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Tuesday, 26 October, 2004, 10:02 GMT 11:02 UK

Nauru reformist re-elected leader

By Phil Mercer
BBC

Nauru government headquarters The troubled South Pacific island of Nauru has re-elected Ludwig Scotty as president.

Mr Scotty was elected unopposed by parliament, which met after a general election was held on Saturday.

His reformist government has promised to stamp out corruption in the world's smallest independent republic.

Nauru, with a population of 13,000, is facing bankruptcy after a phosphate mining boom ended with disastrous consequences.

Mr Scotty's victory in the weekend's elections has the potential to give Nauru its most stable administration in years.

In the last 18 months, the debt-ridden island has seen three governments come and go.

Serious reform could now be on the way. A tough budget is likely to be presented to the 18-member parliament in the coming days.

It is expected to be the first step in restructuring the nation's chaotic finances as it struggles to avoid bankruptcy.

Not so long ago, Nauru was one of the world's wealthiest countries. It grew rich on what were abundant reserves of phosphate, which were of high quality and worth a fortune. The money has now disappeared.

Years of alleged corruption and mismanagement has seen Nauru slide into debt.

Successive governments sought to reverse the decline through various catastrophic business ventures, which only made matters worse.



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Related to this story:
Nauru vote helps President (25 Oct 04  |  Asia-Pacific )
Australia takes control in Nauru (26 Jul 04  |  Business )
Nauru gets new leader (22 Jun 04  |  Asia-Pacific )
Cash-strapped Nauru wins bail-out (04 May 04  |  Business )
Country profile: Nauru (31 Jan 03  |  Country profiles )
Timeline: Nauru (18 Feb 03  |  Asia-Pacific )

RELATED INTERNET LINKS:
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