REPUBLIC OF NAURU: National Assessment Report

National Assessment Report


Republic of Nauru












Ten Year Review of the Barbados Programme of Action










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REPUBLIC OF NAURU: National Assessment Report
TABLE OF CONTENTS


Page
Foreword
3
Map
4


Chapter 1: Socio -Economic Context
5
Key Characteristics
5
Key Challenges
8
Key Responses
17
Chapter 2: National Framework for Sustainable Development
19
Sustainable Development Policy Framework (National Environmental Management
19
Strategy (NEMS) and National Environmental Action Plan)
Chapter 3: Sectoral Progress Made and Problems Encountered in the
23
implementation of the BPOA
Climate Change and Sea level rise
23
Environment
24
Management of waste
24
Coastal and marine resources
26
Freshwater resources
27
Land resources
27
Energy resources
29
Tourism resources
29
Biodiversity resources
30
Transport and roads
31
Human resource development
31
Chapter 4: Cross Sectoral Areas
33
Financing and Investment for Sustainable Development
33
Trade and Investment
33
Capacity building
34
Infrastructure and Services
34
Chapter 5: Millennium Development Goals and Sustainable Development in
36
SIDS
Poverty eradication
36
Education and Reduction of Child Mortality
36
Health and Nutrition Deterioration and Diseases such as HIV/AIDS
37
Gender equality and empowerment of women
38
Global/Regional partnership for development
39
Chapter 6: Emerging Concerns and Special Needs
41




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REPUBLIC OF NAURU: National Assessment Report
Foreword

The Republic of Nauru’s National Assessment Report has been prepared following consultations
with stakeholders and two National Workshops on Sustainable Development held in April 2002
and February 2004. Discussions at these two workshops focused on achievements and
constraints faced by the country in the context of economic, social and environment issues.
Inputs were sourced from government officials, the private sector, non-government organisations
and the general public.

The Republic of Nauru’s activities in promoting environmental conservation and economic
sustainable development since Agenda 21 and more importantly the Barbados Programme of
Action included the development of the National Environment Management Strategy (NEMS),
which provides guidelines for sustainable development, guidelines for land use, and development
through the establishment of the rehabilitation programme.

Activities by the government to strengthen the foundations of sustainable development included
continued focus on improvements in education, health and the establishment of the Human
Resources Department, the development of policies to promote economic growth and the
recognition of the importance of the private sector as a strategic partner in creating employment
opportunities, wealth and security of opportunity.

However, after years of high economic growth fuelled by the booming but unsustainable
phosphate exports, Nauru faces immediate and potentially long-term development challenges.
The most pressing challenge is the restoration of macroeconomic and financial stability to the
country. In the short to medium term, the imminent exhaustion of the phosphates resource and
the decline in revenue from phosphate mining will have serious consequences for the country
and its people. Diversification of the economic base, with specific focus on private sector
development to achieve economic growth is a key objective of the Government. Providing an
enabling environment for the productive sector to flourish is crucial to the future prosperity of
Nauru.

This report is the outcome of extensive consultations with all stakeholders and includes issues
identified in past reports such as the FAO food security, the UNCCD report and the EU Strategy
reports. The NAR is also based on the template provided for the UN SIDS Unit and identifies
the key challenges on sustainable development faced by Nauru. The key responses to these
challenges are presented in the period leading up to the BPOA+10 review. The report should
serve to provide a comprehensive and integrated approach of developing programs for
sustainable development for the Republic of Nauru and assist in developing Nauru’s National
Sustainable Development Strategy.

The report identifies the needs of the Republic of Nauru, calls for the establishment of the
Sustainable Development Planning Unit within the Office of the President for the coordination
and development of programs for sustainable development.




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REPUBLIC OF NAURU: National Assessment Report
1.
SOCIO-ECONOMIC CONTEXT
Key Characteristics, Challenges and Responses


KEY CHARACTERISTICS

Geographical Location

Nauru is located 41 km South of the equator at 0o 32' South latitude and 166o 56' East longitude.
Its most southerly point (which is the airport runway extension in Yaren District) is mapped at
61.3 km south of the equator. Its most northerly point in Ewa district is mapped at 55.6 km south
of the equator.

Nauru is some 2000 km East-Northeast of Papua New Guinea, 4450 km South-Southeast of the
Philippines and an equal distance to the Southwest of Hawaii. The nearest island is Banaba
(Ocean Island), 300 km due East, which is part of the Republic of Kiribati. The main islands of
Kiribati lie a further 400 km to the East.

Topography and Geology

Nauru is an uplifted limestone island. The total land area of Nauru is only 22 km2 (2200 ha).
Despite its small land mass. Nauru has an Exclusive Economic Zone (EEZ) that extends over
320,000 sq. km. Its maximum height above sea level is approximately 70 meters. The island is
surrounded by a fringing coral reef between 120 and 300 meters wide. The reef drops away
sharply on the seaward edge, at an angle of about 40o, to a depth of about 4000 meters. The land
area consists of a narrow coastal plain or "Bottomside", ranging from 100 to 300 meters wide,
which encircles a limestone escarpment rising some 30 meters to a central plateau, known locally
as "Topside".

The coastal plain is composed of a zone of sandy or rocky beach on the seaward edge, and a
beach ridge or fore-dune, behind which is either relatively flat ground or, in some places, low-
lying depressions or small lagoons filled by brackish water where the surface level is below the
water table (freshwater lens). The most extensive system of these landlocked lagoons is found
near the border of Ijuw and Anabar Districts. Scattered limestone outcrops or pinnacles can also
be found on both the coastal plain and on the inter-tidal flats of the fringing reef, with
particularly good examples in the Anibare Bay area.

The escarpment ranges in gradient from vertical cliffs to gradually sloping areas of colluvial soil
(deposits that acc umulate on and at the base of slopes as a result of movement by gravity)
interspersed with limestone outcrops and pinnacles.

The raised central plateau or Topside consists of a matrix of coral-limestone pinnacles and
limestone outcrops, between which lie extensive deposits of soil and high-grade tricalcic
phosphate rock. This area covers approximately 1600 ha (over70% of the island) and has been
the focus of phosphate mining for over 80 years. Relative elevations on Topside vary generally
between 20 and 45 meters above sea-level, with occasional pinnacle outcrops reaching elevations
of 50 to a maximum of 70 meters above sea-level. The topography remaining after completion of

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primary phosphate mining is a pinnacle-and-pit relief varying between 2 and 10 meters from the
top of the pinnacles to the bottom of the pits. The highest point on the island is Command Ridge
in the west at an elevation of 71 meters above sea- level.

Buada Lagoon, a landlocked, slightly brackish, freshwater lake, and its associated fertile
depression (about 12 ha in area), is located in the low- lying Southwest-central portion of the
island at an elevation of about 5 meters above sea- level.

Temperature and Rainfall

Nauru is located in the dry belt of the equatorial oceanic zone, with diurnal temperatures ranging
from 26oC to 35oC, and nocturnal temperatures between 22oC and 28oC. Annual rainfall is
extremely variable, averaging 2126 mm per year (data from 77 years from 1916 to 1993) with a
range of 280 to 4590 mm. Monthly rainfall data available for the period 1977 to 1993 indicate a
range of 0 to 746 mm, with 62 months out of 204 months (for which data were available) having
less than 100 mm of rain. Rain tends to be more frequent during the months of December to
April. Prolonged droughts are common and place severe stress on the natural species and lead to
the death of non-coastal exotics and fruit trees (such as breadfruit).

Weather

Weather in general sees a weakening of the easterly winds along the equator, sometimes
accompanied by strong Westerly outbursts with high waves and hence coastal damage, which
has been noted in Nauru, Western Kiribati and Northern Tuvalu.

Sea temperatures produce a fundamental oceanic signature of ENSO in a fan-shaped area where
sea surface temperatures are significantly higher than normal. This extends Eastwards from the
dateline (180th meridian) along the equator and fans out to the coastline of the Americas. High
surface temperatures are known to stress corals and affect fisheries, and this is significant for
Nauru.

Population and Density[JC1]

The total population of the island is 10,065 (2002 census) with an evenly distributed estimated
population density of 495 per sq km. However, since the bulk of the population lives along the coast,
the real estimate for population density is 3,000 per sq km. The population’s ethnic composition is:
58% Nauruan, 26% other Pacific Islanders, 8% Chinese, and 8% Europeans and others.

From the period 1992 to 2002, population growth has been more stable around 0.15% per annum.
The decline of population growth per annum of 2.4% estimated before the 2002 census could be
attributed to out migration of Nauruans since the economic down turn of the economy. Since 2000,
the island has seen a number of non-Nauruan workers departing the island in light of the winding
down of the phosphate industry and government economic reform policy of retrenchment. In 2001,
arrival of asylum seekers and associated migrant processing staff compensated for the number of
repatriated contract workers.


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Culture

Nauruans are Micronesians inhabiting the island for almost 3,000 years, with evidence of Melanesian
and possibly Polynesian influence. The Nauruan language is distinct from other Pacific languages yet
it shares many words with other Micronesian islands such as Kiribati and the Marshall Islands. The
society is matrilineal and the people are drawn from twelve tribes that are totemic in origin.

Nauruans are Christian and adhere to the Nauruan Congregational Church and the Roman Catholic
Church. Approximately 70% of the Christian population is Protestant.

Nauruans traditionally existed on a subsistence economy until the discovery of phosphate
deposits shortly after 1888. At the turn of the century and with the commencement of mining in
1906 there was a significant change in lifestyle and economy, which has been apparent by the
very high per capita GDP. The advent of phosphate mining has led to a dramatic change in
lifestyle for the Nauruan people, and effectively transformed the culture into one that is
compatible with a cash economy. Since 1990, Nauru’s GDP per capita is declining at an average
of 4.9% while inflation is increasing at 4.3% per annum.

The literacy rate in Nauru has improved since the 1980s (90 percent) with around 95 percent of
the population able to read and write. Life expectancy has also improved at 58 years. [JC2]



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KEY CHALLENGES

The Republic of Nauru believes that sustainable development for the Pacific Island communities
is a process of development which ensures that quality of life, and quality of growth are achieved
through good governance within the limits of acceptable change to our communities, our island
and our ocean, without compromising the opportunities available to our future generations.

After years of high economic growth fuelled by booming but unsustainable phosphate exports,
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, resulting in the economic and financial stability of the country. The
country has experienced a steep decline in GDP per capita, employment opportunities, and in
income earning opportunities.

Notwithstanding the fundamental issue of Nauru’s economic and financial situation, there are
several resource and environmental issues affecting sustainable development in Nauru. These
include an array of issues from climate and sea- level variability, environmental degradation and
pollution, to resource management. More specific challenges to development include coastal
erosion, water quality, water availability and sanitation. Sustainable management of resources
such as terrestrial minerals and renewable energy are other issues under consideration.

The following key challenges are discussed below:

a. Economic vulnerability and stability
b. Private Sector Development
c. Unemployment
d. Lack of Capacity Building
e. Land Tenure
f. Lack of Freshwater Water[JC3]
g. Land degradation
h. Pest and disease infestations
i. Pollution and waste management
j. Population growth and urbanization

Economic Vulnerability and Stability

Nauru, like other Pacific small island developing states, has all the prerequisite characteristics of
an economy that is vulnerable to external forces such as natural disasters and the effects of the
globalization of the world’s economy. These includes small domestic markets; limited ability to
exploit economics of scale; lack of natural resources endowments and high import content;
limitations of diversification possibilities and market thinness; dependence on a narrow range of
export products; and uncertainties of supply due to remoteness and insularity.

For Nauru the issue of vulnerability is not a matter of academic debate but a reality. Nauru’s
economy, in the first 20 years of independence, was driven by the export of a single, finite,

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nonrenewable mineral resource called phosphate found by accident in late 1800s by an
(Australian/New Zealand) geologist. Mining of the phosphate commenced in earnest in 1906
while Nauru was under the administration of Australia but it did not contribute to the economic
development of the island until 1970 when Nauru purchased the phospha te industry from
Australia at the cost of A$21 million.

The mining of the run-of- mine phosphate has been done at the expense of the destruction of over
70% of the land area which were declared phosphate bearing land by the 1976 Lands Act; the
destruction of virgin forest and undergrowth that covered the area including land based
biodiversity by the process of preparing the land for mining.

The boom in Nauru’s economy was evident from the very high per capita income (over
US$19,000) that dominated the 1970s and 80s and the provision of welfare programs such as
free education, health care services, child endowments, pension for the elderly and no taxation
regime for the people. Health care services included free referral to hospital in Australia if the
medical condition of the patient was untreatable at the Nauru Hospitals, which were more or less
designed to treat tropical decease. In education, the Government offered 20 scholarships a year
for secondary level education in Australia and New Zealand. The program was complemented by
tertiary and technical scholarship for Nauruan students who matriculated or passed relevant
examination, respectively.

Investment in transport (shipping an airline routes) and satellite communication became a
priority in 1970s firstly to overcome Nauru’s isolation and secondly to use Nauru’s economic
advantage with respect to the other emerging nations of the Pacific by opening routes to service
both the remote and major trading islands of the Pacific with Australia, New Zealand and Hawaii
in the hope they would guarantee demand for the services to the benefit of Nauru.

Cognizance of the finite life of the phosphate industry and its contribution to the economic
development of Nauru, the Constitution of Nauru directed the creation of certain Trust Funds and
the appropriation of the revenue from the sales of phosphate into the respective funds through the
Government Treasury. Of the seven Trust Funds created, three were fund investment and was
assigned to the Nauru Phosphate Royalties Trust (NPRT) to manage. Between 1970 and 1990,
the funds grew to a book value of over A$1.3 billion. The latest report from the NPRT shows
that the funds have declined substantively. A high proportion of the Government loans were to
fund the budget deficit that was inherent in all the Government budgets since the mid-1970s.

The economic downturn that came about in the early 1990s following the significant drop in
export of Nauru’s phosphate to its traditional buyers left a huge gap between revenue and
expenditure in the Government’s budget. It also brought to the fore that deficit budgeting by the
Government, particularly the continuation of exorbitant welfare programs was and will be
financially unsustainable. Unfortunately, actions to reform the financial and social programs of
the Government were erratic to say the least as political instability reined. The situation has not
altered much over the last five years. For example, the budget deficit in 2000 was around A$10
million or about 18 percent of GDP. For fiscal year 2002, a deficit of A$40 million to A$50
million was budgeted, but it was unclear how this was going to be funded.


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Therefore, the single and major challenge facing the Government and people of Nauru is how to
arrest the economic regression that is being experienced. The lack of and unpredictable flow of
financial resources has affected all sectors of services and programs of the Government
Educational programs and health care services are being curtailed, particularly those involving
training or medical referrals overseas. Critical work in all sectors are also being curtailed or
suspended as the case maybe including efforts to implement the Barbados Plan of Action. In
other words the dependence on the phosphate industry and development driven by this industry
has not been sustainable. Nauru’s financial and economic situation has now reached the crises
situation, and a concerted, comprehensive and integrated approach to national sustainable
development planning is needed. 1

All other key challenges being addressed in the report stems from the economic situation. Nauru
has always and will continue to be dependent on imports of manufactured goods, agricultural
products, medicines, educational material, building material and so forth. The substantial drop in
sales of its only export commodity, phosphate, has resulted in the reduction of foreign reserve
and has affected the balance of trade.

Other economic problems are increasing income disparity within Nauru, rapid inflation, and
increasing unemployment. These problems augur poorly for sustainable development.

Private Sector Development

The private sector in Nauru continues to be very narrow-based as the phosphate industry has
been the mainstay of the economy of Nauru since independence in 1968. The failure to diversify
the economy could possibly be attributed to the general assumption that earnings from phosphate
would sustain the people of Nauru. Export earnings have declined considerably since the 1990s,
let alone the fact that the remaining deposits would soon be exhausted. Quality private
investments from both foreign and domestic sources are lacking, whilst there is hardly any
development even at the micro and small enterprise level. The prevailing economic crisis has
made it a lot harder for the private sector to grow and contribute more meaningfully to the
economy. Nauru thus faces a serious challenge with respect to improving its business climate so
as to strengthen and support the role of the private sector in its overall development process.

Arguably, the best measure of the current economic situation in Nauru is the deteriorating health
of its private sector. Foreign exchange earnings from phosphate exports that once sustained the
economy have plunged to their lowest levels. It is very unlikely that the Government in the
foreseeable future will derive significant phosphate earnings. The alternative then is economic
diversification through the expansion of the private sector. However, an overall policy and
support environment to help realize the desire for private sector growth in the country hardly
exists. Investor confidence is at its lowest in light of the absence of an institutional framework,

1 A National Economic Forum (NEF) was held in October 2003, with a theme of “Helping Government Plan for the
Future”. This is a key response instituted by the Government of Nauru. The NEF was attended by all stakeholders
and provided an opportunity for all Nauruans to participate and contribute to the process of assisting government in
planning for sustainable development. The key stakeholder recommendations have been submitted to the
Government for consideration. The recommendations of this Forum should form a basis and assist the Nauruan
governme nt to develop its National Sustainable Development Strategy. Further elaboration is under the key
responses chapter.

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basic support services and public-private sector partnerships to assist private sector development.
Notably, key recommendations of the 1999 National Economic and Development Summit which
have yet to be implemented include firstly, the creation of an enabling environment to facilitate
the formation and growth of a Nauruan-owned private sector and secondly, the revival of the
Nauru Chamber of Commerce.

Unemployment

The estimated percentage of labour in formal employment is about 56%. This included the bulk
of the indigenous workforce employed by the public sector. For example about 1,600 Nauruans
work directly for the government (public service sector) and about 1,400 are employed in the
government owned National Phosphate Company. Kiribati and Tuvalu islanders comprise the
majority of unskilled workers in the phosphate industry.

Although there are no official figures, unemployment is growing in the last few years due mainly
to the decline in the phosphate industry and downsizing of the public sector. A particular
problem is the extremely high rate of youth unemployment (estimated at 30 percent for males
and 55 percent for females). With the downsizing of the public sector and limited opportunities
in all other sectors, it is unlikely that the government will be able to provide sufficient jobs in the
short-term to make up for those that are being lost in mining and in the public sector.

This means that many families will lose their current source of employment and income.
Subsistence production and small-scale income- generating activities may offer the best short-
term solutions to the problem. At present the private sector offers limited opportunity for
employment, as this sector is thin and underdeveloped. The private sector is largely comprised
of Chinese immigrants and about over 100 to 150 Nauruans that are engaged in form of
businesses.

Capacity Building

Another challenge that Nauru faces today is the provision of funds for scholarships among the
Nauruans. The economic situation has forced the Government of Nauru to reduce the number of
scholarship offered yearly. The scholarships awarded early in the inception of the scheme were
20. As the nation began experiencing economic hardship the numbers of awards was reduced to
4. Throughout the years the scholarship awards offered fluctuated between 20 and 10. In 2002
and 2003 AusAid sponsored 4 of the 10 students who ranked highest in the scheme.2 . As of
2004, 10 scholarships were again granted but in the hope of reducing expenditure but still offer
excellent education, the students were sent to Fiji, instead of Australia.

AusAid has been the major provider of scholarships in tertiary education. Other scholarships
offered by external agencies are in the form of Commonwealth Fellowships, UNESCO
Fellowships and Republic of China – Taiwan. As a result, a steady but slow training of qualified
workers across the various disciplines. These scholarships have been highly contested as only
five are offered yearly, except for 2003 where 3 were offered. Education and Health dominate
the awards as the teaching and nursing staff turnover is high.

2 This sponsorship covers the students’ duration of secondary schooling.

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The turnover of teaching personnel is still alarming and the Department of Education is resorting
to desperate measures of upgrading teachers with inappropriate qualifications from lower levels
to higher levels (primary - secondary) so as to compensate for the lack of external recruitment.
The secondary level has only one local degree holder. Another local teacher is a qualified
primary teacher with years of experience. The remaining local teachers are unqualified but
experienced in their fields. Most of the teachers are recruited from overseas and are qualified
primary and secondary teachers. Senior secondary teachers are lacking at the school.

A huge gap still exists and more training needs to be offered for all areas. All other sectors are
critically short of qualified personnel as most of employees are ‘qualified’ more so through years
of experience and less so with tertiary qualifications.

Other members of the public that have largely been ignored in the venture of capacity building
are the youth. As stakeholders in the development of the country, it is obvious that the workforce
is unwilling to relinquish reigns and very few youths are offered opportunities of training that
will enable them to be future leaders, managers and workers. The provision of employment
opportunities and training should be a main focus. Mention should also be made of the disabled
persons, as stakeholders in this society and training opportunities are scarce for them.

Land Tenure

Land tenure is the most critical co nsideration relating to the practicality of implementing
programs for the rehabilitation and development of agricultural based activities. Settlement
problems are exacerbated by a land tenure system that is made up of some 630 irregular sized
and shaped pieces of land. For example, some land is less than a meter wide and only a few
square meters in area, which do not appear to relate to any ordered plan or access rights. This is
further aggravated by a joint ownership system where many individuals hold a share in a piece of
land which may be as in one case, as little as an1/1008 interest. In addition, a consensus has to
be achieved among owners before development can proceed. With a growing population and
fragmentation of land ownership, as a result of inheritance, attempts to use land for building or
agriculture can result in disputes between owners of a land portion as to who should have the use
of this land.

Water

The major challenge for Nauru is the sustainable provision of adequate supplies of non-polluted
freshwater. It follows that the conservation, management and protection of surface water and
groundwater and the collection and storage of rainwater are critical to sustaining human
settlements in Nauru.

There are no streams on Nauru. There is however, a small brackish lagoon, Lake Buada
(approximately 14 hectares) and a smaller brackish lagoon in the Anabar District. Ground water
is utilized from hundreds of shallow wells on the coastal margin and is primarily used as non-
potable water as it is brackish as a result of pumping impacts and the contraction of the
freshwater lenses in dry periods. These wells are also proximate to habitation, building, and

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sanitation structures. Contamination has been detected, thus restricting further the use of water
from these wells.

Recent investigations indicate uncertainty about the estimates of water from the freshwater lens
due to mixing in the open test bore holes. On current knowledge, it is not possible to assess the
long term sustainability of the freshwater lens as a viable water source for Nauru. This has led to
focus on more certain, yet expensive alternatives as desalination, osmosis and importation. The
development of this resource will have to depend upon studies, testing and simulation using
more recently available techniques for extraction.

Nauru has a modern desalination plant - an important source of water delivered to
domestic tanks via road transport. This plant is using the waste heat generated from the
power station. But recently, the plant has not been operational due to the high cost of

energy as well as its dependency on the power output of the Power Station. As the facility is
experiencing problems, the heat energy required to operate the desalination plant is not

available, causing it to shutdown. A costly replacement source of energy will be needed,
unless the power demand is met by the introduction of a different industry or by general
industrial and commercial expansion.

As the desalination plant experiences usual shutdowns, the people of Nauru collect storm water
for subsequent re-use. Collection of storm water (rainwater) contributes efficiently and
effectively to water conservation. Storage tanks for surplus water produced during wet periods
when there is sufficient rainfall to fill household and institutional tanks play an important role for
water supply needed for livestock, irrigation of crops and gardens. However, potable water is
still imported and continues to cause a major challenge.

The remoteness of Nauru which affects capacity to service infrastructure in the event of a major
breakdown and its bimodal rainfall pattern with an approximate cycle of 9 years and potential
extended droughts means that other sources of harvested water will need to be in place if such
events arise.

AusAid conducted a review of the water supply infrastructure on Nauru in 2002. This review
was based on the information contained in the Draft 2001 National Water Plan of Nauru. The
recommendations in the draft National Water Plan Action Plan include the following:

• continue use of the existing desalinator as the major source of portable water for Nauru;
• introduce water charges to maintain water supply facilities on cost recovery basis;
• replace the desalinator at the end of its service life with two 500t/d desalination units to
provide operational flexibility;
• rehabilitate the existing storage tanks to provide a 20 day supply (30,000t);
• establish the airport rainwater collection system as the next source of potable water;
• ensure each house and building has guttering and a large rainwater tank;
• establish a rainwater catchment inspection program to ensure that the water being
collected and stored is safe for consumption;
• investigate groundwater as a possible emergency supply in times of drought;

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• implement a water conservation program including an education program which would
focus on a sustainable water cycle; and
• if the safe yield of groundwater in drought periods is too small to make up the gap
between rainwater and 500t/d, then purchase an additional desalinator of 250t/d capacity.

Given the current situation of shortages of water, a review of the Draft Water Plan for Nauru
should address issues such as sustainability, institutional arrangements, fees and charges,
rehabilitation plans and economic co nditions in Nauru. As noted in the AusAid review, the
development of a long-term strategy to incorporate the assessment of sustainability of water
supply infrastructure should be undertaken.

Land Degradation

One of the major challenges Nauru is facing is land degradation. This includes the almost total
degradation of Topside and localized inland and coastal erosion. The most drastic land
degradation has been caused by the removal of natural vegetation, topsoil, phosphate rock and
the modification of various landscapes.

Due to mining, nearly two-thirds of the country will be converted to an almost totally
unproductive pinnacle and pit topography from a gently undulating, productive forestland. Even
though there are varying degrees of vegetative re- growth, they remain functionally useless.

Localized soil erosion, coastal erosion and the loss of limited soil resources are important
concerns. Throughout the history of mining, the soils of Nauru have been lost from the island. A
small proportion remains in the form of stockpiles and underneath roadways. However, these
stockpiles are estimated to provide only enough soil to reinstate approximately 32% of the land
after rehabilitation. Thus, the existing soil resource of Nauru is particularly precious and any
incidence of erosion is of especially great concern. Soils in Nauru are like those of all small
islands in the Pacific, a very precious resource whose conservation is of utmost importance.

Coastal and inland erosion are increasing challenges in Nauru. Development of buildings very
close to the upper tide limit may also be affecting the coast, and these buildings are likely to be
damaged by storm surges that correspond to a higher than usual tide. Erosion of the coastline is
of special concern owing to the possibility of global warming-induced sea- level rise.

With no surface water flow, modification by erosion to the island structure has been restricted
above sea level. Dissolution erosion undoubtedly has taken place, as has coastal erosion of the
narrow coastal plain from waves crossing the narrow coastal reef flat. The island structure has
however been subjected to major modification from mega submarine landslides. The upper part
of one such mega slide disrupts the coastline in the vicinity of Anabare Bay on the eastern part of
the island. The estimated volume of material disturbed extending down to 2 km below sea level
is 1.5 cubic kilometers, equivalent to the entire volume of the island currently above sea level.

Pest and Disease Infestations


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Lack of quarantine regulations and facilities in Nauru is a big challenge and concern. At present,
pest and disease organisms (whether plant, animal or microorganism) can be introduced
unchecked to Nauru through air and sea transport terminals. This has not been regarded as
important in the past since most consumables were imported and there was little agriculture that
was deemed necessary to protect. However, accidental importations of several pest species such
as a range of aggressive weeds, fruit flies, and brown tree snakes among others have occurred.

Nauru is suffering from an increase in population of pests and disease vectors such as flies,
mosquitoes, cockroaches, rats, feral dogs, cats and pigs. There is also a great concern on the
possibility of introducing serious pests or diseases into Nauru’s marine environment in the
ballast or bilge water brought into Nauru. Experiences from other parts of the world show that
organisms introduced via bilge water have had devastating effects on marine organisms and
could have disastrous effects on the entire marine environment and food chains of Nauru.

Pollution and Waste Management

Pollution and waste management is one of the major concerns of Nauru. The increase in
pollution and the waste stream require strategies for prevention and management at all levels of
the Nauruan society, from the individual, household and community levels to the national level.
The main areas of concern are solid waste management, water pollution, sewage treatments, air
and noise pollution.

On the issue of solid waste disposal, all households and activities in Nauru are producers of solid
wastes, such as food scraps, packaging, plastic, glass and metal containers, garden waster and
garbage of other kinds. Pollution from the uncontrolled disposal of such solid wastes
contaminates groundwater, causes the spread of pests and diseases, and creates air pollution
through burning and generation of toxic and greenhouse gases.

A problem also exists with regards to the future of the existing landfill site, and what will happen
to it when land rehabilitation commences. The landfill has been uncontrolled with respect to
compaction and burying of organic matter, which will continue to decompose and form methane
gas for many years. This decomposition will also result in the formation of liquid leachate, which
will pollute the groundwater system. This will render the land unsuitable for any other purpose,
including participation in the rehabilitation process.

Pollution from toxic chemicals --- such as fuels and lubricants, paints, solvents, heavy metals,
pesticides, fungicides and other industrial chemicals --- is of great concern as well. Storage and
waste disposal of fuels and lubricants has been recognized as both a current and potentially more
serious future pollution issue. No facilities are available for the safe disposal or recycling of
these lubricants and fuel.

Bio-wastes from medical facilities have, at times, been burned at the landfill site, owing to
operational problems with the Hospital incinerator. Such wastes need to be separated from the
general solids, and a suitable incinerator established at the new controlled landfill site, away
from residential sectors.


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Population Growth and Urbanization

Population growth and urbanization put increasing pressure on natural and cultural resources and
constitute a major constraint to sustainable development in Nauru. The island is facing land
shortage and increasing population pressure on scarce resources, such as water, noddy birds and
marine resources. Nauru’s population is increasing at an average rate of 2.4% per annum.

Uncontrolled urbanization is another indication of increasing population density and declining
productivity of the land. Most of Nauru’s people now live urban lifestyles. This has led to the
loss of traditional knowledge about plants, animals and environment and an abandonment of
subsistence lifestyles. Increasing cash employment and unemployment (people who neither have
urban jobs nor produce things for themselves) and increasing dep endence on imported foods,
beverages, entertainment have led to social problems and increasing consumption of nutritionally
inferior, highly processed foods and alcohol.

From an environmental and cultural perspective, urbanization has not only put pressure on and
polluted Nauru environment, but has also produced a current generation of Nauruans who have
little traditional environmental knowledge.


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KEY RESPONSES

The Republic of Nauru is among today’s 33 small developing states that are making up about 17
percent of the total membership of the United Nations. Nauru’s remoteness causes its limited
access to immediate assistance on human capital and expertise of various UN agencies and
bodies that are available in other islands. Although Nauru does not face the problems of
surrounding island nations such as Tuvalu and Kiribati, it still have to implement responses and
undergo change that will affect the community and place a great demand on limited Government
resources. Some of these changes will affect the lifestyle of the people and some of the necessary
decisions may be hard on the community in general.

The Nauru Government announced during the Small Islands Developing States (SIDS)
Conference on Sustainable Development in 1994, plans to rehabilitate the island. The out-of-
court settlement of US$8 million each from Australia and New Zealand is expected to assist with
this exercise. Once the rehabilitaton effort gets started, more realistic and meaningful
development in the area of agriculture can be planned and executed.

The current Government of Nauru is taking a responsible and decisive approach to the problems
by establishing review and planning committees to appraise the issues and address each problem
in systematic manner.

National Economic Forum

The Government of Nauru held a national forum entitled the “National Economic Forum:
Helping Government Plan for Our Future” last October 7-8, 2003. The forum, funded by the
AusAID and ADB, addressed the following issues in various panel discussions:
(1) Improving Government Transparency and Accountability
(2) Improving Public Participation with Government
(3) Deciding the Future of Government Instrumentalities and Corporations
(4) Financing Government Services
(5) Setting Priorities for Government Spending
(6) Priorities for Health and Education
(7) Managing Trust Funds

The wrap-up provided a synopsis of the panels and discussions of the National Economic Forum,
presented in the form of a Summary of Key Findings.

Private Sector Development

Every effort is to be made to enable private sector development in Nauru and that necessitates
support for all entrepreneurs, including micro operators in the informal sector. The anticipated
enabling factors are listed below.

Institutionalisation of PSD


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A proposed Small Enterprise Development Unit (SEDU) will help address the needs and
concerns of the small business sector, whose contributions to economic and social development,
including poverty alleviation in small island states, are widely recognised. Such business have
the potential to create and expand employment opportunities, develop entrepreneurial skills,
enhance market opportunities and encourage export promotion and import substitution. The
establishment of SEDU will therefore provide an avenue for the strengthening and expansion of
small businesses in Nauru, especially through public sector/institutional capacity building,
partnerships and networking with other agencies, which are necessary for the smooth
implementation of PSD strategies. SEDU will also serve the technical and administrative needs
of potential Nauruan entrepreneurs.

Private Sector Capacity Building

The formation of a Nauru Small Business Association (NSBA) is being formalised. Since the
Chamber of Commerce no longer exists, the establishment of NSBA will be a significant step
towards establishing a national Public-Private Sector Partnership or consultative mechanism for
Nauru. This will also raise the capacity of the country's private sector to become a more
organised body that is capable of consulting with Government on key policy making issues as
well as addressing the requirements of small businesses. Through the NSBA, it can be expected
that networking and information sharing with similar institutions in the Pacific Islands will be
mutually beneficial.

The development of needs-based skills training programmes by means of a proposed Nauru
Skills Training Centre will augur well for the capacity building needs of both existing and
potential small businesses. The intended training is to cover technical issues pertinent to
businesses as well as basic entrepreneurial skills, especially for business-minded citizens without
knowledge on entrepreneurship.

Micro-finance Scheme

As the lack of funds is a major impediment to business development on Nauru, the establishment
of a Micro-finance Scheme to provide basic financial services to small businesses is deemed
appropriate for the country. Beginning with small loan services to facilitate business start-ups,
the Scheme could be broadened at a later stage to enable deposits and other payment services,
which would be critical in light of the current state of the Bank of Nauru.

National Environment and Management Strategies and Action Plan

In 1997 the Government of Nauru adopted the National Environmental Management Strategy
(NEMS) and National Environmental Action Plan (NEAP) to respond to the challenges faced by
the island on the environment.

The NEMS report identified development programmes that are sustainable. The report served as
a blueprint for the development of sustainable Nauruan island way of life as well as a guideline
towards sustaining the island culture and island environment that will remain healthy and
productive. A detailed discussion of the NEMS is presented in the next chapter.

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2.
NATIONAL FRAMEWORK FOR SUSTAINABLE DEVELOPMENT

Phosphate mining has brought great economic benefits both to Nauru as a nation and to Nauruan
landowners. On the other hand, it also brought a great environmental cost. The need to protect
the environment and Nauru’s renewable natural resources is made more urgent by the fact that
the mining of phosphate, as a non-renewable natural resource and a source of income, will cease
soon. With the cessation of new phosphate income, development efforts must refocus on:

• Living off the interest of the invested capital gained from phosphate mining;
• The rehabilitation of the mined lands under the Nauru Australia Cooperation
Rehabilitation and Development Agreement;
• The protection, enhancement and sustainable use of renewable terrestrial and marine
resources; and
• The promotion of environmentally friendly industries such as small-scale agriculture and
tourism that can provide new sources of income in post- mining Nauru.

Sustainable development will require that economic development, social development, and
environmental protection to be integrated and go hand in hand. On one hand, Nauruans desire
those services and technologies from the urban- industrial world that can make life in Nauru
safer, healthier, more productive and more enjoyable. On the other hand, they will need to
protect their environment, their renewable resources and their cultural traditions as the
development capital needed for future generations. Essential ecological processes and life-
support systems will need to be maintained, and plant and animal diversity preserved. Cultural
traditions of sharing and caring, family solidarity and health, caring for ancestral lands and
passing on traditional knowledge of their terrestrial and marine resources must be preserved and
reinforced.

The Republic of Nauru adopted its National Environmental Management Strategy (NEMS) and
National Environmental Action Plan in September 1997. The NEMS was initiated under the
United Nations Capacity 21 Programme and funded by the United Nations Development
Programme (UNDP) and the South Pacific Regional Environmental Programme (SPREP).

The NEMS focused on:

• Living a life without harming the environment or culture;
• Not exploiting the land or marine environment for food or resources beyond what is
needed for individuals and families;
• Encouraging cooperative decision making on what is best for the environment and
participate actively in the decision making process;
• Encouraging the Principles of Sustainable Development;
• Developing as necessary a new model of Nauruan life, which is a blend of traditional
culture and modern technology; and
• Protecting and nurturing the island environment, flora, fauna and all its inhabitants as a
basis for sustainable living for the future.


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REPUBLIC OF NAURU: National Assessment Report
The NEMS includes a National Environmental Action Plan (NEAP) and a range of
objectives and programmes that can serve as a basis for the pro motion of
environmentally sustainable development. The recommendations and views expressed
are recommended to be taken as possibilities — as suggestions that need to be ratified
and continually discussed by Nauru's people and their government. The programme of
implementation will rely on a focused and comprehensive environmental policy as
ratified by the government and the Nauruan people.

The NEMS maps a return to the idea of stewardship, of looking after Nauru’s surrounding
environment for future generations. Although the report did not claim to cover all aspects of the
environment and development, it was regarded as a tool for policy makers, offering a clear view
of Nauru’s contemporary situation and identifying the challenges that lie ahead for Nauru in the
future.

The four guiding principles for the preparation and implementation of the NEMS were:
• that there must be an exhaustive, and continuing, process of consultation and consensus
building;
• that the NEMS must be based on what is currently known about the environment, and
equally important, what is not known;
• that priorities, the formulation of policy, and the resultant National Environmental Action
Plan (NEAP), as the most important component of the NEMS, should depend on the
results of the first two stages; and,
• that the implementation of programs and activities suggested in the NEMS and the NEAP
be constantly monitored, modified or changed over time based on both changing
priorities of the Nauruan people and on the acquisition of new information or feedback on
existing programs or activities and the state of Nauru's environment.

The National Environmental Action Plan (NEAP) cons ists of a range of objectives and
associated programmes that could be implemented to address the main environmental issues and
constraints to environmentally sustainable development.

Highlighted in the programme of action were:

• rehabilitation of the mined-out areas of the island;
• strengthening of environmental awareness and education;
• strengthening of environmental infrastructure planning and environmental legislation;
• protection of endangered terrestrial and marine resources;
• waste management and pollution control;
• population planning; and
• identification of sustainable economic alternatives to phosphate mining.

While the local community or individual landowners and citizens can implement some of the
programmes and activities recommended in the report by government, many other programmes
and activities required outside funding and expertise.


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REPUBLIC OF NAURU: National Assessment Report
The NEMS report identified a set of key challenges that are similar to ones that have been
discussed above. In responses to these challenges and issues, the NEAP identified the following
actions:

• Land rehabilitation and protection, including the rehabilitation of the mined-out
phosphate lands, a rehabilitation trial, soil manufacture, and erosion assessment and
control;
• Strengthening environment education, including the development of a Master
Environmental Education Plan, the establishment of an Environmental Education Sub-
committee and an Environmental Resource Centre, a traditional environmental awareness
campaign, a "Keep Nauru a Pleasant Island" competition, an "Enviro-Media" campaign, a
pilot "Operation Clean-Up Nauru" campaign, the upgrading of science education, and
tertiary training in environmental science and environmental management;
• strengthening environmental institutions and legislation, including the establishment of a
Nauru Environmental Coordinating Committee, adoption of the environmental impact
assessment (EIA) process, development of a land use planning system, land tenure
reform, conduct of relevant environmental baseline studies, establishment of a Nauru
Environmental Information System, review and enforcement of existing legislation, and
enactment of new environmental legislation;
• Conservation of biodiversity, including the survey and selection of priority conservation
sites, establishment of pilot Conservation Areas under the SPBCP, protection and
rehabilitation of endangered plants and animals, a noddy bird population biology study
and conservation initiative, the development of a Forestry and Agroforestry Development
Plan, establishment of a nursery system for endangered and culturally- important plants,
establishment of a Rehabilitation Nursery, and the establishment of a Nauru National
Botanical Garden and Arboretum;.
• Promotion of sustainable use of marine resources, including the establishment of marine
reserves, improvement of the fisheries resources data base, control of overexploitation of
marine resources, improved exploitation of pelagic and deepwater marine resources,
reinstitution of appropriate traditional marine resources management strategies, and
rehabilitation of aquaculture in Buada Lagoon;
• Pest and disease control, including the establishment of an Integrated Pest and Disease
Control Program and a Quarantine Service;
• Pollution and waste management, including the development of an Integrated Waste
Management Plan and the establishment of a Waste Management Authority, a waste
reduction campaign, an education program for the safe handling and proper disposal of
pesticides and chemicals, strengthening of recycling capabilities, green waste recycling,
establishment of a sewage treatment plant, a composting toilet trial, air pollution
monitoring and control, and noise pollution control;
• Control of population and urban growth, including the implementation of an effective
family planning program, development of new residential and agricultural areas as part of
the rehabilitation of Nauru, and controlling immigration into Nauru;
• Health and nutrition improvement, including a Health and Nutrition Awareness and
Improvement Campaign and a Physical Fitness Campaign;

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REPUBLIC OF NAURU: National Assessment Report
• Promotion of sustainable economic development, including the strengthening of local
production systems, the development of a Tourism Master Plan, and the promotion of
ecotourism;
• Appropriate infrastructure development, including the coordination of infrastructure and
services planning, obtaining consensus agreement of landowners on the easement or
right of way over private property for the installation and maintenance of essential
services, design of an Energy Management Plan, development of a storm water collection
and disposal system that minimizes erosion and maximizes the recycling of water for
irrigation, and the establishment of an integrated water conservation program;
• Addressing and preparing for global climate change and sea level rise, including a
continuing strong commitment to international initiatives addressing global climate
change and sea- level rise, development of an Integrated Coastal Zone Management and
Coastal Protection Plan, coastal forest protection and reforestation, and protection from
ultraviolet radiation;
• Maintenance of a strong anti-nuclear stance, including a continued commitment to all
international anti-nuclear initiatives and the initiation of a local nuclear awareness
campaign;
• Maintenance of a strong stance against trade in toxic and hazardous wastes. including
support of regional initiatives to ban the importation of ha zardous and radioactive wastes;
• Transparency and accountability to the budget process and financial management; and
• Establishment of a viable banking system.

The following activities are currently ongoing:

• The Department of Island Development & Indus try with the assistance of SPREP Legal
Lawyers have begun the process of reviewing and adopting Environmental Legislation
for Nauru.
• The rehabilitation of the mined lands under the Nauru-Australia Cooperation
Rehabilitation and Development agreement process has begun.
• The rehabilitation program has a Plant Nursery project component whereby land has been
designated and secured from landowners. The project is to commence within the year.

The Government of Nauru has been active in Regional Environmental Initiatives with programs
that Nauru is currently engaged in are as follows:

• AusAID sea level and climate monitoring project
• United States Atmospheric Radiation Measurement Programme
• National Biodiversity Strategic Action Plan (NBSAP);
• Persistence Organic Pollutants (POPs);
• National Capacity Self- Assessment (NCSA);
• Pacific Islands Renewable Energy Projects (PIREP);
• Capacity Building for Adaptation to Climate Change in the Pacific Region (PACC);
• National Biosafety Framework; and
• International Waters Programme.
• Under the Umbrella of the Department of Island Development & Industry, the National
Environmental Coordinating Committee.

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3.
SECTORAL PROGRESS MADE AND PROBLEMS ENCOUNTERED

Climate Change and Sea-Level Rise

In the context of climate change Nauru’s geography and environment form the major
determinants in establishing its current position and approach to addressing the climate change
issues. Climate change, and in particular global warming and the destruction of the earth’s ozone
layer, is a major concern not only for Nauru but also for the entire international community.

Global warming and associated sea- level rise are posing a huge challenge to the densely
populated coastal plain of Nauru. Accelerated coastal erosion and increasing salt-spray damage
to vegetation and property are already being experienced.

Nauru continues to face the biggest challenge of coping up with the seal level rise superimposed
on higher average levels associated with global warming. Evidence from El Niño phenomena
shows that the sea level near Nauru has risen from time to time as much as 40 cm higher than its
current average level. The continuation of this scenario poses a serious threat to Small Island
States and Coastal Areas. Some of the potential effects of rising sea levels on low-lying islands
and coastal areas include:

a. Increased frequency of storms
b. Increased flooding and inundation of wetlands, coastal agricultural areas and other low-
lying areas
c. Increased saltwater incursion and storm over wash into coastal aquifers, freshwater
lenses, and agricultural areas
d. Increased destructiveness of unpredictable natural hazards such as tropical cyclones,
storm surge, and tsunamis, especially if they coincide with exceptionally high tides, such
as the “king tides” that occurred in June 1994
e. Increasingly destructive wave activity and decreased protection from submerged offshore
reefs
f. Increased coastal erosion
g. Loss of coastal and mangrove forests
h. Loss of coastal agricultural areas
i. Declining fisheries productivity
j. Increased coral mortality
k. Changes in oceanic currents and upwelling
l. Breakdown in natural community (ecological) interrelationships
m. Loss of property and structures.

Most of these potential effects have serious implications for Nauru. Of serious concern to Nauru
is that recent studies show increased sea temperature may be a major cause of “coral bleaching”
and the death of coral. This has serous implications in term as of the loss of protection that coral
reefs provide to the island from the destructive power of the sea and the loss of marine habitats
and destruction of food chains for important marine organisms.


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REPUBLIC OF NAURU: National Assessment Report
Breakdown in the earth’s ozone layer concerns all Nauruans. The island is close to the equator
where sunlight is very intense throughout most of the year. The ozone layer is vital for protecting
life on earth from the harmful effects of ultraviolet radiation. The immune systems of living
things can be weakened by exposure to ultraviolet radiation. This weakening of the immune
system poses a grave danger of amplifying the effects of communicable and other diseases which
are present now, or could be present in the future in Nauru such as AIDS.

Environment

The two most important factors determining the future environmental, social and economic
scenarios for Nauru will be the cessation of phosphate mining, and subsequent implementation of
the National Environmental Action Plan (NEAP) and the Rehabilitation Master Land - use Plan
(RMLP) along with other sustainable development objectives. Failure to implement the NEAP
and RMLP successfully would lead to continued breakdown of the physical environment of
Nauru, as well as the social and economic well being of the people through continued
exploitation of remaining resources.

Two possible sce narios of future socio -economic development and environmental changes are
presented:

• Failure to implement the NEAP and RMLP successfully would be associated with
ongoing exploitation of land and marine resources and continued social and economic
breakdown. Such an outcome will limit the potential for an environmentally and
economically sustainable future for Nauruans; and.
• Successful implementation of the NEAP and RMLP would result in rehabilitation of
mined land, increased protection and enhanced productivity of renewable natural
resources and enhanced social and economic well being. Such an outcome will provide
Nauruans with an environmentally, socially and economically sustainable future.

Management of Waste

All households and activities in Nauru are producers of solid wastes, such as food scraps,
packaging, plastic, glass and metal containers, garden waste, and garbage of other kinds. At
present, collection of garbage is undertaken partly by each of the NIC, NPC and NWD, but
collection is irregular and not all households are serviced because the service is voluntary.

The storage and waste disposal of fuels and lubricants has been recognized as both a current and
potentially more serious future pollution issue. The NPC currently imports and distributes all
fuels and lubricants, but no facilities are available for recycling or safe disposal.

Having an efficient integrated waste management programme has been recognized by the
Government of Nauru as of utmost importance. Thus, Programme 7.1 of the NEAP
emphasized the development of an Integrated Waste Management Plan and the

establishment of a Waste Management Authority.


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REPUBLIC OF NAURU: National Assessment Report
One of the key objectives of the RMLP was to develop sustainable waste minimization and
recycling programs that will reduce the environmental impact of the waste management process
in Nauru. In order to increase topsoil stocks for rehabilitation and agricultural purposes, soil
creation was through waste management by collecting and composting all organic waste.
However, several key issues were recommended for consideration for evaluating various waste
management options and these included:

• Long term viability (sustainability) of the island’s natural resources;
• Protection of freshwater resources (potential ground water pollution, water use
management);
• The provision of materials, primarily organic matter, for use in the rehabilitation of
mined out areas;
• Implication for sustainable energy production and use;
• Impact on the coral reef;
• The integration of waste management activities with future industries such as pig and
poultry production, horticulture, food processing;
• Social acceptability and barriers to implementation of options;
• Costs of municipal solid waste options; and
• The quality of projected estimates of waste generation types and quantities.

The key challenges for the above issues include the following:

• Generating public awareness and putting in place such programs;
• Generating community participation and developing initiatives;
• Find the land for waste allocation; and
• The implementation of a full waste management program

Solid Waste Disposal

Controlled land filling is currently not practiced on Nauru. Instead, open dumping is the most
common way of disposing of solid wastes. This has been carried out mainly in designated areas
above the main town centre and in an area previously mined of phosphate. The current waste-
collection system is ineffective and not integrated, which leads also to indiscriminate dumping.
This lack of solid-waste management including hospital waste, quarantine waste, metal waste
and the municipal waste, leads to future potential environmental and health risks, some of which
already exist.

To determine the emissions from these open landfill areas it has been assumed that the organic
waste decomposes aerobically (in the presence of oxygen) and is then attacked by anaerobic non-
methanogenic bacteria.

Wastewater Treatment

On Nauru the domestic and commercial wastewater and sewage are collected by large tanker
trucks from septic and wastewater storage tanks and along with Nap’s wastewater is disposed of
through a seawater pipe outfall close to the edge of the reef. There is no alternate domestic,

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commercial or industrial wastewater treatment available on Nauru. This lack of primary
treatment for liquid wastes provides potential environmental and health risks. The estimated
amount of methane produced from the wastewater collection and disposal process is 0.0113 Gg.

Coastal and Marine Resources

Marine resources are of critical long-term subsistence and commercial importance to the people
of Nauru. Degradation and overexploitation of the inter-tidal zone, sub-tidal coral reefs, reef
slope, and pelagic fisheries resources are seen as major constraints to sustainable development.

Increasing population, commercializatio n, the use of motorized fishing boats and more efficient
modern fishing techniques and the use of some destructive fishing techniques have placed great
pressure on Nauru’s limited inshore and reef slope fisheries resources.

In Nauru, a very wide and diverse range of marine resources is available for sustainable harvest.
Many of these have helped sustain the people of Nauru since their first arrival over three
thousand years ago. The resilience of the resource is evidenced by the fact that, despite
many years of daily reef gleaning, it is still possible for some families to glean their daily
protein needs from the inter-tidal zone and fringing reef areas.

However, the increasing scarcity of many formerly more common marine organisms
such as turtles, large reef cod, squirrelfish, drummers and turban shells are well known.
Smaller catches and decreasing average size of individuals are sure indicators that over
fishing have occurred for these species. Of particular concern is the fact that an increasing
percentage of the overall catch is being sold commercially, thus applying more pressure on
these resources. This situation underlines the need for protective legislation and
sustainable harvesting strategies.

Fortunately, the conservation ethic remains strong among some Nauruans, and there are
some traditional and modern conservation practices that could be used to protect the
sustainability of the resource. Some of the main mechanisms include: secrecy about
fishing grounds and techniques, temporary or seasonal taboos or bans on species or
fishing grounds, restrictions on the consumption of certain species (for example, some
species such as turtles or giant clams were reserved for chiefs or priests), fines or penalties
for resource abuses, and clan tenure or limited access to reef and lagoon areas.

In terms of fisheries development, Nauru is earning revenue in through:

• the issuance of licenses to distant fishing nations under bilateral or multilateral
agreements, and
• the export of tuna to markets in Australia and Japan by the Nauru Fisheries and Marine
Resource Authority.

In the 1990s, the Government of Nauru established the Nauru Fisheries and Marine Resource
Authority (NFMRA) as both the policy advisory body and the operational arm for the
implementation and enforcement of Nauruan laws relating to the management and use of marine

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REPUBLIC OF NAURU: National Assessment Report
resources within Nauru’s Economic Exclusive Zone (EEZ). Before the establishment of the
body, the Department of Foreign Affairs and the Department of Island Development were jointly
responsible for negotiations with distant fishing nation for fishing rights in the EEZ.

The fishing industry on Nauru is still in its infancy with the NFMRA operating two very small
long lone fishing vessels primarily for domestic market. Catches of tuna that meets the quality
standard of the tuna markets in Australia and Japan are export to these countries. The volume of
sales and revenue earned over the last few years has been low. For example, in 2001 fresh tuna
export to Japan had been around 600kg per week but there is potential for further development of
this market and industry.

The opening of the Nauru Fish market in 2000 has also provided a source of employment for
Nauruans. Revenue from international fishing licenses sold to Japan, the USA, Taiwan and the
Philippines brings in around A$2.8 million annually. In 2000, Nauru earned A$8.5 millions from
fishing license fees. This represented a 60 percent increase over 1999, but is largely attributed to
a weakening of the Australian dollar. Aquaculture, particularly the development of milkfish
ponds to serve the domestic market has potential to provide incomes at the ‘grassroots’ or
subsistence level.

Freshwater Resources
In Nauru, the only significant permanent freshwater resource is groundwater in the form of a
"lens" of often slightly brackish freshwater, hydrostatically "floating" on higher-density saltwater
beneath it. The height of the freshwater leans above sea- level and the level of salinity vary in
relation to the elevation, geology, texture and shape of the island, and with the amount of water
use and rainfall.

Currently, Nauru's population is reliant on water supplied either from a desalination plant run by
the Nauru Phosphate Corporation - which produces on average of 1,150 tons per day - or from
local wells. There is little use made of roof rainwater catchments on the island. Existing long-
term potential threats to the quality of the groundwater resource include contamination by
cadmium, rubbish dump leachate, sewage and household wastewater, e.g., bathroom, kitchen and
laundry.

Land Resources

Land in Nauru is limited both in its availability and also in its use. Of the total area of 22 square
kilometres, 70% has been utilized for the mining of phosphate. The balance provides space for
the domestic, government, commercial and industrial sectors. The international airport takes up a
significant proportion of this area. There are very limited recreational areas, and agricultural
activities are currently minimal due to fruit fly problems for which a concentrated eradication
programme has been successfully commenced.

Land resources from Nauru’s area are insufficient to make a full contribution to agriculture and
food requirements. Out of 2,100 hectares of Nauru’s area, only about 100 hectares are available
for household garden food production. The remainder consists of mined areas. This available

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land area when fully utilized can only make a contribution to Nauru’s food requirements in the
form of vegetables, fruits, spices, coconuts, and some tree fruits. However, this area is
insufficient to contribute substantially to food and energy requirements. Food energy will have to
be imported as previously in the form of rice flour, oil, sugar or similar energy staples. Even in
the best scenario, there will still be a continuing need for Nauru to import most of its food energy
requirements

The soil in the coastal areas is only about 25 cm deep, is coarse textured and contains more coral
gravel than sand, and the fertility is highly dependent on organic matter. The plateau soils vary
from shallow soils, on the tops of limestone pinnacles, composed primarily of organic material
and sand or dolomite, with very little phosphate, to deep phosphatic soils and sandy phosphatic
rock, up to more than 2 m deep between the pinnacles. The topsoil ranges from 10 to 30 cm in
depth, overlying deeper subsoil, which is frequently reddish yellow, and between 25 and 75 cm
deep.

The undisturbed plateau soils have a high level of organic material and are generally fertile. In
more recent years these soil deposits have been stripped from the phosphate mining areas and
stockpiled for use in future rehabilitation activities. Preliminary excavation and investigation was
carried out in 1988 to determine the depth and exte nt of the secondary phosphate deposits, but
these still remain to be quantified (Drayton 1995). The lack of land for urban development and a
secure groundwater supply are the two main issues currently being addressed by Nauru through a
detailed rehabilitation programme.

In terms of land rehabilitation, 1,295 ha of Topside has been mined and 150 ha of reserves
remain unmined, leaving an unusable landscape of limestone pinnacles requiring rehabilitation.
The rehabilitation plan was developed on the basis of trial projects. The rehabilitation plan
follows a path that will deliver the priority land uses in a similar time sequence to that developed
in the Rehabilitation and Development Feasibility Study (RDFS) of 1994.

The Rehabilitation Study has located 12 land uses for Topside after rehabilitation. These are for
roads; housing; agro-forestry; sports/recreation/parkland; education complex; public service
complex; cementary; hospital complex; industrial complex; airport; water storage; and
conservation. Within the land use plan sites, housing will meet demands for the next 80-100
years.

The key challenges are:

• Development of skills and knowledge through training and education to degree level
qualifications as reflected earlier under capacity building;
• Implementation of the rehabilitation program;
• The approval by land owners on land uses after rehabilitation; and
• Seeking funds for further assist the land rehabilitation plan.




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Energy Sources

The Nauru Phosphate Corporation (NPC) is wholly government owned and is the sole power
provider on Nauru. The NPC was traditionally established for the primary purpose of mining. In
addition to the provision of electricity for the entire island NPC is also responsible for the water
supply (pumped / imported and through desalination) for distribution through water tankers to
the meet the domestic, hotel and commercial requirements.

The whole population on Nauru has access to electricity, and there are a number of standalone
generators that are used for standby purposes. Limited use is made of solar photovoltaic or solar
hot-water systems, although with Nauru situated almost on the equator the climate and long
hours of solar radiation lend themselves to this alternate form of renewable energy. Diesel
generators have been the traditional source of electrical energy for Nauru since the establishment
of the mining activities.

The NPC has an installed capacity of 15 MW (derated to 11.1 MW) with approximately 43% of
the energy generated by NPC being used by the mining operation. There is limited use of LPG
on Nauru, in particular in the domestic sector. However, hotels and restaurants use LPG for
cooking purposes. This situation has arisen due to the long-term reliance on electricity as an
energy source, which in the earlier days of the mining operation (pre 1990s) was free.

Opportunities abound for the introduction of demand side management and energy efficiency in
Nauru, in particular in the government and domestic sectors where there is a high use of air
conditioners, elect ric water heaters, electric water pumps and electrical appliances.

The installation of a desalination plant (design capacity 1200 tonnes per day with an actual
output 1150 tonnes per day) in 1994 utilises the waste heat from the engine exhaust system of the
NPC diesel generators. This source currently provides most of the island’s clean water supply
requirements. Most residents have their own water wells and small electric pumps. Limited use is
made of the extensively available roof rainwater catchments.

Indigenous energy resources in Nauru are limited solely to solar radiation and a small amount of
biomass. However, as the electricity is supplied from diesel generation and has been abundantly
available over the past 80 years, these other renewable energy sources have not been
extensively exploited.
Due to Nauru’s limited biomass resources it is unlikely that this could be
considered to be a sustainable energy resource for the future. Solar energy offers the best
alternative, but considering the high usage of electrical appliances, i.e. air conditioners, stoves,
etc., the practicalities of adopting a solar-replacement policy would need to be carefully
evaluated from an economic point of view. In addition, the environmental aspects of battery
import and disposal may also create additional problems.

Tourism Resources

The number of visitors to Nauru as a destination is very small. Nonetheless, many travelers to
Nauru are transit passengers and do not stay overnight. Most of the visitors to Nauru are usually

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on government business or visiting friends and relatives. Nauru is serviced by one airline, Air
Nauru that links Nauru to Melbourne, Brisbane, Pohnpei, Guam, Manila, Fiji and Kiribati.

Nauru has two hotels: the government owned Menen Hotel, and the privately owned Od’n Hotel.
The Department of Culture and Tourism handle matters relating to tourism and visitor
information.

Tourism development is slow in its progress due to the many constraints faced by the National
Tourism Office (NTO), which is the office handling matters relating to visitor information. The
key constraints faced by NTO include the:

• lack of trained personnel in areas pertaining to tourism;
• lack of statistical information including unreliability; and
• lack of commitment, cooperation and coordination of efforts between stakeholders,
including between government agencies, NGOs and the private sector businesses; and

Game Fishing

Nauru is situated in the heart of some excellent fishing grounds, with water depths plunging to
2,000 ft just off the edge of the islands shores and reefs, making the region very attractive for the
major game fish species, and anglers wanting to catch them.

The beauty of Nauru and its fishing grounds, is that game fish such as Marlin, Sailfish, Wahoo,
Yellow fin Tuna, Dolphin fish and many more can be caught just minutes from your
accommodation which is also only a few minutes from the marina. Nauru can be fished from
April through to December, with most species being readily available during that time.

Biodiversity Resources

Flora and Vegetation

Nauru’s indigenous flora and the vegetation as a whole are among the most limited on earth.
Because of Nauru's small size, limited habitat diversity, and its physical isolation from continents
and other, larger islands, only 60 indigenous species of vascular plants have been recorded.
There are no endemic plants (plants unique to Nauru). The long settlement, widespread
destruction during World War II, monocultural expansion of coconut palms, and over 80 years of
open-cast phosphate mining have led to serious vegetation degradation, disturbance, and
displacement. Although greatly outnumbered by exotics, the indigenous species (16.5% by area)
still constitute the most culturally useful and ecologically important species, and their protection
and enhancement are crucial as a basis for sustainable development on Nauru. Regenerated
vegetation after mining covers 63% of Nauru’s land area.

Terrestrial Fauna

Nauru's main indigenous land animals are birds, insects and some land crabs which accord
varying degrees of importance to sustainable development, in terms of both their ecological and

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cultural utility and their possible importance to the development of National Reserves and a
limited tourist industry. There are no indigenous land mammals on Nauru. Birds, most of which
are either sea birds or migratory species, constitute the most visible and among the most
culturally important indigenous animals of Nauru. Migratory species use the island to stop and
feed, and sometimes to breed and nest. The single species regarded as endemic is the Nauruan
Reed Warbler or Nauru Canary. The brown and black (whitecapped) noddies, common fairy
terns and the great frigate bird are all culturally important.

Transport and Roads

Like most Pacific Small Island Developing States, the remoteness and distance of Nauru from
other countries has been a challenge in the development of sustainable shipping and aviation
services.

The Government of Nauru for a number of years operated “Air Nauru” as a government airline,
however under this mode of operation the airline was servicing non-viable destinations and was
accumulating significant operating losses ($20 million per annum). In July 1996 “Air Nauru”
was corporatised. The airline still remains 100% government owned but now is operated as a
commercial operation with the new objective of providing a financially viable air service.
Current indications are that this object is being achieved (reduced operating loss down to $2.6
million [financial year 97/98] break even or a small profit [financial year 98/99].

The road infrastructure around Nauru totals 40 km. This comprises of 29 km of sealed roads, of
which 17 km is the distance around the perimeter of the island. There is another 12 kms
(approximate) of unsealed roads that are mainly on the “Topside” and used for the phosphate
mining operations; this varies with the location of the mining operation.

A narrow- gauge rail system for transporting the mined phosphate links a tip head located near
the middle of the Topside area to the Phosphate Refinery situated in Aiwo and is 4 km in length.

There is no public transport system and most families own one or more cars or motorcycles.
Sea transport is limited to a range of small to medium-sized outboard motor boats, which are
used predominantly for subsistence fishing. Fishing for domestic consumption is often carried
out from traditional wooden dugout canoes.

The regular ocean-going shipping that services the island and the phosphate ships all add to the
potential detrimental impacts to the environment from oil spills and general ship’s pollution. The
plumes of phosphate dust drifting freely over both the land and ocean during the loading of
phosphate for export, the plumes remain a concern. Unfortunately there does not appear to be an
easy solution to this.

Human Resource Development

During the Australian administration of the island, scholarships for two or three final year
secondary students were awarded every year for further studies in Australian schools. Following
independence, the number of scholarships was increased to 20 per year until late 1999. The

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objective of the scholarship program was to basically to produce trained Nauruans in
professional and technical fields where such training was not available on the island mainly due
to “economy of scale” factors.

The economic situation has forced the Government to reduce the number of scholarship offered
yearly down to four. Australia, as part of the agreement with Nauru to accept to host the “boat”
people on the ir behalf is providing funds for the scholarships.

Despite the substantive investment in education over the 36 years, there is still a huge gap in
quantity of trained workers across the various disciplines and this supported by the continued
presence of foreign skilled workers on the island. The critical shortages are in science and
technology disciplines, e.g. engineering, health care professionals, communication technology,
environmental sciences, and in the finance and banking sectors, legal practitione rs and social
development sciences.


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4.
CROSS SECTORAL PROGRESS MADE AND PROBLEMS
ENCOUNTERED


As noted earlier, 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 that is now threatening the economic and financial stability
of the country.

Financing and Investment for Sustainable Development

The country is 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. In this context, financing and investment for sustainable development will be
crucial for the well being of its people.

The major challenge for the Nauru Government is to put in place a National Strategy for
Sustainable Development that should consist of a National Development Plan. Nauru’s National
Policy Objectives and development strategies for the medium term were set out in the Nauru
Development Plan (2002-2006). Unfortunately this plan was shelved due to financial constraints
to undertake much of the proposed expenditure under the plan. The challenge is secure donor
funding in the execution of this Plan.

Trade and Investment

The mainstay of the Nauru economy has been the export of phosphate, mainly to Australia, New
Zealand, India, Philippines and Republic of Korea. In the short to medium term, the imminent
exhaustion of the phosphates resource and the decline in revenue from phosphate mining will
have serious consequences for the country and its people. Diversification of the economic base,
with specific focus on private sector development to achieve economic growth will need to be a
key objective for the Nauru the Government. Providing an enabling environment for this
productive sector to flourish is crucial to the future prosperity of Nauru.
Consistent with these objectives, the Government of Nauru is targeting both the Energy and
Fisheries sectors as focal sectors under the EU Cotonou Agreement. The Nauru Government
also recognizes and supports the work of Non-Governmental Sectors (NGOs) in the areas of
identifying and pursuing employment and income generating opportunities at the ‘grassroots’ or
subsistence level, and their role in ensuring that all members of the community have an equal
opportunity to participate in society

Nauru has never received any Foreign Debt Investment (FDI) or Overseas Development
Assistance (ODA) since it became independent in 1968. The high per capita income disqualified
Nauru from accessing aide or concessionary funding from international financial institutions.
This remains the case up to now.

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The Phosphate industry was purchased from the British Phosphate Commission in 1970 for
A$21 million and the public infrastructures and buildings on Nauru were built with Nauruan
money.

The economic regression that the country is facing brought by the combination of the drop in
export sales of and depletion in the stock of phosphate, decline in the value of the investment
portfolios and limited options available to Nauru to develop other export industries will force
Nauru to look towards FDI and ODA as sources of funds to replace the dilapidated and aging
public infrastructures and buildings and maintain social development programs such as education
and health care services.

Investment is critical to kick start the economy of Nauru and which would assist in economic and
financial recovery. The lack of capital available to the domestic investors, combined with poor
basic infrastructure such as utilities and indigenous land disputes are constraints to investment in
Nauru. However where they exist, opportunities for private sector initiatives have been
identified in offshore fishing, financial services and tourism.

Capacity Building

The Government of Nauru has always given priority to capacity building since being self-
sufficient means independence from external resources and forces in the socio-economic
development of the nation.

In the formative years of the Republic, it was clear that the Government’s priority spending were
on:

• Human resource development to meet the demand of the local labour market for skilled
and semi-skilled workers;
• Provision of transport services to link Nauru to the metropolitan countries of Australia
and New Zealand where all of Nauru’s import are sourced as well for Educational and
health care services; and the provision of public infrastructures and buildings and services
to discharge its obligations to the people and enhance quality lifestyle on the island.

Human Resource Development is highlighted in Chapter 3, under the Sectoral Areas on Program
Made and Problems Encountered, and Chapter 5 under MDGs of this NAR. However, with the
fall in GDP per capita, Nauru’s Human Development Index ranking has fallen to 0.7. One of the
principle problems facing Nauru is the extremely high rate of youth unemployment, which has
been estimated at 30 percent for males and 55 percent for females.

Infrastructure and Services

In the early 1970s Nauru invested a substantive amount of money in the development of public
infrastructure and buildings such as the Civic Center complex with an international conference
facilities, a 60-room hotel, rebuild ing of the main road around the island and carriage way to
public buildings located off the main road, installation of a satellite communication system and

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associated infrastructure, the laying of telephone lines to provide connection for the entire island
and upgrading of the airport terminal and runway and the installation of navigational aides when
the Nauru owned airline started operations in 1972.

Nauru established its own airline Air Nauru in 1972 to provide a critical link with Australia, and
over time expanded this to most of the islands of the south, central and north Pacific providing
cheap connections between the islands and countries such as New Zealand, Hawaii, Guam and
Philippines. However, restrictions on the uplift of passengers enroute on all of the airline's route
made the operation unprofitable and the Nauru Government in 1993 reduced the number of its
airplane to one and recently cutback on its routes to just Australia, Fiji, and Kiribati.

At the same time that the Government established the airline, the Nauru Local Government
Council (NLCC) established a shipping line called Nauru Pacific Line (NPL) to provide shipping
services between Nauru and Australia where bulk of Nauru's imports were sourced from.

Over time, the NLGC expanded the services to cover again, the south, central and north Pacific
islands providing critical links between the island and the major trading partners, Australia and
New Zealand. Poor management of a lucrative service and competition from emerging services
made the venture highly unprofitable and in 1992, Nauru sold all its ship and entered into a
leasing service with an Australian company. This has also been replaced by a service contract
when a foreign company now provides service to Nauru on commercial terms.

It has been estimated that Nauru spent over A$600 million on both the airline and shipping line
in an effort to monopolize the inter-island routes. However, poor management resulted in its
inability to secure the lucrative markets.


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5.
MILLENNIUM DEVELOPMENT GOALS AND SUSTAINABLE
DEVELOPMENT


Poverty Eradication

Absolute poverty is not a major issue in Nauru. This is reflected in the relatively low Human
Poverty Index of 12.1. However, the dislocation costs of the downsizing of the public sector and
the decline in phosphate mining operations will have a considerable impact on the population of
Nauru. These activities account for approximately 95 percent of all employment in the country.

The government recognizes and supports policies designed to mitigate any adverse impacts of
the transition process on the poorest and most disadvantaged sections of the population. To this
end, the Government, in collaboration with the development partners and the wider community
has been considering a proposal for a Poverty Partnership Agreement (PPA). If adopted, the
PPA will provide the basis for government socio-economic development policy. Its aim will be
to enhance employment opportunities – specifically by encouraging private sector development
initiatives - and to support human and social development.

Education and Reduction of Child Mortality

In 1993 Nauru ratified the Convention on the Rights of the Child (CRC). This in essence is a
commitment to the child’s right to education. In 1994 a public forum “Education for Nauru,
Now and Beyond 2000” initiated a 10-year plan for education in Nauru. This was followed by a
review by public forum in 1997 “Nauru Education for the 21st Century” and subsequently by the
National Economic Development Summit held in February 1999. Goals and strategies have been
put in place for 5 years. Government and education departments, NGOs, the public and private
sector, media, parents and students all have input into the reporting process.

In line with community aspirations and national objectives and needs, the National Education
policy is, “To provide opportunities for all Nauruans to gain knowledge and skills to contribute
constructively to the community and economic development of Nauru, to contribute to the

preservation of Nauraun society, identity and pride based on a foundation of obedience to God,
respect for each other; loyalty to the State, its President and traditional leaders”.

The Government is the major provider of education and training. It is committed to a vision for
the education sector, which is “literacy for all Nauruans in Nauruan and English and computer
literate in an age of technology. Schools are properly equipped and maintained. Parents and
teachers collaborate effectively towards education for all. Vocational education and USP equips
young Nauruans for worthwhile employment and enterprise. Locally acquired qualifications are
recognized locally and abroad. Computer literacy is widespread”.

As part of Nauru’s commitment to the call to action of the World Education Forum, held in
Dakar in 1990 for the achievement of Education for All (EFA) by 2015, Nauru established a
National EFA Forum in April 2001 to act as a consultative and coordinating body to ensure the
EFA priorities and action plans with respect to Nauru’s needs are implemented.


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At present the reality of the education system is somewhat different from the ideal. The
education system in Nauru is failing to produce Nauruans competent to deal with the future.
There is a lack of continuity, relevance and off a culturally appropriate curriculum – which,
combined contribute to academic failure, loss of identity and sense of purpose. Schools and
training facilities are dilapidated and poorly equipped, and there is over-crowding in classrooms.

As a matter fact, significant numbers of Nauruans are illiterate in English and have a poor
command of Nauruan. Collaboration between teachers and parents is intermittent. Some relief
to the overcrowding situation has been provided in the form of a new primary school (Nauru
College) opened in 2000. This project was financed through the Nauru Rehabilitation Fund
(managed by the Nauru Rehabilitation Corporation).

Statistics below shows that enrolments have been declining in numbers in the upper secondary
especially after year 7. The following factors as expressed by heads of schools, managers of the
department, parents of students and students themselves are involved in the decline.

• The Scholarship scheme is only offered in Year 7. 10 scholarships are offered. General
feeling of failure is felt in the remaining student population. Lack of incentive to
complete the rest of secondary level.
• Very few qualified teachers at the secondary level with lack of teaching skills
• Lack of qualified senior secondary school teachers
• New regional programme offered at Year 12 that needs preparation from previous year.
Lacking in curriculum development

Health and Nutritional Deterioration and Diseases such as HIV/AIDS

The Government is the only health provider in Nauru and health care is at no cost to Nauruans.
The changing economic status of Nauru and the very limited revenue available to Government
means that the present health services fail to achieve the best basic and essential health outcomes
for the people of Naur u. And the arrival of Asylum Seekers in 2001 has further added burden to
the already fragile and weak health system.

There is a need for strong and consistent political support for the health sector in Nauru. This is
required to ensure continuous Government funding to provide health services; to ensure ongoing
planning and policies; and to introduce legislative changes to support the sector.

In 2003, AusAID through Aus Health International prepared a Strategic Plan for the
Strengthening of Health Services in close consultation with Nauru health authorities and the
people of Nauru. This plan was prepared as an achievable strategic plan with a supporting action
plan. This was the first time the Government of Nauru has participated in the preparation of an
overview of the health status of the people of Nauru and the health system.

Ideas already identified in the health planning process but require further investigation include:

• Affordable user pays options including pharmaceuticals,
• Overseas treatment,

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• Private charging for medical services;
• Semi privatization of health services; and
• Introduction of a health insurance scheme.

There are serious nutritional problems and health disorders in Nauru that are mostly related to
changes in resource use systems, increasing population densities, and urbanization. Recent
studies in Nauru have recorded among the highest incidence of diabetes in the world (almost
66% of adults are affected by diabetes by the age of 55), as well as very high incidences of
obesity, hypertension (high blood pressure), hyperuricaemia (often manifested as acute or
chronic arthritis and gout), diseases of the digestive system, cirrhosis of the liver, and certain
forms of cancer.

Dental and periodontal disease is also increasingly common in Nauru. Strong correlations
between increasing incidences of these diseases and the increasing consumption of imported
foods and beverages (those that are high in sugar, salt, alcohol and animal fat, low in vitamins,
minerals and fiber), smoking and sedentary urban lifestyle have found in various studies.

Among the young people of Nauru, stress and social conflict are results of rapid change in
lifestyle with the imposition of foreign cultures.
Influenza, historically responsible for devastating epidemics throughout the Pacific, is still a
common infectious disease. High rates of infantile and adult diarrhea and other gastro- intestinal
problems constitute a health problem. With increasing population densities, the situation could
worsen in the future.

Skin diseases, such as tinea and ringworm, are common and are present both among Nauruans
and contract workers. These maybe caused by poor personal hygiene and inadequate water
supply. Hepatitis B is also present and constitutes an area of concern.

One of the most serious health problems is Sexually Transmitted Infections (STIs) in some
Pacific countries that have regular air links to Nauru. Now alarming is the widespread of
Acquired Immune Deficiency Syndrome (AIDS), as increasing number of cases has been
reported from Saipan, American Samoa, French Polynesia, Fiji, and Papua New Guinea. The
situation does not seem to be as bad in Nauru although there are increasing incidences of STIs.
There have, as yet, been no cases of AIDS reported, although the potential for an outbreak of
AIDS in Nauru is great and would constitute a serious threat to the health of the nation and a
constraint to sustainable development.

High incidences of these diseases are related to poor management of scarce water resources, poor
nutrition, overcrowding and poor environmental hygiene, and the lack of ability to provide
adequate primary and secondary health services.

Gender Equality and Empowerment of Women

Nauru has given strong emphasis to gender equality and empowerment of women through its
national efforts and initiatives. This included the establishment of the Women’s Office in the
1997, the approval of maternity leave of 3 months to all women in the public service, the

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elevation of the Women’s Office to Ministry level status in 2000, the approval of the
establishment of a Well Women’s Clinic in 2003, and the observance of International Women’s
Day as a public holiday inn 2003.

Nauru is a signatory to the Convention for the Elimination of all Forms of Discrimination against
Women (CEDAW). The government therefore acknowledges the strategic objectives contained
within CEDAW relating to the elimination of gender discrimination against girls and women.
These include, ensuring equal access to education, eradicating illiteracy among women,
improving women’s access to vocational training, science and technology and continuing
education, developing non-discriminatory education and training.

In recent years, increasing numbers of girls are enrolling in school and the retention rates of girls
now exceed that of boys. Law establishes equal rights and opportunities for women.
Notwithstanding this, women are underrepresented at the higher levels of Government service
and in the Nauru Phosphate Corporation – the two largest employers on the island. This trend is
likely to continue while the social system remains dominated by traditional leaders led by a
Council of Chiefs. In this context Nauru is working towards fulfilling the goals set out in the
MDGs.

Global and Regional Partnership and Development

The Nauruan Government has given the highest priority to improving integration of Nauru into
the world economy via economic regional cooperation agreements and arrangements. In terms
of global partnership and development, Nauru is assisted directly through foreign aids, in the
form of development assistance. Nauru has bilateral assistance from its traditional partners such
as Australia, New Zealand and the European Union. Multilateral assistance comes from for
example, the Asian Development Bank and the World Bank. Development assistance is directed
towards broad areas of policy development in the National Strategic Development Plan, 2003-
2006. The NASDP addresses the components of sustainable development are enshrined in the
BPOA.

Grant in Aid basically come in two forms for sustainable development, either as a cash grant or
aid-in-kind. Grants from donors have increased during the last three years. For example, in 2001,
cash grants of $0.5 million dollars were received, $0.3 million were received for 2002, and $3.19
million dollars was forecasted for 2003. More grants are expected for 2004.

Nauru was granted full membership of the Commonwealth in May 1999 and was admitted as the
187th member of the United Nations on 14th September 1999. The country became a member of
the Pacific ACP group in June 2000 and is a signatory to the ACP-EU Partnership Agreement
(which could form the basis for a Pacific Regional Economic Partnership Agreement). Nauru is
also a member of several regional bodies including the Pacific Island Forum, Forum Fisheries
Agency, SPREP, SOPAC, SPC and USP, the Asian Development Bank, UNESCAP, and other
specialized agencies.

Nauru is party to the following international conventions and bilateral cooperation agreements:


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REPUBLIC OF NAURU: National Assessment Report
• Convention on Hazardous & Toxic Wastes (Waigani Convention)
• South Pacific Regional Environment Programme (SPREP Convention)
• Convention for the Protection of the Natural Resources & Environment of the South
Pacific Region & Related Protocol
• United Nations Convention on Law of the Sea(UNCLOS)
• United Nations Convention on Rights of the Child
• Agreement Establishing the South Pacific Forum Secretariat
• Treaty on Cooperation in Fisheries Surveillance & Law Enforcement in the South Pacific
Region (Niue Treaty)
• United Nations Convention on Biological Diversity
• Basic Agreement between Nauru and World Health Organization (WHO)
• Asian-Pacific Postal Convention & General Regulations of the Asian-Pacific
• Agreement for the Implementation of the Provisions of the UN Law of the Sea of 10
December 1982 Relating to the Conservation & Management of Straddling Fish Stocks &
Highly Migratory Fish Stocks adopted on 4 August 1995 by the UN Conference on
Straddling Fish Stocks & Migratory Fish Stocks
• Nauru Agreement on Fisheries
• Pacific Island Countries Trade Agreement (PICTA)
• Pacific Agreement on Closer Economic Arrangement (PACER)
• Convention on the Prohibition for the Stockpiling, Transportation & Use of Chemical
Weapons
• Treaty on Non-Proliferation of Nuclear Weapons (NPT)
• United Nations Educational, Scientific and Cultural Organization (UNESCO)
• Vienna Conventions on Diplomatic Relations 1961 & Consular Relations 1963
• South Pacific Nuclear Free Zone Treaty (SPNFZ)
• Convention of the Prohibition of Fishing with Long Driftnets in the South Pacific
(Wellington Convention)
• Multilateral Treaty on Fisheries between Government of certain Pacific Island Countries
and the Government of the United States of America
• Convention on the Prevention of Marine Pollution, Dumping of Wastes and other Matters
(London Convention 1972)
• United Nations Convention to Combat Desertification and Drought (CCDD)
• United Nations Framework Convention on Climate Change (UNFCCC) (1992)



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6.
EMERGING CONCERNS, SPECIAL NEEDS AND WAY FORWARD

Foremost for Nauru is to resolve the economic and financial crises that it faces. The economy of
Nauru and the policies on economic growth and development have not been sustainable. The
Nauru Government now confronts considerable developmental challenges in the transition to the
post-phosphate era. The most pressing being the restoration of macroeconomic and financial
stability to the economy. In the short to medium term, the imminent exhaustion of the
phosphates resource and the decline in revenue from phosphate mining is causin g serious
consequences for the country and its people. Diversification of the economic base, with specific
focus on private sector development to achieve economic growth is a key objective of the
Government.

There are no other significant mineral resources on Nauru, and years of phosphate extraction
have devastated the environment to the extent that the vast majority of the land is degraded and
all of Nauru’s fresh water must be imported from Australia. Due to constraints on arable land
there is no significant local agricultural production. In the longer term, the prospect of further
activity to rehabilitate the mined phosphate area is likely to provide improved access to land for
agricultural development. Feasibility studies for mining of secondary and residual phosphate
deposits could extend mining activities for an additional 10-15 years. However, at the present
time, there is very little in the way of immediate opportunities to diversify the Nauruan economy.

One final “long-shot” is that a report prepared by overseas consultants and presented to the
Government of Nauru has suggested that the coral pinnacles left over after the removal of
phosphates may themselves have an ‘enormous’ economic value – described as ‘being in excess
of the value of phosphates itself’. The value appears to lie with the use of crushed coral in tiling
and/or in concrete production. Further advice requires to be taken to determine whether this is a
genuine opportunity.

With the downsizing of the public sector and limited opportunities in all other sectors then it is
unlikely that the government will be able to provide sufficient jobs in the short-term to make up
for those that are being lost in mining and in the public sector. This means that many families
will lose their current source of employment and income. Subsistence production and small-
scale income-generating activities may offer the best short-term solutions to the problem.

The way forward for Nauru is to re-establish an enabling environment for sustainable
development. This should include the establishment and operationalization of national
sustainable development strategies, underpinned by knowledge management systems, integrated
planning systems and supportive legislative frameworks.

Nauru is committed to following a path of sustainable development that achieves for all
Nauruans a better way of life while protecting the environment, specifically a path that works for
all, today and tomorrow. The challenge includes the development of concrete commitments and
actions with targets and timetables to spur action that will make a real difference for all
Nauruans.


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REPUBLIC OF NAURU: National Assessment Report
The Nauruan political leaders and government needs to understand that sustainable development
rests on concrete partnership initiatives between the government, NGOs and the private sector
and the additional resources and expertise these will bring to attain significant results for the
people of Nauru.

To assist coordination and planning and in bringing about sustainable development through the
establishment of an enabling environment, is the need for a Sustainable Development Planning
Unit to be established and charged with the responsibility of developing a National Strategic
Development Plan for Nauru.

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