nt relies on bilateral
and multilateral aid - which was suspended following the April 1999
coup d'etat - for operating expenses and public investment. In
2000-01, the World Bank approved a structural adjustment loan of
$105 million to help support fiscal reforms. However, reforms could
prove difficult given the government's bleak financial situation.
The IMF approved a $73 million poverty reduction and growth facility
for Niger in 2000 and announced $115 million in debt relief under
the Heavily Indebted Poor Countries (HIPC) initiative. Further
disbursements of aid occurred in 2002. Future growth may be
sustained by exploitation of oil, gold, coal, and other mineral
resources.
Nigeria
Oil-rich Nigeria, long hobbled by political instability,
corruption, inadequate infrastructure, and poor macroeconomic
management, is undertaking some reforms under the new civilian
administration. Nigeria's former military rulers failed to diversify
the economy away from overdependence on the capital-intensive oil
sector, which provides 20% of GDP, 95% of foreign exchange earnings,
and about 65% of budgetary revenues. The largely subsistence
agricultural sector has failed to keep up with rapid population
growth - Nigeria is Africa's most populous country - and the
country, once a large net exporter of food, now must import food.
Following the signing of an IMF stand-by agreement in August 2000,
Nigeria received a debt-restructuring deal from the Paris Club and a
$1 billion credit from the IMF, both contingent on economic reforms.
Nigeria pulled out of its IMF program in April 2002, after failing
to meet spending and exchange rate targets, making it ineligible for
additional debt forgiveness from the Paris Club. The government has
lacked the political will to implement the market-oriented reforms
urged by the IMF, such as to modernize the banking system, to curb
inflation by blocking excessive wage demands, and to resolve
regional disputes over the distribution of earnings from the oil
industry. During 2003, however, the government deregulated fuel
prices and announced the privatization of the country's four oil
refineries. GDP growth probably will rise marginally in 2004, led by
oil and natural gas exports.
Niue
The economy suffers from the typical Pacific island problems of
geographic isolation, few resources, and a small population.
Government expenditure
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