Niger
Niger is one of the poorest countries in the world, a
landlocked Sub-Saharan nation, whose economy centers on subsistence
crops, livestock, and some of the world's largest uranium deposits.
Drought cycles, desertification, a 3.3% population growth rate, and
the drop in world demand for uranium have undercut the economy.
Niger shares a common currency, the CFA franc, and a common central
bank, the Central Bank of West African States (BCEAO), with seven
other members of the West African Monetary Union. In December 2000,
Niger qualified for enhanced debt relief under the International
Monetary Fund program for Highly Indebted Poor Countries (HIPC) and
concluded an agreement with the Fund on a Poverty Reduction and
Growth Facility (PRGF). Debt relief provided under the enhanced HIPC
initiative significantly reduces Niger's annual debt service
obligations, freeing funds for expenditures on basic health care,
primary education, HIV/AIDS prevention, rural infrastructure, and
other programs geared at poverty reduction. Nearly half of the
government's budget is derived from foreign donor resources. Future
growth may be sustained by exploitation of oil, gold, coal, and
other mineral resources.

Nigeria
Oil-rich Nigeria, long hobbled by political instability,
corruption, inadequate infrastructure, and poor macroeconomic
management, is undertaking some reforms 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 - Nigeria is Africa's most populous country - and the
country, 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 credit from the IMF, both contingent on economic reforms.
Nigeria pulled out of its IMF program in April 2002, after failing
to meet spending and exchange rate targets, making it ineligible for
additional debt forgiveness from the Paris Club. In the last year
the government has begun showing the political will to implement the
market-oriented reforms urged by the IMF, such as to modernize the
banking system, to curb inflation by blocking excessive wage
demands, and to resolve regional disputes over the distribution of
earnings from the oil industry. During 2003 the government began
deregulating fuel prices, announced the privatization of the
country's four oil refineries, and instituted the National Economic
Empowerment Development Strategy, a domestically designed and run
program modeled on the IMF's Poverty Reduction and Growth Facility
for fiscal and monetary management. GDP rose strongly in 2004.

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
former 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. Niue suffered a devastating
hurricane in January 2004, which decimated nascent economic
programs. While in the process of rebuilding, Niue has been
dependent on foreign aid.

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, with oil and gas
accounting for one-third 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; nonetheless, it contributes
sizably to the EU budget. 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 will 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 $150
billion. After lackluster growth of 1% in 2002 and 0.5% in 2003, GDP
growth picked up to 3.3% in 2004.

Oman
Oman is a middle-income economy in the Middle East with notable
oil and gas resources, a substantial trade surplus, and low
inflation. The government is privatizing its utilities and
diversifying its economy to attract foreign investment. Oman
continues to liberalize its markets and joined the World Trade
Organization (WTO) in November 2000. To reduce unemployment and
limit dependence on foreign countries, the government is encouraging
the replacement of expatriate workers with local people, i.e.,
Omanization. Training in information technology, business
management, and English support this objective. Industrial
development plans focus on gas resources, metal manufacturing,
petrochemicals, and international transshipment ports.

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 the 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 led to
fluctuations in new drillings.

Pakistan
Pakistan, an impoverished and underdeveloped country, has
suffered from decades of internal political disputes, low levels of
foreign investment, and a costly, ongoing confrontation with
neighboring India. However, IMF-approved government policies,
bolstered by generous foreign assistance and renewed access to
global markets since 2001, have generated solid macroeconomic
recovery the last three years. The government has made substantial
macroeconomic reforms since 2000, although progress on more
politically sensitive reforms has slowed. For example, in the third
and final year of its $1.3 billion IMF Poverty Reduction and Growth
Facility, Islamabad has continued to require waivers for energy
sector reforms. While long-term prospects remain uncertain, given
Pakistan's low level of development, medium-term prospects for job
creation and poverty reduction are the best in nearly a decade.
Islamabad has raised development spending from about 2% of GDP in
the 1990s to 4% in 2003, a necessary step towards reversing the
broad underdevelopment of its social sector. GDP growth, spurred by
double-digit gains in industrial production over the past year, has
become less dependent on agriculture. Foreign exchange reserves
continued to reach new levels in 2004, supported by robust export
growth and steady worker remittances.

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 63,000 in 2003. 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.