Background Notes - Nauru

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PROFILE

OFFICIAL NAME:
Republic of Nauru

Geography
Area: 21 sq. km.
Cities: Capital--no official capital; government offices in Yaren District.
Terrain: Rough beach rises to a fertile but narrow ring around a raised, prehistoric coral reef plateau, studded with coral pinnacles exposed by phosphate mining.
Climate: Equatorial; monsoonal; rainy season (November to February); unreliable rainfall and prone to El Nino-linked droughts.

People
Nationality: Noun and adjective--Nauruan(s).
Population (2006): 9,275.
Age structure: 38.2% below 14; 1.9% over 65.
Annual growth rate (1992-2002): 2.5%.
Ethnic groups: Nauruan 95%, Chinese 3%, other Pacific Islander 1%, European 1%.
Religions: Christian (two-thirds Protestant, one-third Roman Catholic).
Languages: Nauruan, English.
Education (2004): Literacy--97%.
Health (2002): Life expectancy (2004 est.) women 56.9 yrs.; men 49.0 yrs.; Infant mortality rate--10.14/1,000.
Work force (2004 est.): 4,300.
Unemployment (2004 est.): 50%.

Government
Type: Republic.
Constitution: 1968.
Independence: January 31, 1968.
Branches: Executive--president and cabinet. Legislative--unicameral Parliament. Judicial--Supreme Court, Appellate Court, District Court, and Family Court.
Administrative subdivisions: 14 districts.
Political party: Naoero Amo (Nauru First) Party.
Central government budget (2006/2007 est.): $17.6 million.
Suffrage: Universal at age 20.

Economy (all figures in U.S. $)
GDP (2005/2006 est.): $25.2 million.
Per capita GDP (2005/2006 est.): $2,739.
Avg. inflation rate (2005 est.): -3-4%.
Industry: Types--phosphate mining.
Trade: Exports (2004 est.)--$640,000; phosphates. Major export markets--Japan. Imports (2004 est.)--$19.8 million; food, fuel, manufactures. Major import sources--Australia.
Currency: Australian dollar (A$).

GEOGRAPHY
Nauru is a small oval-shaped island in the western Pacific Ocean, located just 42 kilometers (26 mi.) south of the Equator. It is one of three great phosphate rock islands in the Pacific Ocean--the others are Banaba (Ocean Island) in Kiribati and Makatea in French Polynesia. Until recently Nauru's phosphate reserves were thought to be nearly depleted, but there are some indications that the potential for continued productive mining might exist. Phosphate mining in the central plateau has left a barren terrain of jagged, prehistoric coral pinnacles, up to 15 meters (49 ft.) high. A century of mining has stripped and devastated four-fifths of the total land area. Efforts to rehabilitate the mined-out areas have been unsuccessful.

The island is surrounded by a coral reef, exposed at low tide and dotted with pinnacles. The reef is bounded seaward by deep water, inside by a narrow sandy beach. A 150-300-meter (492-984 ft.) wide fertile coastal strip lies landward from the coast, ending in forested coral cliffs that rise to the now mined-out central plateau. The highest point of the plateau is 65 meters (213 ft.) above sea level. The island's only fertile areas are within the narrow coastal belt, where there are coconut palms, pandanus trees, and indigenous hardwoods, and the land surrounding the inland Buada lagoon on the central plateau, where bananas, pineapples, and some vegetables are grown. Some secondary vegetation has begun to cover the scarred central plateau and its coral pinnacles.

PEOPLE
Nauruans descended from Polynesian and Micronesian seafarers. Grouped in clans or tribes, early Nauruans traced their descent on the female side. They believed in a female deity, Eijebong, and a spirit land, also an island, called Buitani. Two of the 12 original tribal groups became extinct during the 20th century. Because of poor diet, alcohol abuse, and a sedentary lifestyle, Nauru has one of the world's highest levels of diabetes, renal failure and heart disease, exceeding 40% of the population.

HISTORY
Nauru had little contact with Europeans until whaling ships and other traders began to visit in the 1830s. The introduction of firearms and alcohol destroyed the peaceful coexistence of the 12 tribes living on the island. A 10-year internal war began in 1878 and resulted in a reduction of the population from 1,400 (1843) to around 900 (1888).

The island was allocated to Germany under the 1886 Anglo-German Convention. Phosphate was discovered a decade later and the Pacific Phosphate Company started to exploit the reserves in 1906, by agreement with Germany. Following the outbreak of World War I, Australian forces captured the island in 1914. After the war, the League of Nations assigned a joint trustee mandate over the island to Britain, Australia, and New Zealand. The three governments established the British Phosphate Commissioners, who exercised the rights to phosphate mining.

During World War II Japan occupied Nauru in August 1942 and deported 1,200 Nauruans to work as laborers in the Caroline Islands, where 463 died. The survivors returned to Nauru in January 1946.

After the war the island became a UN Trust Territory under Australia, in line with the previous League of Nations mandate, and it remained one until it became an independent republic in 1968. A plan by the partner governments to resettle the Nauruans (due to dwindling phosphate reserves and damage to the island from extensive mining) on Curtis Island off the north coast of Queensland, Australia, was abandoned in 1964 when the islanders decided not to move. In 1967, the Nauruans purchased the assets of the British Phosphate Commissioners, and in June 1970 control passed to the Nauru Phosphate Corporation.

In 1989 Nauru filed suit against Australia in the International Court of Justice in The Hague for damages caused by mining while the island was under Australian jurisdiction. Australia settled the case out of court in 1993, agreeing to pay a lump sum settlement of A$107 million (U.S.$85.6 million) and an annual stipend of the equivalent of A$2.5 million in 1993 dollars toward environmental rehabilitation.

GOVERNMENT
The country is governed by a unicameral Parliament consisting of 18 members elected at least triennially from 8 constituencies. Parliament elects the president, who is both chief of state and head of government, from among its members. The president appoints a cabinet from among members of Parliament.

For its size, Nauru has a complex legal system. The Supreme Court, headed by the Chief Justice of Nauru, is paramount on constitutional issues, but other cases can be appealed to the two-judge Appellate Court. Parliament cannot overturn court decisions, but Appellate Court rulings can be appealed to Australia's High Court; in practice, however, this rarely happens. Lower courts consist of the District Court and the Family Court, both of which are headed by a Resident Magistrate, who also is the Registrar of the Supreme Court. Finally, there also are two quasi-courts--the Public Service Appeal Board and the Police Service Board--both of which are presided over by the Chief Justice.

There is a small police force of 109 members under civilian control. There are no armed forces.

Principal Government Officials
President--Ludwig Scotty
Foreign Minister--David Adeang
Ambassador to the United Nations--Marlene Moses

Nauru does not currently have an embassy in the United States but does have a UN Mission at 800 2nd Ave, Suite 400D, New York, New York 10017 (tel: 212-937-0074, fax: 212-937-0079).

POLITICAL CONDITIONS
In recent decades, as turmoil grew over Nauru's uncertain future and economic failures, no-confidence votes that spurred changes of government became commonplace. In 1997 Nauru had four different presidents in as many months. However, with the election of Ludwig Scotty in October 2004 and the naming of a reform-minded government, the pattern has stopped.

ECONOMY
Having once boasted the second highest per capita GDP in the world thanks to its fabled phosphate mines, Nauru is today destitute. With the seeming depletion of readily accessible phosphate reserves in 2000, mining on a large-scale commercial basis ended. The decline of mining saw a dramatic economic contraction, compounded by past government corruption and disastrous mismanagement of trust funds that had been expected to provide post-mining revenue streams for Nauru's citizens. Since 2000, Nauru has relied largely on payments for fishing rights within its exclusive economic zone, earnings from hosting two Australian refugee processing camps, and massive injections of grants and development funding, principally from Australia, New Zealand, Japan, China and more recently Taiwan. In 2006, following rehabilitation of its industrial plant and marine loading infrastructure, the government-owned mining company, the Republic of Nauru Phosphate Company or RONPhos, resumed mining with the aim of exploiting the remaining harder-to-access phosphate.

Although Nauru had a nominal per capita GDP in excess of $2,700, its economy is in deep crisis, and the resumption of mining promises only a limited respite as the country seeks to find a sustainable economic future. The private sector is very small and employs less than 300. Currently, all public servants (even government ministers) and employees of state-owned enterprises receive bi-weekly payments from government of just A$140 (about U.S. $118) in lieu of their established salaries. Nauru imports well over 90 percent of its foodstuffs and other basic goods, but sea and air transport has become problematic. In December 2005, the national airline's remaining airplane was repossessed for non-payment, leaving Nauru dependent on chartered flights. In September 2006, with financing help from Taiwan, a replacement aircraft re-established scheduled commercial flights to Nauru and around the region under the new name of Our Airline. The provision of electricity and water, both dependent on expensive imported fuel, is limited and sporadic. With the help of the Pacific Islands Forum and numerous development partner nations, Nauru has embarked on a major, multi-year strategic national development program to achieve a sustainable economic framework for the country.

FOREIGN RELATIONS
Following independence in 1968, Nauru joined the Commonwealth as a Special Member. Special Members take part in all Commonwealth activities except heads of government meetings. They are not assessed but make voluntary contributions toward the running of the Secretariat. They are eligible for all forms of technical assistance.

Nauru was admitted to the United Nations in 1999. It is a member of the Pacific Islands Forum, the South Pacific Regional Environmental Programme, the South Pacific Commission, and the South Pacific Applied Geoscience Commission.

In 2001 at Australia's request, Nauru became host to approximately 1,200 asylum seekers, mostly Afghan, who were intercepted while attempting to enter Australia illegally. By mid-2006, only a single Iraqi refugee remained on the island, having been assessed by Australia as a security risk and thus ineligible to enter Australia. In September 2006, Australia effectively re-opened the center by transferring seven Burmese asylum seekers there for assessment. In exchange for housing the refugees while their asylum applications were adjudicated, Australia has provided Nauru with extensive grants and aid. In March 2007, Australia transferred 82 Sri Lankan refugees to the processing center in Nauru, which had been significantly upgraded in the preceding months.

During 2002 Nauru severed diplomatic recognition with Taiwan and signed an agreement to establish diplomatic relations with the People's Republic of China. This move followed China's promise to provide more than U.S. $130 million in aid. However, in May 2005, Nauru re-established diplomatic ties with Taiwan, ending its relationship with China. Taiwan remains one of only two countries, the other being Australia, with a diplomatic mission on Nauru. In March 2007, Nauru established an embassy in Taipei.

U.S.-NAURU RELATIONS
Relations between the United States and Nauru are cordial. The U.S. has no consular or diplomatic offices in Nauru. Officers of the American Embassy in Suva, Fiji, are concurrently accredited to Nauru and make periodic visits.

Trade between the United States and Nauru is limited by the latter's small size and economic problems. The value of two-way trade in 2005 was $1.6 million.

Principal U.S. Embassy Officials
Ambassador--Larry M. Dinger
Deputy Chief of Mission--Ted A. Mann
Political/Economic/Commercial Affairs--Brian J. Siler
Consul--Debra J. Towry
Management Officer--Ila S. Jurisson
Regional Environmental Officer--Joseph P. Murphy
Regional Security Officer--Jim T. Suor

The U.S. Embassy at Suva, Fiji, also accredited to Nauru, is located at 31 Loftus Street, Suva (tel: 679-331-4466; fax 679-330-2267). The mailing address is U.S. Embassy, P.O. Box 218, Suva, Fiji.

TRAVEL AND BUSINESS INFORMATION
The U.S. Department of State's Consular Information Program advises Americans traveling and residing abroad through Consular Information Sheets, Public Announcements, and Travel Warnings. Consular Information Sheets exist for all countries and include information on entry and exit requirements, currency regulations, health conditions, safety and security, crime, political disturbances, and the addresses of the U.S. embassies and consulates abroad. Public Announcements are issued to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas that pose significant risks to the security of American travelers. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country because the situation is dangerous or unstable.

For the latest security information, Americans living and traveling abroad should regularly monitor the Department's Bureau of Consular Affairs Internet web site at http://www.travel.state.gov, where the current Worldwide Caution, Public Announcements, and Travel Warnings can be found. Consular Affairs Publications, which contain information on obtaining passports and planning a safe trip abroad, are also available at http://www.travel.state.gov. For additional information on international travel, see http://www.usa.gov/Citizen/Topics/Travel/International.shtml.

The Department of State encourages all U.S citizens traveling or residing abroad to register via the State Department's travel registration website or at the nearest U.S. embassy or consulate abroad. Registration will make your presence and whereabouts known in case it is necessary to contact you in an emergency and will enable you to receive up-to-date information on security conditions.

Emergency information concerning Americans traveling abroad may be obtained by calling 1-888-407-4747 toll free in the U.S. and Canada or the regular toll line 1-202-501-4444 for callers outside the U.S. and Canada.

The National Passport Information Center (NPIC) is the U.S. Department of State's single, centralized public contact center for U.S. passport information. Telephone: 1-877-4USA-PPT (1-877-487-2778). Customer service representatives and operators for TDD/TTY are available Monday-Friday, 7:00 a.m. to 12:00 midnight, Eastern Time, excluding federal holidays.

Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at 877-FYI-TRIP (877-394-8747) and a web site at http://www.cdc.gov/travel/index.htm give the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled "Health Information for International Travel" (HHS publication number CDC-95-8280) is available from the U.S. Government Printing Office, Washington, DC 20402, tel. (202) 512-1800.

Further Electronic Information
Department of State Web Site. Available on the Internet at http://www.state.gov, the Department of State web site provides timely, global access to official U.S. foreign policy information, including Background Notes and daily press briefings along with the directory of key officers of Foreign Service posts and more. The Overseas Security Advisory Council (OSAC) provides security information and regional news that impact U.S. companies working abroad through its website http://www.osac.gov

Export.gov provides a portal to all export-related assistance and market information offered by the federal government and provides trade leads, free export counseling, help with the export process, and more.
STAT-USA/Internet, a service of the U.S. Department of Commerce, provides authoritative economic, business, and international trade information from the Federal government. The site includes current and historical trade-related releases, international market research, trade opportunities, and country analysis and provides access to the National Trade Data Bank.