Nauru : Improving Fiscal Sustainability Program (Subprogram 1)
The proposed Improving Fiscal Sustainability Program will help the Government of Nauru strengthen gender-responsive fiscal sustainability by implementing policy and institutional reforms to (i) enhance fiscal and debt management, (ii) improve the governance of state-owned enterprises (SOEs), (iii) advance social protection systems; (iv) increase women's economic participation; and (v) reduce gender-based violence (GBV). The program will support key operational priorities of Strategy 2030 of the Asian Development Bank (ADB): addressing remaining poverty and reducing inequalities, accelerating progress in gender equality, and strengthening governance and institutional capacity. The program aligns with all three objectives in ADB's Pacific Approach, 2021-2025: preparing for and responding to shocks, delivering sustainable services, and supporting inclusive growth. The program was designed knowing that Nauru is both a small island developing state and a fragile and conflict-affected situation.
Project Details
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Project Officer
Hodge, Matthew W.
Pacific Department
Request for information -
Country/Economy
Nauru -
Sector
- Public sector management
Related Projects
| Project Name | Improving Fiscal Sustainability Program (Subprogram 1) | ||||
| Project Number | 55017-001 | ||||
| Country / Economy | Nauru |
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| Project Status | Proposed | ||||
| Project Type / Modality of Assistance | Grant |
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| Source of Funding / Amount |
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| Operational Priorities | OP1: Addressing remaining poverty and reducing inequalities OP2: Accelerating progress in gender equality OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability OP6: Strengthening governance and institutional capacity |
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| Sector / Subsector | Public sector management / Public expenditure and fiscal management - Reforms of state owned enterprises - Social protection initiatives |
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| Gender | Effective gender mainstreaming | ||||
| Description | The proposed Improving Fiscal Sustainability Program will help the Government of Nauru strengthen gender-responsive fiscal sustainability by implementing policy and institutional reforms to (i) enhance fiscal and debt management, (ii) improve the governance of state-owned enterprises (SOEs), (iii) advance social protection systems; (iv) increase women's economic participation; and (v) reduce gender-based violence (GBV). The program will support key operational priorities of Strategy 2030 of the Asian Development Bank (ADB): addressing remaining poverty and reducing inequalities, accelerating progress in gender equality, and strengthening governance and institutional capacity. The program aligns with all three objectives in ADB's Pacific Approach, 2021-2025: preparing for and responding to shocks, delivering sustainable services, and supporting inclusive growth. The program was designed knowing that Nauru is both a small island developing state and a fragile and conflict-affected situation. Following the Joint Multilateral Development Bank Methodological Principles for Assessment of Paris Agreement Alignment of New Operations, the operation has been assessed as aligned with the goals of the Paris Agreement. | ||||
| Project Rationale and Linkage to Country/Regional Strategy | Nauru's small size (with a population of about 12,668 in 2022), remoteness, and diseconomies of scale raise operating costs, limit private sector development, and leave public institutions thinly resourced. This hampers public service delivery and increases vulnerability to shocks. Average annual gross domestic product (GDP) growth slowed to 7.7% during fiscal year (FY) 2015 (ended 30 June)-FY2022, down from 18.1% during FY2011-FY2014, mainly because of declining phosphate exports and the winding down of the Australian-financed Nauru Regional Processing Centre (NRPC). The NRPC for asylum seekers operated during 2001-2008, and then reopened in 2012. Though Australia has not transferred people to Nauru for processing since 2014, the governments of Australia and Nauru agreed that Nauru will maintain "enduring capability" to enable processing of potential future refugees. The enduring capability model outlines how the governments of Australia and Nauru will collaborate given there are fewer refugees to process. Funding of this model is not public information. In 2013, poverty incidence is estimated at 24%, with another 44% of the population vulnerable to poverty. Households with children and youth and female-headed households are more likely to be poor. Key challenges to poverty alleviation include multidimensional deprivation, and low educational attainment and employment opportunities, especially for women. | ||||
| Impact | |||||
| Outcome | |||||
| Outputs | |||||
| Geographical Location | Nation-wide | ||||
| Safeguard Categories | |
|---|---|
| Environment | C |
| Involuntary Resettlement | C |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | |
| During Project Implementation | |
| Responsible ADB Officer | Hodge, Matthew W. |
| Responsible ADB Department | Pacific Department |
| Responsible ADB Division | Pacific Liaison and Coordination Office in Sydney, Australia (PLCO) |
| Executing Agencies |
Department of Finance |
| Timetable | |
|---|---|
| Concept Clearance | 06 Oct 2023 |
| Fact Finding | 15 Jan 2024 to 19 Jan 2024 |
| MRM | 22 Feb 2024 |
| Approval | - |
| Last Review Mission | - |
| Last PDS Update | 16 Oct 2023 |
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| Title | Document Type | Document Date |
|---|---|---|
| Improving Fiscal Sustainability Program (Subprogram 1): Concept Note | Concept Papers | Oct 2023 |
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