of several more enterprises in coming years, which
should stimulate long-run foreign investment. Growth in 2001 could
be 5.5% provided the world economy remains stable.

Nauru:
Revenues of this tiny island have come from exports of
phosphates, but reserves are expected to be exhausted within five to
ten years. Phosphate production has declined since 1989, as demand
has fallen in traditional markets and as the marginal cost of
extracting the remaining phosphate increases, making it less
internationally competitive. While phosphates have given Nauruans
one of the highest per capita incomes in the Third World, few other
resources exist with most necessities being imported, including
fresh water from Australia. The rehabilitation of mined land and the
replacement of income from phosphates are serious long-term
problems. In anticipation of the exhaustion of Nauru's phosphate
deposits, substantial amounts of phosphate income have been invested
in trust funds to help cushion the transition and provide for
Nauru's economic future. The government has been borrowing heavily
from the trusts to finance fiscal deficits. To cut costs the
government has called for a freezing of wages, a reduction of
over-staffed public service departments, privatization of numerous
government agencies, and closure of some overseas consulates. In
recent years Nauru has encouraged the registration of offshore banks
and corporations. Tens of billions of dollars have been channeled
through their accounts. Few comprehensive statistics on the Nauru
economy exist, with estimates of Nauru's per capita GDP varying
widely.

Navassa Island:
no economic activity

Nepal:
Nepal is among the poorest and least developed countries in
the world with nearly half of its population living below the
poverty line. Agriculture is the mainstay of the economy, providing
a livelihood for over 80% of the population and accounting for 41%
of GDP. Industrial activity mainly involves the processing of
agricultural produce including jute, sugarcane, tobacco, and grain.
Production of textiles and carpets has expanded recently and
accounted for about 80% of foreign exchange earnings in the past
three years. Agricultural production is growing by about 5% on
average as compared with annual population growth of 2.3%. Since May
1991, the government has been moving forward with economic reforms,
particularly