Niue
The economy suffers from the typical Pacific island problems of
geographic isolation, few resources, and a small population.
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, although
Premier LAKATANI announced in February 2002 that Niue will shut down
the offshore banking industry. Economic aid from New Zealand in 2002
was about $2.6 million.
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
17,500 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 and Russia
export more oil than Norway. Norway opted to stay out of the EU
during a referendum in November 1994. The government has moved ahead
with privatization. With arguably the highest quality of life
worldwide, Norwegians still 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. GDP growth was a lackluster 1% in 2002 and 2003
against the background of a faltering European economy.
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. GDP
growth improved in 2001 despite the global slowdown and then fell
back to 2.2% in 2002. In order to reduce unemployment, the
government is trying to replace expatriate workers with local
workers. Another government objective is the development of the
nation's gas resources.
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 US, Australia, NZ, China, 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, an impoverished and underdeveloped country,
suffers from internal political disputes, low levels of foreign
investment, and a costly, ongoing confrontation with neighboring
India. Pakistan's economic prospects, although still marred by poor
human development indicators, continued to improve in 2002 following
unprecedented inflows of foreign assistance beginning in 2001.
Foreign exchange reserves have grown to record levels, supported
largely by fast growth in recorded worker remittances. Trade levels
rebounded after a sharp decline in late 2001. The government has
made significant inroads in macroeconomic reform since 2000, but
progress is beginning to slow. Although it is in the second year of
its $1.3 billion IMF Poverty Reduction and Growth Facility,
Islamabad continues to require waivers for politically difficult
reforms. Long-term prospects remain uncertain as development
spending remains low, regional tensions remain high, and political
tensions weaken Pakistan's commitment to lender-recommended economic
reforms. GDP growth will continue to hinge on crop performance;
dependence on foreign oil leaves the import bill vulnerable to
fluctuating oil prices; and efforts to open and modernize the
economy remain uneven.
Palau
The economy consists primarily of tourism, subsistence
agriculture and fishing. The government is the major employer of the
work force, relying heavily on financial assistance from the US.
Business and tourist arrivals numbered 50,000 in FY00/01. The
population enjoys a per capita income twice that of the Philippines
and much of Micronesia. Long-run prospects for the key tourist
sector have been greatly bolstered by the expansion of air travel in
the Pacific, the rising prosperity of leading East Asian countries,
and the willingness of foreigners to finance infrastructure
development.
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 operating the Panama Canal, banking, the Colon Free Zone,
insurance, container ports, flagship registry, and tourism. A slump
in Colon Free Zone and agricultural exports, the global slowdown,
and the withdrawal of US military forces held back economic growth
in 2000-02. The government has been backing public works programs,
tax reforms, new regional trade agreements, and development of
tourism in order to stimulate growth.