Kiribati and ADB
In the Spotlight
ADB has approved a $3 million grant that is expected to improve fiscal sustainability in Kiribati in line with the government’s fiscal framework and the Kiribati Economic Reform Plan.
ADB-wide sovereign approvals in the Pacific has risen substantially since 2010, reaching almost $1.8 billion in 2013. ADB is assessing and updating the Pacific Approach, which will continue to guide its operations in the region.
Engaging the private sector through public-private partnerships and privatization improves the performance and service delivery of state-owned enterprises, according to a new report by ADB.
While the Republic of Kiribati has sustained several consecutive years of positive economic growth, driven by donor projects and increased activity in the private sector, the country faces many challenges typical of small island economies. Geographic isolation, limited human and financial resources, a narrow economic base, and underdeveloped markets all contribute to the country’s vulnerability to external economic shocks. The Government of Kiribati relies heavily on income earned from external sources, including its trust fund, to finance high budget deficits. Maintaining fiscal sustainability is the government’s key priority, and close collaboration with development partners is essential to achieving stable growth.
With the broad objective of the Kiribati Development Plan, 2012-2015 focusing on generating economic growth for sustainable development, the ADB program in Kiribati aims to reduce poverty and promote economic opportunity. These goals can be achieved by improving public financial management and delivering sustainable infrastructure services.
0.11(2013) Population in millions
2.2%(2008-2013) Average annual population growth rate
21.8%(2006) Population living below the national poverty line