The situation in the country, particularly with regard to the economy and politics, can be described as stable but stagnant. The economy is stable in that it has not experienced further collapse in comparison to the kind witnessed last year when international bankruptcy was admitted. But the economy still continues to contract, with a contraction of over 11 percent taking place in the beginning part of the year. The shortages of goods and power sources that brought the people on to the streets in angry protest have not recurred. This has come as a relief as in other parts of the world international bankruptcy has been accompanied by successive rounds of economic collapse. The government’s ability to bring down the rate of inflation and eliminate shortages is recognised, though the shrinking demand due to price increases is continuing to debilitate living standards.