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World > Oceania > Nauru > Economy (Notes)

Nauru - Economy (Notes)


ECONOMY
Having once boasted the second highest per capita GDP in the world thanks to its fabled phosphate mines, Nauru is today destitute. With the seeming depletion of readily accessible phosphate reserves in 2000, mining on a large-scale commercial basis ended. The decline of mining saw a dramatic economic contraction, compounded by past government corruption and disastrous mismanagement of trust funds that had been expected to provide post-mining revenue streams for Nauru's citizens. Since 2000, Nauru has relied largely on payments for fishing rights within its exclusive economic zone, earnings from hosting two Australian refugee processing camps, and massive injections of grants and development funding, principally from Australia, New Zealand, Japan, China and more recently Taiwan. In 2006, following rehabilitation of its industrial plant and marine loading infrastructure, the government-owned mining company, the Republic of Nauru Phosphate Company or RONPhos, resumed mining with the aim of exploiting the remaining harder-to-access phosphate.

Although Nauru had a nominal per capita GDP in excess of $2,700, its economy is in deep crisis, and the resumption of mining promises only a limited respite as the country seeks to find a sustainable economic future. The private sector is very small and employs less than 300. Currently, all public servants (even government ministers) and employees of state-owned enterprises receive bi-weekly payments from government of just A$140 (about U.S. $118) in lieu of their established salaries. Nauru imports well over 90 percent of its foodstuffs and other basic goods, but sea and air transport has become problematic. In December 2005, the national airline's remaining airplane was repossessed for non-payment, leaving Nauru dependent on chartered flights. In September 2006, with financing help from Taiwan, a replacement aircraft re-established scheduled commercial flights to Nauru and around the region under the new name of Our Airline. The provision of electricity and water, both dependent on expensive imported fuel, is limited and sporadic. With the help of the Pacific Islands Forum and numerous development partner nations, Nauru has embarked on a major, multi-year strategic national development program to achieve a sustainable economic framework for the country.


Facts at a Glance: Geography - People - Government - Economy - Communications - Transportation - Military - Climate - Current Time - Ranking Positions - Australian Dollar Exchange Rates
Notes and Commentary: People - Economy - Government and Political Conditions - Historical Highlights - Foreign Relations - Relations with U.S.



Facts at a Glance
Geography
People
Government
Economy
Communications
Transportation
Military
Climate
Current Time
Ranking Positions
Australian Dollar Exchange Rates


Notes and Commentary
People
Economy
Government and Political Conditions
Historical Highlights
Foreign Relations
Relations with U.S.





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