ged to the South African rand. Privatization of several
enterprises in coming years may stimulate long-run foreign
investment. Mining of zinc, copper, and silver and increased fish
production led growth in 2003.

Nauru
Revenues of this tiny island have traditionally come from
exports of phosphates, but reserves are now depleted. Few other
resources exist with most necessities being imported, mainly from
Australia, its former occupier and later major source of support.
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. As a result
of heavy spending from the trust funds, the government faces virtual
bankruptcy. To cut costs the government has called for a freeze on
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. In 2004 the
deterioration in housing, hospitals, and other capital plant
continued, and the cost to Australia of keeping the government and
economy afloat has substantially mounted. Few comprehensive
statistics on the Nauru economy exist, with estimates of Nauru's GDP
varying widely.

Navassa Island
Subsistence fishing and commercial trawling
activities within refuge waters.

Nepal
Nepal is among the poorest and least developed countries in
the world with 42% 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 40% of GDP.
Industrial activity mainly involves the processing of agricultural
produce including jute, sugarcane, tobacco, and grain. Security
concerns in the wake of the Maoist conflict and the 11 September
2001 terrorist attacks in the US have led to a decrease in tourism,
a key source of foreign exchange. Nepal has considerable scope for
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