|Coated fabric garments|
|Non-fillet fresh fish|
Nauru, officially the Republic of Nauru (Nauruan: Repubrikin Naoero) and formerly known as Pleasant Island, is an island country in Micronesia in the Central Pacific. Its nearest neighbor` is Banaba Island in Kiribati, 300 kilometers (186 mi) to the east. It further lies northwest of Tuvalu, north of the Solomon Islands, east-northeast of Papua New Guinea, southeast of the Federated States of Micronesia and south of the Marshall Islands. With 10,084 residents in a 21-square-kilometer (8.1 sq. mi) area, Nauru is the smallest state in the South Pacific and third smallest state by area in the world, behind only Vatican City and Monaco.
Nauru has been a cash economy since at least 2004, after the Bank of Nauru and the Republic of Nauru Finance Corporation went bankrupt and ceased operations in the early 2000's and the licences of all offshore banks were revoked by the Nauru government in 2004.Nauru uses the Australian dollar for its currency. Deposit-taking institutions do not exist on the island, and community savings are required to be held in the form of cash, and all transactions are conducted using cash. The government is required to periodically fly in Australian currency to maintain liquidity.
The Australian government shut down Nauru’s banking system in 2006. Nauru’s government has been talking with Bendigo & Adelaide Bank Ltd., Australia’s fifth-largest lender, to set up a branch on the island and move to a system where the entire population uses a bank. Effective from the end of April 2016, Westpac, one of Australia's largest banks, ceased having any dealings with the Nauru government. On 21 April 2016, it was announced that the Bendigo Bank was facing pressure to also close its operation in Nauru. There are indications that the Australian banks have legal problems in Australia over efforts to combat money laundering.
|Services (Including financial)||60.8% (2009 estimate)|
|Persist Pharma Engineers||Pharmaceuticals|
|Shah Electronics Pvt. Ltd||Electronics|
|Coated fabric garments|
|Non-fillet fresh fish|
The 2008 financial crisis is the worst economic disaster since the Great Depression of 1929. It led to the Great Recession where housing prices fell 31.8%, more than during the Depression. Two years after the recession ended, unemployment was still above 9% -- and that not counting discouraged workers who had given up looking for work and were no longer counted among the unemployed.
Settled by native peoples from Micronesia and Polynesia, Nauru was annexed and claimed as a colony by the German Empire in the late 19th century. After World War I, Nauru became a League of Nations mandate administered by Australia, New Zealand and the United Kingdom. During World War II, Nauru was occupied by Japanese troops, who were bypassed by the Allied advance across the Pacific. After the war ended, the country entered into UN trusteeship. Nauru gained its independence in 1968.
Nauru is a phosphate rock island with rich deposits near the surface, which allowed easy strip mining operations. It has some remaining phosphate resources which, as of 2011, are not economically viable for extraction. Nauru boasted the highest per-capita income enjoyed by any sovereign state in the world during the late 1960's and early 1970's. When the phosphate reserves were exhausted, and the island's environment had been seriously harmed by mining, the trust that had been established to manage the island's wealth diminished in value. To earn income, Nauru briefly became a tax haven and illegal money laundering center. From 2001 to 2008, and again from 2012, it accepted aid from the Australian Government in exchange for hosting the Nauru detention centre. As a result of heavy dependence on Australia, many sources have identified Nauru as a client state of Australia.
The president of Nauru is Baron Waqa, who heads a 19-member unicameral parliament. The country is a member of the United Nations, the Commonwealth of Nations, the Asian Development Bank and the Pacific Islands Forum. Nauru also participates in the Commonwealth and Olympic Games. Recently Nauru became a member country of the International Renewable Energy Agency (IRENA). The Republic of Nauru became the 189th member of the International Monetary Fund in April 2016.
The Nauruan economy peaked in the early 1980's, as it was dependent almost entirely on the phosphate deposits that originate from the droppings of sea birds. There are few other resources, and most necessities are imported. Small-scale mining is still conducted by RONPhos, formerly known as the Nauru Phosphate Corporation. The government places a percentage of RONPhos's earnings into the Nauru Phosphate Royalties Trust. The Trust manages long-term investments, which were intended to support the citizens once the phosphate reserves were exhausted.
Because of mismanagement, the Trust's fixed and current assets were reduced considerably and may never fully recover. The failed investments included financing Leonardo the Musical in 1993. The Mercure Hotel in Sydney and Nauru House in Melbourne were sold in 2004 to finance debts and Air Nauru's only Boeing 737 was repossessed in December 2005. Normal air service resumed after the aircraft was replaced with a Boeing 737–300 airliner in June 2006. In 2005, the corporation sold its property asset in Melbourne, the vacant Savoy Tavern site, for $7.5 million.
The value of the Trust is estimated to have shrunk from $1.3 billion in 1991 to $138 million in 2002. Nauru currently lacks money to perform many of the basic functions of government; for example, the National Bank of Nauru is insolvent. The CIA World Fact book estimated a GDP per capita of $5,000 in 2005. The Asian Development Bank 2007 economic report on Nauru estimated GDP per capita at $2,400 to $2,715. The United Nations (2013) estimates the GDP per capita to 15,211 and ranks it 51 on its GDP per capita country list.
There are no personal taxes in Nauru. The unemployment rate is estimated to be 90%, and of those who have jobs, the government employs 95%. The Asian Development Bank notes that, although the administration has a strong public mandate to implement economic reforms, in the absence of an alternative to phosphate mining, the medium-term outlook is for continued dependence on external assistance. Tourism is not a major contributor to the economy.
In the 1990s, Nauru became a tax haven and offered passports to foreign nationals for a fee. The inter-governmental Financial Action Task Force on Money Laundering (FATF) identified Nauru as one of 15 "non-cooperative" countries in its fight against money laundering. During the 1990s, it was possible to establish a licensed bank in Nauru for only $25,000 with no other requirements. Under pressure from FATF, Nauru introduced anti-avoidance legislation in 2003, after which foreign hot money left the country. In October 2005, after satisfactory results from the legislation and its enforcement, FATF lifted the non-cooperative designation.
From 2001 to 2007, the Nauru detention center provided a significant source of income for the country. The Nauruan authorities reacted with concern to its closure by Australia. In February 2008, the Foreign Affairs minister, Dr Kieren Keke, stated that the closure would result in 100 Nauruans losing their jobs, and would affect 10 percent of the island's population directly or indirectly: "We have got a huge number of families that are suddenly going to be without any income. We are looking at ways we can try and provide some welfare assistance but our capacity to do that is very limited. Literally we have got a major unemployment crisis in front of us. The detention centre was re-opened in August 2012.
The Australian dollar (sign: $; code: AUD) is the currency of the Commonwealth of Australia, including Christmas Island, Cocos (Keeling) Islands, and Norfolk Island, as well as the independent Pacific Island states of Kiribati, Nauru and Tuvalu. Within Australia, it is almost always abbreviated with the dollar sign ($), with A$ or AU$ sometimes used to distinguish it from other dollar-denominated currencies. It is subdivided into 100 cents.
As of 2011, the Australian dollar is the fifth most traded currency in the world, accounting for 7.6% of the world's daily share. It trades in the world foreign exchange markets behind the US dollar, the euro, the yen and the pound sterling.
The Australian dollar is popular with currency traders, because of the comparatively high interest rates in Australia, the relative freedom of the foreign exchange market from government intervention, the general stability of Australia's economy and political system, and the prevailing view that the Australian dollar offers diversification benefits in a portfolio containing the major world currencies, especially because of its greater exposure to Asian economies and the commodities cycle. The currency is commonly referred to by foreign-exchange traders as the "Aussie dollar".
|National Song||"Nauru Bwiema"|
|Currency||Australian dollar (AUD)|
|GDP / GDP Rank||114 Million USD|
|GDP Growth Rate||4 Percent|
|GDP Per Captial||$11,995 (PPP)|
< 1.0% Muslims
< 1.0% Hindus
< 1.0% Jews
7.4% Other Religions
Other Pacific Islander 26%
President – Baron Waqa
|Website||Go to the web|
|Public Debt||65 Percent|
|Unemployment Rate||23 Percent|
|Labor Force (Occupation)||-|