Kiribati

Kiribati

LOCATION, SIZE, AND EXTENT
TOPOGRAPHY
CLIMATE
FLORA AND FAUNA
ENVIRONMENT
POPULATION
MIGRATION
ETHNIC GROUPS
LANGUAGES
RELIGIONS
TRANSPORTATION
HISTORY
GOVERNMENT
POLITICAL PARTIES
LOCAL GOVERNMENT
JUDICIAL SYSTEM
ARMED FORCES
INTERNATIONAL COOPERATION
ECONOMY
INCOME
LABOR
AGRICULTURE
ANIMAL HUSBANDRY
FISHING
FORESTRY
MINING
ENERGY AND POWER
INDUSTRY
SCIENCE AND TECHNOLOGY
DOMESTIC TRADE
FOREIGN TRADE
BALANCE OF PAYMENTS
BANKING AND SECURITIES
INSURANCE
PUBLIC FINANCE
TAXATION
CUSTOMS AND DUTIES
FOREIGN INVESTMENT
ECONOMIC DEVELOPMENT
SOCIAL DEVELOPMENT
HEALTH
HOUSING
EDUCATION
LIBRARIES AND MUSEUMS
MEDIA
ORGANIZATIONS
TOURISM, TRAVEL, AND RECREATION
FAMOUS KIRIBATIANS
DEPENDENCIES
BIBLIOGRAPHY

Republic of Kiribati

CAPITAL: Tarawa

FLAG: Above a blue and white heraldic representation of Pacific waters, a golden sun rises against a red background, with a golden frigate bird at the top.

ANTHEM: Troika kain Kiribati (Stand Kiribati).

MONETARY UNIT: The Australian dollar is the national currency. a$1 = us$0.76336 (or us$1 = a$1.31) as of 2005.

WEIGHTS AND MEASURES: Kiribati is in transition from imperial to metric standards.

HOLIDAYS: New Year's Day, 1 January; Independence Day, 12 July; Youth Day, 4 August; Christmas Day, 25 December; Boxing Day, 26 December. Movable holidays include Good Friday, Easter Monday, Queen's Birthday (June), Bank Holiday (August), and Prince of Wales's Birthday (November).

TIME: Midnight = noon GMT.

LOCATION, SIZE, AND EXTENT

Kiribati (pronounced "Kiribass") consists of 33 islands in the central Pacific, situated around the point where the International Date Line intersects the equator. Scattered over more than 5 million sq km (2 million sq mi) of ocean are the 17 islands of the Gilberts group (including Banaba, formerly Ocean Island); the 8 Line Islands (including Christmas Island); and the 8 Phoenix Islands. The distance between Christmas Island in the e and Banaba in the w is more than 3,200 km (2,000 mi). Kiribati's total land area is 811 sq km (313 sq mi), and its total coastline is 1,143 km (710 mi). Comparatively, the area occupied by Kiribati is about four times the size of Washington, DC.

Kiribati's capital city, Tarawa, is located on the island of Tarawa.

TOPOGRAPHY

Kiribati is made up of three island groups: the Gilbert Islands (on the equator), the Phoenix Islands (to the east), and the Line Islands (north of the equator). Most of the islands are coral atolls built on a submerged volcanic chain. Christmas Island is the largest atoll in the world, with an area of 606 sq km (234 sq mi). The highest point of the country is an unnamed point on the island of Banaba, which reaches a peak of 81 m (266 ft). The lowest point is at sea level (Pacific Ocean).

CLIMATE

Tempered by prevailing easterly trade winds, the islands have a maritime equatorial climate, with high humidity during the November–April rainy season. Although the islands lie outside the tropical hurricane belt, there are occasional gales and even tornadoes. Rainfall varies from an average of 102 cm (40 in) near the equator to 305 cm (120 in) in the extreme north and south. Severe droughts can also occur. On average, there is less than 1% variation between the cool and hot months, but daily temperatures range from 25°c (77°f) to 32°c (90°f), with an annual mean temperature of 27°c (81°f).

FLORA AND FAUNA

The extreme poverty of the soil and the variability of the rainfall make cultivation of most crops impossible. Only babai (a kind of taro root), coconut palms, and pandanus trees grow easily on most islands. Pigs and poultry were probably introduced by Europeans. Sea life abounds.

ENVIRONMENT

According the United Nations (UN) Report for Pacific Island Developing Countries (1992), the most significant environmental problems facing the nations in this area of the world are global warming and the rise of sea levels. Variations in the level of the sea may damage forests and agricultural areas and contaminate fresh water supplies with salt water. A rise in sea level by even 2 feet (60 cm) would leave Kiribati uninhabitable; in 1996, such a rise was forecast as a possibility by 2100. Kiribati, along with the other nations in the area, is vulnerable to earthquakes and volcanic activity. The nation also has inadequate facilities for handling solid waste, which has been a major environmental concern, particularly in the larger population centers.

The environment in Kiribati has also been adversely affected by metals and chemicals from mining activities, and agricultural chemicals have polluted coastal waters. Phosphate mining was especially devastating, rendering the island of Banaba almost uninhabitable. The Banabans, who were forced to move to the Fijian island of Rabi, sued the owners of the mines and won special compensation. A fund was set up to compensate the people of Kiribati. Called the Phosphate Revenue Equalization Fund (PREF), in 1996 it amounted to a$200 million.

The lagoon of the southern Tarawa atoll has been heavily polluted by solid waste disposal. Like other Pacific islands, Kiribati is sensitive to the dangers of pollution and radiation from weapons tests and nuclear waste disposal. The UN report describes the wildlife in these areas as "among the most critically threatened in the world." According to a 2006 report issued by the International Union for Conservation of Nature and Natural Resources (IUCN), threatened species included 5 species of birds, 1 type of reptile, 4 species of fish, and 1 type of mollusk. Endangered species included the green sea turtle, the coconut crab, the giant grouper, the tiger shark, the pygmy killer whale, and the mukojima bonin honeyeater.

POPULATION

The population of Kiribati in 2005 was estimated by the United Nations (UN) at 92,000, which placed it at number 180 in population among the 193 nations of the world. In 2005, approximately 3% of the population was over 65 years of age, with another 40% of the population under 15 years of age. According to the UN, the annual population rate of change for 2005–10 was expected to be 1.8%, a rate the government viewed as too high. Population growth in the capital, Tarawa, was seen as a serious problem by the government. The projected population for the year 2025 was 141,000. The population density was 126 per sq km (326 per sq mi). The population is unevenly distributed; some islands of the Phoenix and Line groups are uninhabited.

The UN estimated that 43% of the population lived in urban areas in 2005 and that urban areas were growing at an annual rate of 3.67%. The capital city, Tarawa, had a population of 42,000 in that year, with an annual growth rate of about 5.2%.

MIGRATION

For the islanders, migration has been a perennial form of escape from drought and starvation. In the 19th century, recruiting ships forcibly took Gilbert Islanders for plantation work in Hawaii, Australia, Fiji, and Peru; some voluntarily reenlisted after the great drought of 1870. Although the majority eventually returned home, it is reckoned that between 1860 and 1890, some 10,000 islanders (of a total population of 30,000) were living overseas. In the 20th century, Fiji and the Solomon Islands continued to be popular places for Gilbert Islanders in search of work. Internal migration until 1979 was mainly to Banaba Island for work in the phosphate industry; since then, migration has been primarilly to Nauru or to copra plantations in the Line Islands. During 1988–93, some 4,700 people were resettled on the Teraira and Tabuaeran atolls of the Line Islands because of overcrowding on the main island group. The total number of migrants in 2000 was 2,000. In 2001 Australia refused entry to all boat people, many of them Iraqis setting out from Indonesia. Kiribati and other Pacific islands agreed to accept migrants headed to Australia from Indonesia in boats in exchange for aid from Australia. In 2005, the net migration rate was estimated as zero migrants per 1,000 population. The government views the migration levels as satisfactory.

ETHNIC GROUPS

About 98.8% of the people are Gilbertese of Micronesian extraction. Polynesians (mainly from Tuvalu) make up 0.5% of the total; Europeans and people of mixed races make up 0.7%.

LANGUAGES

The principal languages spoken are Gilbertese (also called I-Kiribati or Kiribatese) and English. The official language is English, but it is seldom used on the outer islands. Gilbertese is an Austronesian language related to many other Pacific tongues.

RELIGIONS

Christian missionaries first arrived in 1857, when Dr. Hiram Bingham, of the American Board of Foreign Missionaries, began to spread Protestantism in the northern Gilberts with the help of Hawaiian pastors. In 1888, Catholicism was introduced to the islands by the Sacred Heart Mission. The American Board withdrew from the territory in 1917 and was succeeded by the London Missionary Society, which had placed Samoan pastors on the islands as early as 1870.

Virtually the entire population is Christian. According to 2002 government statistics, 55% of the population were Roman Catholics and 37% belonged to the Kiribati Protestant Church (formerly called the Congregational Church). Religious minorities included the Church of Jesus Christ of Latter-Day Saints (3%), the Seventh-Day Adventists (2%), and Baha'is (2%). About 5% of the population claimed no religious preference.

The constitution provides for freedom of religion, and this right is generally respected in practice. Christmas, Easter, and National Gospel Day are celebrated as national holidays.

TRANSPORTATION

The remoteness of the scattered islands has severely hampered transport and communications. There are only about 670 km (416 mi) of roads, mostly on Tarawa. The Nippon Causeway, completed in 1987 with Japanese assistance, replaced ferry service between Betio and Bariki. A series of similar causeways links north and south Tarawa. In 1995, there were about 2,000 vehicles in Kiribati, almost three-quarters of which were motorcycles.

There is no rail, river, or lake transport, although canoes travel freely on the lagoons. However, as of 2003, there were some 5 km of canals on the Line Islands. The main ports are located on Betio islet, near Tarawa, and on Tabuaeran and Christmas islands. Betio is equipped for handling containers, and Banaba has a cantilever for phosphate loading. In 2005 Kiribati had one passenger cargo ship of 1,000 GRT or more at 1,291 GRT. A number of shipping lines call at the islands, and government boats provide interisland service. There were an estimated 20 airports in 2004, of which 3 had paved runways as of 2005. All the major islands have airstrips; the airports on Christmas Island and at Bonriki (Tarawa) are used for scheduled overseas flights. Air Tungaru, the national airline, operates regularly scheduled flights to Honolulu and Tuvalu. In 1997 (the latest year for which data was available), 28,000 passengers were carried on scheduled domestic and international flights.

HISTORY

The main wave of Micronesian settlement is thought to have come from Samoa in the 13th century, but Gilbertese tradition suggests that the Samoans were not the first settlers. European discovery dates from 1537, when Christmas Island was sighted by Spanish explorers. The English sea captain James Cook encountered the islands in 1777, and commercial activities in the region began early in the 19th century. The Gilbert Islands were a favorite whaling ground, and deserting crews began to settle on the islands in the 1830s. Trading ships were calling there regularly by the 1850s, and a flourishing copra and coconut trade was established by the 1860s, as well as an illicit human traffic. The Office of British High Commissioner to the Western Pacific was created in 1877 to help suppress abuses by recruiting ships seeking labor for overseas service. In 1888, Christmas, Fanning (now Tabuaeran), and Washington (now Teraina) islands were annexed by the British, and Phoenix Island was placed under their protection. A declaration of British protectorate over the Gilbert and Ellice groups followed in 1892. A handful of administrators established local native governments, and a period of stability ensued.

Ocean Island was annexed by Britain in 1900 following Sir Albert Ellis's discovery of its valuable phosphate deposits. The Gilbert and Ellice groups (including Ocean, Fanning, and Washington islands) were declared a British colony in 1916. British control was extended to Christmas Island in 1919 and to the uninhabited Phoenix group in 1937, but after the United States laid claim to Canton and Enderbury, a joint British-American administration over these islands was established. During World War II, the Gilberts were occupied by Japanese forces until 1943, when the invaders were driven out by US forces after heavy casualties on both sides. Ocean Island was liberated by the Australians in 1945.

In a 1974 referendum, the Ellice Islands voted for separation, subsequently becoming the independent nation of Tuvalu. Internal self-government for the Gilberts was established as of 1 January 1977, and the islands became the independent Republic of Kiribati on 12 July 1979. In September, the new nation signed a treaty of friendship with the United States (ratified by the US Senate in 1983), by which the United States relinquished its claim to the Line and Phoenix groups (including Canton, Enderbury, and Malden).

Ieremia Tabai, chief minister at the time of independence, became president of the new republic in 1979 and was reelected in May 1982 and February 1983. Although the constitution limits a president to three terms, Tabai argued that he had not completed three full terms and was reelected in May 1987. In 1991, Tabai stepped down and was replaced by Teatao Teannaki, head of the National Progressive Party. Teannaki served until 1994, when Teburoro Tito, head of the nation's first real political party, the Maneaban Te Mauri Party (MTM), was elected. The MTM won 19 of 39 seats in the House.

A special problem was posed by the Banabans, who were resettled in 1946 on Rabi (Fiji)—bought for them by means of phosphate royalties—so that strip mining on their native island could continue unimpeded. In 1975, the Banabans sued, petitioning the British courts for damages. After a lengthy legal battle, representatives of the Banabans (most of whom still reside on Rabi) agreed in 1981 to the creation of a trust fund of nearly a$15 million for Banaban development. Recognition of Banaban minority rights is enshrined in Kiribati's constitution.

Kiribati opposes French nuclear testing in the Pacific and signed the 1985 Raratonga Agreement declaring the South Pacific a nuclear-free zone. In 1985, Kiribati signed a one-year fishing agreement with the former Soviet Union that aroused controversy at home and abroad. The agreement was not renewed after talks for its renegotiation broke off in September 1986.

Kiribati began resettling more than 4,700 people on outlying atolls in August 1988 in an attempt to relieve overcrowded conditions on the Tarawa atolls. Overcrowding was still a concern in 2004, when Kiribati planned to launch a program for the development of up to four new urban centers on the outer islands. The program had the backing of the Asian Development Bank and the United Nations Development Program, and was aimed at reducing the flow of population to Tarawa.

In September 1988 Kiribati ratified the South Pacific Regional Fisheries Treaty, which permits US tuna ships to operate within its 200-mi exclusive zone. In early 1992, the Parliament of Kiribati instructed the government (against its wishes) to seek compensation from the United States for damage done to the country during the Pacific War (1941–45).

In 1994, the government of Kiribati underwent a constitutional crisis when President Teatao Teannaki was forced to resign following a no-confidence vote by the opposition in parliament, who had charged him with misusing travel funds. As specified in the constitution, executive authority was then transferred to a Council of State until new parliamentary and presidential elections could be held, but one member of the council refused to resign when his term expired and had to be forcibly removed, prompting calls for constitutional reform to prevent a similar situation from occurring in the future. Teburoro Tito was elected president in September, and elected to a second term in November 1998.

Together with Nauru and Tonga, Kiribati was admitted to the United Nations in 1999. In March of that year, the government declared a state of emergency as water shortages reached crisis levels due to an extended drought and pollution of the available water supply. Long-term elevation of the surrounding sea level due to global greenhouse emissions remains a serious concern for Kiribati, which reportedly has already lost two uninhabited islands and has been forced to move segments of its population inland, away from coastal regions.

The 2002 presidential election process began with a general election for parliament on 29 November, but several rounds of voting took place before the election of a president on 25 February 2003. In January 2003, opposition parliamentarians named Taberannang Timeon to stand against Tito in the February election, instead of Harry Tong, after Tong stepped aside in order not to split the opposition vote against Tito. Bakeua Bakeua Tekita stood as a third candidate. Tito narrowly won the 25 February election, defeating Timeon by only 547 votes, but after serving only one day of his third term as president, Tito's government was toppled by a vote of no-confidence in the opposition-controlled parliament. In July 2003, Anote Tong was elected president.

Kiribati established diplomatic relations with the former Soviet Union in 1979 and with the People's Republic of China in 1980. In November 2003, Kiribati was the fifth Pacific nation to recognize Taiwan. Kiribati hoped to maintain ties with both Taiwan and mainland China, but by the end of the month, China had cut diplomatic ties and removed the Chinese space tracking station located on Tarawa atoll, but continued to maintain an embassy staffed by three diplomats.

GOVERNMENT

Under the independence constitution of 1979, Kiribati is a democratic republic within the Commonwealth of Nations. It has a 42-member unicameral legislature, the House of Assembly (Maneaba ni Maungatabu). Forty members are elected for four-year terms, one appointed seat is reserved for a representative of the Banaban community, and the attorney general sits (ex-officio) as a nonelected member of parliament. The Speaker is elected to office by members of parliament but is not a member of parliament. He has neither an original nor casting vote in parliamentary decisions. The president (beretitenti ), who is both head of state and head of government, is elected directly by popular vote from among members of the House of Assembly, to a term of up to four years; candidates are selected by the House from among its own members. When the president no longer enjoys the confidence of the legislature, the House is dissolved and new parliamentary and presidential elections are held, with a Council of State (consisting of the head of the Civil Service Commission, the chief justice, and the Speaker of the House) governing in the interim. The cabinet consists of the president, vice president, attorney general, and no more than 10 other ministers selected from parliament.

Teatao Teannaki, head of the National Progressive Party, was elected the nation's second president in July 1991. He was obliged to resign following a no-confidence vote in 1994, and Teburoro Tito, head of the Maneaban Te Mauri Party (MTM), was elected president. Tito was reelected in 1998 and 2003. Following a vote of no-confidence, another presidential election was held in July 2003. Anote Tong was elected president, with Teima Onorio serving as his vice president.

POLITICAL PARTIES

Traditionally, Kiribati had no formally organized parties. Instead, ad hoc opposition groups tended to coalesce around specific issues. There were no formally constituted political parties until 1985, when opponents of the Soviet fishing agreement founded the Christian Democratic party, headed by Dr. Harry Tong.

Other parties that formed after 1991 include the Boutokaan te Koaua Party; the Liberal Party; the New Movement Party; and the Health Peace and Honour Party. Today, the only recognizable parties are the Maneaban te Mauri Party (formerly known as the Christian Democratic Party) and the Boutokaan te Koaua Party.

LOCAL GOVERNMENT

There are fully elected local councils on all the islands, in accordance with the local government ordinance of 1966. For administrative purposes the islands are divided into six districts: Tarawa (including the Phoenix group); North, South, and Central Gilberts; Banaba; and the Line Islands. This structure has been further divided into 21 island councils, one for each of the inhabited islands. The geographic dispersion of the islands leaves considerable freedom for the districts; their councils have wide taxing powers, including land taxes, and draw up their own estimates of revenues and expenditures.

JUDICIAL SYSTEM

The 1979 constitution provides for a High Court with a chief justice and other judges, acting as the supreme court. There is also a Court of Appeal and magistrates' courts. Island courts were established in 1965 to deal with civil and criminal offenses. Native land courts have jurisdiction over property claims. High Court and Court of Appeal judges are appointed by the president.

The judiciary is independent and free from government influence. Civil rights and civil liberties are guaranteed in the constitution and respected in practice. Procedural due process safeguards are based on English common law. Trials are fair and public. The law prohibits arbitrary interference with privacy, family, home, and correspondence. The government authorities respect these provisions.

ARMED FORCES

Legislation providing for the establishment of a defense force of 170 men was repealed in 1978. There is a small police force. Australia and New Zealand provide defense assistance.

INTERNATIONAL COOPERATION

Kiribati was admitted to the United Nations (UN) on 14 September 1999 and is a member of several nonregional specialized agencies, including the FAO, ICAO, the World Bank, IMF, IFC, ILO, UNESCO, and WHO.

Kiribati participates in the Asian Development Bank, the ACP Group, the Pacific Island Forum, and the Alliance of Small Island States (AOSIS). The nation is also part of the Organization for the Prohibition of Chemical Weapons. In environmental cooperation, Kiribati is part of the Basel Convention, the Convention on Biological Diversity, the London Convention, the Kyoto Protocol, the Montréal Protocol, and the UN Conventions on the Law of the Sea, Climate Change, and Desertification.

ECONOMY

Kiribati's economy was supported by revenues from phosphate mining on Banaba until the deposits were exhausted in 1979. Since then, the nation has relied on fishing, subsistence agriculture, and exports of copra, recently 80–95% of exports, and fish, 4–20% of exports. The country is heavily dependent on aid from the United Kingdom, Japan, Australia, New Zealand, and China. Aid equals 25–50% of GDP, while tourism provides about 20%. In the 1990s, GDP increased steadily, peaking at a$80.3 million in 1999, and then fell by 2.7% and 1.2% in 2000 and 2001, respectively, to a$78.1 million and a$77.2 million, respectively. GNP runs between 1.5 to 2 times the size of GDP. In 2001, GNP was a$136.9 million, 177% of GDP. Per capita GDP in 2000 was a$843 and per capita GNP was a$1,495. Inflation, at 0.4% in 2000 as measured by consumer prices, increased to 9.4% in 2001. Unemployment was officially 2%, but underemployment was estimated by the government to be about 70% by a 1992 estimate.

In 2004, the GDP growth rate was 1.8%, down from 2.5% in 2003. The inflation rate increased slightly, from 1.4% to 2.3%, but is not expected to pose any problems to the economy. The country is still heavily dependent on foreign aid and on remittances from workers abroad.

INCOME

The US Central Intelligence Agency (CIA) reports that in 2005, Kiribati's gross domestic product (GDP) was estimated at $79.0 million, supplemented by a nearly equal amount from external sources The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange based on current dollars. The per capita GDP was estimated at $800. The annual growth rate of GDP was estimated at 1.5%. The average inflation rate in 2001 was 2.5%. It was estimated that agriculture accounted for 30% of GDP, industry 7%, and services 63%.

LABOR

In 2001 (the latest year for which data was available), there were an estimated 7,870 economically active people in Kiribati, excluding subsistance farmers. Overall, about 90% of the labor force is engaged in agriculture or fishing. Overseas workers remitted a large percentage of their wages to Kiribati.

In urban areas there is a small but strong trade union movement. Affiliates of the Kiribati Trades Union Congress (KTUC), founded in 1982 with Australian assistance, include the Fishermen's Union, the Cooperative Workers' Union, the Seamen's Union, the Teachers' Union, and the Public Employees' Association; in 2002, the KTUC had about 2,500 members. Workers have the right to strike but rarely exercise this option. The government does not interfere with union activity.

There is no statutory minimum wage; however, the government sets wage levels in the large public sector, which is the major employer in the cash economy. The standard workweek for those in the public sector was 36.25 hours, with overtime pay for any additional hours. Children may not work under the age of 14. This is effectively enforced by the government in the modern, industrial sector of the economy, but many children do perform light labor in the traditional fishing economy.

AGRICULTURE

Agriculture is limited chiefly to coconut and pandanus production. About 37,000 hectares (91,400 acres) of land is considered arable, representing 5.1% of the total land area. Overseas technical aid has allowed some islands to cultivate bananas and papaws for the Tarawa market. An estimated 103,000 tons of coconuts, 5,000 tons of bananas, and 5,900 tons of vegetables and melons were produced in 2004. Agricultural trade in 2004 consisted of us$1.8 million in exports and us$14.3 million in imports. Agriculture contributes 30% to GDP.

ANIMAL HUSBANDRY

There were 12,400 pigs in Kiribati in 2005; pork production was 876 tons. The Agricultural Division has introduced improved breeds of livestock.

FISHING

Sea fishing is excellent, particularly for skipjack tuna around the Phoenix Islands. Kiribati has one of the world's longest maritime zones, covering approximately three million sq km. Commercial fishing has expanded dramatically since 1979 as a result of projects funded by Japan, the United Kingdom, and the EU. The total sea catch in 2003 was 35,947 tons. Kiribati also receives revenue from the sales of licenses permitting foreign vessels to fish its offshore waters. Seaweed is also exported. Exports of fish products were valued at us$4.26 million in 2003.

FORESTRY

The forested area was estimated to cover 38.4% of the islands in 2000, but there is little useful timber on the islands.

MINING

There has been no mining in Kiribati since the closing of the Banaba phosphate industry, in 1979. In its last year of operation, 445,700 tons of phosphates worth us$18 million were exported.

ENERGY AND POWER

Kiribati has no known reserves of oil, natural gas, or coal. Thus imports are relied upon to meet any fossil fuel needs.

In 2002, imports and consumption of refined petroleum products each averaged 210 barrels per day. There were no imports of coal or natural gas in 2002.

The government maintains electricity-generating plants on Tarawa and Christmas Island, and there are private generators on Banaba and several other islands. In 2002, electric power generating capacity was 0.003 million kW, with production at 0.012 billion kWh. Consumption in that year came to 0.011 billion kWh. All electric power was generated from fossil fuels.

INDUSTRY

Several small industries have been established, including a soft drink plant, a biscuit factory, boat-building shops, construction companies, furniture plants, repair garages, bakeries, and laundries. The government also promotes local handicrafts. A pilot project on Kiritimati for producing solar-evaporated salt began operations in 1985. In 2000, this had declined to 0.7%, down from 1.2% in 1999. Construction was 2.7% of GDP in 2000, down from 4.6% in 1999.

There is not a lot of data pertaining to the country's industry, but in 1998 this sector was estimated to have a 7% share in the GDP—as compared to the services sector which amounted to 63%. In 2001, the economically active population of Kiribati (excluding subsistence farmers) was 7,870.

SCIENCE AND TECHNOLOGY

The Foundation for the Peoples of the South Pacific, founded in 1982 and located at Bairiki, Tarawa, provides technical assistance for agriculture and nutrition programs.

DOMESTIC TRADE

The domestic economy operates on a subsistence and barter basis. With very few local production or agricultural facilities, the nation relies heavily on imported goods of all types. Revenues from fishing licenses, worker remittances, and foreign assistance form the basis of the economy. Retail sales are handled by cooperative societies, which distribute the bulk of consumer goods and perform all merchandising functions not dealt with by the government. Although private trade is growing, cooperatives are preferred as a matter of public policy because they are closer to the local tradition than individual enterprises. Tourism is slowly growing as the main domestic economic activity.

FOREIGN TRADE

The loss of the phosphate industry, copra price fluctuations, and the islands' remoteness have hindered overseas trade, but an upward trend in foreign trade was perceptible in the 1980s. Copra—the only commodity exported by Kiribati—accounted for 64% of total domestic exports in 1996. Fish and seaweed are also exported, accounting for 14% and 8% of total exports, respectively. Kiribati's main export partners are the United States, Australia, and New Zealand. Australia provides 44% of imports; Fiji, 19%; Japan, 15%; New Zealand, 4%; and the United States and China, 5% each.

In 2002, Kiribati's exports amounted to $35 million (FOB—Free on Board), while the imports rose to $83 million (CIF—Cost and Freight). In 2004, the bulk of exports went to France (45.7%), Japan (29.2%), the United States (9.1%), and Thailand (5.4%). Imports included foodstuffs, machinery and equipment, miscellaneous manufactured goods, and fuel, and mainly came from Australia (33.6%), Fiji (29.8%), Japan (10.3%), New Zealand (6.9%), and France (4.1%).

Country	Exports	Imports	Balance
World	9.1	41.0	-31.9
Bangladesh	4.7	…	4.7
United States	1.5	1.9	-0.4
Marshall Islands	1.1	…	1.1
Denmark	0.7	…	0.7
China, Hong Kong SAR	0.3	0.3	…
Australia	0.2	18.2	-18.0
Japan	0.1	6.1	-6.0
(…) data not available or not significant.

Current Account			1.4
Balance on goods		-21.1
Imports	-27.3
Exports	6.1
Balance on services		0.3
Balance on income		14.8
Current transfers		7.3
Capital Account			2.5
Financial Account			-4.8
Direct investment abroad		-0.0
Direct investment in Kiribati		0.4
Portfolio investment assets		-6.6
Portfolio investment liabilities		…
Financial derivatives		…
Other investment assets		…
Other investment liabilities		1.4
Net Errors and Omissions			-5.1
Reserves and Related Items			6.0
(…) data not available or not significant.

BALANCE OF PAYMENTS

Continued deficits in the trade balance are often met by grants from the United Kingdom to the government's current and capital accounts. Foreign aid, in fact, accounts for between 25% and 50% of GDP.

The US Central Intelligence Agency (CIA) reported that in 1998, the purchasing power parity of Kiribati's exports was us$6 million, while imports totaled us$44 million, resulting in a trade deficit of us$38 million.

The International Monetary Fund (IMF) reported that in 1994 Kiribati had exports of goods totaling us$6 million and imports totaling us$27 million. The services credit totaled us$18 million and debit us$17 million.

There was no data available on the exports and imports of goods and services, but the World Bank estimated that in 2003, Kiribati's resource balance reached -$77 million. The current account balance was also negative, at -$13 million, and the country had virtually no foreign exchange reserves.

BANKING AND SECURITIES

The Bank of Kiribati in Tarawa is jointly owned by the Westpac Banking Corp. (Australia) and the government of Kiribati (49%). The Kiribati Development Bank, opened in 1987, was to take over the assets of the National Loans Board when it became fully operational.

INSURANCE

Individual coverage is available in Tarawa through private and government agencies.

PUBLIC FINANCE

Local revenues are derived mainly from import duties, fishing fees, and investment income from the phosphate fund. The country has been running a capital account deficit since independence. Overall, budgetary deficits have appeared in recent years, growing substantially in the 1990s.

The US Central Intelligence Agency (CIA) estimated that in 2000 Kiribati's central government took in revenues of approximately $28.4 million and had expenditures of $37.2 million. Revenues minus expenditures totaled approximately -$8.8 million. Total external debt was $10 million.

TAXATION

The main source of tax revenue, the phosphate industry, ended in 1979. Other taxes have brought meager returns, except for a copra export tax, with producers protected by a government stabilization fund. The Revenue Equalization Reserve Fund decreased from a$658 million at the end of 2000 to a$635 million at the end of 2001. This is equivalent to 10 years of imports or 8.2 times GDP.

A progressive income tax, introduced in 1975, is set at 25% of gross income above us$1,233 and increases in two steps to 35% on gross incomes over us$34,393. Companies are taxed 25% of net profits of the first us$34,393 and 35% on any net profits over this amount. The hotel tax is a flat rate of 10% of turnover. Withholding tax on dividends paid to overseas investors (except Australians) is 30%; withholding tax on dividends paid to Australians is 15%. Island councils levy local rates; a landowners' tax is based on land area and fertility.

CUSTOMS AND DUTIES

Since a single-line tariff was introduced on 1 January 1975, trade preferences are no longer granted to imports from Commonwealth countries. Tariffs, applying mostly to private imports, are imposed as a service of revenue at rates up to 75%. Most duties are levied ad valorem, with specific duties on alcoholic beverages, tobacco, certain chemicals, petroleum, cinematographer's film, and some other goods. Goods from all sources are subject to an additional freight levy charge.

FOREIGN INVESTMENT

Foreign investment legislation was passed in 1986. The Foreign Investment Commission (FIC) grants licenses on a case-by-case basis. Investments over us$171,790 must also be approved by the cabinet. Performance criteria regarding employment, training, and production are often set. Certain local industries are closed to foreign investment, including pig farming, poultry farming, millionaire salad exportation, domestic interisland shipping, and wholesaling. Endangered species are protected. Fisheries and the agricultural sector are not closed, but are subject to restrictions.

There has been little appreciable investment in recent years. Government statistics show a total of 21 approved foreign investments from 1995 to September 1997, whereas there were only five approved foreign investments the previous three years. In 2001, foreign direct investment (FDI) was a -us$426,000 and portfolio investment was a -us$5.7 million. Portfolio investment flows have been persistently negative, reaching a peak outflow of us$17.7 million in 1992. The main sectors for investment have been tourist-related activities, shipping, fishing ventures, and the processing and export of fish. The main sources of investments have been the United States, Japan, the United Kingdom, Australia, and New Zealand.

ECONOMIC DEVELOPMENT

The economic development plans for 1979–82 and 1983–86 were financed chiefly by the United Kingdom and supplemented by Australia, New Zealand, and Japan, with loans from the Asian Development Bank. Canada, Germany, and the Republic of Korea also have started small aid programs. The government lays out National Development Plans at four-year intervals, the most recent plan covered 2000–04. The goals are set with expertise assistance from Australia, the United Kingdom, New Zealand, and international financial organizations, the country's primary sources of aid. The current National Development Plan sets priority on the development of fisheries and air transportation, including a proposal for a government airline. Other sectors emphasized are communications, agriculture, and tourism. Policies are aimed at improving education and training, increasing government revenues, increasing employment opportunities, and narrowing the trade deficit. It has been made illegal to sell land in Kiribati, but it may be leased. Concern about preserving traditional culture and the environment, and preventing the formation of a landless class, are as strong as aspirations for economic growth and participation in the cash economy. Of particular concern in this group of lowlying atolls is the effects of global warming, as a significant rise in the sea level could literally make much of the country disappear.

Economic development continued to be hampered by the fragmented structure of the country, a weak infrastructure, an uneducated workforce, and the remoteness from foreign markets. The main growth sector is tourism. Kiribati is dependent on foreign aid (which represents around 50% of the GDP), and on remittances sent back by people working abroad.

SOCIAL DEVELOPMENT

A provident fund system provides old age, disability, and survivor benefits for all employees over 14 years old, with the exception of domestic workers. It is funded by employee contributions of 7.5%; employers pay an equal percentage of payroll. Retirement is allowed at ages 45–50 and benefits are paid as a lump sum. Workers' compensation is available for some employed persons and the cost is covered by the employer. A funeral grant is provided if there are no eligible survivors.

Women are accorded the same legal rights as men, but have traditionally been relegated to a subordinate role in society. However, they are gradually breaking out of their traditional role and entering both skilled and unskilled occupations. There have also been signs of affirmative action in government hiring and promotions. Domestic violence is a significant problem, and alcohol abuse is often in a factor in violence against women. Child abuse appears to be a growing problem, although the government is committed to the welfare of children.

There were no reports of human rights abuses or of the systematic discrimination of minorities. Corporal punishment remains legal for some crimes.

HEALTH

All health services are free. A nurses' training school is maintained at the 160-bed Central Hospital in Tarawa. There are four medical districts, each with its own medical officer and staff. Each inhabited island has a dispensary, and there is a medical radio network linking all the islands. In 2004, there were an estimated 30 physicians, 235 nurses, and 5 dentists per 100,000 people. The population of Kiribati had increased access to safe water and sanitation.

Tuberculosis remains the most serious public health problem (about 200 cases per 100,000 people in 1990); other endemic diseases are leprosy, filariasis, and dysentery. There was a cholera outbreak in 1977, after which projects to construct water and sewage pipes were sped up. Vitamin A deficiency, frequently causing night blindness and xerophthalmia, is a common occurrence among children in Kiribati.

Infant mortality was estimated at 48.52 per 1,000 live births in 2002 and average life expectancy was 61.71 years. The immunization rates for a child under one year of age were as follows in 1995: diphtheria, tetanus, and whooping cough, 60%; polio, 100%; measles, 100%; and tuberculosis, 60%. As of 2002, the crude birth rate and overall mortality rate were estimated at 31.6 and 8.8 per 1,000 people respectively. The total fertility rate was estimated at 4.3 births per woman.

HOUSING

Most Kiribatians live in small villages of 10 to 150 houses and construct their own dwellings from local materials. The use of more permanent building materials, such as concrete with corrugated aluminum roofing, is becoming common in urban areas. Loans to prospective homeowners are provided by the National Loans Board. Dwellings range from traditional houses with thatched roofs to nontraditional houses with metal roofs.

EDUCATION

The government has gradually taken over control of primary education from the missions. Education has been made compulsory by the government for children between the ages of 6 and 15. They go through seven years of primary education and five years of secondary education. In 1997, there were 17,594 students attending 86 primary schools, with 727 teachers. The student-to-teacher ratio stood at 24:1. In secondary schools, there were 215 staff and 4,403 students in that same year. Secondary school pupils take the New Zealand school certificate. The estimated adult literacy rate is 93%.

Higher education courses are available at the Kiribati Extension Center of the University of the South Pacific (Fiji) in Tarawa. Other postsecondary education is provided by scholarships for study abroad. The Tarawa Technical Institute offers instruction in technical and vocational skills. The Marine Training Center offers 18month instruction in deck, engine room, and catering work on foreign shipping lines; there are approximately 200 students enrolled in these programs.

LIBRARIES AND MUSEUMS

The National Library and Archives in Tarawa is the largest library in the country with a collection of 50,000 volumes, including those in small units throughout the islands. The University of the South Pacific has a campus in Tarawa with a small library of 5,700 volumes. The Kiribati Library and Information Network was formed in 2001 to promote libraries and the study and profession of library science in the nation. The Kiribati Cultural Centre in Bikenibeu houses the National Museum of Kiribati.

MEDIA

In 2002, there were 4,500 mainline telephones and 500 mobile phones in use across the country. Radio Kiribati, operated by the Broadcasting and Publications Authority (BPA), transmits daily in I-Kiribati and English and broadcasts a few imported Australian programs. As 2004, there were three radio stations, two of which were owned by the government. There were no national television stations in operation. Kiribati is on the Peacesat network, which provides educational transmissions from Suva. A satellite link with Australia was established in 1985. As of 1997, there were 17,000 radios and 1,000 televisions in use nationwide. In 2002, there were 2,000 Internet subscribers.

The BPA publishes a fortnightly bilingual newspaper, Te Uekera. There is no commercial press; all publications are governmentor church-sponsored. The Information Department at Tarawa publishes Atoll Pioneer, a weekly newspaper. Te Itoi ni Kiribati, a weekly newsletter, is published by the Roman Catholic Church. Te Kaotan te Ota is a newspaper published monthly by Protestant Church. The constitution provides for legally guaranteed freedom of speech and press.

ORGANIZATIONS

The most important organization is the mronron (meaning "sharing"), a cooperative society based on kinship or locality. There is a national Credit Union League and a teachers' union. National youth organizations include the Kiribati Students' Association, the Kiribati Scouts Association, and the Kiribati Girl Guides Associations. Sports clubs and associations represent amateur athletes in a variety of pastimes, including tennis, weightlifting, and track and field. There is a national chapter of the Red Cross Society.

TOURISM, TRAVEL, AND RECREATION

Tourism, although important to the economy of Kiribati, is very limited. There is a visitors' bureau at Tarawa, and there are hotels in Betio and on Abemama and Christmas islands. The bureau makes available fishing, swimming, and boating facilities on Tarawa and arranges trips by sea or air to other islands. Ecotourism and World War II battle sites are also attractions.

Popular sports in Kiribati are football (soccer) and weightlifting. Kiribati first competed in the Olympic Games in Athens, Greece, in 2004. Traditional dancing and singing styles have survived.

In 2001, a total of 4,555 tourists visited Kiribati. Over 50% of these visitors came from East Asia. There were 162 hotel rooms in 2002. A valid passport, visa, onward/return ticket, and proof of sufficient funds are required to travel in Kiribati.

FAMOUS KIRIBATIANS

Ieremia Tabai (b.1950) was president from independence until 1991. Teburoro Tito (b.1953) was president and foreign minister from 1994 to 2003. Anote Tong (b.1952) became president in 2003.

DEPENDENCIES

Kiribati has no territories or colonies.

BIBLIOGRAPHY

Graham, Michael B. Mantle of Heroism: Tarawa and the Struggle for the Gilberts, November 1943. Novato, Calif.: Presidio Press, 1993.

Leibo, Steven A. East and Southeast Asia, 2005. 38th ed. Harpers Ferry, W.Va.: Stryker-Post Publications, 2005.

Piazza, Anne Di. Sailing Routes of Old Polynesia: The Prehistoric Discovery, Settlement and Abandonment of the Phoenix Islands. Honolulu: Bishop Museum Press, 2004.

Smith, George W. Carlson's Raid: The Daring Marine Assault on Makin. Novato, Calif.: Presidio Press, 2001.

Wilson, Craig. Kiribati: State of the Environment Report, 1994. Apia, Western Samoa: South Pacific Regional Environment Programme, 1994.

Wright, Derrick. Tarawa, 20–23 November 1943: A Hell of a Way to Die. Marlborough: Crowood Press, 2002.