tion's intentions. Foreign
exchange reserves hover at roughly $1 billion, GDP growth hinges on
crop performance, the import bill has been hammered by high oil
prices, and both foreign and domestic investors remain wary of
committing to projects in Pakistan.

Palau:
The economy consists primarily of subsistence agriculture and
fishing. The government is the major employer of the work force,
relying heavily on financial assistance from the US. The population
enjoys a per capita income of twice that of the Philippines and much
of Micronesia. Long-run prospects for the tourist sector have been
greatly bolstered by the expansion of air travel in the Pacific and
the rising prosperity of leading East Asian countries.

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 the Panama Canal, banking, the Colon Free Zone, insurance,
container ports, flagship registry, and tourism. A slump in Colon
Free Zone and agricultural exports, high oil prices, and the
withdrawal of US military forces held back economic growth in 2000.
The government plans public works programs, tax reforms, and new
regional trade agreements in order to stimulate growth in 2001.

Papua New Guinea:
Papua New Guinea is richly endowed with natural
resources, but exploitation has been hampered by the rugged terrain
and the high cost of developing infrastructure. Agriculture provides
a subsistence livelihood for 85% of the population. Mineral
deposits, including oil, copper, and gold, account for 72% of export
earnings. The 3.4% average annual growth rate of GDP during
1979-1998 conceals considerable year-to-year variation resulting
from external economic shocks, natural disasters, and economic
management problems. There has been little growth in the last half
of the 1990s, with real GDP in 1999 barely 3% higher than in 1994,
not enough to compensate for population growth. A new administration
under the leadership of Prime Minister Mekere MORAUTA in July 1999
has promised to restore integrity to state institutions, to
stabilize the kina, to restore stability to the national budget, to
privatize public enterprises where appropriate, and to ensure
ongoing peace on Bougainville. The government has had considerable
success in attracting international support, specifical