servants and widespread riots. As the socialist regimes in Eastern Europe were collapsing at about the same time, President Kérékou renounced Marxism, released political prisoners, arranged free elections, and launched market-oriented economic reforms supported by the World Bank and—for the first time—an IMF program. A National Convention in 1990 established an interim government, a new constitution was approved by referendum, the country’s name was changed to Republic of Benin and, in early 1991, multi-party elections led to a new government. The peaceful political transition—President Kérékou was the first leader in mainland Africa to lose power through elections—and economic liberalization stimulated foreign investment and a gradual economic recovery, although the country remains poor and dependent on subsistence agriculture. In 1991, according to the CPIA index, Benin exited fragility.

# **Cambodia**

Since 1970, Cambodia, a small agricultural economy, experienced two decades of war, internal conflict, a genocidal regime, famine, invasion, and an international embargo. During this period, 2 million to 3 million people—about a third of the population—perished, physical infrastructure was destroyed, two-thirds of draught animals were lost, large areas of agricultural land were mined, and economic and judicial institutions were destroyed. A comprehensive peace settlement in 1991 and the arrival of the UN Transitional Authority in Cambodia (UNTAC) to enforce the ceasefire, deal with disarmament and refugee re-settlement, and organize the first post-war election in 1993 provided the basis for a return to normality. In 1994, some economic reforms were launched under IMF - and World Bank-supported programs to open the economy, control inflation, and strengthen the fiscal position. But the reform drive was short-lived as political turmoil continued. The Cambodian People’s Party (CPP), in government since the Vietnamese invasion in 1978-79, refused to relinquish power and control of the armed forces. Tensions culminated in a coup d’état in 1997 that ousted the Prime Minister and consolidated power in the hands of the CPP. This led briefly to international isolation, cuts in foreign aid, and a setback for the emerging tourist industry which, combined with the regional effects of the Southeast Asian crisis, resulted in a major economic shock. However, after new elections in 1998 and a power-sharing arrangement with the CPP as the senior partner, the political situation stabilized. The CPP has dominated Cambodian politics since then, with current Prime Minister Hun Sen one of the longest- serving world leaders. Cambodia was admitted to ASEAN in April 1999, and the government engaged in a renewed effort to modernize the economy, improve governance, reform the civil service and the military, restore macroeconomic stability, improve tax collection, and mobilize resources for investment. Economic reforms were again supported by the IMF and World Bank. According to the CPIA index, the Cambodian state exited fragility in 2000.

# **Dominican Republic**

The Dominican Republic entered a long period of economic decline in the late 1970s and, especially, the 1980s (the “lost decade”) caused by three main factors: (i) persistent macroeconomic instability, reflecting chronic fiscal imbalances, large public enterprise losses, 26