f the
economy. Substantial new investment in the nickel industry, combined
with the recovery of global nickel prices, brightens the economic
outlook for the next several years.

New Zealand
Over the past 20 years the government has transformed
New Zealand from an agrarian economy dependent on concessionary
British market access to a more industrialized, free market economy
that can compete globally. This dynamic growth has boosted real
incomes (but left behind many at the bottom of the ladder),
broadened and deepened the technological capabilities of the
industrial sector, and contained inflationary pressures. Per capita
income has been rising and is now 80% of the level of the four
largest EU economies. New Zealand is heavily dependent on trade -
particularly in agricultural products - to drive growth, and it has
been affected by the global economic slowdown and the slump in
commodity prices. Thus far the economy has been resilient, and
growth should continue at the same level in 2004. Expenditures on
health, education, and pensions will increase proportionately.

Nicaragua
Nicaragua, one of the hemisphere's poorest countries,
faces low per capita income, massive unemployment, and huge external
debt. Distribution of income is one of the most unequal on the
globe. While the country has made progress toward macroeconomic
stability over the past few years, GDP annual growth of 1.5% - 2.5%
has been far too low to meet the country's need. Nicaragua will
continue to be dependent on international aid and debt relief under
the Heavily Indebted Poor Countries (HIPC) initiative. Nicaragua has
undertaken significant economic reforms that are expected to help
the country qualify for more than $4 billion in debt relief under
HIPC in early 2004. Donors have made aid conditional on the openness
of government financial operation, poverty alleviation, and human
rights. A three-year poverty reduction and growth plan, agreed to
with the IMF in December 2002, guides economic policy.

Niger
Niger is a poor, landlocked Sub-Saharan nation, whose economy
centers on subsistence agriculture, animal husbandry, and reexport
trade, and increasingly less on uranium, because of declining world
demand. The 50% devaluation of the West African franc in January
1994 boosted exports of livestock, cowpeas, onions, and the products
of Niger's small cotton industry. The governme