About the CBI

September 2005
 Background Note: Nauru

Flag of Nauru is blue with a narrow, horizontal, yellow stripe across the
center and a large white 12-pointed star below the stripe on the hoist side;
the star indicates the country's location in relation to the Equator - the
yellow stripe - and the 12 points symbolize the 12 original tribes of Nauru.

PROFILE

OFFICIAL NAME:
Republic of Nauru

Geography
Area: 21 sq. km.
Cities: Capital--no official capital; government offices in Yaren District.
Terrain: Sandy beach rises to a fertile but narrow ring around raised coral
reefs with phosphate plateau in center.
Climate: tropical; monsoonal; rainy season (November to February).

People
Nationality: Noun and adjective--Nauruan(s).
Population (2004 est.): 12,809.
Age structure: 38.2% below 14; 1.9% over 65.
Annual growth rate: 1.87%.
Ethnic groups: Nauruan 58%, other Pacific Islander 26%, Chinese 8%, European
8%.
Religions: Christian (two-thirds Protestant, one-third Roman Catholic).
Languages: Nauruan, English.
Education (2004): Literacy--97%.
Health (2002): Infant mortality rate--10.14/1,000. Life expectancy (est.)
--61.57 yrs.; women 66.06 yrs.; men 58.78 yrs.
Work force (2004 est.): 4,500.
Unemployment (2004 est.): 90%.

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 (2004 est.): $10.0 million.
Suffrage: Universal at age 20.

Economy
GDP (2004 est.): $1 million [Note: Nauru is receiving over A$25 million
(US$20 million) support a year from Australia.]
Per capita GDP (2004 est.): $100.
Avg. inflation rate (2004 est.): -4%. Australian dollar is currency used in
Nauru.
Industry: Types--phosphate mining, fishing.
Trade: Exports (2004 est.)--$640,000; phosphates. Major export
markets--Japan. Imports (2004 est.)--$19.8 million; food, fuel, manufactures.
Major import sources--Australia.
Fiscal year: July 1 to June 30.

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--though its phosphate
reserves are nearly depleted. Phosphate mining in the central plateau has
left a barren terrain of jagged coral pinnacles, up to 15 meters (49 ft.)
high. A century of mining has stripped and devastated four-fifths of the
total land area.

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 sandy
beach. A 150-300-meter (492-984 ft.) wide fertile coastal strip lies landward
from the beach. Coral cliffs surround the central plateau. The highest point
of the plateau is 65 meters (213 ft.) above sea level. The only fertile areas
are the narrow coastal belt, where there are coconut palms, pandanus trees,
and indigenous hardwoods, and the land surrounding Buada lagoon, where
bananas, pineapples, and some vegetables are grown. Some secondary vegetation
grows over the 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 unemployment,
Nauru has the world's highest level 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, the island was captured by Australian forces in
1914. After the war the League of Nations gave Britain, Australia, and New
Zealand a trustee mandate over the territory. The three governments
established the British Phosphate Commissioners, who took over 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
independence in 1968. A plan by the partner governments to resettle the
Nauruans (because of disappearing phosphate and damage to the island caused
by extensive mining) on Curtis Island, off the north coast of Queensland,
Australia, was abandoned in 1964 when the islanders decided to stay put. In
1967, the Nauruans purchased the assets of the British Phosphate
Commissioners and in June 1970 control passed to the Nauru Phosphate
Corporation. Nauru became an independent republic in 1968.

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$107 million (U.S.$85.6 million) and to assist Nauru with
environmental rehabilitation.

GOVERNMENT
The country is governed by a unicameral Parliament consisting of 18 members
elected at least triennially from 14 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 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 Appeal Board--both of which are presided over by the
Chief Justice.

There are no armed forces, although there is a small police force (less than
100 members) under civilian control.

Principal Government Officials
President--Ludwig Scotty
Foreign Minister--David Adeang
Ambassador to the United Nations--Vinci Neil Clodumar

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

POLITICAL CONDITIONS
As turmoil grows over Nauru's uncertain future and economic failures,
no-confidence votes that spur a change of government have become common. In
1997 Nauru had four different presidents in as many months. Ludwig Scotty was
reelected in October 2004.

ECONOMY
The economy depends almost entirely on the country's declining phosphate
deposits. These were depleted in 2000 on a largescale commercial basis;
however, smallscale mining is still occurring. The government-owned Nauru
Phosphate Corporation (NPC) controls the mining industry. Many of the miners
are contract workers from Kiribati and Tuvalu. The government places a large
percentage of the NPC's earnings in long-term investments meant to support
the citizenry after the phosphate reserves have been exhausted; many of these
investments have not panned out, while those that have succeeded have often
been used as collateral for loans, eroding their value. In the years after
independence, Nauru possessed the highest GDP per capita in the world due to
its rich phosphate deposits. Nauru now lacks money to perform many of the
basic functions of government. A history of bad investments includes a failed
play in London and the purchase of the once-luxurious Grand Pacific Hotel in
Fiji. Financial mismanagement, corruption, and a shortage of basic goods,
electricity, and water have resulted in some domestic unrest, such as
demonstrations outside of Parliament. Air Nauru, the country's link to the
outside world, has been periodically grounded in recent years due to problems
paying for the maintenance of its sole aircraft. The airline is now engaged
in a court case regarding repossession of the aircraft for non-payment of
debt.

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 Nauru became host to approximately 1,000 asylum seekers, mostly
Afghan, who were intercepted while attempting to enter Australia illegally. A
total of 67 remain on the island. Nauru reportedly received about $10 million
in assistance from Australia in exchange for agreeing to house the refugees
while their asylum applications are adjudicated.

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.

U.S.-NAURU RELATIONS
The United States 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 due to the latter's
small size and economic problems. In 2004, U.S. trade with Nauru was
negligible.

Principal U.S. Embassy Officials
Ambassador--Larry M. Dinger
Deputy Chief of Mission--Ted Mann
Political/Economic/Commercial Affairs--Brian J. Siler
Consul--Kirk Lindly
Management Officer--Jeffrey Robertson

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.