LYCOS RETRIEVER 
New Caledonia
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New Caledonia has been on a United Nations list of non-self-governing territories since 1986. This list includes such places as the American Samoa, the British Falkland Islands and the New Zealand territory of Tokelau, but noticeably it does not include places like Tibet or West Papua, which has led to its reputation as a politically biased list. Agitation by the Front de Libération Nationale Kanak Socialiste (FLNKS) for independence began in 1985. The FLNKS (led by the late Jean-Marie Tjibaou, assassinated in 1989) advocated the creation of an independent state of 'Kanaky'. The troubles culminated in 1988 with a bloody hostage taking in Ouvéa. The unrest led to agreement on increased autonomy in the Matignon Accords of 1988 and the Nouméa Accord of 1998.
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New Caledonia is one of the smallest hotspots in the world (the size of New Jersey). This group of islands is located in the South Pacific at the southern extremity of the Melanesian region, 1,200 kilometers east of Australia. Until recently a French Overseas Territory, New Caledonia is now in the process of becoming an Overseas Country, with substantial political autonomy that stops short of full independence. The region's 18,972 km² consist of the main island of Grande Terre and the smaller Loyalty Islands to the east, Belep and Surprise Islands to the north and Isle of Pines to the south. The Chesterfield Islands further to the west, and the uninhabited volcanic islands of Matthew and Hunter to the east, which are politically dependent on New Caledonia are included, though their value for terrestrial biodiversity is limited.
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In relation to its population, New Caledonia has one of the largest economies in the Pacific Island region, boasting a slightly higher GDP per capita than NewZealand though there are significant disparities in income distribution. Large financial transfers from the French Government sustain the public sector. About half of this goes towards public service salaries, with the balance directed predominantly to health, education and special development projects, mostly in the Northern and Islands Provinces. New Caledonia applies a number of trade barriers to protect local industry and employment. A preferential tariff regime for the entry of EU-origin products remains. New Caledonia consistently runs a trade deficit.
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New Caledonia has about 25% of the world's known nickel resources. In recent years, the economy has suffered because of depressed international demand for nickel, the principal source of export earnings. Only a small amount of the land is suitable for cultivation, and food accounts for about 20% of imports. In addition to nickel, the substantial financial support from France and tourism are keys to the health of the economy. The situation in 1998 was clouded by the spillover of financial problems in East Asia and by lower prices for nickel. Nickel prices jumped in 1999-2000, and large additions were made to capacity.
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New Caledonia's ecosystems include several natural vegetation types. Evergreen rain forests, which once covered about 70 percent of the area, are now confined to a few scattered pockets in the central mountains. In drier areas on the western coast, there are a few small patches left of sclerophyllous forest. Maquis shrubland dominates the southern third of the island, at both high and low altitudes. High-altitude maquis occupies most of its original extent of around 100 km², while low-altitude maquis is now the most extensive natural formation in the country. This formation once occupied only about 5 percent of the country, but has now expanded, largely as a result of fire disturbance, to cover some 4,400 km², or 23 percent of New Caledonia.
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The Kanaks, the indigenous Melanesian people of New Caledonia, originally settled New Caledonia over 6000 years ago. These first settlers probably migrated from New Guinea and Vanuatu. Polynesian groups added to the remarkable cultural diversity of New Caledonia by later settling in the Loyalty Islands. Kanak traditional society was based on subsistence agriculture and there are now 341 tribal groupings. Prior to European contact, the population was estimated at 60,000. According to the 1996 Census, there are 86,788 Kanaks living in New Caledonia.
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New Caledonia