those that encourage trade and foreign investment,
e.g., by reducing business licenses and registration requirements in
order to simplify investment procedures. The government has also
been cutting expenditures by reducing subsidies, privatizing state
industries, and laying off civil servants. More recently, however,
political instability - five different governments over the past few
years - has hampered Kathmandu's ability to forge consensus to
implement key economic reforms. Nepal has considerable scope for
accelerating economic growth by exploiting its potential in
hydropower and tourism, areas of recent foreign investment interest.
Prospects for foreign trade or investment in other sectors will
remain poor, however, because of the small size of the economy, its
technological backwardness, its remoteness, its landlocked
geographic location, and its susceptibility to natural disaster. The
international community's role of funding more than 60% of Nepal's
development budget and more than 28% of total budgetary expenditures
will likely continue as a major ingredient of growth.

Netherlands:
The Netherlands is a prosperous and open economy
depending heavily on foreign trade. The economy is noted for stable
industrial relations, moderate inflation, a sizable current account
surplus, and an important role as a European transportation hub.
Industrial activity is predominantly in food processing, chemicals,
petroleum refining, and electrical machinery. A highly mechanized
agricultural sector employs no more than 4% of the labor force but
provides large surpluses for the food-processing industry and for
exports. The Dutch rank third worldwide in value of agricultural
exports, behind the US and France. The Dutch economy has expanded by
3% or more in each of the last four years and real GDP growth is
likely to be about 3.6% in 2001. The government in 2001 will
implement its most comprehensive tax reform since World War II,
designed to reduce high income tax levels and redirect the fiscal
burden onto consumption. The Dutch were among the first 11 EU
countries establishing the euro currency zone on 1 January 1999.

Netherlands Antilles:
Tourism, petroleum refining, and offshore
finance are the mainstays of this small economy, which is closely
tied to the outside world. Although GDP has declined slightly in
each of the past five years, the islands enjoy a