The richest island state went bankrupt after importing Lamborghini and Ferrari (5 photos)

The nation of Nauru was once one of the richest in the world in terms of per capita income, thanks to its unique resources. However, today the standard of living on the picturesque island in Micronesia is extremely low. What destroyed Nauru?





Located in the Pacific Ocean, Nauru is famous for its coral reefs, pristine white sand beaches, and swaying palm trees, but it also has a dark past. For many years, the island’s economy relied on phosphate ore, a valuable resource used in the production of fertilizer. The material was discovered in large quantities by a British company in the early 1900s. Phosphate mining began in 1907, and the resource was actively exploited by the British, Australian, and New Zealand governments for much of the 20th century.



After independence in 1968, the Nauruan government took control of the phosphate mines, leading to an economic boom. In 1982, The New York Times reported that the island nation had “a per capita income greater than that of any oil-rich Arab country.”





The authorities bought cruise ships, planes and supercars, invested in overseas real estate. The new level of prosperity became obvious when the police chief ordered a Lamborghini, but could not fit in the driver's seat.

Residents were provided with all basic services, including school education, medicine and public transport. If a person could not get the necessary treatment in the two local hospitals, he was transported 4,000 kilometers away, to Australia, at the state's expense. The costs of higher education at Australian universities were also covered.



But by the 1990s, the phosphate reserves had run out. Facing economic hardship, Nauru resorted to controversial measures. For a time, it became an offshore haven and offered an “economic citizenship” program to attract investment.

In 2001, the government signed an agreement with its Australian counterparts to house asylum seekers (mostly from Iraq and Afghanistan) on the island in exchange for millions of dollars in aid. This provided a major financial boost.



Traveler Ruhi Chenet visited Nauru in 2024 and described a “consumption frenzy” on the island. He found luxury cars abandoned by the roadside, including Cadillacs, Jeeps and Land Rovers, now rusty reminders of their former glory. The tourist spoke to a local who confirmed a story about a policeman who bought a Lamborghini but couldn’t fit in it. One woman described her grandmother leaving a bank with a pillowcase stuffed with cash.

One of Nauru’s pressing issues remains the health of its citizens. More than 70% of the population suffers from obesity. This may be due to the economic downturn, which has limited access to quality food. In addition, the prevalence of smoking in 2020 was 48.50%.