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Region:
Oceania
Capital:
Avarua
Population:
21,200 (July
2004 est.)
Surface
area:
240 sq km
Currency:
New Zealand dollar
(NZD)
GDP
per capita:
purchasing power
parity - $5,000
(2001 est.)
Background:
Named after Captain
Cook, who sighted
them in 1770,
the islands became
a British protectorate
in 1888. By 1900,
administrative
control was transferred
to New Zealand;
in 1965 residents
chose self-government
in free association
with New Zealand.
The emigration
of skilled workers
to New Zealand
and government
deficits are
continuing problems.
Economy
– Overview:
Like many other
South Pacific
island nations,
the Cook Islands'
economic development
is hindered by
the isolation
of the country
from foreign
markets, the
limited size
of domestic markets,
lack of natural
resources, periodic
devastation from
natural disasters,
and inadequate
infrastructure.
Agriculture provides
the economic
base with major
exports made
up of copra and
citrus fruit.
Manufacturing
activities are
limited to fruit
processing, clothing,
and handicrafts.
Trade deficits
are offset by
remittances from
emigrants and
by foreign aid,
overwhelmingly
from New Zealand.
In the 1980s
and 1990s, the
country lived
beyond its means,
maintaining a
bloated public
service and accumulating
a large foreign
debt. Subsequent
reforms, including
the sale of state
assets, the strengthening
of economic management,
the encouragement
of tourism, and
a debt restructuring
agreement, have
rekindled investment
and growth.
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