But could other islands follow Nauru’s way?

Alfred Sasako


The Pacific’s tiny nation of Nauru has much to look forward to in 2010.
Russia, often seen by leading democracies as the enemy of all that democracy stands for, is coming to help rebuild Nauru’s socio-economic profile, starting with its infrastructure.
Media reports have it that Nauru has clinched an US$50 million deal with Russia, something Foreign Minister Kieren Keke was quick to quash, when I approached him aboard Our Airlines flight to Honiara on December 19.
“That’s what the media say,” he told me in an impromptu interview at 35,000 feet above sea level.
“Unlike other airlines which restrict access to business class area, Our Airlines, was pretty relaxed about my standing on the side of the minister’s business class seat, airborne on the two-and-a-half hour grave watching flight from Brisbane.
 I pressed him what the true figure was. “All I can say is that it’s significant, will be ongoing and long-term. It is not a one-off thing,” Dr Keke said. He is also the minister assisting the President and the nation’s Mr Money Man.
“Well, you’ve done well, considering what a bigger nation like Solomon Islands got out of Iran recently—a mere US$200,000,” I suggested.
“Well, the good thing about Russia is that when I met their foreign minister [in Moscow], he seemed to have a perfect understanding of our nation’s needs and is willing to help.
Pacific knowledge: “The Russian minister knows where in the Pacific we are, the impact the global financial situation is having on our people and the ability of our government to provide essential services.
“He knows all that, quite unlike Washington where when you talk with Secretary of State, Hillary Clinton, for example, one has to show her where on the map one’s country is located in the Pacific. No, Washington does not have ears for small islands nations like Nauru,” he said.
“All I had to do was to provide the minister with a range of projects Nauru considers as priorities and as I said earlier, these were all to do with infrastructure.”
As priorities, Nauru has put forward the redevelopment of its seaport, upgrading of the nation’s sole airport, refurbishment of the hospital, as well as schools.
“I am pleased to say that Russia has accepted all that,” Dr Keke said.
When does this aid package start flowing into the Nauru economy?
“Well, Russia is sending a team of experts to Nauru in January.
“They will do the physical inspection of all the facilities we have identified as priorities.
“Their work is to put the project details together so that work would follow almost immediately,” Nauru’s foreign minister said.
Did you discuss any commercial ventures?, I asked
“Yes, we did touch on potential areas of commercial undertaking. Fisheries is one. At this point in time, however, infrastructure is the priority and will be dealt with as such,” he said.
How did Nauru and Russia get hooked up in the first place? The matchmaking, it seemed, started last November during a Donors’ Roundtable in Nauru.
Despite its hard-to-get-to location, the roundtable was well attended.
Countries such as Germany, Greece, Israel, Turkey, United States, and of course, Russia were represented at the roundtable.
Russia, it seemed, had an agenda. It is desperate to garner international support for its recognition of Abkhazia and South Ossetia—the two breakaway provinces of Georgia. And it is willing to pay the price for the support. It found that support in Nauru.
Soon after the November 14 meeting, Dr Keke was invited to Moscow where he met Russia’s foreign minister.
From Moscow, arrangements were made for Dr Keke to visit the two renegade provinces. Subsequently, Nauru signed on the dotted line, recognising Abkhazia and South Ossetia, staunch supporters of Moscow, as independent states.
The deal reportedly infuriated Georgia, the country that has just fought a war with Russia over the renegade provinces.
Nauru’s move is also likely to anger the United States, which supports Georgia. But as the saying goes, one man’s loss is another’s gain.
In this case, Russia has gained in two areas—a foothold it seems in the Pacific in Nauru, and international support of the recognition of Abkhazia and South Ossetia, again through Nauru’s support.
In siding with Russia in this instance, Nauru has in fact become a player in international politics.
In diplomacy and international politics, two principles are applied in recognising the legitimacy of governments—de jure and de facto, both Latin words.
A de jure government is one that is constitutional but not in control of the country while a de facto government is one that is in control but not necessarily legal.
Russia and the United States use these definitions to define their recognition of governments in Abkhazia and South Ossetia.
The United States sees the two renegade provinces as having de facto governments, while Russia sees de jure governments in the two former Georgian breakaway provinces.
Russia’s Foreign Ministry spokesman Andrei Nesterenko said soon after the deal was signed that Nauru’s recognition of the independence of Abkhazia and South Ossetia will boost their standing and help stability in the region.
Moscow recognised the two separatist provinces as independent states after the August 2008 war between Russia and Georgia.
Only Venezuela and Nicaragua followed Russia’s example before Nauru’s move last month.
Russia said it didn’t try to encourage others to recognise Abkhazia and South Ossetia, but the Kremlin rewarded Venezuela and Nicaragua with lucrative arms and energy deals.
In its heyday, Nauru was the envy of all other Pacific Islands economies because of revenue from its phosphate mining.
Millions earned from the mining operations, however, were largely squandered, especially in real estate investments around the world.
In the end, Nauru was forced to sell many, if not most of its multi-million dollar properties, including the skyscraper it once owned in Melbourne, Australia.
In recent years, Nauru and Manus Province of Papua New Guinea were used as offshore processing centres for Australia’s refugee problem. They were paid tens of millions of dollars.
Russia’s way: The Australian Labor Government closed down these facilities after it won power about three years ago, drying up a major revenue source for Nauru.
Given what Nauru is about to receive from Russia, it is almost certain that some cash-strapped Pacific islands states, could be eyeing Nauru’s lead.
If they did fall for Russia’s too tempting bait, those who are unwilling to give without strings attached, shouldn’t be complaining.
After all, small islands states in the Pacific too have mouths to feed, not necessary be used just as security reference points in discussions in Canberra, Wellington, Washington or London.
With growing populations and threats from sea level rise, the toll heralding the need to find extra cash in order to remain in the cash economy continues to ring louder by the day.
If Solomon Islands can grab a mere US$200,000 out of desperation, Russia’s bait to gain international recognition for Abkhazia and South Ossetia would prove irresistible indeed.
For now at least, we can only wait and see who else in the Pacific is willing to make a move in Nauru’s footsteps.