http://www.economist.com/PrinterFriendly.cfm?story_id=884045 The sad story of Nauru: in the 1970s, the people of Nauru were amongst the richest in the world (the whole island is basically phosphate); now the government is forced to ration electricity and water, 50% of the population has diabetes, and a big money-earner is housing would-be Australian refugees. “… Nauru's government (like most others) would rather do almost anything than cut its own budget. So it has resorted to several desperate money-raising ventures, including that old stand-by of cash-strapped third-world governments, befriending Taiwan. A sun-bleached Taiwanese flag flaps wanly outside the run-down colonial villa that serves as the island's only embassy. In return for this dubious honour, Taiwan has lent Nauru money at bargain rates.” 11:36
Delicious tags: business environment nauru finance economics