Cost of living in Nauru

A civil war in 1878 reduced the population by more than a third. Germany forcibly annexed Nauru in 1888 by holding the 12 chiefs under house arrest until they consented to the annexation. Phosphate was discovered in 1900 and was heavily mined, although Nauru and Nauruans earned about one tenth of one percent of the profits from the phosphate deposits.Australian forces captured Nauru from Germany during World War I, and in 1919, it was placed under a joint Australian-British-New Zealand mandate with Australian administration. Japan occupied Nauru during World War II and used its residents as forced labor elsewhere in the Pacific while destroying much of the infrastructure on the island. After the war, Nauru became a UN trust territory under Australian administration. In 1962, recognizing the phosphate stocks would eventually be depleted, Australian Prime Minister Robert MENZIES offered to resettle all Nauruans on Curtis Island in Queensland, but Nauruans rejected that plan and opted for independence, which was achieved in 1968. In 1970, Nauru purchased the phosphate mining assets, and income from the mines made Nauruans among the richest people in the world. However, a series of unwise investments led to near bankruptcy by 2000. Widespread phosphate mining officially ceased in 2006. As its economy faltered, Nauru briefly tried to rebrand itself as an offshore banking haven, an initiative that ended in 2005, and the country made a successful bid for Russian humanitarian aid in 2008. In 2001, Australia set up the Nauru Regional Processing Center (NRPC), an offshore refugee detention facility, paying Nauru per person at the center. The NRPC closed in 2008 but reopened in 2012. The number of refugees steadily declined after 2014, and in 2020, the remaining people were moved to Brisbane, Australia, effectively shuttering the NRPC. However, in 2023, Australia agreed to continue funding NRPC for two years and restarted settling asylees in the center in mid-2023. The center remains the Government of Nauru’s largest source of income.