Italy
Italy has a diversified industrial economy with roughly the
same total and per capita output as France and the UK. This
capitalistic economy remains divided into a developed industrial
north, dominated by private companies, and a less developed,
welfare-dependent agricultural south, with 20% unemployment. Most
raw materials needed by industry and more than 75% of energy
requirements are imported. Over the past decade, Italy has pursued a
tight fiscal policy in order to meet the requirements of the
Economic and Monetary Unions and has benefited from lower interest
and inflation rates. The current government has enacted numerous
short-term reforms aimed at improving competitiveness and long-term
growth. Italy has moved slowly, however, on implementing needed
structural reforms, such as lightening the high tax burden and
overhauling Italy's rigid labor market and over-generous pension
system, because of the current economic slowdown and opposition from
labor unions.
Jamaica
The economy, which depends heavily on tourism and bauxite,
has been stagnant since 1995. After five years of recession, the
economy inched ahead, by 0.8% in 2000, 1.7% in 2001, and 0.8% in
2002; the global economic slowdown, particularly in the United
States after the 11 September 2001 terrorist attacks, has stunted
the economic recovery. Serious problems include: high interest
rates; increased foreign competition; a pressured, sometimes
sliding, exchange rate; a widening merchandise trade deficit; and a
growing internal debt, the result of government bailouts to various
ailing sectors of the economy, particularly the financial sector.
Depressed economic conditions have led to increased civil unrest,
including serious violent crime. Jamaica's medium-term prospects
will depend upon encouraging investment and tourism, maintaining a
competitive exchange rate, selling off reacquired firms, and
implementing proper fiscal and monetary policies.
Jan Mayen
Jan Mayen is a volcanic island with no exploitable natural
resources. Economic activity is limited to providing services for
employees of Norway's radio and meteorological stations located on
the island.
Japan
Government-industry cooperation, a strong work ethic, mastery
of high technology, and a comparatively small defense allocation (1%
of GDP) helped Japan advance with extraordinary rapidity to the rank
of second-most-technologically-powerful economy in the world after
the US and third-largest economy after the US and China. One notable
characteristic of the economy is the working together of
manufacturers, suppliers, and distributors in closely-knit groups
called keiretsu. A second basic feature has been the guarantee of
lifetime employment for a substantial portion of the urban labor
force. Both features are now eroding. Industry, the most important
sector of the economy, is heavily dependent on imported raw
materials and fuels. The much smaller agricultural sector is highly
subsidized and protected, with crop yields among the highest in the
world. Usually self-sufficient in rice, Japan must import about 50%
of its requirements of other grain and fodder crops. Japan maintains
one of the world's largest fishing fleets and accounts for nearly
15% of the global catch. For three decades overall real economic
growth had been spectacular: a 10% average in the 1960s, a 5%
average in the 1970s, and a 4% average in the 1980s. Growth slowed
markedly in the 1990s, averaging just 1.7%, largely because of the
aftereffects of overinvestment during the late 1980s and
contractionary domestic policies intended to wring speculative
excesses from the stock and real estate markets. Government efforts
to revive economic growth have met with little success and were
further hampered in 2000-2003 by the slowing of the US, European,
and Asian economies. Japan's huge government debt, which is
approaching 150% of GDP, and the ageing of the population are two
major long-run problems. Robotics constitutes a key long-term
economic strength with Japan possessing 410,000 of the world's
720,000 "working robots." Internal conflict over the proper way to
reform the ailing banking system continues.
Jarvis Island
no economic activity
Jersey
The economy is based largely on international financial
services, agriculture, and tourism. Potatoes, cauliflower, tomatoes,
and especially flowers are important export crops, shipped mostly to
the UK. The Jersey breed of dairy cattle is known worldwide and
represents an important export income earner. Milk products go to
the UK and other EU countries. In 1996 the finance sector accounted
for about 60% of the island's output. Tourism, another mainstay of
the economy, accounts for 24% of GDP. In recent years, the
government has encouraged light industry to locate in Jersey, with
the result that an electronics industry has developed alongside the
traditional manufacturing of knitwear. All raw material and energy
requirements are imported, as well as a large share of Jersey's food
needs. Light taxes and death duties make the island a popular tax
haven.
Johnston Atoll
Economic activity is limited to providing services to
US military personnel and contractors located on the island. All
food and manufactured goods must be imported.
Jordan
Jordan is a small Arab country with inadequate supplies of
water and other natural resources such as oil. Debt, poverty, and
unemployment are fundamental problems, but King ABDALLAH since
assuming the throne in 1999 has undertaken some broad economic
reforms in a long-term effort to improve living standards. Amman in
the past three years has worked closely with the IMF, practiced
careful monetary policy, and made significant headway with
privatization. The government also has liberalized the trade regime
sufficiently to secure Jordan's membership in the WTrO (2000), a
free trade accord with US (2000), and an association agreement with
the EU (2001). These measures have helped improve productivity and
have put Jordan on the foreign investment map. The US-led war in
Iraq in 2003 dealt an economic blow to Jordan, which was dependent
on Iraq for discounted oil. It remains unclear how Jordan will
finance energy imports in the absence of such a deal. Other ongoing
challenges include fiscal adjustment to reduce the budget deficit
and broader investment incentives to promote job-creating ventures.
Juan de Nova Island
Up to 12,000 tons of guano are mined per year.
Kazakhstan
Kazakhstan, the largest of the former Soviet republics in
territory, excluding Russia, possesses enormous fossil fuel reserves
as well as plentiful supplies of other minerals and metals. It also
is a large agricultural - livestock and grain - producer.
Kazakhstan's industrial sector rests on the extraction and
processing of these natural resources and also on a growing
machine-building sector specializing in construction equipment,
tractors, agricultural machinery, and some defense items. The
breakup of the USSR in December 1991 and the collapse in demand for
Kazakhstan's traditional heavy industry products resulted in a
short-term contraction of the economy, with the steepest annual
decline occurring in 1994. In 1995-97, the pace of the government
program of economic reform and privatization quickened, resulting in
a substantial shifting of assets into the private sector. Kazakhstan
enjoyed double-digit growth in 2000-01 - and a solid 9.5% in 2002 -
thanks largely to its booming energy sector, but also to economic
reform, good harvests, and foreign investment. The opening of the
Caspian Consortium pipeline in 2001, from western Kazakhstan's
Tengiz oilfield to the Black Sea, substantially raised export
capacity. The country has embarked upon an industrial policy
designed to diversify the economy away from overdependence on the
oil sector, by developing light industry. Additionally, the policy
aims to reduce the influence of foreign investment and foreign
personnel; the government has engaged in several disputes with
foreign oil companies over the terms of production agreements, and
tensions continue.