We present the fifth National Human Development Report. It covers the events of 1998 and discusses the transition to sustainable development during the last five years. 1998 was a difficult year for the government and people. Despite a number of positive developments in the economy, social sector and environment, the nation faced some difficulties, especially in the second half of the year; caused mainly by the financial crisis that affected the global economy and the CIS. However; as a result of meaningful efforts by the government and NGOs, the nation has succeeded in maintaining economic growth, increasing investments in the manufacturing sector and boosting real incomes. (Foreword, fragment)