Nauru, a picturesque island in Micronesia, was once hailed as the wealthiest country in the world in terms of GDP per capita. All of that, however, is in its past. Where Ferraris used to cruise its streets, they now line the streets rusted out and serving a reminder of the nation’s brief moment of wealth. Renowned for its coral reefs, white-sand beaches, and palm trees, but also now being one of the ‘fattest’ nations on earth, Nauru is a whisper of its once luxurious and powerful self.
The Era of Phosphate Mining
In the early 1900s, a British company discovered vast phosphate deposits on Nauru, an important ingredient in fertilizer. This led to the island becoming a major player in the global phosphate trade. Mining operations began in 1907 and continued for much of the 20th century, but not under the control of seemingly everyone except for Nauru itself. The British, Australian, and New Zealand governments were heavily involved in exploiting the island nation’s natural resources. Finally, Nauru achieved its independence in 1968. The wealth from phosphate mining propelled Nauru into an era of affluence. By the 1980’s, the per capita incomes surpassed even those of oil-rich Arab nations. The people of Nauru were living in what was truly their golden era.
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Living in Luxury
As prosperity flourished on the island, luxury items like Lamborghinis and Ferraris started appearing on Nauru’s roads. One resident even tells a story of a police chief who purchased a Lamborghini only to realize upon receiving it that he couldn’t fit well behind the steering wheel. He simply got rid of it and got a different car. Luxury cars weren’t the only thing that came to the island thanks to phosphate mining. The state’s wealth meant that essential services like education, healthcare, and transportation were provided free of charge to its citizens. Students could even go study abroad completely on Nauru’s dollar. While the island had hospitals and medical care (all of which were free), if special care was required, a patient could be flown to Australia for treatment – all on the government’s tab. Unsustainable mining practices, however, means that there is a hard limit as to how long it will be profitable. This is exactly what happened to Nauru.
Economic Challenges and Desperate Measures
By the 1990s, Nauru’s phosphate reserves were dwindling quickly. This led to economic turmoil on the island. In a bid to generate income, Nauru turned to controversial methods to make up for the lost income. This included activities such as becoming an offshore tax haven and selling passports. These approaches were later abandoned as the island sought more sustainable economic solutions. Despite a brief resurgence in phosphate mining in 2005, Nauru has continued to face economic uncertainties.
Current Struggles and Health Issues
Finally, in the 21st century, Nauru turned to Australia for help. They accepted financial aid from the Australian government in exchange for providing housing for asylum seekers at the Nauru Regional Processing Center. While this provided a temporary financial boost, Nauru still grapples with economic vulnerability and over-reliance on external sources of revenue. Their precarious economic situation has led to a significant health crisis on the island. These include high obesity and smoking rates, further exacerbating its challenges and point to underlying socio-economic issues. More than 70% of the population falls into the ‘obese’ category in terms of their body weight and nearly 50% of the population continues to smoke. Diabetes and cardiovascular disease rates are high and don’t show signs of coming down.
The Bottom Line
Nauru’s journey from being the world’s wealthiest island to an economically struggling and incredibly unhealthy country serves as a cautionary tale of the pitfalls of over-reliance on finite resources and unsustainable economic practices. As Nauru navigates its path to economic recovery and sustainable development, the island is an excellent reminder of the delicate balance between prosperity and responsibility in managing natural resources and ensuring the well-being of its inhabitants.
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