COMMENTS:
Nauru has an incredidly high unemployment rate at 90%.
The now independent nation was once a major phosphate exporter after sea birds left millenia of droppings on the tiny island.
To compound matters, all phosphate deposits will be completely depleted by 2020. And unlike most micro-states in the Pacific, the population is growing at 1.81%! This is on top of a population of 13,287 living on a single island measuring 21 sq. kilometers that is almost entirely dependent on economic and humanitarian aid from Austrlia.
Another excellent example of capitalism at work.
I don't think any lable can be placed on their economy considering that they don't really have one.
Only people aged 18-64 are considered part of the workforce so the actual number of people working is below 10%. But of that 10%, only a fifth are employed in the mines. One twentieth of those are employed in agriculture and the remaining three quarters in education, transportation, and public administration.
Socialism would fit best just because Australia is almost entirely responsible for them. Of the $13.5M of their budget, about $13M of it is from Australia.
Another part of the problem is the lack of farm ground. The only agricultural products they can grow are coconuts, not exactly eligible for substinance farming like some of the Pacific micro-nations.
It's a problem often disregarded by Europe and the Americas, but as farm ground becomes depleted and any other natural resources are extracted and sold, many of those nations will become increasingly and ultimately totally dependent on Australia.
There's only so many people you can employ taking care of the other people. The rest of the jobs have to come from somewhere.
steelhamster- I don't see how capitalism caused this. AND I don't see how anti-capitalism would solve it. Unless you are willing to elaborate?
steelhamster: without capitalism, there is what?
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