By 1900, administrative control was transferred to New Zealand. Residents chose self-government with free association with New Zealand in 1965. The emigration of Cook Islanders to New Zealand in large numbers and resulting loss of skilled labor and government deficits are continuing problems.
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 made up for by remittances from emigrants and by foreign aid, overwhelmingly from New Zealand. Efforts to exploit tourism potential and expanding the mining and fishing industries have not been enough to adequately deal with the financial crisis.