The 2001 CIA World Factbook

by United States. Central Intelligence Agency

Papua New Guinea:
Papua New Guinea is richly endowed with natural
resources, but exploitation has been hampered by the rugged terrain
and the high cost of developing infrastructure. Agriculture provides
a subsistence livelihood for 85% of the population. Mineral
deposits, including oil, copper, and gold, account for 72% of export
earnings. The 3.4% average annual growth rate of GDP during
1979-1998 conceals considerable year-to-year variation resulting
from external economic shocks, natural disasters, and economic
management problems. There has been little growth in the last half
of the 1990s, with real GDP in 1999 barely 3% higher than in 1994,
not enough to compensate for population growth. A new administration
under the leadership of Prime Minister Mekere MORAUTA in July 1999
has promised to restore integrity to state institutions, to
stabilize the kina, to restore stability to the national budget, to
privatize public enterprises where appropriate, and to ensure
ongoing peace on Bougainville. The government has had considerable
success in attracting international support, specifically gaining
the support of the IMF and the World Bank in securing development
assistance loans. Significant challenges remain for MORAUTA,
however, including gaining further investor confidence, specifically
for the proposed Papua New Guinea-Australia oil pipeline, continuing
efforts to privatize government assets, and in maintaining the
support from members of Parliament who after 15 July 2001 can
dismiss him with a vote of no-confidence.

Paracel Islands:
China announced plans in 1997 to open the islands
for tourism.

Paraguay:
Paraguay has a market economy marked by a large informal
sector. The informal sector features both reexport of imported
consumer goods to neighboring countries as well as the activities of
thousands of microenterprises and urban street vendors. Because of
the importance of the informal sector, accurate economic measures
are difficult to obtain. A large percentage of the population
derives their living from agricultural activity, often on a
subsistence basis. The formal economy grew by an average of about 3%
annually in 1995-97, but GDP declined slightly in 1998 and 1999. On
a per capita basis, real income has stagnated at 1980 levels. Most
observers attribute Paraguay's poor economic performance to
political uncertainty, corruption, lack of progress on structural
reform, substantial internal and external debt, and deficient
infrastructure. Growth rebounded slightly in 2000.

Peru:
The Peruvian economy has become increasingly market-oriented,
with major privatizations completed since 1990 in the mining,
electricity, and telecommunications industries. Thanks to strong
foreign investment and the cooperation between the FUJIMORI
government and the IMF and World Bank, growth was strong in 1994-97
and inflation was brought under control. In 1998, El Nino's impact
on agriculture, the financial crisis in Asia, and instability in
Brazilian markets undercut growth. And 1999 was another lean year
for Peru, with the aftermath of El Nino and the Asian financial
crisis working its way through the economy. Political instability
resulting from the presidential election and FUJIMORI's subsequent
departure from office limited economic growth in 2000.

Philippines:
In 1998 the Philippine economy - a mixture of
agriculture, light industry, and supporting services - deteriorated
as a result of spillover from the Asian financial crisis and poor
weather conditions. Growth fell to about -0.5% in 1998 from 5% in
1997, but recovered to about 3% in 1999 and 3.6% in 2000. The
government has promised to continue its economic reforms to help the
Philippines match the pace of development in the newly
industrialized countries of East Asia. The strategy includes
improving infrastructure, overhauling the tax system to bolster
government revenues, moving toward further deregulation and
privatization of the economy, and increasing trade integration with
the region.

Pitcairn Islands:
The inhabitants of this tiny economy exist on
fishing, subsistence farming, handicrafts, and postage stamps. The
fertile soil of the valleys produces a wide variety of fruits and
vegetables, including citrus, sugarcane, watermelons, bananas, yams,
and beans. Bartering is an important part of the economy. The major
sources of revenue are the sale of postage stamps to collectors and
the sale of handicrafts to passing ships.

Poland:
Poland has steadfastly pursued a policy of liberalizing the
economy and today stands out as one of the most successful and open
transition economies. GDP growth has been strong and steady since
1992 - the best performance in the region. The privatization of
small and medium state-owned companies and a liberal law on
establishing new firms has allowed for the rapid development of a
vibrant private sector. In contrast, Poland's large agricultural
sector remains handicapped by structural problems, surplus labor,
inefficient small farms, and lack of investment. Restructuring and
privatization of "sensitive sectors" (e.g., coal, steel, railroads,
and energy) has begun. Structural reforms in health care, education,
the pension system, and state administration have resulted in larger
than expected fiscal pressures. Further progress in public finance
depends mainly on privatization of Poland's remaining state sector.
The government's determination to enter the EU as soon as possible
affects most aspects of its economic policies. Improving Poland's
outsized current account deficit and reining in inflation are
priorities. Warsaw leads the region in foreign investment and needs
a continued large inflow.

Portugal:
Portugal is an upcoming capitalist economy with a per
capita GDP two-thirds that of the four big West European economies.
The country qualified for the European Monetary Union (EMU) in 1998
and joined with 10 other European countries in launching the euro on
1 January 1999. The year 2000 was marked by moderation in growth,
inflation, and unemployment. The country continues to run a sizable
trade deficit. The government is working to reform the tax system,
to modernize capital plant, and to increase the country's
competitiveness in the increasingly integrated world markets. Growth
is expected to fall off slightly in 2001. Improvement in the
education sector is critical to the long-run catch-up process.

Puerto Rico:
Puerto Rico has one of the most dynamic economies in
the Caribbean region. A diverse industrial sector has surpassed
agriculture as the primary locus of economic activity and income.
Encouraged by duty-free access to the US and by tax incentives, US
firms have invested heavily in Puerto Rico since the 1950s. US
minimum wage laws apply. Sugar production has lost out to dairy
production and other livestock products as the main source of income
in the agricultural sector. Tourism has traditionally been an
important source of income, with estimated arrivals of nearly 5
million tourists in 1999. Prospects for 2001 are clouded by a
probable slowing down in both the construction and tourist sectors
and by increasing inflation, particularly in energy and food prices;
estimated growth will be 2%.

Qatar:
Oil accounts for more than 30% of GDP, roughly 80% of export
earnings, and 66% of government revenues. Proved oil reserves of 3.7
billion barrels should ensure continued output at current levels for
23 years. Oil has given Qatar a per capita GDP comparable to that of
the leading West European industrial countries. Qatar's proved
reserves of natural gas exceed 7 trillion cubic meters, more than 5%
of the world total, third largest in the world. Production and
export of natural gas are becoming increasingly important. Long-term
goals feature the development of offshore petroleum and the
diversification of the economy. In 2000, Qatar posted its highest
ever trade surplus of $6 billion, due mainly to high oil prices and
increased natural gas exports.