Nauru and ADB

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.