Region: Oceania

Capital: Saipan

Population: 78,252 (July 2004 est.)

Surface Area: 477 sq km

Currency: US dollar (USD)

GDP per capita: Purchasing Power Parity - $12,500 (2000 est.)

Background:
Under US administration as part of the UN Trust Territory of the Pacific, the people of the Northern Mariana Islands decided in the 1970s not to seek independence but instead to forge closer links with the US. Negotiations for territorial status began in 1972. A covenant to establish a commonwealth in political union with the US was approved in 1975. A new government and constitution went into effect in 1978.

Economy – Overview:
The economy benefits substantially from financial assistance from the US. The rate of funding has declined as locally generated government revenues have grown. The key tourist industry employs about 50% of the work force and accounts for roughly one-fourth of GDP. Japanese tourists predominate. Annual tourist entries have exceeded one-half million in recent years, but financial difficulties in Japan have caused a temporary slowdown. The agricultural sector is made up of cattle ranches and small farms producing coconuts, breadfruit, tomatoes, and melons. Garment production is by far the most important industry with employment of 17,500 mostly Chinese workers and sizable shipments to the US under duty and quota exemptions.