In the early 1900s, as World War I broke out in Europe, Germany lost possession of Nauru. The Australians took control of the island and its valuable phosphate deposits in conjunction with the United Kingdom and New Zealand. Like the time under the Germans, little was changed in Nauru by their controlling outside power, since the focus of occupation was exploitation of this natural resource.
With the outbreak of World War II Nauru was immediately attacked. First the Germans, then the Japanese, attacked Australian ships, the phosphate mines and oil supplies. By mid-1942 the Japanese had taken the island and soon the local people were victims of the war. From this point until 1945 the island was often attacked by both sides as the Nauruans were regularly killed by gun fire or died from disease as the lands were heavily polluted during this time.
The battles finally ended when Australia took control of the island from the Japanese in late 1945. After the war the Australians continued to protect the island, not granting Nauru full independence until 1968.
With independence also came the phosphate supplies. The independent government of Nauru bought rights to the phosphate mines from the British, Australian, and New Zealand owners, quickly making the country quite wealthy. However, the phosphate mines have since run out (in 2006) and the environmental damages done by this mining in the past led to lawsuits with Australia, who paid Nauru for damages. More importantly, the mining has destroyed much of the country's land.
The loss of phosphate is seriously challenging the future of Nauru as the entire economy was based on that single resource. The mining process also destroyed much of the lands, meaning farming and other common methods to support an economy are also questionable in the way of sustainability. As the people search for a new economy they struggle to find one. Money laundering is rampant and there was an incident with Afghan refugees who found their way to Nauru, but claimed to be treated poorly. It appears the government is nearly bankrupt and seeking a new future, although it cannot seem to find the right path.
In addition to these major political and economic struggles, Nauru has all but lost its soul. The traditional ways of life in the way of farming and fishing has been replaced by mining and shipping. However the mining and shipping industries have ended and in the process destroyed the farmlands and hurt the fishing industry as well. Today many people have lost both their jobs and their traditional culture and lifestyle in exchange for the short-lived wealth that came with the phosphate industry.