Freedom in the World 2001 - Nauru

2001 Scores

Status: Free
Freedom Rating: 2.0
Civil Liberties: 3
Political Rights: 1

Overview

Depletion of phosphates, the country's main foreign exchange earner for nearly a century, compels the government to develop alternative industries, one of which is to make Nauru into an offshore banking center. Lack of legal controls, however, has allegedly invited the inflow of money from questionable sources for money-laundering purpose. One estimate puts at least $70 million from Russia alone. At the end of 1999, the Group of 7, a grouping of the major industrialized countries, had decided to put Nauru and other Pacific Islands on a blacklist. The Nauruan government refused to answer to these accusations until four U.S. banks imposed a ban on U.S. dollar trade with the island in January 2000. In exchange for a lifting of the ban, the Nauruan government agreed to institute new banking laws and conduct closer monitoring of banking activities.

Nauru, an eight-square-mile island 1,600 miles northeast of New Zealand in the west-central Pacific, became a German protectorate in the 1880s. Following World War I, Australia administered the island under a League of Nations mandate. The Japanese occupied Nauru during World War II, shipping 1,200 Nauru islanders to the island of Truk to work as forced laborers. In 1947, Nauru was made a United Nations Trust Territory under Australian administration. Greater autonomy was granted in 1966 with the election of a parliament, which was responsible for all matters except defense, foreign affairs, and the local phosphate industry. The country achieved full independence in 1968, and Hammer DeRoburt, who had been head chief of Nauru since 1956, became the first president in May 1968. Intense personal rivalries in the tiny, faction-ridden parliament have resulted in several changes of government in the last five years.

Nauru officially became a member of the United Nations in July 1999. China tried to block its entry because of Nauru's diplomatic relations with Taiwan, a major aid donor and investor in the island country. Nauru became a member country of the Commonwealth in May 1999, and was among the first to recognize the independence of West Papau, formerly Indonesia's Irian Jaya province.

In July 2000, Bernard Dowiyogo won back the presidency from Rene Harris in a close run in the 18-member parliament. Harris had held the presidency for only six days after beating Dowiyogo by a single vote in the April elections.

Phosphate mining gave Nauru a high per capita income but 90 years of phosphate mining has left 80 percent of the land uninhabitable. In 1989, Nauru sued Australia in the International Court of Justice for additional royalties for mining done during the trusteeship period. Nauru also claimed that Australia sold the phosphates domestically below world market prices; and sought compensation for physical devastation done to the island. Australia agreed to pay $70.4 million over 20 years in an out-of-court settlement reached in 1993.

Phosphate will likely to become exhausted in the next 8 to 12 years. Future generations will draw income from the government's Nauru Phosphate Royalties Trust, but the trust lost millions of dollars through failed investments, speculation in the Tokyo stock market, and international financial scams. The government has carried out fiscal austerity programs, which have drastically reduced budgets, and is seeking ways to create new industries.

Political Rights and Civil Liberties

Citizens of Nauru can change their government democratically. The 1968 republican constitution provides for an 18-member parliament, representing 14 constituencies, directly elected for a three-year term. Parliament elects the president, who serves as head of state and head of government, from among its members. An elected Nauru Island Council serves as the local government and provides public services. All changes in government have occurred peacefully and in accordance with the constitution, and multiple candidates competed in recent parliamentary elections. There have been ad hoc political parties since independence, but politics is generally based on personal loyalties and occasionally on issue-based coalitions.

The government respects freedom of speech and the press. There is no regular independent news publication, but the government puts out information bulletins. The state owns Radio Nauru, which carries Radio Australia and BBC broadcasts, and the local Nauru TV.

Freedom of religion is respected in law and in practice. Freedom of assembly and association is respected. Workers have the constitutional right to form independent unions, but successive governments have generally discouraged labor organizing and no trade unions have formed. The private sector employs only one percent of all salaried workers. There is no legal basis for collective bargaining or holding strikes, and these activities rarely occur in practice.

The judiciary is independent and the right to public trial is upheld. Many cases are settled out of court through traditional mediation procedures. The police force is less than 100 members and is under civilian control. Some foreign workers have alleged that they receive inferior police protection compared to Nauruan citizens.

Citizens enjoy freedom of domestic and foreign travel. Foreign workers must apply to their employers for permission to leave the country during the period of their employment contracts. Those who leave without permission are likely to lose their jobs. A law requiring foreign workers who are fired to leave the country within 60 days has created serious hardship for many foreign workers. Women legally possess the same rights as men, but they continue to face discrimination in education and employment.