Nauru and ADB
In the Spotlight
ADB and the Government of Nauru signed agreements to provide a combined $3.8 million in grants to help Nauru strengthen its fiscal sustainability. This includes a $2 million grant from ADB’s concessional Asian Development Fund and a $1.8 million grant from the Government of Australia.
A new Asian Development Bank report says Pacific economies face lower growth and tighter fiscal conditions this year due to low commodity prices and severe cyclones.
The Government of Australia has provided additional financing of $4.74 million for an ongoing project designed to improve the efficiency, safety and capacity of the electricity supply in Nauru.
ADB’s interventions in the Pacific should help countries reduce the high cost of doing business and providing services, develop capacity to manage risks from economic shocks, natural disasters, and climate change, as well as promote the creation of competitive high value-added goods and services.
Nauru is the world’s smallest island nation, located significant distances from international markets.
In recent years, the economy has benefited from the presence of a regional processing center for asylum seekers, strong revenues from fishing licenses, and the liquidation of the Nauru Phosphate Royalties Trust. Economic and fiscal sustainability, however, remain key concerns for the government. The country relies on narrow and uncertain sources of revenue, with limited private sector opportunities. Education outcomes are improving but are still poor by international standards, while rates of noncommunicable diseases are among the highest in the world.
ADB and Nauru have been working together to strengthen public financial management, raise the performance of state-owned enterprises, improve service delivery, and address infrastructure needs.
Projects in Nauru
Population in Nauru, in millions (2015)
Average annual population growth rate in Nauru (2010-2015)
Population living below the national poverty line in Nauru (Before 2010)Refers to preliminary/interim figures; or refers to periods before 2010.
Internet users in Nauru, per 100,000 live births (2011)