THE REPUBLIC OF NAURU

Nauru is a small oval-shaped island in the western Pacific Ocean. It lies 42km (26 miles) south of the equator, and its nearest neighbour is Ocean Island (Banaba, part of Kiribati), 305km (190 miles) to the east. It is 4,000km from Sydney.

ECONOMIC PROFILE

Socio-economic, recent economic activity, and issues. (In PDF Document Format)

Capital: Owing to its small size, Nauru has no capital. Government offices are in Yaren district.

Area: Total land area 21.3 sq km (8.2 sq miles).

Topography: Phosphate mining in the central plateau has left a barren terrain of jagged coral pinnacles, up to 15m (49ft) high. A century of mining has stripped four-fifths of the land area. The island is surrounded by a coral reef, exposed at low tide and dotted with pinnacles. The island has a fertile coastal strip 150-300m (492-984ft) wide. Coral cliffs surround the central plateau. The highest point of the plateau is 65m (213ft) above sea level.

Climate: The climate is tropical, with sea breezes. North-east trade winds blow from March to October. Day temperatures range from 24 to 34ºC; average humidity is 80%. Rainfall is erratic but often heavy; average annual rainfall is 2,060mm. The monsoon season is November to February. If global warming causes sea levels to rise, the habitable low-lying land areas will be at risk from tidal surges and flooding.

Vegetation: The only presently fertile areas are the narrow coastal belt, where there are coconut palms, pandanus trees, and the land surrounding Buada lagoon, where bananas, and some vegetables are grown. Some secondary vegetation grows over the coral pinnacles.

Wildlife: Many indigenous birds have disappeared or become rare, owing to destruction of their habitat, notably the noddy or black tern. Frigate birds have traditionally been caught and tamed.

Environmental Concerns: With the destruction of the forested areas on the plateau land to enable phosphate mining, climate changes have been noted with extensive dry periods. Increased population over the past forty years has put extreme pressure on the small coastal fringe surrounding the island which is currently the only available space for housing. It is expected that cleared areas on topside where the mining has taken place will be developed for housing, public utilities and recreational facilities.

Airline: Nauru's national airline is Air Nauru. The airline is now a statutory corporation, the Nauru Air Corporation (NAC). From Nauru, the airline for over twenty five years has served the Central Pacific, particularly, Guam, Manila, Pohnpei, Tarawa and Fiji with services to Brisbane and Melbourne in Australia. It flies a Boeing 737-400. Recent changes to the schedule has resulted in the suspension of services to Pohnpei, Guam and Manila.

Economy: Nauru's economy has been based on phosphate mining, but reserves are at the point of exhaustion, and the country is having to look at other sources of income for survival. The government aims to restructure the physical economy, basing it on shipping and air services, fishing, tourism and provision of international financial services. Phosphate revenues have given Nauru in the past a high per capita income. However, the cost of living is high, as the country is dependent on imports for basic necessities: most foodstuffs, consumer and capital goods are imported. Very few Nauruans work abroad or reside permanently off the island.

Review by the Asian Development Bank (ADB) in 1997/98 has seen a remarkable drop in the GNP Per Capita of Nauru to US$2,800.00.

Investment: Overseas investment has been particularly significant as past surpluses from the phosphate industry have been invested abroad in various funds by the Nauru Phosphate Royalties Trust to provide income when the phosphate runs out. The management of these funds has for years been one of the major political issues on the island. Island investment will become more significant with the decline in mining. So far as the provision of international financial services, the Nauru Agency Corporation assists overseas entrepreneurs in the registration of holding and trading corporations and in obtaining banking, trust and insurance licences under Nauru Corporation legislation.

Following teh listing of Nauru by FATF/OECD as a non-cooperating country on money-laundering, the Government of Nauru passed legislation in 2003 terminating the licensing of offshore banks by any Nauruan entity as well as passing an anti-money laundering law that is in compliance with international standards.

Trade: Food and live animals, machinery and transport equipment and manufactures are imported, mainly from Australia and New Zealand. The only export is phosphate, mainly to Australia, New Zealand, India, Philippines and Republic of Korea.

Public Holidays: Nauru's most interesting public holiday is Angam Day (26 October). The word Angam means homecoming and this day commemorates the various times in history when the size of the Nauruan population has returned to 1,500, which is thought to be the minimum number necessary for survival. Other public holidays are New Year's Day (1 January), Independence Day (31 January), Good Friday, Easter Monday, Easter Tuesday, Constitution Day (17 May), National Youth Day (25 September), Christmas Day and Boxing Day (25 and 26 December).

Head of Government: The President, in his capacity as Chairman of Cabinet. The President elects at least three (3) but no more than five (5) members of Parliament to form the Cabinet, and it is the Cabinet that has collective responsibility on governing the affairs of the Republic.

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Central and Southwestern end of the island