Nauru:
Revenues of this tiny island have come from exports of
phosphates, but reserves are expected to be exhausted within five to
ten years. Phosphate production has declined since 1989, as demand
has fallen in traditional markets and as the marginal cost of
extracting the remaining phosphate increases, making it less
internationally competitive. While phosphates have given Nauruans
one of the highest per capita incomes in the Third World, few other
resources exist with most necessities being imported, including
fresh water from Australia. The rehabilitation of mined land and the
replacement of income from phosphates are serious long-term
problems. In anticipation of the exhaustion of Nauru's phosphate
deposits, substantial amounts of phosphate income have been invested
in trust funds to help cushion the transition and provide for
Nauru's economic future. The government has been borrowing heavily
from the trusts to finance fiscal deficits. To cut costs the
government has called for a freezing of wages, a reduction of
over-staffed public service departments, privatization of numerous
government agencies, and closure of some overseas consulates. In
recent years Nauru has encouraged the registration of offshore banks
and corporations. Tens of billions of dollars have been channeled
through their accounts. Few comprehensive statistics on the Nauru
economy exist, with estimates of Nauru's per capita GDP varying
widely.
Navassa Island:
no economic activity
Nepal:
Nepal is among the poorest and least developed countries in
the world with nearly half of its population living below the
poverty line. Agriculture is the mainstay of the economy, providing
a livelihood for over 80% of the population and accounting for 41%
of GDP. Industrial activity mainly involves the processing of
agricultural produce including jute, sugarcane, tobacco, and grain.
Production of textiles and carpets has expanded recently and
accounted for about 80% of foreign exchange earnings in the past
three years. Agricultural production is growing by about 5% on
average as compared with annual population growth of 2.3%. Since May
1991, the government has been moving forward with economic reforms,
particularly those that encourage trade and foreign investment,
e.g., by reducing business licenses and registration requirements in
order to simplify investment procedures. The government has also
been cutting expenditures by reducing subsidies, privatizing state
industries, and laying off civil servants. More recently, however,
political instability - five different governments over the past few
years - has hampered Kathmandu's ability to forge consensus to
implement key economic reforms. Nepal has considerable scope for
accelerating economic growth by exploiting its potential in
hydropower and tourism, areas of recent foreign investment interest.
Prospects for foreign trade or investment in other sectors will
remain poor, however, because of the small size of the economy, its
technological backwardness, its remoteness, its landlocked
geographic location, and its susceptibility to natural disaster. The
international community's role of funding more than 60% of Nepal's
development budget and more than 28% of total budgetary expenditures
will likely continue as a major ingredient of growth.
Netherlands:
The Netherlands is a prosperous and open economy
depending heavily on foreign trade. The economy is noted for stable
industrial relations, moderate inflation, a sizable current account
surplus, and an important role as a European transportation hub.
Industrial activity is predominantly in food processing, chemicals,
petroleum refining, and electrical machinery. A highly mechanized
agricultural sector employs no more than 4% of the labor force but
provides large surpluses for the food-processing industry and for
exports. The Dutch rank third worldwide in value of agricultural
exports, behind the US and France. The Dutch economy has expanded by
3% or more in each of the last four years and real GDP growth is
likely to be about 3.6% in 2001. The government in 2001 will
implement its most comprehensive tax reform since World War II,
designed to reduce high income tax levels and redirect the fiscal
burden onto consumption. The Dutch were among the first 11 EU
countries establishing the euro currency zone on 1 January 1999.
Netherlands Antilles:
Tourism, petroleum refining, and offshore
finance are the mainstays of this small economy, which is closely
tied to the outside world. Although GDP has declined slightly in
each of the past five years, the islands enjoy a high per capita
income and a well-developed infrastructure as compared with other
countries in the region. Almost all consumer and capital goods are
imported, with Venezuela, the US, and Mexico being the major
suppliers. Poor soils and inadequate water supplies hamper the
development of agriculture.
New Caledonia:
New Caledonia has more than 20% of the world's known
nickel resources. In recent years, the economy has suffered because
of depressed international demand for nickel, the principal source
of export earnings. Only a negligible amount of the land is suitable
for cultivation, and food accounts for about 20% of imports. In
addition to nickel, the substantial financial support from France
and tourism are keys to the health of the economy. The situation in
1998 was clouded by the spillover of financial problems in East Asia
and by lower prices for nickel. Nickel prices jumped in 1999-2000,
and large additions were made to capacity. French Government
interests in the New Caledonian nickel industry are being
transferred to local ownership.
New Zealand:
Since 1984 the government has accomplished major
economic restructuring, moving an agrarian economy dependent on
concessionary British market access toward a more industrialized,
free market economy that can compete globally. This dynamic growth
has boosted real incomes, broadened and deepened the technological
capabilities of the industrial sector, and contained inflationary
pressures. Inflation remains among the lowest in the industrial
world. Per capita GDP has been moving up toward the levels of the
big West European economies. New Zealand's heavy dependence on trade
leaves its growth prospects vulnerable to economic performance in
Asia, Europe, and the US. With the FY00/01 budget pushing up pension
and other public outlays, the government's ability to meet fiscal
targets will depend on sustained economic growth.
Nicaragua:
Nicaragua, one of the hemisphere's poorest countries,
faces low per capita income, flagging socio-economic indicators, and
huge external debt. While the country has made progress toward
macro-economic stabilization over the past few years, a banking
crisis and scandal has shaken the economy. Managua will continue to
be dependent on international aid and debt relief under the Heavily
Indebted Poor Countries (HIPC) initiative. Donors have made aid
conditional on improving governability, the openness of government
financial operation, poverty alleviation, and human rights.
Nicaragua met the conditions for additional debt service relief in
December 2000. Growth should remain moderate to high in 2001.
Niger:
Niger is a poor, landlocked Sub-Saharan nation, whose economy
centers on subsistence agriculture, animal husbandry, reexport
trade, and increasingly less on uranium, because of declining world
demand. The 50% devaluation of the West African franc in January
1994 boosted exports of livestock, cowpeas, onions, and the products
of Niger's small cotton industry. The government relies on bilateral
and multilateral aid - which was suspended following the April 1999
coup d'etat - for operating expenses and public investment. In 2000,
the World Bank approved a structural adjustment loan of $35 million
to help support fiscal reforms. However, reforms could prove
difficult given the government's bleak financial situation.
Nigeria:
The oil-rich Nigerian economy, long hobbled by political
instability, corruption, and poor macroeconomic management, is
undergoing substantial economic reform under the new civilian
administration. Nigeria's former military rulers failed to diversify
the economy away from overdependence on the capital-intensive oil
sector, which provides 20% of GDP, 95% of foreign exchange earnings,
and about 65% of budgetary revenues. The largely subsistence
agricultural sector has failed to keep up with rapid population
growth, and Nigeria, once a large net exporter of food, now must
import food. Following the signing of an IMF stand-by agreement in
August 2000, Nigeria received a debt-restructuring deal from the
Paris Club and a $1 billion loan from the IMF, both contingent on
economic reforms. Increases in foreign investment and oil production
combined with high world oil prices should push growth over 4% in
2001-02.