Why was phosphate so important to Naoero's economy?

Phosphate was central to Naoero’s economy for much of the 20th century because it served as the island's primary resource and sole export. Mining began in 1907, and the phosphate found on the island was of the highest quality in the world.1

The industry was vital for several reasons:
* Employment: The phosphate industry, alongside government services, provided nearly all salaried employment for the island's population.1
* Wealth Generation: Following the government's acquisition of mining operations in 1970, Naoero experienced a period in the 1980s where it was among the wealthiest nations in the world in terms of gross domestic product per capita.1
* Royalties: Landowners received direct royalties from phosphate earnings, which supported the local economy.1

While the industry dominated the economy for decades, the eventual exhaustion of deposits led to significant financial instability, forcing the nation to seek alternative income sources and implement austerity measures.12