)

elections: last held 9 April 2000 (next to be held NA April 2003)

election results: percent of vote - NA%; seats - independents 18

Judicial branch: Supreme Court

Political parties and leaders: loose multiparty system; Democratic
Party [Kennan ADEANG]; Nauru Party (informal) [Bernard DOWIYOGO]

Political pressure groups and leaders: NA

International organization participation: ACP, AsDB, C, ESCAP, ICAO,
Intelsat (nonsignatory user), Interpol, IOC, ITU, OPCW, Sparteca,
SPC, SPF, UN, UNESCO, UPU, WHO

Diplomatic representation in the US: Nauru does not have an embassy
in the US, but does have a UN office at 800 2nd Avenue, Suite 400 D,
New York, New York 10017; telephone: (212) 937-0074

consulate(s): Hagatna (Guam)

Diplomatic representation from the US: the US does not have an
embassy in Nauru; the US Ambassador to Fiji is accredited to Nauru

Flag description: blue with a narrow, horizontal, yellow stripe
across the center and a large white 12-pointed star below the stripe
on the hoist side; the star indicates the country's location in
relation to the Equator (the yellow stripe) and the 12 points
symbolize the 12 original tribes of Nauru

Nauru Economy

Economy - overview: Revenues of this tiny island have come from
exports of phosphates, but reserves are expected to be exhausted
within five to ten 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 freezing of 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 corpor