Region:
Oceania-Micronesia
Capital:
Yaren District
Population:
12,809 (July
2004 est.)
Surface
area:
21 sq km
Currency:
Australian dollar
GDP
per capita:
purchasing power
parity - $5,000
(2001 est.)
Background:
Nauru's phosphate
deposits began
to be mined early
in the 20th century
by a German-British
consortium; the
island was occupied
by Australian
forces in World
War I. Nauru
achieved independence
in 1968 and joined
the UN in 1999.
Nauru is the
world's smallest
independent republic.
Economy
– Overview
Revenues of this
tiny island have
come from exports
of phosphates,
but reserves
are expected
to be exhausted
within a few
years. Phosphate
production has
declined since
1989, as demand
has fallen in
traditional markets
and as the marginal
cost of extracting
the remaining
phosphate increases,
making it less
internationally
competitive.
While phosphates
have given Nauruans
one of the highest
per capita incomes
in the Third
World, few other
resources exist
with most necessities
being imported,
including fresh
water from Australia.
The rehabilitation
of mined land
and the replacement
of income from
phosphates are
serious long-term
problems. In
anticipation
of the exhaustion
of Nauru's phosphate
deposits, substantial
amounts of phosphate
income have been
invested in trust
funds to help
cushion the transition
and provide for
Nauru's economic
future. The government
has been borrowing
heavily from
the trusts to
finance fiscal
deficits. To
cut costs the
government has
called for a
freeze on wages,
a reduction of
over-staffed
public service
departments,
privatization
of numerous government
agencies, and
closure of some
overseas consulates.
In recent years
Nauru has encouraged
the registration
of offshore banks
and corporations.
Tens of billions
of dollars have
been channeled
through their
accounts. Few
comprehensive
statistics on
the Nauru economy
exist, with estimates
of Nauru's GDP
varying widely.
United
Nations membership
date:
14 September
1999
New
York Mission:
Permanent Mission
of Nauru to the
United Nations
800 Second Ave,
Suite 400D
New York, N.Y.
10017 USA
Telephone: 212-937-0074
Fax: 212-937-0079
Website: http://www.un.int/nauru
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