How Nauru squandered its staggering fortune and ended up bankrupt
N ot too long ago, the once idyllic nation of Nauru was actually the world’s wealthiest – before its staggering and surprising fortune was squandered, leaving the republic essentially bankrupt. Phosphate – a valuable substance commonly used in fertiliser – was first discovered on Nauru around 1900, when it was under German rule. It didn’t take long before the resource was “exploited” by the Pacific Phosphate Company and then the British Phosphate Commission after World War 1, when it was administered by Australia, New Zealand and the United Kingdom. According to the Australian National University’s Dr Stewart Firth – an expert in the Pacific region – phosphate was dug up and “spread across fields in Australia and New Zealand” in a “very exploitative arrangement” which barely benefited locals. Then, in 1968, Nauru – which is just 20.98 km² and located 4000km northeast of Sydney – gained independence, meaning it had control over its resources for the first time. Dr Firth said what happen...