A Dark History of the World’s Smallest Island Nation

Like few places on the planet, the island of Nauru is distant from Europe. Any European had the opportunity to catch sight of the island when a British ship named the Snow Hunter was passing through on its way to the China Seas on November 8, 1798. The sailors were met by numerous Nauruans who paddled out in canoes. The captain of the Snow Hunter, John Fearn, did not allow his crew to go ashore, and no Nauruans ventured on board. Nevertheless, Captain Fearn was captivated by the warm reception, as well as the pleasant breezes, the lush central plateau of the island, the swaying palm trees, and the pristine sandy beaches. His admiration for the island led him to name it Pleasant Island.

But despite the dark omens of the times ahead, the English-speaking world did not let this upset their stability. The island of Nauru, known as Fearn’s Captain, managed to live in a largely self-sufficient and isolated nature, maintaining a balance with societal acrimony. For thousands of years, the Nauruans were able to navigate their way through the shallow and brackish lagoon, relying on the limited water surface of the island. However, they would suffer greatly from the light rainfall throughout the year. Any disputes among Nauru’s 12 clans, both then and now, ran deep. Despite this, life on the small island was mostly predictable and peaceful. But when the motley crew of Hunter’s Snow arrived, the sight and stench of their presence must have been quite a shock to the Nauruans.

Murder and Mayhem

In 1841, they exiled him to Banaba, an island located 185 miles east of Nauru. However, Jones eventually fell out with the Nauruan chiefs after blaming them for his murders. Despite this, he stayed on the outskirts of Nauruan society, brokering deals with passing ships to trade rifles, liquor, and tobacco for coconuts and pigs. Jones ruled the Nauruan beaches with brutality, murdering at least a dozen beachcombers. Life for the Nauruan beachcombers was likely happy-go-lucky, imagining a carefree and easygoing existence similar to that of John Harris, a fugitive from Norfolk Island who came to Nauru in the early 1830s. Initially, Jones lived as a beachcomber, hiding out in the South Pacific, likely alongside deserters and convicts. He enjoyed a relaxed and carefree life, not searching for sandalwood logs, spices, gold, diamonds, or pearls. After escaping the British penal colony on Norfolk Island and arriving in Nauru in 1842, Harris William did not venture to Australia, which was approximately 900 miles to the east.

Harris William was fortunate to arrive in Nauru after Jones had cast off the island, like other beachcombers who had helped the Nauruans barter with passing Europeans. He took a different approach to integrate into their society by marrying a Nauruan and raising a large family, witnessing unimaginable ways of life changes on the island for nearly 50 years.

“All crew members consistently intoxicated: no fresh produce or vegetables to be acquired, only pigs and coconuts,” the captain relayed to his fleet. “A fugitive convict reigns,” the captain notified the flagship as Harris embarked to inform the captain that a civil war had erupted on the island. In 1881, the British Royal Navy dropped anchor off the coast of Nauru. Skirmishes escalated into massacres and neighbors slaughtered each other, while traditional methods of conflict resolution proved ineffective in quelling the escalating disputes between clans and families. Retributions were swift and deadly as Nauru descended into violence following the shooting and death of a chief during an intoxicated altercation. Nauruans were heavily indulging in smoking and drinking (particularly sour toddy, produced by fermenting coconut blossoms), and firearms were prevalent in households across the island by the 1870s.

If he were able to find the origin, he would quickly uncover that it was indeed high-quality phosphate ore, an extraordinary fertilizer with the potential to be extremely valuable. However, this did not appear to be correct to Ellis. He had been informed that it was a piece of fossilized wood from Nauru. Then, in 1899, the geologist Albert Ellis examined a rock-like entity that was holding a door open in the Sydney office of the Pacific Islands Company, a trading and plantation company. During that period, Nauru held little significance for the colonial powers competing in the Pacific.

The Phosphate Rush

Lime phosphate was abundant in the elevated central plateau known as “Topside” by the people of Nauru– Ellis discovered the whole island, which consisted of 80 percent lime phosphate, while sailing to Nauru in 1901. The Pacific Islands Company underwent a name change to the Pacific Phosphate Company, and in 1905, a deal was struck with Germany to extract phosphate from Nauru. One year later, the initial shipment of Nauruan phosphate would be lost in a storm off the coast of Australia. However, this setback did not discourage the miners, and over the following decade, Nauru would export hundreds of thousands of tons of phosphate.

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The Nauruans never built homes on Topside, as they preferred the cooler shoreline; however, Topside was home to wild almond and planted pandanus trees, as well as various bird species, including terns, noddies, and frigatebirds. Miners cleared the scrub, ferns, and trees, scraped away the topsoil, and then extracted the ore from the pits and crevices of the ancient coral beneath. Little attention was paid to preservation. Photographer Rosamond Dobson Rhone, writing in 1921 for National Geographic Magazine, vividly describes the aftermath of a depleted phosphate field as a desolate and eerie expanse of land, characterized by numerous upright white coral pinnacles ranging from ten to thirty feet in height, along with cavernous depths filled with broken coral, abandoned tram tracks, discarded phosphate baskets, and rusted American kerosene tins.

“A worked-out phosphate field is a dismal, ghastly tract of land … its cavernous depths littered with broken coral, abandoned tram tracks, discarded phosphate baskets, and rusted American kerosene tins.”

During the early 1920s, Australia declared Nauru as an offshore mining site after capturing it from Germany at the start of World War I. It then began to focus on ramping up exports and building mining infrastructure, mechanizing mining, and subsidizing farmers in Britain, New Zealand, and Australia, forming a triumvirate of nations organized by the British Commissioners of Phosphate. Nauru was able to export around 200,000 metric tons of phosphate per year, priced well below the global average, which was more than four times higher during the following decades.

The mining of phosphate in Nauru was temporarily halted in 1942 after it was invaded by Japan. The Japanese troops were ruthless, committing mass drownings, forced labor camps, summary executions, and beatings of people with leprosy. A quarter of the Nauruan people had died, and by the end of the war in 1945, there were fewer than 600 Nauruans remaining on the island. After the war, Nauru was placed under a “trusteeship” by the United Nations, with New Zealand, Australia, and Britain administering the island again, primarily with Australia.

The Nauruan phosphate industry was immediately revived and exports were higher than ever in the few years that followed. Over the next two decades, exports steadily rose as farmers in New Zealand and Australia continued to pay far below market prices. From the time Nauru gained independence in 1968 until 1963, the shores of the island had more than 35 million metric tons of phosphate left, enough to fill parked trucks from Los Angeles to New York City and beyond.

Independence

In just a few decades, despite being aware that resources would eventually deplete, the Republic of Nauru made the decision to capitalize on its remaining phosphate reserves, thereby increasing its exports. Although the Nauruan portion was relatively small compared to the profits made, the negative consequences and expenses associated with rehabilitating the mined land were taken into account. It should be noted that the extraction of Nauru’s phosphate was not outright theft. Following World War II and throughout the interwar years, modest trust funds were established and Nauruan landowners did receive symbolic royalties. The Nauruans inhabited a narrow strip encircling a plateau composed of sharp, jagged coral and limestone pillars, with one-third of the island being strip-mined by 1968.

By 1968, one-third of Nauru had been strip-mined, and Nauruans were living on a narrow ring around a plateau of jagged, spiky, razor-sharp coral and limestone pillars.

In 1975, Nauru’s Phosphate Royalties Trust was valued at more than A$1 billion, and the country’s per capita gross domestic product was second only to Saudi Arabia, at least on paper. Despite this, most Nauruans did not live in luxury. The government did not impose income taxes, provided free education and healthcare, and was the primary employer for Nauruans (immigrants typically worked in mining). Although it only takes 20 minutes to leisurely drive around the island, sports cars became highly coveted possessions in Nauru during this period. One police chief even imported a Lamborghini, only to realize that he was too large to fit behind the wheel. “A lot of foolish things occurred,” recalled Nauruan Manoa Tongamalo in 2008. “People would enter a store, purchase a few candies, pay with a $50 bill, and not collect their change. They would use money as toilet paper.” The government also purchased cruise ships, aircraft, and hotels abroad, while politicians were known to charter flights for shopping and vacationing overseas.

This settlement was a significant victory for Nauru, as it not only provided financial compensation for the damages suffered, but also held Australia accountable for their indifference and delays in addressing the issue. The court’s decision to award Nauru $57 million in 1994, with an additional $50 million to be paid over the next 20 years, shows the strength of Nauru’s case and Australia’s recognition of their responsibility. It is important to note that Nauru had taken Australia to the International Court of Justice, highlighting Australia’s unwillingness to consider compensating Nauru for the damage caused by decades of mining. Additionally, Australia had previously proposed limited self-rule and citizenship offers to the Nauruans in an attempt to resettle them in Australia, further acknowledging the harm caused. During this time, Nauru was also seeking compensation from Britain and New Zealand, as they were aware of the damage caused by mining activities.

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The End of an Era

In the 1990s, a substantial amount of illicit profits flowed through Nauru, amounting to billions of dollars. Consequently, the country transformed into a sanctuary for tax avoidance and money laundering activities. The Nauruan government reaped millions of dollars in fees annually by implementing schemes like “economic citizenship,” where Nauruan passports were sold with minimal scrutiny. Even the maintenance of bank records was deemed non-compulsory for banks operating in Nauru, eliminating the need for physical presence or establishment of branches on the island. Nauru’s decision to venture into offshore banking was not driven by notions of sustainability or renewability. Instead, Tony Audoa, responsible for bank licensing in 1991, justified it as an essential measure following the decline of the phosphate industry. By the early 1990s, approximately 400 foreign banks had obtained licenses in Nauru, as the country aimed to diversify its economy prior to depleting its phosphate resources.

In 2004, Nauru experienced a booming phosphate export, tallying over 22,000 metric tons. Additionally, in 2000, Nauru managed to export another 500,000 metric tons. However, throughout the 1990s, there was a steady decline in phosphate exports. Even this scheme could not patch the gaping hole in Nauru’s economy. To add to the government’s coffers, millions were added through processing fees and Australian aid, and around 1,000 asylum seekers were ferried to Nauru for a few years. In 2001, Australia allowed Nauru to establish a detention center for asylum seekers who were trying to reach Australia by boat. This cruel agreement provided jobs and revenue for the desperate Nauru. Unfortunately, selling passports and offshore banking could not fix Nauru’s economic woes.

During the 1990s, Nauru became a haven for tax evasion and money laundering, with tens of billions of dollars of criminal profits washing through it.

The Nauruan government in 2004 agreed to allow Australia to step in and manage the country’s finances, as they were defaulting on loans and struggling to pay public service wages. To stay afloat, the Nauruan government had heavily borrowed from Nauru’s sovereign wealth fund, resulting in recurring deficits and failed state investments. Meanwhile, the main employer of Nauruan nationals was the public service, but the government was still not collecting income tax. Nauru’s economy was in tatters at that time.

“Nauruans have a long history of being taken advantage of by cleaners. In 2010, Australian officials revealed that they could not solely blame local incompetence and corruption for Nauru’s troubles. It was estimated that Nauru’s Trust Fund, which was worth around 30 million A$ in 2004, could have been worth 8 billion A$ if Hughes had invested it wisely. From 1968 to 2002, Nauru earned about 1.8 billion A$ in profits from phosphate, with a total of 3.6 billion A$ earned. The Australian economist Hughes, who was present at the time, did not fully grasp the complexity behind Nauru’s fiscal woes. He stated, “They have blown close to two billion,” without fully understanding the magnitude of Nauru’s problems.”

The U.S. Government took measures to address Nauru’s passport sales by utilizing the 2001 Patriot Act, which grants the authority to restrict American banks from engaging with institutions associated with “rogue states”. Nauru faced significant global pressure to cease money laundering and the issuance of economic citizenship. In response, Nauru implemented a requirement for a “physical presence” to authorize banks within the country, effectively terminating offshore banking. Additionally, the year 2005 witnessed a drastic decline in phosphate exports, reaching a historical low of 8,000 metric tons. Unfortunately, more unfavorable economic developments were yet to unfold.

Nauru Today is still searching for a place in the world, without any explanation in the past, and has been inverted, as an English explanation for its phosphate mining industry, which is currently producing around 45,000 metric tons of phosphate per year, with no significant reserves left on the surface. However, plans are underway to mine the remaining phosphate in the last mine, which may have secondary reserves of up to 20 million metric tons.

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A Colony of Refugees

During the rainy season, the detention and processing center becomes muddy and unpleasant. In the dry season, when it is dusty and dry, there were over 1,200 asylum seekers – including Afghans, Sri Lankans, Pakistanis, Iraqis, and Iranians – residing in fenced-in tents on Topside by 2014. Despite the absence of a natural water source on the island, Abbott even discussed expanding the Nauru camp to accommodate up to 15,000 asylum seekers. “Nauru is not an unpleasant place to live,” former Australian Prime Minister Tony Abbott stated on Australia’s “Lateline” program in 2013. “I have personally visited Nauru and found it to be quite a pleasant island.” On another occasion, Abbott also mentioned the potential expansion of the Nauru camp to accommodate as many as 15,000 asylum seekers – a significant challenge considering the island’s lack of natural water supply. In 2012, Australia reopened its detention camp on Nauru, only to close it again in 2007.

Out of all of them, it is only despair that I cannot get out of my mind. In the sweltering heat, we reside in those tents without any air conditioning. There are hardly any birds present there. There is no grass. There are no trees. There is absolutely nothing to engage in. Marianne Evers, an Australian nurse who served at the camp for three weeks in 2012, breached her confidentiality agreement and spoke publicly on Australian TV in 2013. Graham Thom from Amnesty International describes the camp as “not only extremely poorly conceived, but also heartless.” It was swiftly reconstructed. In July 2013, a riot erupted, causing extensive damage to the detention facility. Detainees have resorted to hunger strikes and even resorted to sewing their lips shut.

Marianne Evers, an Australian nurse who worked at a detention camp in Nauru for three weeks in 2012, broke her confidentiality agreement and spoke out on Australian TV in 2013.

The processing of asylum seekers in Nauru is once again being reduced. As per the Refugee Council of Australia, approximately 350 individuals were waiting for processing in the beginning of 2019. Even for those who have the ability to freely roam in the community, their life is anything but enjoyable. In May 2019, a woman who originated from Iran tried to take her own life after spending almost seven years in Nauru. “It feels like a gradual demise to me. Death is my only wish,” she informed the Guardian Australia. I no longer have the desire to come to Australia.

Over the past few decades, the infrastructure in Nauru has deteriorated, with dilapidated yards, broken roads, and rubbish scattered everywhere. In a 2013 article, Australian journalist Kathy McLeish described the island as having homes that appear partly built and very basic, with garbage rotting and rundown houses, and rusting cars in close proximity. Despite its alluring appearance from the air, Nauru has little tourism, with only a handful of hotels and a few restaurants. The high unemployment rate seems to permeate throughout Nauru, creating a sense of desperation.

“There is absolutely nothing to do. There are no trees. There is no grass. … So we live in that heat without air conditioning in tents.”

Australia pays Nauru millions of dollars each month for detaining asylum seekers, which is considered a visa fee, although it is injected into the country’s budget. The government has finally resorted to taxing the thriving private bingo sector, which has been the only source of income in recent years. Additionally, the government generates some revenue from selling the remaining phosphate and providing offshore fishing licenses. Australian aid has long been supporting the Nauruan economy.

Apart from individuals seeking asylum, approximately 10,000 individuals currently reside on Nauru. In situations where the desalination facility fails to meet the required demand, fresh water is transported to the island. Additionally, nearly all food consumed on Nauru is imported. The processed and canned food available predominantly consists of high levels of salt, sugar, and artificial additives. As a result, Nauru experiences one of the highest obesity rates globally, with over two-thirds of Nauruan men and three-quarters of Nauruan women being classified as obese. Furthermore, the country also faces one of the highest smoking rates. Diabetes affects approximately one-quarter of the adult population in Nauru. Alcoholism is widespread on the island, leading to domestic violence and frequent drunk-driving offenses, despite the fact that the total length of all roads in the country is just 19 miles (30 kilometers).

Turning Back Time

Since the early 1900s, Nauru has lost at least 80 percent of its original vegetation. This amount of phosphate could fill enough trucks to go back to Manhattan, Tokyo, and New York City. Nauru has exported around 80 million metric tons of phosphate during this time.

Climate change is causing even more trouble for Nauru. It would be very sad to leave our native island, which has been destroyed by our ancestors. Whether he was pondering if it was finally time to abandon the island in 1995, Aingimea’s minister cries and wishes that what has happened here could be undone. Everywhere we could eat fresh breadfruit and coconuts, and the trees were so green and beautiful. I wish Nauru could be like it was when I was a boy. “I wish we had never discovered phosphate,” lamented James Aingimea, the minister of the Congregational Church of Nauru, speaking in 1995 with Philip Shenon of The New York Times about his last years of life, turning back time at the age of 88.

One day, Topside may serve as a reminder of the irony and foolishness of Nauruan greed. The rising seas and worsening storms and droughts are causing the erosion of the island’s coastline.

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