Niger
Niger is one of the poorest countries in the world, ranking
near last on the United Nations Development Fund index of human
development. It is a landlocked, Sub-Saharan nation, whose economy
centers on subsistence crops, livestock, and some of the world's
largest uranium deposits. Drought cycles, desertification, and
strong population growth 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. In December 2005, Niger
received 100% multilateral debt relief from the IMF, which
translates into the forgiveness of approximately US $86 million in
debts to the IMF, excluding the remaining assistance under HIPC.
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. Uranium prices have
increased sharply in the last few years. A drought and locust
infestation in 2005 led to food shortages for as many as 2.5 million
Nigeriens.
Nigeria
Oil-rich Nigeria, long hobbled by political instability,
corruption, inadequate infrastructure, and poor macroeconomic
management, has undertaken several reforms over the past decade.
Nigeria's former military rulers failed to diversify the economy
away from its overdependence on the capital-intensive oil sector,
which provides 95% of foreign exchange earnings and about 80% of
budgetary revenues. 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. Since 2008 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. In 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. In
November 2005, Abuja won Paris Club approval for a debt-relief deal
that eliminated $18 billion of debt in exchange for $12 billion in
payments - a total package worth $30 billion of Nigeria's total $37
billion external debt. The deal requires Nigeria to be subject to
stringent IMF reviews. Based largely on increased oil exports and
high global crude prices, GDP rose strongly in 2007 and 2008.
President YAR'ADUA has pledged to continue the economic reforms of
his predecessor with emphasis on infrastructure improvements.
Infrastructure is the main impediment to growth. The government is
working toward developing stronger public-private partnerships for
electricity and roads.
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
emigration to New Zealand. Efforts to increase GDP include the
promotion of tourism and a financial services industry, although the
International Banking Repeal Act of 2002 resulted in the termination
of all offshore banking licenses. Economic aid from New Zealand in
2002 was US$2.6 million. Niue suffered a devastating typhoon 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 the 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
the petroleum sector, which accounts for nearly half of exports and
over 30% of state revenue. Norway is the world's third-largest gas
exporter; its position as an oil exporter has slipped to
seventh-largest as production has begun to decline. Norway opted to
stay out of the EU during a referendum in November 1994;
nonetheless, as a member of the European Economic Area, it
contributes sizably to the EU budget. In anticipation of eventual
declines in oil and gas production, Norway saves almost all state
revenue from the petroleum sector in a sovereign wealth fund. After
lackluster growth of less than 1.5% in 2002-03, GDP growth picked up
to 2.5-6.2% in 2004-07, partly due to higher oil prices. Growth fell
to 2.6% in 2008 as a result of the slowing world economy and the
drop in oil prices.
Oman
Oman is a middle-income economy that is heavily dependent on
dwindling oil resources, but sustained high oil prices in recent
years have helped build Oman's budget and trade surpluses and
foreign reserves. As a result of its dwindling oil resources, Oman
is actively pursuing a development plan that focuses on
diversification, industrialization, and privatization, with the
objective of reducing the oil sector's contribution to GDP to 9% by
2020. Some of these projects may be in jeopardy, however, because
Muscat overestimated its ability to produce or secure the natural
gas needed to power them. Oman actively seeks private foreign
investors, especially in the industrial, information technology,
tourism, and higher education fields. Industrial development plans
focus on gas resources, metal manufacturing, petrochemicals, and
international transshipment ports. The drop in oil prices and the
global financial crisis in 2008 will affect Oman's fiscal position
and it may post a deficit in 2009 if oil prices stay low. In
addition, the global credit crisis is slowing the pace of investment
and development projects - a trend that probably will continue into
2009.
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 declining exports of manufactures. Faced
with untenable budgetary deficits, high inflation, and hemorrhaging
foreign exchange reserves, the government agreed to an International
Monetary Fund Standby Arrangement in November 2008. Between 2004-07,
GDP growth in the 6-8% range was spurred by gains in the industrial
and service sectors, despite severe electricity shortfalls. Poverty
levels decreased by 10% since 2001, and Islamabad steadily raised
development spending in recent years. In 2008 the fiscal deficit - a
result of chronically low tax collection and increased spending -
exceeded Islamabad's target of 4% of GDP. Inflation remains the top
concern among the public, jumping from 7.7% in 2007 to 20.8% in
2008, primarily because of rising world fuel and commodity prices.
In addition, the Pakistani rupee has depreciated significantly as a
result of political and economic instability.
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.
The Compact of Free Association with the US, entered into after the
end of the UN trusteeship on 1 October 1994, provided Palau with up
to $700 million in US aid for the following 15 years in return for
furnishing military facilities. Business and tourist arrivals
numbered 85,000 in 2007. The population enjoys a per capita income
roughly 50% higher than 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.