high per capita
income and a well-developed infrastructure as compared with other
countries in the region. Almost all consumer and capital goods are
imported, with Venezuela, the US, and Mexico being the major
suppliers. Poor soils and inadequate water supplies hamper the
development of agriculture.

New Caledonia:
New Caledonia has more than 20% of the world's known
nickel resources. In recent years, the economy has suffered because
of depressed international demand for nickel, the principal source
of export earnings. Only a negligible amount of the land is suitable
for cultivation, and food accounts for about 20% of imports. In
addition to nickel, the substantial financial support from France
and tourism are keys to the health of the economy. The situation in
1998 was clouded by the spillover of financial problems in East Asia
and by lower prices for nickel. Nickel prices jumped in 1999-2000,
and large additions were made to capacity. French Government
interests in the New Caledonian nickel industry are being
transferred to local ownership.

New Zealand:
Since 1984 the government has accomplished major
economic restructuring, moving an agrarian economy dependent on
concessionary British market access toward a more industrialized,
free market economy that can compete globally. This dynamic growth
has boosted real incomes, broadened and deepened the technological
capabilities of the industrial sector, and contained inflationary
pressures. Inflation remains among the lowest in the industrial
world. Per capita GDP has been moving up toward the levels of the
big West European economies. New Zealand's heavy dependence on trade
leaves its growth prospects vulnerable to economic performance in
Asia, Europe, and the US. With the FY00/01 budget pushing up pension
and other public outlays, the government's ability to meet fiscal
targets will depend on sustained economic growth.

Nicaragua:
Nicaragua, one of the hemisphere's poorest countries,
faces low per capita income, flagging socio-economic indicators, and
huge external debt. While the country has made progress toward
macro-economic stabilization over the past few years, a banking
crisis and scandal has shaken the economy. Managua will continue to
be dependent on international aid and debt relief under the Heavily
Indebted Poor Countries (HIPC) initiative. Donors have made aid
conditional on