Pacific Finance Sector Briefs: Nauru

Abstract

Nauru is among the Asian Development Bank’s smallest developing member countries and one of the most remote islands in the world. The country has little potential for agriculture and is heavily dependent on imports for basic necessities. While Nauru possesses two significant natural resources—phosphate deposits and the oceanic resources of its exclusive economic zone—opportunities for diversification are limited. Opportunities for the country to exploit its oceanic resources beyond foreign fishing licenses have been constrained by inadequate port facilities. In addition, Nauru’s primary phosphate deposits are almost exhausted and below surface mining will require significant investment. The public sector dominates the economy and employment. Nauru’s institutions are thinly resourced and relatively weak in capacity, with a high dependence on foreign advisors.