Niue:
Government expenditures regularly exceed revenues, and the
shortfall is made up by critically needed grants from New Zealand
that are used to pay wages to public employees. Niue has cut
government expenditures by reducing the public service by almost
half. The agricultural sector consists mainly of subsistence
gardening, although some cash crops are grown for export. Industry
consists primarily of small factories to process passion fruit, lime
oil, honey, and coconut cream. The sale of postage stamps to foreign
collectors is an important source of revenue. The island in recent
years has suffered a serious loss of population because of migration
of Niueans to New Zealand. Efforts to increase GDP include the
promotion of tourism and a financial services industry.
Norfolk Island:
Tourism, the primary economic activity, has steadily
increased over the years and has brought a level of prosperity
unusual among inhabitants of the Pacific islands. The agricultural
sector has become self-sufficient in the production of beef,
poultry, and eggs.
Northern Mariana Islands:
The economy benefits substantially from
financial assistance from the US. The rate of funding has declined
as locally generated government revenues have grown. The key tourist
industry employs about 50% of the work force and accounts for
roughly one-fourth of GDP. Japanese tourists predominate. Annual
tourist entries have exceeded one-half million in recent years, but
financial difficulties in Japan have caused a temporary slowdown.
The agricultural sector is made up of cattle ranches and small farms
producing coconuts, breadfruit, tomatoes, and melons. Garment
production is by far the most important industry with employment of
12,000 mostly Chinese workers and sizable shipments to the US under
duty and quota exemptions.
Norway:
The Norwegian economy is a prosperous bastion of welfare
capitalism, featuring a combination of free market activity and
government intervention. The government controls key areas, such as
the vital petroleum sector (through large-scale state enterprises).
The country is richly endowed with natural resources - petroleum,
hydropower, fish, forests, and minerals - and is highly dependent on
its oil production and international oil prices; in 1999, oil and
gas accounted for 35% of exports. Only Saudi Arabia exports more oil
than Norway. Oslo opted to stay out of the EU during a referendum in
November 1994. Growth picked up in 2000 to 2.7%, compared to the
meager 0.8% of 1999, but may fall back in 2001. The government moved
ahead with privatization in 2000, even proposing the sale of up to
one-third of the 100% state-owned oil company Statoil. Despite their
high per capita income and generous welfare benefits, Norwegians
worry about that time in the next two decades when the oil and gas
begin to run out. Accordingly, Norway has been saving its
oil-boosted budget surpluses in a Government Petroleum Fund, which
is invested abroad and now is valued at more than $43 billion.
Oman:
Oman's economic performance improved significantly in 2000 due
largely to the upturn in oil prices. The government is moving ahead
with privatization of its utilities, the development of a body of
commercial law to facilitate foreign investment, and increased
budgetary outlays. Oman continues to liberalize its markets and
joined the World Trade Organization (WTrO) in November 2000.
Pacific Ocean:
The Pacific Ocean is a major contributor to the world
economy and particularly to those nations its waters directly touch.
It provides low-cost sea transportation between East and West,
extensive fishing grounds, offshore oil and gas fields, minerals,
and sand and gravel for the construction industry. In 1996, over 60%
of the world's fish catch came from the Pacific Ocean. Exploitation
of offshore oil and gas reserves is playing an ever-increasing role
in the energy supplies of Australia, NZ, China, US, and Peru. The
high cost of recovering offshore oil and gas, combined with the wide
swings in world prices for oil since 1985, has slowed but not
stopped new drillings.
Pakistan:
Pakistan is a poor, heavily populated country, suffering
from internal political disputes, lack of foreign investment, and a
costly confrontation with neighboring India. Pakistan's economic
outlook continues to be marred by its weak foreign exchange
position, which relies on international creditors for hard currency
inflows. The MUSHARRAF government will face an estimated $21 billion
in foreign debt coming due in 2000-03, despite having rescheduled
nearly $2 billion in debt with Paris Club members. Foreign loans and
grants provide approximately 25% of government revenue, but debt
service obligations total nearly 50% of government expenditure.
Although Pakistan successfully negotiated a $600 million IMF
Stand-By Arrangement, future loan installments will be jeopardized
if Pakistan misses critical IMF benchmarks on revenue collection and
the fiscal deficit. MUSHARRAF has complied largely with IMF
recommendations to raise petroleum prices, widen the tax net,
privatize public sector assets, and improve the balance of trade.
However, Pakistan's economic prospects remain uncertain; too little
has changed despite the new administration's intentions. Foreign
exchange reserves hover at roughly $1 billion, GDP growth hinges on
crop performance, the import bill has been hammered by high oil
prices, and both foreign and domestic investors remain wary of
committing to projects in Pakistan.
Palau:
The economy consists primarily of subsistence agriculture and
fishing. The government is the major employer of the work force,
relying heavily on financial assistance from the US. The population
enjoys a per capita income of twice that of the Philippines and much
of Micronesia. Long-run prospects for the tourist sector have been
greatly bolstered by the expansion of air travel in the Pacific and
the rising prosperity of leading East Asian countries.
Palmyra Atoll:
no economic activity
Panama:
Panama's economy is based primarily on a well-developed
services sector that accounts for three-fourths of GDP. Services
include the Panama Canal, banking, the Colon Free Zone, insurance,
container ports, flagship registry, and tourism. A slump in Colon
Free Zone and agricultural exports, high oil prices, and the
withdrawal of US military forces held back economic growth in 2000.
The government plans public works programs, tax reforms, and new
regional trade agreements in order to stimulate growth in 2001.