The 2008 CIA World Factbook, United States. Central Intelligence Agency [primary phonics books .TXT] 📗

largely because of increased fuel and food costs. Mongolia's economy continues to be heavily influenced by its neighbors. For example, Mongolia purchases 95% of its petroleum products and a substantial amount of electric power from Russia, leaving it vulnerable to price increases. Trade with China represents more than half of Mongolia's total external trade - China receives about 70% of Mongolia's exports. Remittances from Mongolians working abroad both legally and illegally are sizable, and money laundering is a growing concern. Mongolia settled its $11 billion debt with Russia at the end of 2003 on favorable terms. Mongolia, which joined the World Trade Organization in 1997, seeks to expand its participation and integration into Asian regional economic and trade regimes.

Montenegro
  Montenegro severed its economy from federal control and
  from Serbia during the MILOSEVIC era and maintained its own central
  bank, used the euro instead of the Yugoslav dinar as official
  currency, collected customs tariffs, and managed its own budget. The
  dissolution of the loose political union between Serbia and
  Montenegro in 2006 led to separate membership in several
  international financial institutions, such as the European Bank for
  Reconstruction and Development. On 18 January 2007, Montenegro
  joined the World Bank and IMF. Montenegro is pursuing its own
  membership in the World Trade Organization as well as negotiating a
  Stabilization and Association agreement with the European Union in
  anticipation of eventual membership. Severe unemployment remains a
  key political and economic problem for this entire region.
  Montenegro has privatized its large aluminum complex - the dominant
  industry - as well as most of its financial sector, and has begun to
  attract foreign direct investment in the tourism sector.

Montserrat
  Severe volcanic activity, which began in July 1995, has
  put a damper on this small, open economy. A catastrophic eruption in
  June 1997 closed the airports and seaports, causing further economic
  and social dislocation. Two-thirds of the 12,000 inhabitants fled
  the island. Some began to return in 1998, but lack of housing
  limited the number. The agriculture sector continued to be affected
  by the lack of suitable land for farming and the destruction of
  crops. Prospects for the economy depend largely on developments in
  relation to the volcanic activity and on public sector construction
  activity. The UK has launched a three-year $122.8 million aid
  program to help reconstruct the economy. Half of the island is
  expected to remain uninhabitable for another decade.

Morocco
  Moroccan economic policies brought macroeconomic stability
  to the country in the early 1990s but have not spurred growth
  sufficient to reduce unemployment - nearing 20% in urban areas -
  despite the Moroccan Government's ongoing efforts to diversify the
  economy. Morocco's GDP growth rate slowed to 2.1% in 2007 as a
  result of a draught that severely reduced agricultural output and
  necessitated wheat imports at rising world prices. Continued
  dependence on foreign energy and Morocco's inability to develop
  small and medium size enterprises also contributed to the slowdown.
  Moroccan authorities understand that reducing poverty and providing
  jobs are key to domestic security and development. In 2005, Morocco
  launched the National Initiative for Human Development (INDH), a $2
  billion social development plan to address poverty and unemployment
  and to improve the living conditions of the country's urban slums.
  Moroccan authorities are implementing reform efforts to open the
  economy to international investors. Despite structural adjustment
  programs supported by the IMF, the World Bank, and the Paris Club,
  the dirham is only fully convertible for current account
  transactions. In 2000, Morocco entered an Association Agreement with
  the EU and, in 2006, entered a Free Trade Agreement (FTA) with the
  US. Long-term challenges include improving education and job
  prospects for Morocco's youth, and closing the income gap between
  the rich and the poor, which the government hopes to achieve by
  increasing tourist arrivals and boosting competitiveness in textiles.

Mozambique
  At independence in 1975, Mozambique was one of the
  world's poorest countries. Socialist mismanagement and a brutal
  civil war from 1977-92 exacerbated the situation. In 1987, the
  government embarked on a series of macroeconomic reforms designed to
  stabilize the economy. These steps, combined with donor assistance
  and with political stability since the multi-party elections in
  1994, have led to dramatic improvements in the country's growth
  rate. Inflation was reduced to single digits during the late 1990s,
  and although it returned to double digits in 2000-06, in 2007
  inflation had slowed to 8%, while GDP growth reached 7.5%. Fiscal
  reforms, including the introduction of a value-added tax and reform
  of the customs service, have improved the government's revenue
  collection abilities. In spite of these gains, Mozambique remains
  dependent upon foreign assistance for much of its annual budget, and
  the majority of the population remains below the poverty line.
  Subsistence agriculture continues to employ the vast majority of the
  country's work force. A substantial trade imbalance persists
  although the opening of the Mozal aluminum smelter, the country's
  largest foreign investment project to date, has increased export
  earnings. At the end of 2007, and after years of negotiations, the
  government took over Portugal's majority share of the Cahora Bassa
  Hydroelectricity (HCB) company, a dam that was not transferred to
  Mozambique at independence because of the ensuing civil war and
  unpaid debts. More power is needed for additional investment
  projects in titanium extraction and processing and garment
  manufacturing that could further close the import/export gap.
  Mozambique's once substantial foreign debt has been reduced through
  forgiveness and rescheduling under the IMF's Heavily Indebted Poor
  Countries (HIPC) and Enhanced HIPC initiatives, and is now at a
  manageable level. In July 2007 the Millennium Challenge Corporation
  (MCC) signed a Compact with Mozambique; the Mozambican government
  moved rapidly to ratify the Compact and propose a plan for funding.

Namibia
  The economy is heavily dependent on the extraction and
  processing of minerals for export. Mining accounts for 8% of GDP,
  but provides more than 50% of foreign exchange earnings. Rich
  alluvial diamond deposits make Namibia a primary source for
  gem-quality diamonds. Namibia is the fourth-largest exporter of
  nonfuel minerals in Africa, the world's fifth-largest producer of
  uranium, and the producer of large quantities of lead, zinc, tin,
  silver, and tungsten. The mining sector employs only about 3% of the
  population while about half of the population depends on subsistence
  agriculture for its livelihood. Namibia normally imports about 50%
  of its cereal requirements; in drought years food shortages are a
  major problem in rural areas. A high per capita GDP, relative to the
  region, hides one of the world's most unequal income distributions.
  The Namibian economy is closely linked to South Africa with the
  Namibian dollar pegged one-to-one to the South African rand.
  Increased payments from the Southern African Customs Union (SACU)
  put Namibia's budget into surplus in 2007 for the first time since
  independence, but SACU payments will decline after 2008 as part of a
  new revenue sharing formula. Increased fish production and mining of
  zinc, copper, uranium, and silver spurred growth in 2003-07, but
  growth in recent years was undercut by poor fish catches and high
  costs for metal inputs.

Nauru
  Revenues of this tiny island have traditionally come from
  exports of phosphates, now significantly depleted. An Australian
  company in 2005 entered into an agreement intended to exploit
  remaining supplies. 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 were 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 frozen wages and reduced overstaffed public service departments.
  In 2005, the deterioration in housing, hospitals, and other capital
  plant continued, and the cost to Australia of keeping the government
  and economy afloat continued to climb. Few comprehensive statistics
  on the Nauru economy exist, with estimates of Nauru's GDP varying
  widely.

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

Nepal
  Nepal is among the poorest and least developed countries in
  the world with almost one-third of its population living below the
  poverty line. Agriculture is the mainstay of the economy, providing
  a livelihood for three-fourths of the population and accounting for
  38% of GDP. Industrial activity mainly involves the processing of
  agricultural produce including jute, sugarcane, tobacco, and grain.
  Security concerns relating to the Maoist conflict 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, its technological
  backwardness, its remoteness, its landlocked geographic location,
  its civil strife, and its susceptibility to natural disaster.

Netherlands
  The Netherlands has a prosperous and open economy, which
  depends heavily on foreign trade. The economy is noted for stable
  industrial relations, moderate unemployment and inflation, a sizable
  current account surplus, and an important role as a European
  transportation hub. Industrial activity is predominantly in food
  processing, chemicals, petroleum refining, and electrical machinery.
  A highly mechanized agricultural sector employs no more than 3% of
  the labor force but provides large surpluses for the food-processing
  industry and for exports. The Netherlands, along with 11 of its EU
  partners, began circulating the euro currency on 1 January 2002. The
  country continues to be one of the leading European nations for
  attracting foreign direct investment and is one of the five largest
  investors in the US. The economy experienced a slowdown in 2005 but
  in 2006 recovered to the fastest pace in six years on the back of
  increased exports and strong investment. The pace of job growth
  reached 10-year highs in 2007.

Netherlands Antilles
  Tourism, petroleum refining, and offshore
  finance are the mainstays of this small economy, which is closely
  tied to the outside world. Although GDP has declined or grown
  slightly in each of the past eight years, the islands enjoy a high
  per capita income and a well-developed infrastructure compared with
  other countries in the region. Most of the oil Netherlands Antilles
  imports for its refineries come from Venezuela. Almost all consumer
  and capital goods are imported, the US, Italy, and Mexico being the
  major suppliers. Poor soils and inadequate water supplies hamper the
  development of agriculture. Budgetary problems hamper reform of the
  health and pension systems of an aging population. The Netherlands
  provides financial aid to support the economy.

New Caledonia
  New Caledonia has about 25% of the world's known
  nickel resources. Only a small amount of the land is suitable for
  cultivation, and food accounts for about 20% of imports. In addition
  to nickel, substantial financial support from France - equal to more
  than 15% of GDP - and tourism are keys to the health of 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 - and
  broadened and deepened the technological capabilities of the
  industrial sector. Per capita income has risen for eight consecutive
  years and reached $27,300 in 2007 in purchasing power parity terms.
  Consumer and government spending have driven growth in recent years,
  and exports picked up in 2006 after struggling for several years.
  Exports were equal to about 22% of GDP in 2007, down from 33% of GDP
  in 2001. Thus far the economy has been resilient, and the Labor
  Government promises that expenditures on health, education, and
  pensions will increase proportionately to output. Inflationary
  pressures have built in recent years and the central bank raised its
  key rate 13 times since January 2004 to finish 2007 at 8.25%. A
  large balance of payments deficit poses another challenge in
  managing the economy.

Nicaragua
  Nicaragua has widespread underemployment, one of the
  highest degrees of income inequality in the world, and the third
  lowest per capita income in the Western Hemisphere. While the
  country has progressed toward macroeconomic stability in the past
  few years, annual GDP growth has been far too low to meet the
  country's needs, forcing the country to rely on international
  economic assistance to meet fiscal and debt financing obligations.
  In early 2004, Nicaragua secured some $4.5 billion in foreign debt
  reduction under the Heavily Indebted Poor Countries (HIPC)
  initiative, and in October 2007, the IMF approved a new poverty
  reduction and growth facility (PRGF) program that should create
  fiscal space for social spending and investment. The continuity of a
  relationship with the IMF reinforces donor confidence, despite
  private sector concerns surrounding ORTEGA, which has dampened
  investment. The US-Central America Free Trade Agreement (CAFTA) has
  been in effect since April 2006 and has expanded export
  opportunities for many agricultural and manufactured goods. Energy
  shortages fueled by high oil prices, however, are a