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Kiribati

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Kiribati and ADB
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Thomas Gloerfelt-Tarp
South Pacific Subregional Office
5th floor, Ra Marama Building
91 Gordon Street, Suva, Fiji Islands.

Tel: + 679 3318101
Fax. + 679 3318074
Email: adbspso@adb.org
pard@adb.org

Country Information


Location and People

Click to enlarge imageKiribati is a group of 33 islands in the central Pacific that straddles the Equator. The islands lie about halfway between Hawaii and Australia . The three island groups of Kiribati -- Gilbert, Line, and Phoenix Groups -- are spread over a 3.5 million square kilometer exclusive economic zone (EEZ) . The islands are mostly low-lying coral atolls, consisting of a narrow band of coral sand overlying hard coral pans, fringed by coral reefs on the ocean side and often a surrounding lagoon. Banaba ( Ocean Island ), however, is one of the three great phosphate rock islands in the Pacific.

The total land area of Kiribati is 811 square kilometers, but only 23 of the 33 islands are inhabited. The capital is Tarawa , in the Gilbert Group. South Tarawa alone hosts nearly half of the total population of almost 90,000, who are predominantly Micronesians with some Polynesians.

Historical Background

The Gilbert and Ellice Islands were annexed as British Crown Colonies in Nov. 1915. Gilbert Islands achieved self-rule from the United Kingdom in 1971. In 1975, the Ellice Islands separated from the Gilbert Islands to form a separate dependency now called Tuvalu. Self government was introduced in 1977 and complete independence came in 1979 under the new name of Kiribati. The United States relinquished all claims to the Phoenix and Line Island groups in a 1979 Treaty of Friendship with Kiribati.

Socio-Economic Conditions

Low incomes, weak human resources, and a high degree of economic vulnerability characterize Kiribati. About 80% of households make a iving from fishing and copra. Agricultural opportunities are limited, and manufacturing is non-existent.

The main sources of revenue are the Kiribati trust fund—the Revenue Equalization Reserve Fund (RERF), license fees for foreign fishing in its EEZ, and remittances of seafarers on overseas ships. As a result, the country's gross national product is almost twice the level of its gross domestic product.

Kiribati experienced a period of reasonable economic growth between 1985 and 2003, driven by increasing public expenditure funded by fishing license fees, passport fees, drawings from the RERF, and foreign aid. The economy slowed in 2004. Economic g rowth is limited by a number of major constraints. However, Kiribati has large foreign reserves in its RERF, which has been well managed. The country also has a history of sound fiscal management.

Key Social and Poverty Indicators

— = not available
a = calculated from 1996 HIES
b = for the period 1995-2000
c = Pacific HDI calculations using 1998 data
Indicators ‘00 ‘01 ‘02 ‘03 ‘04
Total pop. (‘000) 84.5 86.6 88.7 90.9 93.1
Annual pop. growth (%) 1.7 2.5 2.5 2.5 2.5
Pop. below poverty line (%) 50.0 a
Unemployment rate (%) 1.6
Maternal mortality rate (per 100,000 live births) 56.0 103.0
Infant mortality rate (per 1,000 live births) 43.0 b
Life expectancy at birth (yrs) 64.2 63.6 64.1
Adult literacy rate (%) 81.8 100.0
Human development index 0.515 c

Kiribati's few natural resources provide a narrow production base consisting largely of subsistence agriculture, copra, and fish. In terms of income and access to services, Kiribati is one of the poorer Pacific island nations. Its isolation and geographic fragmentation make transport and communications costly. This poses substantial difficulties for the remote communities on the outer islands that make up over 50% of the total population. Outer islands communities are also disadvantaged by poor facilities, restricted access to essential basic services, inadequate education, and limited livelihood opportunities.

High population growth and lack of employment opportunities, services, and facilities on the outer islands are causing a significant population drift to Tarawa , particularly South Tarawa. There the population density is relatively high, exacerbating already serious environmental, urban management, and health problems.

Young Woman, 18 Years Old

I was born in Nukulaelae and lived with my parents, two sisters and two brothers. Our eldest sister got married and moved with her husband in another island. My two younger sisters are in primary school. I went to secondary school here, however I failed my Form 4 exams, so I did not continue my schooling. My parents, two brothers, and me are not working. One of my brothers was a seafarer, however, he only went overseas once.

The only source of income we have is from my mother selling bread. Her profit is only $50 a week, which is not enough to meet our basic needs considering the high cost of goods, e.g., rice A$1.00, sugar $1.30 and flour $1.05. To supplement our income, we also harvest local food from some of our lands. There are some land disputes between my family and our extended family so we only have limited use of our lands. I have a cousin sister in Marshall Island , who is trying to get me in the Marshall Islands so I can find a job. However, she still hasn't conformed that plan yet and in the mean time I stay home and do the laundry, clean the house, and help my mum.

In the future, I want my family to have a proper modern house so we can live happily. I also want t get a job so I can help my family financially, especially for my sisters to have good education, so they can assist our family too.

It is very important to establish a vocational school not only for our community but also for the whole Tuvalu . In this way, jobless youth like me can be trained and expand our skills and help improve the well-being of families and the community.

Excerpt from Priorities of the People: Hardship in Kiribati .

Only 20% of the labor force participates in the formal wage economy, and over 60% of all formal jobs are in South Tarawa . Public sector employment accounts for almost 80% of all wage employment. Vocational schools train commercial seafarers and fishers.

Opportunities for occupational training as well as employment for women are limited. The social, legal, and economic status of women in Kiribati is generally low. Outside of South Tarawa, the role of women is confined largely to domestic duties. Such things as land tenure and community politics are reserved largely to men. Women traditionally do not have a direct role in community decision-making.

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Country Outlook

The World Bank has rated Kiribati as one of the countries most vulnerable to the effects of climate change, climate variability, and sea-level rise. Drought, erosion, and inundation are the result of these phenomena. The Government is undertaking a long-term program of adaptation to climate-related risks with the support of ADB, the World Bank, and bilateral funding agencies.

In addition to the country's vulnerability, its isolation and geographic fragmentation, and the limits of its resources, Kiribati faces additional constraints to sustained economic growth. Among these are the:

  • shortage of skilled workers
  • weak infrastructure
  • a financial sector and private sector that are both at an early stage of development

These concerns are addressed in Kiribati 's National Development Strategy. Their implementation is essential for a move away from over dependence on government-led projects and economic activities. New employment, especially for the younger generation, and new investment opportunities, are badly needed. However, the highly egalitarian structure of Kiribati poses considerable constraints for private sector development.

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