Nauru's economic viability has historically rested on its phosphate reserves. Phosphate has been mined on the island since 1906. After its independence in 1968, this small Pacific nation generated healthy revenues from this lucrative—but finite—resource. The phosphate supply has been largely exhausted in recent years, and the economy has declined since its peak near 1980.
Offshore banking
In this regard, the government has tried to develop the island into an offshore financial centre, imitating the success of the Bahamas and other island nations around the world that have emerged as major offshore banking centres. The government has also invested in property on other islands and the United States through its Nauru Phosphate Royalties Trust.
Over the course of recent years, however, offshore banking institutions and instruments have come under increasing scrutiny by international bodies seeking to make international finance a more transparent system. Nauru, as a result, has been a casualty of this movement.
In December 1999, four major international banks banned dollar transactions with Nauru.[1] The United States Department of State issued a report identifying Nauru as a major money laundering centre, used by narcotics traffickers and organized crime figures.
Shifting governments
Nauru had 17changes of administration between 1989 and 2003.[2] President Bernard Dowiyogo was first elected in 1976 and served as President till 1978, he returned to that office in 1989, and was re-elected again in 1992.
A vote in parliament, however, forced him to yield power to Kinza Clodumar in 1995. Dowiyogo regained the presidency when the Clodumar government fell in mid-1998.
In April 2000, René Harris, former chairman of the Nauru Phosphate Corporation, became president as he briefly assembled support in parliament. Harris' attempt to put together an administration lasted for only a few days of parliamentary maneuvering. In the end, Harris proved unable to secure parliament's confidence, and Dowiyogo returned yet again to the presidency by the end of the month, taking office in April 2000 for his fourth and, after a minimal hiatus, fifth stints as Nauru's top executive.
Bernard Dowiyogo died in office in March 2003 and Ludwig Scotty was elected as the president, later being re-elected to serve a full term in October 2004.
Following a vote of no confidence on 19 December 2007, Scotty was replaced by Marcus Stephen. Stephen resigned in November 2011, and Freddie Pitcher became president. Sprent Dabwido then filed a motion of no confidence in Pitcher, resulting in him becoming president.[3][4] Following parliamentary elections in 2013, Baron Waqa was elected president. He held the presidential title six years from 2013 to 2019, but in January 2014 an institutional crisis occurred when the President started a systematic campaign of repression against the opposition and the judicial branch of the government.[5]
President Waqa was a strong supporter of Australia keeping refugees in a refugee camp on Nauru soil. He lost his parliamentary seat in the 2019 Nauruan parliamentary election, meaning he could not be re-elected.[6][7]
In August 2019 the parliament elected former human rights lawyer Lionel Aingimea as the new President of Nauru.[8]
Environmental concerns
Phosphate depletion will likely be one of the most important considerations for the government in the next few years as the supply is forecast to be exhausted by 2003. Since Nauru imports almost everything it consumes (including food, water and fuel) the need to diversify the economy and to generate other sources of revenue is of paramount importance.
As noted above, offshore banking has been one arena into which Nauru has traversed, however, the rewards are limited by growing concern about the ethical parameters of this business. Tourism is another industry that is also being gradually built.
Yet another concern is the ecological damage that resulted from a century of phosphate mining. Along with the United Kingdom, Australia and New Zealand were responsible for the large scale and indiscriminate mining of phosphate on the tiny island for most of the 20th century.
The mining left an ecological and economic disaster for Nauru to handle when the country achieved independence in 1968. Not only was the country's principal resource and employment generating activity almost entirely depleted by the rapid mining done by the three countries, the mining companies had also failed to follow the basic principles of restoring and regenerating the lands where mining had been completed. Thus, Nauru was left to handle the immense and expensive task of restoring large chunks of land which were destroyed by the mining.
Nauru demanded compensation from the three nations, but was refused. Finally, in 1993, Nauru was forced to turn to the International Court of Justice at The Hague in The Netherlands. It filed a claim of $73 million against the three countries. The case was soon afterwards settled out of court by Australia, with Britain and New Zealand also contributing to the reparations sought by Nauru.
Today, Nauru is almost totally dependent on trade with New Zealand, Australia and Fiji. Arable land is very limited as are all other natural resources, now that its long-time economic base of phosphate mines has been almost completely depleted.
Foreign policy
On the international front, in late July 2002, Taiwan cut its diplomatic ties with Nauru. Taiwan and Nauru had shared diplomatic ties for 22 years; Taiwan has enjoyed diplomatic ties with several Pacific countries even in the face of the "One China policy" by Beijing. Nevertheless, this particular 22-year-long legacy was broken when Nauru's president decided to change its allegiance and establish formal relations with the People's Republic of China. The move effectively shifted diplomatic recognition from Taipei to Beijing, thus angering the government of Taiwan, which described the shift in policy as "reckless."
Nauru's decision to recognise Beijing via the signing of diplomatic papers and a joint communique ultimately resulted in the cessation of Taiwanese aid. Nauru instead received a US$150 million aid package from Beijing.
In April 2005, during a state visit to the Marshall Islands, President Chen Shui-bian of Taiwan met and spoke with the Nauruan President Ludwig Scotty. On 14 May 2005, the two countries signed the necessary documents to restore formal ties and reopen embassies.[9] The People's Republic of China consequently severed ties two weeks later on 31 May.
Internal disputes
In early 2003, a fight for power emerged between President Rene Harris and former President Bernard Dowiyogo. The power struggle occurred following a non-confidence vote in parliament, which effectively ejected Harris from the position of president. Reports suggested that Harris was ousted because of rising anxieties regarding economic mismanagement. At the time, Dowiyogo referred to Nauru's political scenario as being "critical."
It was reported that Dowiyogo became the president replacing Harris, however, information surrounding the shift in power was sparse. There was very little international coverage of the matter. Regardless, Dowiyogo's tenure did not last for long. In March 2003, Dowiyogo had heart surgery in the United States and died.
2003 – present
In May 2003, elections were held within the parliament to select a new president. In those elections, Ludwig Scotty gained the most support and became the new president. The actual results of the parliamentary vote were as follows: Ludwig Scotty—10 parliamentary votes, Kinza Clodumar—7 parliamentary votes. President Scotty became president on 29 May 2003. He served only until August 2003 when he was ousted in a non-confidence measure. Rene Harris was elected as president.
In late June 2004, Nauru's former parliament speaker Ludwig Scotty became the country's new president. His presidency followed the exit of outgoing President Rene Harris following yet another non-confidence measure.
For his part, Scotty had resigned as parliamentary speaker in April 2004 in protest of the Nauru's financial crisis which included the commencement of receivership proceedings by corporate giant, General Electric. During that period, Nauru faced the seizure of its assets if the country failed to honour its debt payments.
Since Scotty's resignation as parliamentary speaker, the parliament was unable to convene as members of parliament could not decide whom to appoint as his replacement. The scenario led to a political crisis, the financial crisis notwithstanding.
In mid-2004, the government of Australia sent envoys to help Nauru deal with its financial crisis. By August 2004, a report by the Australian Centre for Independent Studies suggested that Nauru might consider relinquishing its independent status in favor of becoming an Australian territory. The report called for radical economic reform as well as the restructuring of both governmental instruments and public service. The author of the report has offered Nauru economic advice in the past.[10]
Scotty was re-elected to serve a full term in October 2004. Following a vote of "no confidence" by Parliament against President Scotty on 19 December 2007, Marcus Stephen became the President. Following Stephen's resignation in November 2011, Freddie Pitcher became President. Sprent Dabwido then moved a motion of no confidence in Pitcher, and Dabwido was duly elected President by the parliament, with nine votes supporting his nomination and eight votes opposing.
Elections for Parliament were held in 2013, after which Baron Waqa was elected by Parliament as President. He held the presidential title six years from 2013 to 2019. President Waqa was a strong supporter of Australia keeping refugees in a refugee camp on Nauru soil. The incumbent president lost his parliamentary seat in 2019 Nauruan parliamentary election, meaning he lost his bid for re-election.[11][12] In August 2019 the parliament elected former human rights lawyer Lionel Aingimea as the new President of Nauru.[13] Following the 2022 Nauruan parliamentary election, Russ Kun was elected president to succeed Aingimea.[14] On 30 October 2023, David Ranibok Adeang was elected President of the Republic of Nauru.[15]
In January 2014, Nauru's President Baron Waqa fired the country's only magistrate Peter Law[16] and its Chief Justice Geoffrey Eames (both Australian-based justices). Eames, himself, was fired after issuing an injunction to temporarily halt Law's deportation.[17][18]
In May and June 2014, Waqa suspended 5 of the 7 members of Nauru's Opposition from Parliament indefinitely.[19]
Three of the MPs, Mathew Batsiua, Kieren Keke and Roland Kun, were suspended in May 2014 for making comments to international media critical of the government and the alleged breakdown of the rule of law.[20] Another two, Sprent Dabwido (a former president) and Squire Jeremiah were suspended a month later for behaving in an unruly manner.[21]
In June 2015, Jeremiah, Dabwido, and Batsiua were arrested and Kun had his passport cancelled amid claims that they had been trying to destabilize the Government by talking to foreign media.[22][23]
A series of no-confidence votes, resignations and elections between 1999 and 2003 saw René Harris and Bernard Dowiyogo as President for numerous short periods during a period of political instability. Dowigoyo died in office on 10 March 2003, in Washington, D.C., after heart surgery. Ludwig Scotty was elected President on 29 May 2003, but this did not bring to an end the years of political uncertainty as he was replaced by Harris a few months later. Scotty regained the presidency in 2004, only to be ousted in a vote of no confidence in 2007.[24]
Legislative branch
Nauru parliament
Parliament has 19 members, elected for a three-year term in multi-seat constituencies. Each constituency returns 2 members to the Nauruan Parliament, except for Meneng and Ubenide which returns 3 and 4 respectively. Voting is compulsory for all citizens aged 20 or more.
Nauru does not have a formal structure for political parties; candidates typically stand as independents. 15 of the 18 members of the current parliament are independents, and alliances within the government are often formed on the basis of extended family ties.[25] Four parties that have been active in Nauruan politics are the Nauru Party, the Democratic Party, Nauru First and the Centre Party.
For its size, Nauru has a complex legal system.[26] The Supreme Court, headed by the Chief Justice, is paramount on constitutional issues. Other cases can be appealed to the two-judge Appellate Court. Parliament cannot overturn court decisions, but Appellate Court rulings can be appealed to the High Court of Australia; in practice, 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.[26]
Local government
Since 1992, local government has been the responsibility of the Nauru Island Council (NIC). The NIC has limited powers and functions as an advisor to the national government on local matters. The role of the NIC is to concentrate its efforts on local activities relevant to Nauruans. An elected member of the Nauru Island Council cannot simultaneously be a member of parliament. Land tenure in Nauru is unusual: all Nauruans have certain rights to all land on the island, which is owned by individuals and family groups; government and corporate entities do not own land and must enter into a lease arrangement with the landowners to use land. Non-Nauruans cannot own lands.
Armed forces
Australia is responsible for Nauru's defense under an informal agreement between the two countries. However, there is a 100-person regular police force under civilian command, backed by volunteer reservists trained to provide support in the event of serious unrest. While officers are typically unarmed while on routine patrol, the Nauruan police force does possess 60 firearms.[27][28][29][30]
The history of human activity in Nauru, an island country in the Pacific Ocean, began roughly 3,000 years ago when clans settled the island.
Ludwig Derangadage Scotty is a Nauruan politician who twice served as President of Nauru and was Speaker of Parliament five times between 2000 and 2016. He served as president from 29 May 2003 to 8 August 2003 and again from 22 June 2004 until his ousting in a vote of no confidence on 19 December 2007. He was elected as president in 2003, again from November 2010 to April 2013, and from June 2013 to June 2016.
René Reynaldo Harris was President of the Republic of Nauru four times between 1999 and 2004. He was a Member of Parliament from 1977 to 2008.
Nauru First is the only formal political party in Nauru.
Kieren Aedogan Ankwong Keke is a Nauruan politician and medical doctor. He is a member of the Parliament of Nauru and former Minister of Finance and Minister of Foreign Affairs.
Kinza Godfrey Clodumar was a Nauruan politician who served as President of Nauru from 1997 to 1998.
David Ranibok Waiau Adeang is a Nauruan politician, currently serving as President of Nauru. Adeang is the former Speaker of the Parliament of Nauru, and Nauru's Minister of Finance and Justice, as well as the Minister Assisting the President of Nauru.
Marcus Ajemada Stephen is a Nauruan politician and former sportsperson who previously was a member of the Cabinet of Nauru, and who served as President of Nauru from December 2007 to November 2011. The son of Nauruan parliamentarian Lawrence Stephen, Stephen was educated at St Bedes College and RMIT University in Victoria, Australia. Initially playing Australian rules football, he opted to pursue the sport of weightlifting, in which he represented Nauru at the Summer Olympics and Commonwealth Games between 1990 and 2002, winning seven Commonwealth gold medals.
The Parliament of Nauru has 19 members, elected for a three-year term in multi-seat constituencies. The President of Nauru is elected by the members of the Parliament. The number of seats was increased to 19 following elections in 2013.
Derog Gioura was a Nauruan political figure. He was President of the Republic of Nauru (acting) in 2003.
Frederick William Pitcher is a Nauruan political figure. In December 2007, Pitcher was appointed Minister of Finance of Nauru, to serve in the Administration of President Marcus Stephen.
Roland Tullen Kun is a Nauruan politician and Member of Parliament.
Baron Divavesi Waqa is a Nauruan politician who was President of Nauru from 11 June 2013 until 27 August 2019. He previously served as Minister of Education from 2004 to 2007.
Sprent Arumogo Dabwido was a Nauruan politician who served as President of Nauru between 2011 and 2013, and was also a weightlifter. The son of a parliamentarian, Dabwido was originally elected to the Meneng Constituency in the Parliament of Nauru at the 2004 elections. Having served as Minister for Telecommunications in Marcus Stephen's government from 2009, Dabwido joined the Nauruan opposition faction in November 2011 after Stephen's resignation, and, having passed a motion of no confidence against interim president Freddie Pitcher, was elected president four days later. In his role as president, Dabwido functioned as chairman of the Cabinet of Nauru, and held various portfolios in the Nauruan government.
Topics related to Nauru include:
Parliamentary elections were held in Nauru on 3 May 2003 to elect members of the Parliament of Nauru. The election took place with Nauru having economic difficulties and a large budget deficit. This was the main issue in the election, which followed a period where a number of presidents had been elected for short periods of time. However the election resulted in deadlock for several weeks afterwards, with parliament divided between three candidates for president. It was only at the end of May that Ludwig Scotty was elected as the new president of Nauru and was able to form a new government.
Parliamentary elections were held in Nauru on 8 June 2013. After Parliament was dissolved on 1 March, the elections were set for 6 April. However, a Supreme Court ruling annulled the dissolution and cancelled the elections. Parliament was dissolved again on 23 May, approximately one month before the normal end of its mandate, and elections were set for 22 June 2013, however President Sprent Dabwido declared a state of emergency and brought the election forward to 8 June. Parliament first sat on June 11 and Fisheries Minister Baron Waqa, the leader of the government forces, was elected president.
Parliamentary elections were held in Nauru on 9 July 2016. Parliament was dissolved by President Baron Waqa on 10 June after it completed its three-year term. Speaker Ludwig Scotty called the elections for 9 July, with nominations taking place between 19 and 25 June.
Parliamentary elections were held in Nauru on 24 September 2022 to elect all 19 members of parliament. All candidates were elected on a non-partisan basis. Following the election, Russ Kun, a member of parliament for Ubenide, was elected president by parliament.
↑ The Guardian – Nauru Suspends Two More Opposition MPs – 5 June 2015http://www.theguardian.com/world/2014/jun/05/nauru-suspends-two-more-opposition-mps Nauru suspends two more opposition MPs ahead of budget hand down
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