Page 13 - IB AUG 2019

Politics

Pacific Island Forum Leaders met in Nauru in 2018 Photo: PIFS Media

A fragile but steady economy

A fragile but not failing economy may be the best parting gift lion) are contributing to the $79.59 million project, which will
Baron Waqa’s administration has given the incoming govern- also strengthen the capacity of the Port Authority of Nauru.”
ment of President Lionel Ainigmea. The ADB said it also played a key role in the creation of a trust
The July issue of the Pacific Economic Monitor of the Asian fund for the island republic. The intergenerational trust fund
Development Bank is projecting a change in real GDP growth was developed in a bid to stabilise the economy by replacing
of 0.1 per cent for Nauru for this year, a major improvement volatile revenue streams like phosphate royalties and is run by
from last year’s -1.0 per cent. a Trust Fund Committee.
Interviewed on Radio Australia recently, an ADB economist The ADB injected a grant of $3.9 million into the fund, which
suggested that incomes from hosting Australia’s offshore refu- included $1.9 million from the Australian Government.
gee processing centre on Nauru, as well as vessel day scheme Nauru was also included in the ADB funding of a submarine
fishing fees as a member of the Parties of the Nauru Agreement, fibre-optic internet cable project to provide high-speed internet
had helped to stabilise the economy. in the central Pacific to Nauru, Kiribati and the Federated States
Worth noting that in his final media interview before leaving of Micronesia.
office, Waqa made mention of his government’s investment in The ADB’s contribution was a $15m grant.
Aiwo seaport as well as the creation of the intergenerational Since 1991, the bank says it has sunk $109.57 million into
trust fund amongst his major achievements. Both projects Nauru.
featured in the July Pacific Economic Monitor. Because of the offshore refugees processing centre, Australia
“In August 2018, ADB approved a $21.3 million grant to is a huge ODA contributor to Nauru.
help upgrade the Aiwo boat harbor to become Nauru’s first Australia’s Department of Foreign Affairs and Trade said it
fully functioning international port. The project will transform contributed $24.7m in 2017, $26.7m in 2018 and 25.8m in
the largely inoperable boat harbor into an efficient, reliable, 2019.
and climate-resilient port, boosting trade, tourism, and regional Most of its assistance this year is directed at the 300 or so
connectivity to improve the lives of all Nauruans. The Green refugees that are still in Nauru, with 31 per cent the funds
Climate Fund ($26.91 million), the Government of Australia going to infrastructure development and 21 per cent to the
($14.08 million), and the Government of Nauru ($17.3 mil- health sector.

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