Travel

Republic of Nauru Country Brief

Introduction


Nauru is an island republic in the South Pacific Ocean, 42kms south of the Equator (0º32' S, 166º55' E) and 4,000 km north-east of Sydney. A raised fossilised coral atoll, Nauru is one of three great phosphate rock islands in the Pacific Ocean - the other two being Banaba (Ocean Island) in Kiribati and Makatea in French Polynesia. Nauru has a total land area of 21 square kilometres.

Nauru has a population of approximately 11,000 people, most of whom are indigenous Nauruans of predominantly Micronesian origin. Some 800 other Pacific Islanders, Chinese, Australian and New Zealand expatriates also reside on the island.

Political Overview

Government

Nauru is one of the world’s smallest independent, democratic states. Its constitution, adopted in 1968, established it as a republic with a Westminster style parliamentary system of government. The Constitution has been undergoing a process of review since 2004 and in August 2009 the Parliament unanimously passed two amending bills; one containing changes which may be amended by a majority in parliament, and another for changes which the current Constitution demands be passed by a popular referendum – now scheduled for late 2009.

The President is currently elected by and responsible to the unicameral Parliament and, in an unusual variation of the Westminster system, is both head of government and head of state. (After the Referendum the President is likely to be popularly-elected.) The Nauruan Parliament consists of eighteen Members of Parliament (set to increase by one at Referendum), elected every three years by resident Nauruan citizens over the age of twenty. At its first sitting, Parliament chooses a Speaker and a Deputy Speaker, before proceeding to elect the President from among the remaining members (this will change to a Speaker elected from candidates who are not MPs). The President then appoints five members of Parliament to join him (or her) in forming a Cabinet.

The President of Nauru is currently HE Hon Marcus Stephen MP. Cabinet comprises President Stephen (also Chairman of the Cabinet, Minister for the Public Service, Police, Prison and Emergency Services, Home Affairs, and the Nauru Phosphate Royalties Trust); Hon Dr Kieren Keke (Minister Assisting the President, and Minister for Foreign Affairs & Trade, and Finance & Sustainable Development); Hon Sprent Dabwido (Minister for Transport, and Communications); Hon Frederick Pitcher (Minister for Commerce, Industry & Environment); Hon Roland Kun (Minister for Education, and Fisheries); and Hon Mathew Batsiua (Minister for Health, and Sport and Justice). The Speaker of Parliament is Hon Riddell Akua and the Deputy Speaker is Hon Dominic Tabuna.

Economic Overview

At the Pacific Islands Forum in Cairns 5-7 August 2009, Leaders underlined their confidence in Nauru’s economic recovery process by agreeing that the Pacific Regional Assistance to Nauru (PRAN), which forum Leaders introduced in 2004 when Nauru was at its lowest economic ebb, was no longer required.

Nauru, however, continues to face serious economic challenges. Phosphate production, which first began to decline in the 1980s (from 1.67 million tonnes in 1985-86 to 162,000 tonnes in 2001-02) ceased altogether in 2003. Funds invested to provide post-mining income for Nauru are largely gone and the Nauru Government has assessed Nauru’s total debt as $869 million, or 20 times current GDP (Nauru 2009-10 Budget). This amount is well beyond what Nauru could ever repay and the government has developed a debt management strategy, based on seeking remission of as much of debt as possible.

As an isolated island, Nauru is dependent on shipping and air services for the provision of food and other supplies, mostly from Australia. It has no natural harbour. Ships moor at deep-water anchorage buoys. Crushed phosphate is loaded via conveyors belts along two massive cantilever arms which can rotate out over ship’s holds. Fuel ships pump fuel ashore through piping attached to the northern cantilever; the pipes then continue up to the tank farm.

Fishing licenses issued to China, Japan, South Korea, Taiwan and the United States of America are an important source of revenue for Nauru. While pelagic fish abound in Nauruan waters, Nauru has been unable to establish a fishing industry of its own. An Australian-funded fisheries adviser has recently been engaged to help maximise revenue from the country’s marine assets.

Economic indicators for Nauru (such as GDP, current account balance and GDP per capita) are not available. Data from Nauru's embryonic statistics department shows Nauru's exports grew dramatically (due to resumed phosphate sales) from mid 2006; they peaked (at around $A50 m) in late 2008, then the global economic crisis struck and its exports declined to zero by mid 2009. Total imports for 2006 and 2007 were $A13.8 m and $A18.2 m respectively.

Bilateral Relationship

Australia enjoys good relations with Nauru and is its key trade, investment and development assistance partner. In recognition of positive developments in the bilateral relationship in recent years, the Australian Government upgraded the status of the Consulate-General in August 2009 to that of a High Commission. Following normal protocol procedures, a High Commissioner to Nauru will be announced shortly.

Parliamentary Secretary for Pacific Island Affairs, Hon Mr Duncan Kerr SC MP, visited Nauru as part of a regional tour of Pacific countries on 14 July 2009. President and Mrs Stephen and Foreign Minister Keke attended the Pacific Islands Forum in Cairns, hosted by Prime Minister Rudd, from 5-7 August 2009.

The ICJ Case and Compact of Settlement

In August 1993, the Nauru and Australian Governments signed a Compact of Settlement (NACOS) which ended litigation by Nauru against Australia in the International Court of Justice over rehabilitation of phosphate land mined before independence. As part of the settlement, Australia paid Nauru $57 million in cash and agreed to provide $50 million over a period of twenty years (paid in annual instalments of $2.5 million indexed at 1993 values, e.g. $3.7 million in 2008-09). The projects to be undertaken with this money are governed by the Rehabilitation and Development Cooperation Agreement (RADCA). Australia and Nauru are cooperating closely on using NACOS funds to facilitate the mining of residual primary and, later, secondary phosphate reserves, followed by the rehabilitation of mined-out lands.

Australian development assistance to Nauru

On 7 August 2009 Prime Minister Rudd and President Stephen signed the Australia-Nauru Partnership for Development at the Pacific Islands Forum in Cairns. The Partnership will advance Nauru’s development priorities as articulated in its National Sustainable Development Strategy 2005 – 2025 and make progress towards attainment of the Millennium Development Goals by 2015.
Nauru and Australia agreed that the Partnership for Development would focus on five Priorities:

Australia has deployed Australian officials and contracted advisers to work within the Nauru Government. An Australian finance team, comprising a Secretary of Finance and Deputy Secretaries for Budget and Economics, are responsible respectively for formulation of Nauru's budget, and for providing technical advice on economic reforms needed to improve financial management.
An Australian Federal Police officer is deployed as the Commissioner of the Nauru Police Force, supported by three Australian Federal Police officers in advisory positions who manage a program of police infrastructure development and training, and provide advice to the Nauru Government on law and justice reforms.

In addition, Australia funds a Director of Education, a Secretary for Health, a Health Planner, a Health Educator and a Biomedical Engineer based at the Republic of Nauru Hospital, a CEO and Director of Operations and Maintenance for the Utilities Department, and a Fisheries Adviser.

Several officials - the Secretary for Foreign Affairs, a planning specialist, a Resident Magistrate, and a Director of Public Prosecutions - have been provided under the auspices of the Pacific Islands Forum Secretariat’s Pacific Regional Assistance to Nauru (PRAN) program (funded by Australia and New Zealand). With the expiry of PRAN Australia will work with Nauru to ensure these important positions continue to be funded through appropriate mechanisms.

Bilateral Economic and Trade Relationship

Australian exports to Nauru in 2008 totalled $21.27 million (principally food and drinks, energy and medicines). Australian imports from Nauru in the same period totalled $12.2 million (principally crude phosphate).

Foreign Relations

Nauru became a full member of the Commonwealth in May 1999 but has fallen behind in membership dues in recent years and its status has slipped to ‘Member in Arrears’. Nauru was admitted as the 187th member of the United Nations on 14 September 1999. It is also a member of several regional bodies including the Pacific Islands Forum, Pacific Community, Asian Development Bank, the UN Economic and Social Commission for Asia and the Pacific ESCAP and other specialised agencies. Nauru is reviewing the need to remain a member of so many international organisations.

Nauru maintains official overseas representation in Australia (Brisbane), Fiji, Taiwan, Bangkok and at the United Nations in New York. It has Honorary Consuls in Singapore, Kaohsiung (southern Taiwan), London, Auckland and Brussels.

Taiwan and Nauru first established diplomatic relations in 1980. These were severed in July 2002 when the Harris Government recognised China, but were subsequently re-established by the Scotty Government on 14 May 2005.

Visitor Information

Our Airline (formerly Air Nauru) currently operates twice weekly flights between Brisbane and Nauru via Honiara (Solomon Islands). Onward flights to Tarawa (Kiribati) have ceased.

Visitors should be aware that Australian passports are not available from the Australian Consulate-General in Nauru. The Consulate-General is able to accept passport applications which are processed via the Australian High Commission in Suva.

Local infrastructure, including power generation, drinking water and health services, has been adversely affected in recent years by the decline in national income. Power is rationed and distributed to districts; 4 hours on and 4 hours off during daytime, and on for most of the night.

A valid passport and visa is required for Australians travelling to Nauru. Transit visas are available on arrival. For further information, contact the Consulate-General of the Republic of Nauru.

The former airport fee of A$50 is no longer payable on departure - it is now included in the ticket cost. Local currency is the Australian dollar. There are no ATMs, nor any other commercial banking services on Nauru. Credit cards are not accepted, other than at the Menen Hotel where American Express and Diners Club cards may be used subject to a 5% surcharge.

Nauru is NOT a signatory to the International Drivers Licence agreement. It is not legal to drive a vehicle (or motorcycle of any size) without an appropriate local licence.

Australians travelling to Nauru are advised to consult the Smartraveller travel advice website.

 

Updated September 2009