On the retirement of Kenas Aroi in December 1989, Bernard Dowiyogo became president. He went on to win the next presidential election, but in the November 1995 election was narrowly defeated by Lagumot Harris (nine votes to eight) who became president. In November 1996, there was an early general election which, due to a number of votes of no confidence, was followed by three changes of president in as many months.
Kinza Clodumar was elected president in a further general election in February 1997; he included two former presidents, Kennan Adeang (who was president for 14 days and then again for a few days) and Dowiyogo, in his cabinet and restored political stability. He served until he was defeated in a no-confidence vote in June 1998 when Dowiyogo again took over the leadership.
In April 1999 Dowiyogo was defeated in a vote of no confidence, ending his fifth presidential term of office, and René Harris was chosen by parliament to succeed him.
Following the general election in April 2000, the 18 newly elected members re-elected Harris as president. When he resigned a week later, Dowiyogo was chosen for the sixth time; he pledged to reform the offshore sector and former President Clodumar remained in the cabinet.
In March 2001, when Dowiyogo was in Australia undergoing medical treatment, he was narrowly defeated in a no-confidence vote of parliament; Harris was then chosen to succeed him.
By 2003 the country faced a severe financial crisis. The government was unable to pay salaries and was under pressure from OECD countries to regulate offshore banking and stop money-laundering. Having superseded Harris in January 2003, following a no-confidence vote, Dowiyogo died in March while on a visit to the USA, and an election was held in May, the first after formation of Nauru First party. After the election an impasse was reached with three presidential candidates, each supported by six members, and no candidates for the post of speaker, and it was three weeks before the Nauru First members gave their support to Ludwig Scotty. However, he retained the confidence of the MPs only until August 2003, when parliament chose Harris to resume as president.
In September 2004 Scotty was again elected to the presidency and an early general election was held in October 2004, observed by a joint Pacific Islands Forum/Commonwealth observer mission. The new parliament then elected Scotty unopposed as president.
In the general election in August 2007, Scotty’s supporters took 14 seats and MPs subsequently re-elected him as president. His opponent Marcus Stephen was supported by three members. Scotty’s third term lasted only 4 months as he was deposed in a vote of no confidence the following December. Marcus Stephen was summarily voted in as president.
In August 2001, the government agreed with the Australian Government – for an initial A$30 million – to accommodate some 1,000 mainly Afghan boat people while their eligibility for asylum in Australia was assessed. In October 2005 the Australian Government decided to bring 25 of the remaining 27 asylum-seekers to Australia . Only one asylum seeker remained on the island in mid-2006; but activity resumed with the transference of seven Burmese asylum seekers for assessment in September 2006 and a further 82 Sri Lankan refugees in March 2007. However, at the end of 2007, the new Australian Labor government indicated the camp will be closed.
Following the election of Marcus Stephen political turmoil continued with parliamentary opponents of his government allegedly blocking and filibustering his government’s proposals. Citing political paralysis, with both the government and the opposition holding nine MPs in an 18-member parliament, Stephen declared a state of emergency and dissolved parliament, calling for fresh elections to be held in the week that followed. In the elections held on 26 April 2008, supporters of Stephen assumed a clear majority, winning 12 of the 18 parliamentary seats, thereby ending months of political deadlock. On the parliament's first sitting on 29 April, Stephen was re-elected president.