The beautiful 'world's richest island' with Lamborghinis and Ferraris that's now bankrupt

The tiny island was once one of richest in the world by GDP per capita. (Image: Getty)

A beautiful island in Micronesia was once one of the richest countries in the world in terms of GDP per capita, after a startling discovery was made there.

Nauru, a country in the southwestern Pacific Ocean, is known for its idyllic scenery, with a coral reef, white-sand beaches and swaying palms, but also has a dark history of foreign domination.

For decades the island's economy was dominated by phosphate, a sought-after material used in fertilisers, which it was discovered to have rich reserves of in the early 1900s by a British company.

Mining began on the island in 1907, which was exploited for much of the 20th century, by the British, Australian and New Zealand governments.

After eventually gaining independence in 1968, Nauru gained control of the phosphate mines, with riches flowing into the economy. A New York Times report from 1982 said by that point the island country had a "per capita income surpassing that of any oil-rich Arab nation", identifying it as the smallest and wealthiest independent democracy in the world".

This newfound wealth was evident when a police chief bought a Lamborghini, but couldn't even fit in the driver's seat.

Other sports cars such as Ferraris were also imported, the BBC reports.

Though few Nauruans were rich in terms of their bank balance at the time, the newspaper said the state's wealth meant it had become "close to being the ultimate welfare state", with its people provided with all essential services free of charge including "schooling, medical and dental care, bus transportation, even the Government newspaper".

Those who needed treatment unavailable at its two local hospitals were flown 2,500 miles to Australia on the government dime, and the country also covered higher education expenses through Australian universities, the American news outlet reported.

But it appears others benefitted more directly from the island's phosphate wealth, with evidence of lavish purchases present to this day.

YouTuber Ruhi Çenet visited the country and detailed his experiences in a 2024 video, and said the island had seen a "frenzy of consumption" at the height of its wealth.

He came across various abandoned luxury cars on roadsides, including Cadillacs, Jeeps, and Land Rovers, which now serve only as rusted reminders of its former glory.

Ruhi spoke to a local who confirmed a story he had heard that a police officer bought a Lamborghini before realising he couldn't fit inside and dumped it.

The resident recalled seeing her grandmother leaving the bank with a pillowcase filled with cash as Nauru basked in its newfound wealth.

Phosphate mining brought immense wealth to the island. (Image: Getty)

The phosphate continued to be mined and was dwindling by the 1990s, having been tapped by foreign powers for decades.

In trouble economically, the country sought desperate measures to find income, allegedly becoming an offshore tax haven and selling passports, approaches that were later dispensed with, DevPolicyBlog reports.

Phosphate mining did resume in 2005, with the government website saying the move had given Nauru’s economy "a much-needed boost”, amid a reversal in its fortunes.

However, in the 21st Century, Nauru accepted aid from the Australian government in exchange for housing Australia-bound asylum-seekers at The Nauru Regional Processing Centre, a move which provided a welcome cash injection.

According to DevPolicyBlog, the facility became a "major source of revenue" with the island also benefitting from the booming value of fishing in Nauru's water, which has brought it "improved economic standing", though its reliance on them makes it vulnerable to future shocks.

One of the biggest problems it faces these days is the state of the nation's health, as per Diabetes.co.uk.

According to the charity, more than 70% of the population categorised as obese. Researchers believe may be attributed to the economic downturn, which made it more difficult to access healthy food, as per NPR.

It also sees high smoking rates, estimated to be at 48.50% in 2020, according to MacroTrends.

The Nauruan government has been approached for comment.