Countries and Regions

	Table of Contents
p. 7 of 13 BACK | NEXT I. Country Performance Assessment II. Country Operational Strategy III. Sector Strategies IV. Regional Cooperation V. Donor Activities and Aid Coordination VI. Cofinancing and Catalyzing External Resources VII. ADB’s Operational Program VIII. Economic and Sector Work Program

Country Assistance Plans - Nauru

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II. Country Operational Strategy

A. The COS

18. Being the only multilateral donor active in Nauru, the ADB plays a lead role in assisting Nauru recover from its present financial situation. The major focus is helping the Government implement the Fiscal and Financial Reform Program and support privatization and employment generation initiatives. Over the years, the health and education sectors have been neglected. As a result, the level of in-country health services, primary health care, and education are deplorable. Lifestyle diseases, truancy in schools and low educational attainment are symptomatic of the neglect of the social sectors. These areas may need future ADB assistance and are considered priorities by the present Government.

19. The ADB’s medium term assistance is directed towards

1. Continued assistance in implementing the reform program and related capacity building that will enable Nauruans to sust

   ain the benefits of the reform measures.

2. Support for the diversification of the economy and development of the private sector.

3. Assistance for promoting entrepreneurship and small business development (with possible support for microfinance).

4. Support for the education sectors with emphasis on skills/vocational training in support of small business development.

5. Support for the health sector to improve in-country health service delivery, primary health care, health education, and water and sanitation.

B. Poverty Partnership Agreement

20. In Nauru, the Government has not established a definition of poverty nor poverty line to determine the incidence of poverty, the intensity and severity of such poverty. However, government policies have recognized and are concerned about the disadvantaged people, those with low incomes or insufficient subsistence production, those with poor health status and education as well as the fragility of the atoll environment in which people live. The proposed Health and Water Supply Project loan will improve the health and living conditions of the country. Finally, the ADB-financed RETA No. 5907¹ will assist the Government to prepare a poverty assessment that would lead to a Poverty Partnership Agreement between Nauru and ADB.

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