Nauru is a small island country in the Pacific Ocean with a population of slightly more than 12,000 people. Once known as the world’s wealthiest nation, it now ranks among the lowest in national income, with an average gross domestic product (GDP) per capita of $10,000 to $12,000. About one in four people live below the basic needs poverty line, giving Nauru the worst human development indicators in the region.

In Nauru, poverty often reflects a lack of opportunity to participate fully in socioeconomic life and insufficient resources to meet household and community needs, according to the 2006 Household Income and Expenditure Survey (HIES) report. Living in poverty in Nauru is challenging due to limited social services and resources, which can lead to restricted access to education, health care and other necessities.

Historical Background

Nauru gained independence from Australia in 1968 and simultaneously became the owner of a highly profitable phosphate industry. Considering the size of its population and territory, which can be equated to that of an international airport, the income generated from phosphate mining made Nauru one of the wealthiest countries in the world. From 1970 to the early ’80s, Nauruans benefited from universal health care and education and many were unemployed by choice.

Yet, inadequate governmental management and the notion that the nation’s financial standing was never-ending drove it into its current impoverished state. By 1990, the land had been stripped of its natural resources and the phosphate mining industry collapsed, sending Nauru into a deep socioeconomic crisis. In an attempt to reestablish its vigorous economy, the government attempted to sell banking licenses and passports. However, this decision further fueled Nauru’s debacle as, in 2002, the U.S. treasury defined it as a “money-laundering state” for allowing the “establishment of offshore banks with no physical presence.”

Health Care

Health care specialists and Nauruans consider the health care system unsatisfactory and less equipped to serve the community. The Nauruan government faces a worsening health crisis. Although Australia invests considerably in Nauruan health facilities, the medical treatment is still inadequate.

Patients often required medical treatment overseas, as many doctors and residents alike described the Republic of Nauru hospital as “substandard, poorly staffed and ill-equipped,” according to Dr. Nick Martin in an article for The Guardian. Nonetheless, many have been denied transfer to Australian hospitals, which has led to exacerbated health concerns and fatal consequences.

Food Poverty

One of the most prominent issues in Nauru is food poverty and malnutrition. The original Nauruan diet mainly consisted of seafood and various vegetables. However, after 20 paradisiacal years that transformed Nauru into a consumer society and left behind an environmental wasteland, the people moved away from fishing and agriculture in favor of less expensive and more convenient imports.

Mass imports of alcohol and industrial foods further encouraged a sedentary lifestyle, which Nauruans still need to recover from. Consequently, Nauru has the highest obesity and type 2 diabetes rates in the world, with 71% of the population classified as obese and more than 90% considered overweight.

In a 2021 ministerial statement at the U.N. Food Systems Summit, Rennier Gadabu, Nauru’s minister for commerce, industry and environment, called for increased cooperation to prevent price spikes and food shortages in “vulnerable countries,” as Nauru relies heavily on imported food. Gadabu also reaffirmed Nauru’s commitment to restructuring its agriculture to boost domestic food production and improve food security and nutrition.

Education

Nauru is currently facing high levels of truancy, which results in decreased youth literacy and numeracy rates. A lack of job prospects primarily fuels this as graduates fail to see returns from their investment in education. In response, the Waqa government implemented the Nauru Education Assistance Trust Scheme (NEATS). NEATS provides trust funds for primary and secondary school students, who receive $5 each day they attend school.

According to teachers and school officials, this scheme has already produced efficient outcomes in reversing truancy rates. “Every day the children come to school, they’re investing in their future with the allowance they receive, because it’s not given to them on a daily basis but put into a trust fund which they can access when they leave school,” said Charmain Scotty, Nauru’s Minister for Education. In addition, the scheme will be monitored to encourage responsible spending and the money saved will be invested toward a bright future, “such as starting a business or buying a home.”

Measures and Possible Solutions

Australia is Nauru’s largest bilateral donor. Australian official development assistance (ODA) to Nauru totaled $32 million in 2022-23, with an estimated $46 million for 2023-24. The aid aims to improve public sector management, invest in infrastructure and support human development. Nauru’s 2024-25 development plan prioritizes health, education and climate-resilient infrastructure. Australia’s program aligns with these goals, supporting broader health initiatives, including funding for talent, training and infrastructure to strengthen medical services and the Ministry of Health.

Furthermore, the Raña Tsimorum (“Look After Your Life”) program will be implemented in 2025 to support specific population groups and bolster the Nauruan health system. The program aims to build a more robust health system through health-strengthening interventions and the efficient delivery of quality health services, including public health. It also seeks to improve health outcomes focused on demand, as prioritized in the National Health Strategy.

Further plans focus on reinforcing governance and resource allocation and enabling an environment for economic diversification through the Nauru-Australia Partnership on Economic Governance. As of May 2024, Australia reassured its commitment to supporting Nauru’s financial sustainability and contributing to its long-term budgetary self-reliance as a Nauru Intergenerational Trust Fund Committee member. More than ever, it is of utmost importance to build a more sustainable culture and society so that Nauruans can return to their once healthy and prosperous lifestyle, alleviating the challenges of experiencing poverty in Nauru.

– Beatriz Cicci

Beatriz Cicci is based in London, UK and focuses on Good News and Politics for The Borgen Project.

Photo: Flickr