U.S. Department of State Background Note
Economy (all figures in U.S. $)
GEOGRAPHY AND PEOPLE
Kiribati includes Kiritimati (Christmas Island), the largest coral atoll in the world, and Banaba (Ocean Island), one of the three great phosphate islands in the Pacific. Except on Banaba, very little land is more than three meters above sea level.
The original inhabitants of Kiribati are Gilbertese, a Micronesian people. Approximately 90% of the population of Kiribati lives on the atolls of the Gilbert Islands. Although the Line Islands are about 2,000 miles east of the Gilbert Islands, most inhabitants of the Line Islands are also Gilbertese. Owing to severe overcrowding in the capital on South Tarawa, in the 1990s a program of directed migration moved nearly 5,000 inhabitants to outlying atolls, mainly in the Line Islands. The Phoenix Islands have never had any significant permanent population. A British effort to settle Gilbertese there in the 1930s lasted until the 1960s when it was determined the inhabitants could not be self-sustaining.
European contact began in the 16th century. Whalers, slave traders, and merchant vessels arrived in great numbers in the 1800s, fomenting local tribal conflicts and introducing often-fatal European diseases. In an effort to restore a measure of order, the Gilbert and Ellice Islands (the Ellice Islands are now the independent country of Tuvalu) consented to becoming British protectorates in 1892. Banaba (Ocean Island) was annexed in 1900 after the discovery of phosphate-rich guano deposits, and the entire group was made a British colony in 1916. The Line and Phoenix Islands were incorporated piecemeal over the next 20 years.
Japan seized some of the islands during World War II. In November 1943, U.S. forces assaulted heavily fortified Japanese positions on Tarawa Atoll in the Gilberts, resulting in some of the bloodiest fighting of the Pacific campaign. The battle was a turning point for the war in the Central Pacific.
Britain began expanding self-government in the islands during the 1960s. In 1975 the Ellice Islands separated from the colony and in 1978 declared their independence. The Gilberts obtained internal self-government in 1977, and became an independent nation on July 12, 1979, under the name of Kiribati.
Post-independence politics were initially dominated by Ieremia Tabai, Kiribati's first President, who served from 1979 to 1991, stepping down due to Kiribati's three-term limit for presidents. The tenure of Teburoro Tito, Kiribati's second-longest serving President, was from 1994 to 2003. His third term lasted only a matter of months before he lost a no confidence motion in Parliament. (See the next section for an explanation of Kiribati's unique presidential system.) In July 2003, Anote Tong defeated his elder brother, Harry Tong, who was backed by former President Tito and his allies. An ensuing court challenge, which alleged violations of campaign finance laws, could have unseated President Tong. However, in October 2003, a judge specially brought in from Australia to ensure strict neutrality ruled in President Tong's favor.
The unicameral House of Assembly (Maneaba) has 42 members: 40 elected representatives, one appointed member by the Banaban community on Rabi Island in Fiji, and the Attorney General on an ex officio basis. All of the members of the Maneaba serve 4-year terms. The speaker for the legislature is elected by the Maneaba from outside of its membership and is not a voting member of Parliament.
After each general election, the new Maneaba nominates at least three but not more than four of its members to stand as candidates for president. The voting public then elects the president from among these candidates. The president appoints a cabinet of up to 10 members from among the members of the Maneaba. Although popularly elected, the president can be deposed by a majority vote in Parliament. If a no confidence motion passes, a new election for President must be held. An individual can serve as president for only three terms, no matter how short each term is. As a result of this provision, former Presidents Tabai and Tito are constitutionally forbidden from serving as president again.
The judicial system consists of the High Court, a court of appeal, and magistrates' courts. The president makes all judicial appointments.
Principal Government Officials
President Anote Tong enjoys a comfortable majority in Parliament, despite his affiliation with a minority party. The biggest political issue today is employment opportunities for a crowded and growing population.
An emotional issue has been the sovereignty of Banaba and its citizens. Because Banaba was devastated by phosphate mining, the vast majority of Banabans moved to the island of Rabi in the Fiji Islands in the 1940s. They enjoy full Fiji citizenship, however the Rabi Council appoints the Banaban member of the Kiribati legislature. The Kiribati Government has returned to its traditional owners land on Banaba previously acquired by the government for phosphate mining. However Banaba is now largely uninhabitable due to the long-term phosphate mining. Less than 500 people remain there.
The end of phosphate revenue from Banaba in 1979 had a devastating impact on the economy. Receipts from phosphates had accounted for roughly 80% of export earnings and 50% of government revenue. Per capita GDP was more than cut in half between 1979 and 1981. The Revenue Equalization Reserve Fund, a trust fund financed by phosphate earnings over the years, is still an important part of the government’s assets and contained more than U.S. $554 million in 2006. Kiribati has prudently managed the reserve fund, which is vital for the long-term welfare of the country.
In one form or another, Kiribati gets a large portion of its income from abroad. Examples include fishing licenses, development assistance, tourism, and worker remittances. External sources of financing are crucial to Kiribati, given the limited domestic production ability and the need to import nearly all essential foodstuffs and manufactured items. Historically, the I-Kiribati were notable seafarers, and today about 1,400 I-Kiribati are trained, certified, and active as seafarers. Remittances from seafarers are a major source of income for families in the country, and there is a steady annual uptake of young I-Kiribati men to the Kiribati Maritime Training Institute.
Fishing fleets from South Korea, Japan, China, Taiwan, and the United States pay licensing fees to operate in Kiribati's territorial waters. These licenses produce revenue worth U.S. $20 million to $35 million annually. Kiribati’s exclusive economic zone comprises more than 3.55 million square kilometers (1.37 million square miles) and is very difficult to police given Kiribati’s small land mass and limited means. Kiribati probably loses millions of dollars per year from illegal, unlicensed, and unreported fishing in its exclusive economic zone.
Official development assistance amounts to between U.S. $15 million and $20 million per year. The largest donors are Japan, the EC, Australia, New Zealand, and Taiwan. U.S. assistance is provided through multilateral institutions. Remittances from Kiribati workers living abroad provide more than $7 million annually.
Tourism is a relatively small, but important domestic sector. Attractions include World War II battle sites, game fishing, ecotourism, and the Millennium Islands, situated just inside the International Date Line and the first place on earth to celebrate New Year. The vast majority of American tourists only visit Christmas Island in the Line Islands on fishing and diving vacations.
Most islanders engage in subsistence activities such as fishing and growing of food crops like bananas, breadfruit, and papaya. The leading export is the coconut product, copra, which accounts for about two-thirds of export revenue. Currently, copra is exported to Bangladesh for processing. Other exports include pet fish, shark fins, and seaweed. Kiribati's principal trading partners are Australia and Japan.
Transportation and communications are a challenge for Kiribati. Air Pacific, Air Marshall Islands, and the former Air Nauru, now known as Our Airline, provide international air links to the capital of Tarawa. Air Kiribati provides service to most of the populated atolls in the Gilberts using small planes flying from Tarawa. Small ships serve outlying islands, including in the Line Islands, with irregular schedules. A joint venture between Air Pacific and the government of Kiribati operates a flight linking Christmas Island to Fiji and Honolulu.
Telecommunications are expensive, and service is mediocre. There is no broadband Internet.
Kiribati became a member of the United Nations in 1999, and in September 2003, President Tong requested authority from Parliament to establish a UN mission. Currently, however, Kiribati does not maintain a resident ambassador in New York, and its vote is typically cast by New Zealand in a proxy arrangement. Kiribati also is a member of the Pacific Islands Forum, Asian Development Bank, the Commonwealth, International Monetary Fund, the Pacific Community, and the World Bank. Kiribati is particularly active in the Pacific Islands Forum. The only Kiribati diplomatic missions overseas are a high commission in Fiji and an honorary consulate in Honolulu.
Principal U.S. Embassy Officials
The U.S. Embassy responsible for Kiribati is located in Suva, Republic of the Fiji Islands. Its location is 31 Loftus Street, Suva, Fiji. Mailing address: P.O. Box 218, Suva, Fiji. Tel: +679-331-4466, fax: +679 330-0081.
TRAVEL AND BUSINESS INFORMATION
For the latest security information, Americans living and traveling abroad should regularly monitor the Department's Bureau of Consular Affairs Internet web site at http://www.travel.state.gov, where the current Worldwide Caution, Public Announcements, and Travel Warnings can be found. Consular Affairs Publications, which contain information on obtaining passports and planning a safe trip abroad, are also available at http://www.travel.state.gov. For additional information on international travel, see http://www.usa.gov/Citizen/Topics/Travel/International.shtml.
The Department of State encourages all U.S citizens traveling or residing abroad to register via the State Department's travel registration website or at the nearest U.S. embassy or consulate abroad. Registration will make your presence and whereabouts known in case it is necessary to contact you in an emergency and will enable you to receive up-to-date information on security conditions.
Emergency information concerning Americans traveling abroad may be obtained by calling 1-888-407-4747 toll free in the U.S. and Canada or the regular toll line 1-202-501-4444 for callers outside the U.S. and Canada.
The National Passport Information Center (NPIC) is the U.S. Department of State's single, centralized public contact center for U.S. passport information. Telephone: 1-877-4USA-PPT (1-877-487-2778). Customer service representatives and operators for TDD/TTY are available Monday-Friday, 7:00 a.m. to 12:00 midnight, Eastern Time, excluding federal holidays.
Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at 877-FYI-TRIP (877-394-8747) and a web site at http://www.cdc.gov/travel/index.htm give the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled "Health Information for International Travel" (HHS publication number CDC-95-8280) is available from the U.S. Government Printing Office, Washington, DC 20402, tel. (202) 512-1800.
Further Electronic Information
Export.gov provides a portal to all export-related assistance and market information offered by the federal government and provides trade leads, free export counseling, help with the export process, and more.STAT-USA/Internet, a service of the U.S. Department of Commerce, provides authoritative economic, business, and international trade information from the Federal government. The site includes current and historical trade-related releases, international market research, trade opportunities, and country analysis and provides access to the National Trade Data Bank.
Revised: Oct. 2007