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The tiny oceanic island of Nauru was geologically endowed with unusually high phosphate deposits, a resource that would prove to be the island's ecological ruin. Starting in the early 20th century with the intervention of a German-British consortium, and onward for nearly 100 years, phosphates were regularly mined and aggressively removed. The result of a century of exploitation has been the virtual destruction of the island and its native ecosystem.

Nauru achieved independence in 1968, making it the smallest independent republic in the world; the island is only eight square miles (21 square kilometers). Nauru joined the United Nations (UN) in 1999. The climate is tropical with a monsoonal pattern. Periodic draughts pose significant threats to the island's ecosystems and accelerate the need for freshwater. The rainy season lasts from November to February. Nauru is relatively flat, and most of the island is covered by sandy beaches, with a fertile ring around the raised coral reefs. The phosphate plateau is located near the center of the island. The 30-mile (48-kilometer) coastline of Nauru is surrounded entirely by the South Pacific Ocean.

None of the land on Nauru is presently arable, and the only resources are phosphates and fish. The entire country is urbanized as there are no rural areas. Most essential items are imported from Australia. The island has a population of 13,048 people and a fertility rate of 3.19 children per female. With a per capita income of $5,000, Nauru is ranked 135th out of 232 nations in income. Ninety percent of the population are unemployed. The remaining 10 percent mine phosphates or work in public administration, education, and transportation.

The ecological devastation of the island has led to a number of stopgap economic measures. Following the depletion of most of the phosphate resources, the economy shifted during the 1990s to become an offshore tax haven for foreign individuals and firms, and a center for money laundering. Even more radically, in 2001 it became the offshore detention site for asylum seekers attempting to migrate to Australia. These efforts have yielded limited economic benefits and added to ongoing destabilization.

With phosphates virtually depleted, Nauru is facing a major economic dilemma. Although funds were set aside for this eventuality, the fund has been almost bankrupted by indiscriminate government spending. Consequently, the government has invoked a wage freeze, privatized government agencies, and reduced government staff. Australian subsidies currently keep the Nauruan economy afloat. The UN Development Programme Development Reports do not rank Nauru due to lack of data.

Without a natural source of freshwater, Nauruans use roof storage tanks to collect rainwater. However, most water is derived from the one aging desalination plant available on the island. The major environmental problem for Nauru is the aftermath of the intensive phosphate mining. This exploitation has turned 90 percent of the central section of the island into a wasteland and has caused some damage to the remaining land area.

The coastal area is generally filled with pandanus and coconut palms. In the area around the Buada Lagoon, Nauruans have managed to grow some bananas and vegetables. The island produces 23,810 pounds (10.8 metric tons) of carbon dioxide emissions per capita. The global warming trend that is affecting the rest of Oceania is also causing sea levels to rise on Nauru, leaving low areas exposed to flooding and tidal surges. The habitats of many birds have been destroyed by mining and other ecological damage. Consequently, some species, such as the bristle-thighed curlew and Finsch's reed warbler, are threatened. Other species have completely disappeared. The government plans to reclaim some former mining land for use in housing, public utilities, and recreation.

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