Western Europe. It will accede to the EU in May 2004 and to NATO in the summer of 2004.
Ethiopia	Unique among African countries, the ancient Ethiopian monarchy maintained its freedom from colonial rule, one exception being the Italian occupation of 1936-41. In 1974 a military junta, the Derg, deposed Emperor Haile SELASSIE (who had ruled since 1930) and established a socialist state. Torn by bloody coups, uprisings, wide-scale drought, and massive refugee problems, the regime was finally toppled by a coalition of rebel forces, the Ethiopian People's Revolutionary Democratic Front (EPRDF), in 1991. A constitution was adopted in 1994 and Ethiopia's first multiparty elections were held in 1995. A two and a half year border war with Eritrea ended with a peace treaty on 12 December 2000. Final demarcation of the boundary is currently on hold due to Ethiopian objections to an international commission's finding requiring it to surrender sensitive territory.
Europa Island	A French possession since 1897, the island is heavily wooded; it is the site of a small military garrison that staffs a weather station.
Falkland Islands (Islas Malvinas)	Although first sighted by an English navigator in 1592, the first landing (English) did not occur until almost a century later in 1690, and the first settlement (French) was not established until 1764. The colony was turned over to Spain two years later and the islands have since been the subject of a territorial dispute, first between Britain and Spain, then between Britain and Argentina. The UK asserted its claim to the islands by establishing a naval garrison there in 1833. Argentina invaded the islands on 2 April 1982. The British responded with an expeditionary force that landed seven weeks later and after fierce fighting forced Argentine surrender on 14 June 1982.
Faroe Islands	The population of the Faroe Islands is largely descended from Viking settlers who arrived in the 9th century. The islands have been connected politically to Denmark since the 14th century. A high degree of self-government was attained in 1948.
Fiji	Fiji became independent in 1970, after nearly a century as a British colony. Democratic rule was interrupted by two military coups in 1987, caused by concern over a government perceived as dominated by the Indian community (descendants of contract laborers brought to the islands by the British in the 19th century). A 1990 constitution favored native Melanesian control of Fiji, but led to heavy Indian emigration; the population loss resulted in economic difficulties, but ensured that Melanesians became the majority. Amendments enacted in 1997 made the constitution more equitable. Free and peaceful elections in 1999 resulted in a government led by an Indo-Fijian, but a coup in May 2000 ushered in a prolonged period of political turmoil. Parliamentary elections held in August 2001 provided Fiji with a democratically elected government and gave a mandate to the government of Prime Minister Laisenia QARASE.
Finland	Finland was a province and then a grand duchy under Sweden from the 12th to the 19th centuries and an autonomous grand duchy of Russia after 1809. It won its complete independence in 1917. During World War II, it was able to successfully defend its freedom and resist invasions by the Soviet Union - albeit with some loss of territory. In the subsequent half century, the Finns made a remarkable transformation from a farm/forest economy to a diversified modern industrial economy; per capita income is now on par with Western Europe. As a member of the European Union, Finland was the only Nordic state to join the euro system at its initiation in January 1999.
France	Although ultimately a victor in World Wars I and II, France suffered extensive losses in its empire, wealth, manpower, and rank as a dominant nation-state. Nevertheless, France today is one of the most modern countries in the world and is a leader among European nations. Since 1958, it has constructed a presidential democracy resistant to the instabilities experienced in earlier parliamentary democracies. In recent years, its reconciliation and cooperation with Germany have proved central to the economic integration of Europe, including the introduction of a common exchange currency, the euro, in January 1999. At present, France is at the forefront of European states seeking to exploit the momentum of monetary union to advance the creation of a more unified and capable European defense and security apparatus.
French Guiana	First settled by the French in 1604, French Guiana was the site of notorious penal settlements until 1951. The European Space Agency launches its communication satellites from Kourou.
French Polynesia	The French annexed various Polynesian island groups during the 19th century. In September 1995, France stirred up widespread protests by resuming nuclear testing on the Mururoa atoll after a three-year moratorium. The tests were suspended in January 1996.
French Southern and Antarctic Lands	The Southern Lands consist of two archipelagos, Iles Crozet and Iles Kerguelen, and two volcanic islands, Ile Amsterdam and Ile Saint-Paul. They contain no permanent inhabitants and are visited only by researchers studying the native fauna. The Antarctic portion consists of "Adelie Land," a thin slice of the Antarctic continent discovered and claimed by the French in 1840.
Gabon	Only two autocratic presidents have ruled Gabon since independence from France in 1960. Gabon's current President, El Hadj Omar BONGO - one of the longest-serving heads of state in the world - has dominated Gabon's political scene for almost four decades. President BONGO introduced a nominal multiparty system and a new constitution in the early 1990s. However, the low turnout and allegations of electoral fraud during the most recent local elections in 2002-03 have exposed the weaknesses of formal political structures in Gabon. In addition, recent strikes have underscored the popular disenchantment with the political system. Presidential elections scheduled for 2005 are unlikely to bring change since the opposition remains weak, divided, and financially dependent on the current regime. Despite political conditions, a small population, abundant natural resources, and considerable foreign support have helped make Gabon one of the more prosperous and stable African countries.
Gambia, The	The Gambia gained its independence from the UK in 1965; it formed a short-lived federation of Senegambia with Senegal between 1982 and 1989. In 1991 the two nations signed a friendship and cooperation treaty. A military coup in 1994 overthrew the president and banned political activity, but a 1996 constitution and presidential elections, followed by parliamentary balloting in 1997, completed a nominal return to civilian rule. The country undertook another round of presidential and legislative elections in late 2001 and early 2002.
Gaza Strip	The Israel-PLO Declaration of Principles on Interim Self-Government Arrangements (the DOP), signed in Washington on 13 September 1993, provided for a transitional period not exceeding five years of Palestinian interim self-government in the Gaza Strip and the West Bank. Under the DOP, Israel agreed to transfer certain powers and responsibilities to the Palestinian Authority, which includes the Palestinian Legislative Council elected in January 1996, as part of the interim self-governing arrangements in the West Bank and Gaza Strip. A transfer of powers and responsibilities for the Gaza Strip and Jericho took place pursuant to the Israel-PLO 4 May 1994 Cairo Agreement on the Gaza Strip and the Jericho Area and in additional areas of the West Bank pursuant to the Israel-PLO 28 September 1995 Interim Agreement, the Israel-PLO 15 January 1997 Protocol Concerning Redeployment in Hebron, the Israel-PLO 23 October 1998 Wye River Memorandum, and the 4 September 1999 Sharm el-Sheikh Agreement. The DOP provides that Israel will retain responsibility during the transitional period for external and internal security and for public order of settlements and Israeli citizens. Direct negotiations to determine the permanent status of Gaza and West Bank that began in September 1999 after a three-year hiatus, were derailed by a second intifadah that broke out in September 2000. The resulting widespread violence in the West Bank and Gaza Strip, Israel's military response, and instability within the Palestinian Authority continue to undermine progress toward a permanent agreement.
Georgia	Georgia was absorbed into the Russian Empire in the 19th century. Independent for three years (1918-1921) following the Russian revolution, it was forcibly incorporated into the USSR until the Soviet Union dissolved in 1991. Ethnic separation in Abkhazia and South Ossetia, poor governance, and Russian military bases deny the government effective control over the entirety of the state's internationally recognized territory. Despite myriad problems, some progress on market reforms and democratization has been made. An attempt by the government to manipulate legislative elections in November 2003 touched off widespread protests that led to the resignation of Eduard SHEVARDNADZE, president since 1995.
Germany	As Europe's largest economy and most populous nation, Germany remains a key member of the continent's economic, political, and defense organizations. European power struggles immersed Germany in two devastating World Wars in the first half of the 20th century and left the country occupied by the victorious Allied powers of the US, UK, France, and the Soviet Union in 1945. With the advent of the Cold War, two German states were formed in 1949: the western Federal Republic of Germany (FRG) and the eastern German Democratic Republic (GDR). The democratic FRG embedded itself in key Western economic and security organizations, the EC, which became the EU, and NATO, while the Communist GDR was on the front line of the Soviet-led Warsaw Pact. The decline of the USSR and the end of the Cold War allowed for German unification in 1990. Since then, Germany has expended considerable funds to bring Eastern productivity and wages up to Western standards. In January 1999, Germany and 10 other EU countries introduced a common European exchange currency, the euro.
Ghana	Formed from the merger of the British colony of the Gold Coast and the Togoland trust territory, Ghana in 1957 became the first country in colonial Africa to gain its independence. A long series of coups resulted in the suspension of the constitution in 1981 and the banning of political parties. A new constitution, restoring multiparty politics, was approved in 1992. Lt. Jerry RAWLINGS, head of state since 1981, won presidential elections in 1992 and 1996, but was constitutionally prevented from running for a third term in 2000. He was succeeded by John KUFUOR, who defeated former Vice President Atta MILLS in a free and fair election.
Gibraltar	Strategically important, Gibraltar was ceded to Great Britain by Spain in the 1713 Treaty of Utrecht; the British garrison was formally declared a colony in 1830. In referendums held in 1967 and 2002, Gibraltarians ignored Spanish pressure and voted overwhelmingly to remain a British dependency.
Glorioso Islands	A French possession since 1892, the Glorioso Islands are composed of two lushly vegetated coral islands (Ile Glorieuse and Ile du Lys) and three rock islets. A military garrison operates a weather and radio station on Ile Glorieuse.
Greece	Greece achieved its independence from the Ottoman Empire in 1829. During the second half of the 19th century and the first half of the 20th century, it gradually added neighboring islands and territories, most with Greek-speaking populations. Following the defeat of Communist rebels in 1949, Greece joined NATO in 1952. A military dictatorship, which in 1967 suspended many political liberties and forced the king to flee the country, lasted seven years. The 1974 democratic elections and a referendum created a parliamentary republic and abolished the monarchy; Greece joined the European Community or EC in 1981 (which became the EU in 1992).
Greenland	The world's largest non-continental island, about 81% ice-capped, Greenland was granted self-government in 1979 by the Danish parliament. The law went into effect the following year. Denmark continues to exercise control of Greenland's foreign affairs.
Grenada	One of the smallest independent countries in the western hemisphere, Grenada was seized by a Marxist military council on 19 October 1983. Six days later the island was invaded by US forces and those of six other Caribbean nations, which quickly captured the ringleaders and their hundreds of Cuban advisers. Free elections were reinstituted the following year.
Guadeloupe	Guadeloupe has been a French possession since 1635. The island of Saint Martin is shared with the Netherlands; its southern portion is named Sint Maarten and is part of the Netherlands Antilles and its northern portion is named Saint-Martin and is part of Guadeloupe
Guam	Guam was ceded to the US by Spain in 1898. Captured by the Japanese in 1941, it was retaken by the US three years later. The military installation on the island is one of the most strategically important US bases in the Pacific.
Guatemala	Guatemala was freed of Spanish colonial rule in 1821. During the second half of the 20th century, it experienced a variety of military and civilian governments as well as a 36-year guerrilla war. In 1996, the government signed a peace agreement formally ending the conflict, which had led to the death of more than 100,000 people and had created some 1 million refugees.
Guernsey	The island of Guernsey and the other Channel Islands represent the last remnants of the medieval Dukedom of Normandy, which held sway in both France and England. The islands were the only British soil occupied by German troops in World War II.
Guinea	Independent from France since 1958, Guinea did not hold democratic elections until 1993 when Gen. Lansana CONTE (head of the military government) was elected president of the civilian government. He was reelected in 1998 and again in 2003. Unrest in Sierra Leone and Liberia has spilled over into Guinea on several occasions over the past decade, threatening stability and creating humanitarian emergencies.
Guinea-Bissau	Since independence from Portugal in 1974, Guinea-Bissau has experienced considerable upheaval. The founding government consisted of a single party system and command economy. In 1980, a military coup established Joao VIEIRA as president and a path to a market economy and multiparty system was implemented. A number of coup attempts through the 1980s and early 1990s failed to unseat him and in 1994 he was elected president in the country's first free elections. A military coup attempt and civil war in 1998 eventually led to VIERA's ouster in 1999. In February 2000, an interim government turned over power when opposition leader Kumba YALA took office following two rounds of transparent presidential elections. YALA was ousted in a bloodless coup in September 2003, and Henrique ROSA was sworn in as President. Guinea-Bissau's transition back to democracy will be complicated by its crippled economy, devastated in the civil war.
Guyana	Originally a Dutch colony in the 17th century, by 1815 Guyana had become a British possession. The abolition of slavery led to black settlement of urban areas and the importation of indentured servants from India to work the sugar plantations. This ethnocultural divide has persisted and has led to turbulent politics. Guyana achieved independence from the UK in 1966, but until the early 1990s it was ruled mostly by socialist-oriented governments. In 1992, Cheddi JAGAN was elected president, in what is considered the country's first free and fair election since independence. Upon his death five years later, he was succeeded by his wife Janet, who resigned in 1999 due to poor health. Her successor, Bharrat JAGDEO, was reelected in 2001.
Haiti	The native Arawak Amerindians - who inhabited the island of Hispaniola when it was discovered by Columbus in 1492 - were virtually annihilated by Spanish settlers within 25 years. In the early 17th century, the French established a presence on Hispaniola, and in 1697, Spain ceded to the French the western third of the island - Haiti. The French colony, based on forestry and sugar-related industries, became one of the wealthiest in the Caribbean, but only through the heavy importation of African slaves and considerable environmental degradation. In the late 18th century, Haiti's nearly half million slaves revolted under Toussaint L'OUVERTURE and after a prolonged struggle, became the first black republic to declare its independence in 1804. Haiti has been plagued by political violence for most of its history. It is the poorest country in the Western Hemisphere.
Heard Island and McDonald Islands	These uninhabited, barren, sub-Antarctic islands were transferred from the UK to Australia in 1947. Populated by large numbers of seal and bird species, the islands have been designated a nature preserve.
Holy See (Vatican City)	Popes in their secular role ruled portions of the Italian peninsula for more than a thousand years until the mid 19th century, when many of the Papal States were seized by the newly united Kingdom of Italy. In 1870, the pope's holdings were further circumscribed when Rome itself was annexed. Disputes between a series of "prisoner" popes and Italy were resolved in 1929 by three Lateran Treaties, which established the independent state of Vatican City and granted Roman Catholicism special status in Italy. In 1984, a concordat between the Holy See and Italy modified certain of the earlier treaty provisions, including the primacy of Roman Catholicism as the Italian state religion. Present concerns of the Holy See include religious freedom, international development, the Middle East, terrorism, the failing health of Pope John Paul II, interreligious dialogue and reconciliation, and the application of church doctrine in an era of rapid change and globalization. About 1 billion people worldwide profess the Catholic faith.
Honduras	Part of Spain's vast empire in the New World, Honduras became an independent nation in 1821. After two and one-half decades of mostly military rule, a freely elected civilian government came to power in 1982. During the 1980s, Honduras proved a haven for anti-Sandinista contras fighting the Marxist Nicaraguan Government and an ally to Salvadoran Government forces fighting against leftist guerrillas. The country was devastated by Hurricane Mitch in 1998, which killed about 5,600 people and caused approximately $2 billion in damage.
Hong Kong	Occupied by the UK in 1841, Hong Kong was formally ceded by China the following year; various adjacent lands were added later in the 19th century. Pursuant to an agreement signed by China and the UK on 19 December 1984, Hong Kong became the Hong Kong Special Administrative Region (SAR) of China on 1 July 1997. In this agreement, China has promised that, under its "one country, two systems" formula, China's socialist economic system will not be imposed on Hong Kong and that Hong Kong will enjoy a high degree of autonomy in all matters except foreign and defense affairs for the next 50 years.
Howland Island	Discovered by the US early in the 19th century, the island was officially claimed by the US in 1857. Both US and British companies mined for guano until about 1890. Earhart Light is a day beacon near the middle of the west coast that was partially destroyed during World War II, but has since been rebuilt; it is named in memory of the famed aviatrix Amelia EARHART. The island is administered by the US Department of the Interior as a National Wildlife Refuge.
Hungary	Hungary was part of the polyglot Austro-Hungarian Empire, which collapsed during World War I. The country fell under Communist rule following World War II. In 1956, a revolt and announced withdrawal from the Warsaw Pact were met with a massive military intervention by Moscow. Under the leadership of Janos KADAR in 1968, Hungary began liberalizing its economy, introducing so-called "goulash Communism." Hungary held its first multiparty elections in 1990 and initiated a free market economy. It joined NATO in 1999 and is scheduled to accede to the EU along with nine other states on 1 May 2004. In an April 2003 referendum, 84 percent voted in favor of joining the EU.
Iceland	Settled by Norwegian and Celtic (Scottish and Irish) immigrants during the late 9th and 10th centuries A.D., Iceland boasts the world's oldest functioning legislative assembly, the Althing, established in 930. Independent for over 300 years, Iceland was subsequently ruled by Norway and Denmark. Fallout from the Askja volcano of 1875 devastated the Icelandic economy and caused widespread famine. Over the next quarter century, 20% of the island's population emigrated, mostly to Canada and the US. Limited home rule from Denmark was granted in 1874 and complete independence attained in 1944. Literacy, longevity, income, and social cohesion are first-rate by world standards.
India	The Indus Valley civilization, one of the oldest in the world, dates back at least 5,000 years. Aryan tribes from the northwest invaded about 1500 B.C.; their merger with the earlier inhabitants created the classical Indian culture. Arab incursions starting in the 8th century and Turkish in the 12th were followed by European traders, beginning in the late 15th century. By the 19th century, Britain had assumed political control of virtually all Indian lands. Nonviolent resistance to British colonialism under Mohandas GANDHI and Jawaharlal NEHRU led to independence in 1947. The subcontinent was divided into the secular state of India and the smaller Muslim state of Pakistan. A third war between the two countries in 1971 resulted in East Pakistan becoming the separate nation of Bangladesh. Fundamental concerns in India include the ongoing dispute with Pakistan over Kashmir, massive overpopulation, environmental degradation, extensive poverty, and ethnic and religious strife, all this despite impressive gains in economic investment and output.
Indian Ocean	The Indian Ocean is the third largest of the world's five oceans (after the Pacific Ocean and Atlantic Ocean, but larger than the Southern Ocean and Arctic Ocean). Four critically important access waterways are the Suez Canal (Egypt), Bab el Mandeb (Djibouti-Yemen), Strait of Hormuz (Iran-Oman), and Strait of Malacca (Indonesia-Malaysia). The decision by the International Hydrographic Organization in the spring of 2000 to delimit a fifth ocean, the Southern Ocean, removed the portion of the Indian Ocean south of 60 degrees south.
Indonesia	Indonesia is the world's largest archipelago; it achieved independence from the Netherlands in 1949. Current issues include: alleviating widespread poverty, preventing terrorism, effecting a transition to a popularly-elected government after four decades of authoritarianism, implementing reforms of the banking sector, addressing charges of cronyism and corruption, holding the military and police accountable for human rights violations, and resolving separatist pressures in Aceh and Papua.
Iran	Known as Persia until 1935, Iran became an Islamic republic in 1979 after the ruling shah was forced into exile. Conservative clerical forces established a theocratic system of government with ultimate political authority vested in a learned religious scholar. A group of Iranian students seized the US Embassy in Tehran on 4 November 1979 and held it until 20 January 1981. During 1980-88, Iran fought a bloody, indecisive war with Iraq over disputed territory. Over the past decade, popular dissatisfaction with the government, driven by demographic changes, restrictive social policies, and poor economic conditions, has been pressuring for political reform.
Iraq	Formerly part of the Ottoman Empire, Iraq was occupied by Britain during the course of World War I; in 1920, it was declared a League of Nations mandate under UK administration. In stages over the next dozen years, Iraq attained its independence as a kingdom in 1932. A "republic" was proclaimed in 1958, but in actuality a series of military strongmen have ruled the country since then, the latest being SADDAM Husayn. Territorial disputes with Iran led to an inconclusive and costly eight-year war (1980-88). In August 1990, Iraq seized Kuwait, but was expelled by US-led, UN coalition forces during the Gulf War of January-February 1991. Following Kuwait's liberation, the UN Security Council (UNSC) required Iraq to scrap all weapons of mass destruction and long-range missiles and to allow UN verification inspections. Continued Iraqi noncompliance with UNSC resolutions over a period of 12 years resulted in the US-led invasion of Iraq in March 2003 and the ouster of the SADDAM Husayn regime. Coalition forces remain in Iraq, helping to restore degraded infrastructure and facilitating the establishment of a freely elected government. The Coalition plans to return sovereignty to the Iraqi people by July 2004.
Ireland	Celtic tribes settled on the island from 600-150 B.C. Invasions by Norsemen that began in the late 8th century were finally ended when King Brian BORU defeated the Danes in 1014. English invasions began in the 12th century and set off more than seven centuries of Anglo-Irish struggle marked by fierce rebellions and harsh repressions. A failed 1916 Easter Monday Rebellion touched off several years of guerrilla warfare that in 1921 resulted in independence from the UK for 26 southern counties; six northern (Ulster) counties remained part of the United Kingdom. In 1948 Ireland withdrew from the British Commonwealth; it joined the European Community in 1973. Irish governments have sought the peaceful unification of Ireland and have cooperated with Britain against terrorist groups. A peace settlement for Northern Ireland, known as the Good Friday Agreement and approved in 1998, is being implemented with some difficulties.
Israel	Following World War II, the British withdrew from their mandate of Palestine, and the UN partitioned the area into Arab and Jewish states, an arrangement rejected by the Arabs. Subsequently, the Israelis defeated the Arabs in a series of wars without ending the deep tensions between the two sides. The territories occupied by Israel since the 1967 war are not included in the Israel country profile, unless otherwise noted. On 25 April 1982, Israel withdrew from the Sinai pursuant to the 1979 Israel-Egypt Peace Treaty. Outstanding territorial and other disputes with Jordan were resolved in the 26 October 1994 Israel-Jordan Treaty of Peace. In addition, on 25 May 2000, Israel withdrew unilaterally from southern Lebanon, which it had occupied since 1982. In keeping with the framework established at the Madrid Conference in October 1991, bilateral negotiations were conducted between Israel and Palestinian representatives (from the Israeli-occupied West Bank and Gaza Strip) and Syria to achieve a permanent settlement. On 24 June 2002, US President Bush laid out a "road map" for resolving the Israeli-Palestinian conflict, which envisions a two-state solution. However, progress toward a permanent status agreement has been undermined by the outbreak of Palestinian-Israeli violence since September 2000.
Italy	Italy became a nation-state in 1861 when the city-states of the peninsula, along with Sardinia and Sicily, were united under King Victor EMMANUEL II. An era of parliamentary government came to a close in the early 1920s when Benito MUSSOLINI established a Fascist dictatorship. His disastrous alliance with Nazi Germany led to Italy's defeat in World War II. A democratic republic replaced the monarchy in 1946 and economic revival followed. Italy was a charter member of NATO and the European Economic Community (EEC). It has been at the forefront of European economic and political unification, joining the European Monetary Union in 1999. Persistent problems include illegal immigration, organized crime, corruption, high unemployment, sluggish economic growth, and the low incomes and technical standards of southern Italy compared with the prosperous north.
Jamaica	Jamaica gained full independence within the British Commonwealth in 1962. Deteriorating economic conditions during the 1970s led to recurrent violence and a drop off in tourism. Elections in 1980 saw the democratic socialists voted out of office. Political violence marred elections during the 1990s.
Jan Mayen	This desolate, mountainous island was named after a Dutch whaling captain who indisputably discovered it in 1614 (earlier claims are inconclusive). Visited only occasionally by seal hunters and trappers over the following centuries, the island came under Norwegian sovereignty in 1929. The long dormant Haakon VII Toppen/Beerenberg volcano resumed activity in 1970; it is the northernmost active volcano on earth.
Japan	While retaining its time-honored culture, Japan rapidly absorbed Western technology during the late 19th and early 20th centuries. After its defeat in World War II, Japan recovered to become an economic power and a staunch ally of the US. While the emperor retains his throne as a symbol of national unity, actual power rests in networks of powerful politicians, bureaucrats, and business executives. The economy experienced a major slowdown starting in the 1990s following three decades of unprecedented growth.
Jarvis Island	First discovered by the British in 1821, the uninhabited island was annexed by the US in 1858, but abandoned in 1879 after tons of guano had been removed. The UK annexed the island in 1889, but never carried out plans for further exploitation. The US occupied and reclaimed the island in 1935. Abandoned after World War II, the island is currently a National Wildlife Refuge administered by the US Department of the Interior; a day beacon is situated near the middle of the west coast.
Jersey	The island of Jersey and the other Channel Islands represent the last remnants of the medieval Dukedom of Normandy that held sway in both France and England. These islands were the only British soil occupied by German troops in World War II.
Johnston Atoll	Both the US and the Kingdom of Hawaii annexed Johnston Atoll in 1858, but it was the US that mined the guano deposits until the late 1880s. Johnston and Sand Islands were designated wildlife refuges in 1926. The US Navy took over the atoll in 1934, and subsequently the US Air Force assumed control in 1948. The site was used for high-altitude nuclear tests in the 1950s and 1960s, and until late in 2000 the atoll was maintained as a storage and disposal site for chemical weapons. Munitions destruction is now complete. Cleanup and closure of the facility is progressing, with completion anticipated in 2004.
Jordan	For most of its history since independence from British administration in 1946, Jordan was ruled by King HUSSEIN (1953-99). A pragmatic ruler, he successfully navigated competing pressures from the major powers (US, USSR, and UK), various Arab states, Israel, and a large internal Palestinian population, despite several wars and coup attempts. In 1989 he reinstituted parliamentary elections and gradually political liberalization; in 1994 he signed a formal peace treaty with Israel. King ABDALLAH II - the eldest son of King HUSSEIN and Princess MUNA - assumed the throne following his father's death in February 1999. Since then, he has consolidated his power and undertaken an aggressive economic reform program. Jordan acceded to the World Trade Organization in 2000, and began to participate in the European Free Trade Association in 2001. After a two-year delay, parliamentary and municipal elections took place in the summer of 2003. The prime minister and government appointed in October 2003 declared their commitment to accelerated economic and political reforms and the new cabinet includes an unprecedented three women as ministers.
Juan de Nova Island	Named after a famous 15th century Spanish navigator and explorer, the island has been a French possession since 1897. It has been exploited for its guano and phosphate. Presently a small military garrison oversees a meteorological station.
Kazakhstan	Native Kazakhs, a mix of Turkic and Mongol nomadic tribes who migrated into the region in the 13th century, were rarely united as a single nation. The area was conquered by Russia in the 18th century and Kazakhstan became a Soviet Republic in 1936. During the 1950s and 1960s agricultural "Virgin Lands" program, Soviet citizens were encouraged to help cultivate Kazakhstan's northern pastures. This influx of immigrants (mostly Russians, but also some other deported nationalities) skewed the ethnic mixture and enabled non-Kazakhs to outnumber natives. Independence in 1991 caused many of these newcomers to emigrate. Current issues include: developing a cohesive national identity; expanding the development of the country's vast energy resources and exporting them to world markets; achieving a sustainable economic growth outside the oil, gas, and mining sectors; and strengthening relations with neighboring states and other foreign powers.
Kenya	Founding president and liberation struggle icon Jomo KENYATTA led Kenya from independence until his death in 1978, when President Daniel Toroitich arap MOI took power in a constitutional succession. The country was a de facto one-party state from 1969 until 1982 when the ruling Kenya African National Union (KANU) made itself the sole legal party in Kenya. MOI acceded to internal and external pressure for political liberalization in late 1991. The ethnically fractured opposition failed to dislodge KANU from power in elections in 1992 and 1997, which were marred by violence and fraud, but are viewed as having generally reflected the will of the Kenyan people. President MOI stepped down in December of 2002 following fair and peaceful elections. Mwai KIBAKI, running as the candidate of the multiethnic, united opposition group, the National Rainbow Coalition, defeated KANU candidate Uhuru KENYATTA and assumed the presidency following a campaign centered on an anticorruption platform.
Kingman Reef	The US annexed the reef in 1922. Its sheltered lagoon served as a way station for flying boats on Hawaii-to-American Samoa flights during the late 1930s. There are no terrestrial plants on the reef, which is frequently awash, but it does support abundant and diverse marine fauna and flora. In 2001, the waters surrounding the reef out to 12 NM around the reef were designated a US National Wildlife Refuge.
Kiribati	The Gilbert Islands were granted self-rule by the UK in 1971 and complete independence in 1979 under the new name of Kiribati. The US relinquished all claims to the sparsely inhabited Phoenix and Line Island groups in a 1979 treaty of friendship with Kiribati.
Korea, North	Following World War II, Korea was split, with the northern half coming under Communist domination and the southern portion becoming Western-oriented. KIM Chong-il has ruled North Korea since his father and the country's founder, president KIM Il-song, died in 1994. After decades of mismanagement, the North relies heavily on international food aid to feed its population while continuing to expend resources to maintain an army of about 1 million. North Korea's long-range missile development and research into nuclear, chemical, and biological weapons and massive conventional armed forces are of major concern to the international community. In December 2002, North Korea repudiated a 1994 agreement that shut down its nuclear reactors and expelled UN monitors, further raising fears it would produce nuclear weapons.
Korea, South	After World War II, a republic was set up in the southern half of the Korean Peninsula while a Communist-style government was installed in the north. During the Korean War (1950-1953), US and other UN forces intervened to defend South Korea from North Korean attacks supported by the Chinese. An armistice was signed in 1953, splitting the peninsula along a demilitarized zone at about the 38th parallel. Thereafter, South Korea achieved rapid economic growth with per capita income rising to roughly 18 times the level of North Korea. South Korea has maintained its commitment to democratize its political processes. In June 2000, a historic first North-South summit took place between the South's President KIM Dae-jung and the North's leader KIM Chong-il.
Kuwait	Britain oversaw foreign relations and defense for the ruling Kuwaiti AL-SABAH dynasty from 1899 until independence in 1961. Kuwait was attacked and overrun by Iraq on 2 August 1990. Following several weeks of aerial bombardment, a US-led, UN coalition began a ground assault on 23 February 1991 that liberated Kuwait in four days. Kuwait spent more than $5 billion to repair oil infrastructure damaged during 1990-91.
Kyrgyzstan	A Central Asian country of incredible natural beauty and proud nomadic traditions, Kyrgyzstan was annexed by Russia in 1864; it achieved independence from the Soviet Union in 1991. Current concerns include: privatization of state-owned enterprises, expansion of democracy and political freedoms, interethnic relations, and combating terrorism.
Laos	In 1975, the Communist Pathet Lao took control of the government, ending a six-century-old monarchy. Initial closer ties to Vietnam and socialization were replaced with a gradual return to private enterprise, a liberalization of foreign investment laws, and the admission into ASEAN in 1997.
Latvia	After a brief period of independence between the two World Wars, Latvia was annexed by the USSR in 1940. It reestablished its independence in 1991 following the breakup of the Soviet Union. Although the last Russian troops left in 1994, the status of the Russian minority (some 30% of the population) remains of concern to Moscow. Latvia will join the EU in May of 2004 and NATO in the summer of 2004.
Lebanon	Lebanon has made progress toward rebuilding its political institutions since 1991 and the end of the devastating 16-year civil war. Under the Ta'if Accord - the blueprint for national reconciliation - the Lebanese have established a more equitable political system, particularly by giving Muslims a greater say in the political process while institutionalizing sectarian divisions in the government. Since the end of the war, the Lebanese have conducted several successful elections, most of the militias have been weakened or disbanded, and the Lebanese Armed Forces (LAF) have extended central government authority over about two-thirds of the country. Hizballah, the radical Shi'a party, retains its weapons. Syria maintains about 16,000 troops in Lebanon, based mainly east of Beirut and in the Bekaa Valley. Syria's troop deployment was legitimized by the Arab League during Lebanon's civil war and in the Ta'if Accord. Damascus justifies its continued military presence in Lebanon by citing Beirut's requests and the failure of the Lebanese Government to implement all of the constitutional reforms in the Ta'if Accord. Israel's withdrawal from its security zone in southern Lebanon in May 2000, however, has emboldened some Lebanese Christians and Druze to demand that Syria withdraw its forces as well.
Lesotho	Basutoland was renamed the Kingdom of Lesotho upon independence from the UK in 1966. King MOSHOESHOE was exiled in 1990. Constitutional government was restored in 1993 after 23 years of military rule. In 1998, violent protests and a military mutiny following a contentious election prompted a brief but bloody South African military intervention. Constitutional reforms have since restored political stability; peaceful parliamentary elections were held in 2002.
Liberia	Years of fighting, coupled with the flight of most businesses, have disrupted formal economic activity. A still unsettled domestic security situation has slowed the process of rebuilding the social and economic structure of this war-torn country. President TAYLOR, who won the 1997 presidential elections after an eight-year-long civil war, was never able to fully eliminate rebel groups that sought to oust him by force. Rebel attacks on Monrovia, coupled with two years of UN-imposed sanctions for TAYLOR'S meddling in Sierra Leone's civil war, finally prompted TAYLOR'S abdication from power in August 2003. A transitional government - composed of rebel, government, and civil society groups - assumed control in October 2003. Chairman Gyude BRYANT, who has a two-year mandate to oversee efforts to rebuild Liberia, heads the new government.
Libya	From the earliest days of his rule following his 1969 military coup, Col. Muammar Abu Minyar al-QADHAFI has espoused his own political system, the Third Universal Theory. The system is a combination of socialism and Islam derived in part from tribal practices and is supposed to be implemented by the Libyan people themselves in a unique form of "direct democracy." QADHAFI has always seen himself as a revolutionary and visionary leader. He used oil funds during the 1970s and 1980s to promote his ideology outside Libya, supporting subversives and terrorists abroad to hasten the end of Marxism and capitalism. In addition, beginning in 1973, he engaged in military operations in northern Chad's Aozou Strip to gain access to minerals and to use as a base of influence in Chadian politics. Chadian forces were able to force the Libyans to retreat from the Aozou Strip in 1987. UN sanctions in the 1990s isolated QADHAFI politically following the downing of Pan AM Flight 103 over Lockerbie, Scotland. Later, when QADHAFI found that he could not easily break free of the sanctions and when he realized that Arab nations were lukewarm to his many unusual political initiatives, he turned his attention to Africa where he achieved mixed success at influence-building. Libyan support for terrorism appears to have decreased after UN sanctions were imposed in 1992. During the 1990s QADHAFI also began to rebuild his relationships with Europe. UN sanctions were suspended in April 1999 and finally lifted in September 2003 after Libya resolved the Lockerbie case. In December 2003, Libya announced that it had agreed to reveal and end its programs to develop weapons of mass destruction.
Liechtenstein	The Principality of Liechtenstein was established within the Holy Roman Empire in 1719; it became a sovereign state in 1806. Until the end of World War I, it was closely tied to Austria, but the economic devastation caused by that conflict forced Liechtenstein to enter into a customs and monetary union with Switzerland. Since World War II (in which Liechtenstein remained neutral), the country's low taxes have spurred outstanding economic growth. Shortcomings in banking regulatory oversight have resulted in concerns about the use of the financial institutions for money laundering. Liechtenstein has, however, implemented new anti-money-laundering legislation and recently concluded a Mutual Legal Assistance Treaty with the US.
Lithuania	Independent between the two World Wars, Lithuania was annexed by the USSR in 1940. On 11 March 1990, Lithuania became the first of the Soviet republics to declare its independence, but Moscow did not recognize this proclamation until September of 1991 (following the abortive coup in Moscow). The last Russian troops withdrew in 1993. Lithuania subsequently has restructured its economy for eventual integration into Western European institutions. It will accede to the EU in May 2004 and to NATO in the summer of 2004.
Luxembourg	Founded in 963, Luxembourg became a grand duchy in 1815 and an independent state under the Netherlands. It lost more than half of its territory to Belgium in 1839, but gained a larger measure of autonomy. Full independence was attained in 1867. Overrun by Germany in both World Wars, it ended its neutrality in 1948 when it entered into the Benelux Customs Union and when it joined NATO the following year. In 1957, Luxembourg becam