f a densely populated, scattered group of
nine coral atolls with poor soil. The country has no known mineral
resources and few exports. Subsistence farming and fishing are the
primary economic activities. Government revenues largely come from
the sale of stamps and coins and worker remittances. About 1,000
Tuvaluans work in Nauru in the phosphate mining industry. Nauru has
begun repatriating Tuvaluans, however, as phosphate resources
decline. Substantial income is received annually from an
international trust fund established in 1987 by Australia, NZ, and
the UK and supported also by Japan and South Korea. Thanks to wise
investments and conservative withdrawals, this Fund has grown from
an initial $17 million to over $35 million in 1999. The US
government is also a major revenue source for Tuvalu, with 1999
payments from a 1988 treaty on fisheries at about $9 million, a
total which is expected to rise annually. In an effort to reduce its
dependence on foreign aid, the government is pursuing public sector
reforms, including privatization of some government functions and
personnel cuts of up to 7%. In 1998, Tuvalu began deriving revenue
from use of its area code for "900" lines and in 2000, from the sale
of its ".tv" Internet domain name. Royalties from these new
technology sources could raise GDP three or more times over the next
decade. In 1999, with merchandise exports falling and financing
reaching less than 5% of imports, continued reliance was placed on
fishing and telecommunications license fees, remittances from
overseas workers, official transfers, and investment income from
overseas assets to cover the trade deficit.

Uganda:
Uganda has substantial natural resources, including fertile
soils, regular rainfall, and sizable mineral deposits of copper and
cobalt. Agriculture is the most important sector of the economy,
employing over 80% of the work force. Coffee is the major export
crop and accounts for the bulk of export revenues. Since 1986, the
government - with the support of foreign countries and international
agencies - has acted to rehabilitate and stabilize the economy by
undertaking currency reform, raising producer prices on export
crops, increasing prices of petroleum products, and improving civil
service wages. The policy changes are especially aimed at dampening
inflation and boosting production and export earnings. In 1990-2000,