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Business Profile
Economy: Until a few years ago, Nauru’s economy depended almost entirely on the extraction and sale of phosphates over which the Nauru Phosphate Corporation has a monopoly. Much of the revenue was invested in anticipation of the eventual exhaustion of the resource. Now that this has occurred, the Government, in common with a number of other small island states, looked to offshore financial services to sustain the economy. However, the laxity of Nauru’s newly established tax and financial disclosure arrangements attracted much foreign money of allegedly uncertain or dubious origin. From 1997 onwards, the OECD (Organisation for Economic Cooperation and Development, the organisation representing the world’s richest two dozen economies) took the lead in constructing an international regime to crack down on money-laundering. Most of the several dozen countries loosely described as ‘tax havens’ have complied with the new system: Nauru is one of the seven which have refused to do so. Accordingly, in April 2002, it was ‘named and shamed’ and now faces sanctions.
Nauru has few other strings to its economic bow. There is some agriculture, exploiting what little fertile land is available. Although the island has a benign climate and attractive features, the potential of any tourism industry is limited by Nauru’s remoteness. Australia and New Zealand are the island’s main trading partners, and supply almost all basic and capital goods. Important fisheries legislation passed in 1997/98 means that the island’s marine resources may finally be properly utilised following the completion of a new harbour.
Business: Shirt and smart trousers or skirt will suffice; more formal wear is needed only for very special occasions. English and French are widely spoken. The best time to visit is May to October. Office hours: Mon-Fri 0800-1200 and 1330-1630.
Commercial Information: The following organisation can offer advice: Bank of Nauru, PO Box 289, Civic Centre, Nauru (tel: 444 3238 or 444 3267 or 444 3241; fax: 444 3203).
Copyright © 2003 Columbus Publishing Ltd.
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