YAREN, Nauru – Australia announced last month that it plans to close its detention facility on Nauru, sparking concerns for Nauru’s economic well-being.  Naruru Foreign Minister, David Adeang, said that the Australian facility provides 20% of Nauru’s GDP.

Since its bankruptcy in 2002, Nauru has become increasingly dependent on Australian aid, and much of Nauru’s annual aid package from Australia is tied to the facility, which former Australian official Mark Thompson characterized as “an unmitigated bribe”.

Nauru MP Kieran Keke said in a statement last week, “The financial arrangement with Australia, combined with initiatives like the resumption of phosphate mining, has helped turn the country around from the brink of economic collapse […] We sincerely hope the Australian government will continue to support our efforts to upgrade our health and education programs, to name just two.  Restoring important infrastructure like the power system is also a priority for us.”

The Nauru government is now seeking to meet with Australia to discuss how Nauru will adapt when the facility is shut down.  Australia has not yet given a time frame for the closure.

For more information, please see:

Impunity Watch – Rudd Gov’t to Close Nauru Detention Facility – 26 November 2007

The Age – Nauru fears gap when camps close – 11 December 2007

Radio New Zealand International – Nauru opposition calls for Australian support as camps set to close – 13 December 2007

Sydney Morning Herald – Australian govt exit worries Nauru MP – 13 December 2007

Radio New Zealand International – Nauru Government seeks early meeting with Canberra to discuss cost of camp shut down – 17 December 2007