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	Background (2003)	Background (2001)
Afghanistan	Afghanistan's recent history is characterized by 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. Fighting subsequently continued 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 eventually seized power. The Taliban were able to capture most of the country, aside from Northern Alliance strongholds primarily in the northeast, until US and allied military action in support of the opposition following the 11 September 2001 terrorist attacks forced the group's downfall. 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). The Transitional Authority has an 18-month mandate to hold a nationwide Loya Jirga to adopt a constitution and a 24-month mandate to hold nationwide elections. In December 2002, the TISA marked the one-year anniversary of the fall of the Taliban. 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 crumbling infrastructure, and widespread land mines.	Afghanistan was invaded and occupied by the Soviet Union in 1979. The USSR was forced to withdraw 10 years later by anti-communist mujahidin forces supplied and trained by the US, Saudi Arabia, Pakistan, and others. Fighting subsequently continued among the various mujahidin factions, but the fundamentalist Islamic Taliban movement has been able to seize most of the country. In addition to the continuing civil strife, the country suffers from enormous poverty, 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 corrupt governments have tried to deal with high unemployment, a dilapidated infrastructure, widespread gangsterism, and disruptive political opponents. International observers judged legislative elections in 2001 to be acceptable and a step toward democratic development, but identified serious deficiencies that should be addressed through reforms in the Albanian electoral code.	In 1990 Albania ended 44 years of xenophobic communist rule and established a multiparty democracy. The transition has proven difficult as corrupt governments have tried to deal with high unemployment, a dilapidated infrastructure, widespread gangsterism, and disruptive political opponents. International observers judged local elections in 2000 to be acceptable and a step toward democratic development, but serious deficiencies remain to be corrected before the the 2001 parliamentary elections.
Algeria	After a century of rule by France, Algeria became independent in 1962. The surprising first round success of the fundamentalist FIS (Islamic Salvation Front) party in the December 1991 balloting caused the army to intervene, crack down on the FIS, and postpone the subsequent elections. The fundamentalist response has resulted in a continuous low-grade civil conflict with the secular state apparatus, which nonetheless has allowed elections featuring pro-government and moderate religious-based parties. The FIS's armed wing, the Islamic Salvation Army, disbanded in January 2000 and many armed militants of other groups surrendered under an amnesty program designed to promote national reconciliation. Nevertheless, small numbers of armed militants persist in confronting government forces and carrying out isolated attacks on villages and other types of terrorist attacks. Other concerns include Berber unrest, large-scale unemployment, a shortage of housing, and the need to diversify the petroleum-based economy.	After a century of rule by France, Algeria became independent in 1962. The surprising first round success of the fundamentalist FIS (Islamic Salvation Front) party in December 1991 balloting caused the army to intervene, crack down on the FIS, and postpone the subsequent elections. The FIS response has resulted in a continuous low-grade civil conflict with the secular state apparatus, which nonetheless has allowed elections featuring pro-government and moderate religious-based parties. FIS's armed wing, the Islamic Salvation Army, disbanded itself in January 2000 and many armed militants surrendered under an amnesty program designed to promote national reconciliation. Nevertheless, residual fighting continues. Other concerns include large-scale unemployment and the need to diversify the petroleum-based economy.
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.	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.	Long isolated and impoverished, mountainous Andorra has 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.	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.
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.	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 no other country recognizes 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.	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 Peninsula region and areas south of the Antarctic Circle. Not until 1838 was it established that Antarctica was indeed a continent and not just a group of islands. Various "firsts" were achieved in the early 20th century, including: 1902, first balloon flight (by British explorer Robert Falcon SCOTT); 1912, first to the South Pole (five Norwegian explorers under Roald AMUNDSEN); 1928, first fixed-wing aircraft flight (by Australian adventurer/explorer Sir Hubert WILKINS); 1929, first flight over the South Pole (by Americans Richard BYRD and Bernt BALCHEN); and 1935, first transantarctic flight (American Lincoln ELLSWORTH). 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 no other country recognizes 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.	The islands of Antigua and Barbuda became an independent state within the British Commonwealth of Nations in 1981. Some 3,000 refugees fleeing a volcanic eruption on nearby Montserrat have settled in Antigua and Barbuda since 1995.
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.	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.	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 dictatorship 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.	An Orthodox Christian country, Armenia was incorporated into Russia in 1828 and the USSR in 1920. Armenian leaders remain preoccupied by the long conflict with Azerbaijan over Nagorno-Karabakh, a primarily Armenian-populated exclave, assigned to Soviet Azerbaijan in the 1920s by Moscow. Armenia and Azerbaijan began fighting over the exclave 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.
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.	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.	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. Recent geological explorations have indicated promising petroleum formations.
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.	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 St. 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	Australia became a commonwealth of the British Empire in 1901. It was able to take advantage of its natural resources 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.	Australia became a commonwealth of the British Empire in 1901. It was able to take advantage of its natural resources 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 an independent 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. This neutrality, once ingrained as part of the Austrian cultural identity, has been called into question since the Soviet collapse of 1991 and Austria's entry into the European Union in 1995. A prosperous country, Austria entered the European Monetary Union in 1999.	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, Austria's 1955 State Treaty declared the country "permanently neutral" as a condition of Soviet military withdrawal. Neutrality, once ingrained as part of the Austrian cultural identity, has been called into question since the Soviet collapse of 1991 and Austria's increasingly prominent role in European affairs. A prosperous country, Austria joined the European Union in 1995 and the euro monetary system 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.	Azerbaijan - a nation of Turkic Muslims - has been an independent republic since the collapse of the Soviet Union in 1991. Despite a cease-fire, in place since 1994, Azerbaijan has yet to resolve its conflict with Armenia over the Azerbaijani Nagorno-Karabakh enclave (largely Armenian populated). Azerbaijan has lost almost 20% of its territory and must support some 750,000 refugees and internally displaced persons (IDPs) 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.	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.	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. Possessing minimal oil reserves, Bahrain has turned to petroleum processing and refining, and has transformed itself into an international banking center. The new amir is pushing economic and political reforms, and has worked to improve relations with the Shi'a community. In 2001, the International Court of Justice awarded the Hawar Islands, long disputed with Qatar, to Bahrain.
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.	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.	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 annually floods 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.	The island was uninhabited when first settled by the British in 1627. Its economy remained heavily dependent on sugar, rum, and molasses production through most of the 20th century. 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.	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.	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 but, to date, neither side has actively sought to implement the accord.
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.	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.	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.	Dahomey gained its independence from France in 1960; the name was changed to Benin in 1975. From 1974 to 1989 the country was a socialist state; free elections were reestablished in 1991.
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.	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. 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. Maoist Assamese separatists from India, who have established themselves in the southeast portion of Bhutan, have drawn Indian cross-border incursions.	Under British influence a monarchy was set up in 1907; three years later a treaty was signed whereby the country became a British protectorate. Independence was attained in 1949, with India subsequently guiding foreign relations and supplying aid. A refugee issue of some 100,000 Bhutanese in Nepal remains unresolved; 90% of these displaced persons are housed in seven United Nations Office of the High Commissioner for Refugees (UNHCR) camps. Maoist Assamese separatists from India, who have established themselves in the southeast portion of Bhutan, have drawn Indian cross-border incursions.
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 the 1980s, 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, continuing the privatization program, and waging an anticorruption campaign.	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 the 1980s, 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, continuing the privatization program, and waging an anti-corruption 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, economic, 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 internal functions. 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 were reduced to approximately 12,000 by the close of 2002.	Bosnia and Herzegovina's declaration of sovereignty in October 1991, was followed by a referendum for independence from the former Yugoslavia in February 1992. The Bosnian Serbs - supported by neighboring Serbia - 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 signed a peace agreement that brought to a halt the 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 is charged with conducting foreign, economic, 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 are charged with overseeing internal functions. 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 at a level of approximately 21,000 troops.
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.	Formerly the British protectorate of Bechuanaland, Botswana adopted its new name upon independence in 1966. The economy, one of the most robust on the continent, is dominated by diamond mining.
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.	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.	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 became Latin America's leading economic power by the 1970s. 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.	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 resident 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 which 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.	First settled by the Dutch in 1648, the islands were soon after (1672) annexed 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.	The Sultanate of Brunei's heyday occurred 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. Brunei benefits from extensive petroleum and natural gas fields, the source of one of the highest per capita GDPs in the less developed countries. The same family has now ruled in Brunei for over six centuries.
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.	Bulgaria earned its independence from the Ottoman Empire 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 multi-party 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.