Demographics

The population of Nauru was estimated at 14 540 for 2007, about 34.6% below 15 years of age and around 5% 65 years and above.

Political situation

The 18-member Parliament is elected every three years. The Parliament elects a President from among its members, who appoints a Cabinet of five to six people. The President is both head of state and head of government. On 18 April 2008, President Stephen declared a state of emergency and dissolved Parliament. This action was prompted by a stalemate in Parliament over the Speaker’s introduction of a Bill to ban Members of Parliament holding dual citizenship. The last election was held on 26 April 2008 and President Stephen was re-elected.

Socioeconomic situation

Until recently, Nauru was a self-reliant country. Traditionally, revenues of this tiny island have come from exports of phosphate. At the height of phosphate mining activities, the country’s gross domestic product (GDP) was one of the highest in the Pacific and living standards were comparable with those of high income countries. However, phosphate reserves are expected to be exhausted soon, and the drastic decline in phosphate revenue has been followed first by a decrease in disposable income, and then by aid-dependence.

The rehabilitation of mined land and the replacement of income from phosphate are serious long-term challenges. In anticipation of the exhaustion of Nauru’s phosphate deposits, substantial amounts of phosphate income were invested in trust funds to help cushion the transition and provide for the country’s economic future. As a result of heavy spending from the trust funds, however, the Government is facing bankruptcy. To cut costs, the Government has frozen wages and reduced overstaffed public service departments.

There are few resources other than phosphate. The central plateau has limited agricultural value, but some 202-243 hectares, mainly around the costal belt, are available for cultivation. Coconut, banana and papaya are the main fruit crops and small quantities of vegetables are also grown. However, cultivated crops are for home consumption only and, apart from fish, most food is imported from Australia, including water. There are frequent disruptions of supplies of food, fuel, equipment and materials.

In 2001, a group of Afghani refugees rescued at sea was transferred to a camp on Nauru in exchange for a multimillion dollar aid package from Australia. Use of Nauru’s isolated location and its Offshore Processing Centre was discontinued in February 2008 following a change in Australia’s policy of holding asylum seekers on Nauru. Already heavily dependent on foreign support, mainly from Australia and Taiwan (China), Nauru has expressed a need for extra support now that Australia’s Offshore Processing Centre has been closed.

Vulnerabilites and hazards

Nauru is particularly vulnerable due to its isolation, with overdependence on the national air carrier and its single aircraft. The lack of a safe harbour for berthing of ships hinders marine transportation links beyond container freight and phosphate carriers.

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