Nauru European community: country strategy paper and National Indicative programme for the period 2001-2007

Abstract

Nauru is a country in post-phosphate transition. After years of high economic growth fuelled by booming but unsustainable phosphate exports (and looming resource exhaustion), the economy of Nauru has, over the past decade, experienced an unprecedented economic downturn. The downturn has been characterized by mounting domestic and external debt service payments, falling revenues, high and unsustainable government expenditure, and a liquidity crisis in the financial sector (including the near collapse of the Bank of Nauru), that threatens the economic and financial stability of the country. The country and the citizens of Nauru (pop. 11,845). are currently experiencing a steep decline in GDP per capita, falling employment opportunities, a concomitant decline in income earning opportunities, and emerging hardship and social problems. Moreover, at the time of writing, unsatisfactory growth prospects pose a serious and palpable risk for sustainable human development.