Kiribati

Total land area	726km² ^[1]spread over 32 atolls and 1 island
Exclusive economic zone (EEZ) area	3.6m² ^[1]

Resident population (2008 estimate)	97,201 ^[2]
Total population (2015 forecast)	110,280 ^[2]
Average annual growth rate 2008-15	1.9%
Population density (2008)	134/km²
Women in parliament	3 out of 46 members
Human Development Index - HDI score (estimate)	0.606^[5]

The Kiribati Constitution provides for executive, legislative and judicial branches of government. The executive consists of a president (Te Beretitenti), a vice president and a cabinet. The legislative branch is the unicameral Maneaba Ni Maungatabu (parliament) with 44 elected members. Additionally, it includes the attorney general, who serves as an ex-officio member, and an appointed representative of the Banaban people now living on Rabi island in Fiji. Banaba is something of a political anomaly. It is part of Kiribati, but its municipal administration is by the Rabi Council of Leaders and Elders based on Rabi island, in Fiji. Despite being citizens of Fiji, the Banaban Rabi islanders hold Kiribati passports and remain the legal landowners of Banaba (the original inhabitants were relocated to Rabi by the British after World War II to allow phosphat mining). The Banaban diaspora on Rabi send one representative to the Kiribati parliament (a second is elected in Banaba). The status of Banaba remains contentious. The Kiribati government have indicated a desire to assume direct administrative control of the island and recommence phosphate mining, a move that would likely be strongly opposed by many in the Banaban community in Fiji. The Banaban people, concerned about minority status after independence, retained a right of direct appeal from the High Court to the British Privy Council (bypasing the Court of Appeal) in respect of any claim that their constitutional rights had been or a are likely to be affected. Kiribati is an independent republic with a 46 member unicameral parliament (Maneaba Ni Maungatabu). There are 44 elected members, one appointed MP representing the Banaban community in Fiji and the Attorney General, who serves as an ex officio member. Members serve 4 year terms (next election due 2011). Independence from Britain on 12 July 1979.

Head of State and Government	President Anote Tong was first elected in 2003 and commenced a second term after the 2007 elections. The President (Te Beretitenti) serves as both head of government and head of state and is elected by popular vote from candidates nominated from within the Maneaba Ni Maungatabu. There is a limit of serving three terms as head of state.
Executive	The cabinet is appointed by the President from among members of the Maneaba Ni Maungatabu and includes the President, Vice- President, Attorney General and no more than ten other ministers. There are 12 government ministries: - Ministry of Commerce, Industry, & Cooperatives - Ministry of Communications, Transport, & Tourism Development - Ministry of Education - Ministry of Environment, Lands and Agricultural Development - Ministry of Finance & Economic Development - Ministry of Foreign Affairs & Immigration - Ministry of Health & Medical Services - Ministry of Labour & Human Resources Development - Ministry of Internal Affairs & Social Development - Ministry for the Line and Phoenix Islands - Ministry of Fisheries and Marine Resources Development - Ministry of Public Works and Utilities.
Civil Service	Like many Pacific island countries, the public sector is generally characterised by (i) limited human resource base, (ii) absence of modern human resource management systems and (iii) limited outreach beyond the major urban centres. The result is low productivity, and dependence on a select few public servants. Spending on health and education as a percentage of the overall budget is high by developing country standards, but remains insufficient to meet the needs of the increasing population. Educational outcomes remain low despite increased funding and students attending tertiary studies at the University of the South Pacific have generally has low success rates. This is a problem in and of itself, but also presents flow-on consequences for the adequacy of the bureaucracy and for the development of the private sector. There is a significant skills shortage in the work force in general, with a particular need for trained teachers and health care workers in the public sector. It is worth noting, however, that in many areas of government, public servants have attained very high qualifications including masters degrees and PhDs. There have been a number of attempts to reform the public sector. In 1996 a program of 'rightsizing' was undertaken with a review of positions and conditions of service across government. With limited results arising from this programme, the National Development Strategy, 2000-2003 also focused on public service reform to create the 'enabling environment needed to stimulate growth and private sector development'. In both cases the absence of an active private sector stymied efforts to introduce public management reforms involving privatisation and contracting. Responsibility for public service recruitment and management is shared between the Public Service Office (charged with human resource management, planning and development), the Public Service Commission (approves public service appointments and monitors discipline) and individual line ministries (responsibilities for recruitment, promotions, discipline and removal of public servants). The division of responsibility is not always clear in practice and can cause bottlenecks in the recruitment process.
Local Government	The legislative basis for decentralisation is the Local Government Act, which was introduced in 1984 and last amended in 2006. The Act provides for 21 elected island councils (one in each of the inhabited islands) mandated with local level service delivery responsibilities including primary education, public health and the provision of utilities. The legislation fiscally empowers the island councils to carry out these functions through a combination of recurrent grants from central government and revenues generated locally. The reality is, however, that island councils have tiny revenue bases, and central government appears reluctant to devolve fiscal and administrative powers. The financial and capacity constraints faced by central government are amplified at the local level, which prevent island councils from developing into effective institutions for local governance. The drive for decentralisation remains strong. In part this is because of the focus of international development agencies on rural development, and the fact that the majority of parliamentarians come from rural constituencies. Decentralisation policies are also an attempt to ease the pressures of urbanisation. Over half of the population is now concentrated on the capital island of Tarawa, which is one of the most densely populated areas in the Pacific. Between 1995 and 2000, there was significant in-migration of people from the outer islands to Tarawa, resulting in an urban growth rate of 5.2%, compared with a national growth rate of 1.7%. Overcrowding in south Tarawa has resulted, placing enormous stress on the environment, infrastructure and social fabric. New 'urban' settlements have emerged since 2000, especially in north Tarawa and Kiritimati Island (which recorded a growth rate of 8% between 2000-2005).
Judiciary	The Chief Justice is appointed by the President, acting in accordance with the advice of the Cabinet tendered after consultation with the Public Service Commission. The Constitution provides for other judges to be appointed to the High Court and the Court of Appeal, although this does not usually happen in practice. The Magistrates’ Courts have jurisdiction within the limits of the district within which they are situated and are composed of three magistrates and a clerk. The Chief Justice appoints the magistrates. A limited range of matters related to the Banaban people and Rabi Council are still able to be appealed to the British Privy Council.
International Organisations	ACP, ADB, C, FAO, IBRD, ICAO, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, IOC, ITU, ITUC, OPCW, PIF, Sparteca, SPC, UN, UNCTAD, UNESCO, UPU, WHO, WMO

The government has struggled to implement economic development and public service reforms. Development is severely constrained by its dispersed and isolated atoll geography, narrow resource base and limited skills workforce. The most recent national development plan - Kiribati Development Plan 2008-2011, Enhancing economic growth for sustainable development - sets out a broad reform agenda that includes: a technical assistance facility to improve public sector performance; managing, motivating and training the public service; establishing a multi-year budgeting framework; improving financial accounting systems; reforming tax administration system; and ministerial strategic and operational planning. Although there is little political will to privatise the multitude of state owned enterprises (SOEs), recently there have been significant steps taken to bring the accounts of these organisations up to date. There remains a sense of urgency to improve the reporting and efficiency of SOEs, which continue to place a substantial drain on government budgets through alarmingly high loans and subsidies. Increasing use of the Revenue Equalisation Reserve Fund (created in 1956 to act as a store of wealth for the country's earnings from phosphate mining) to finance annual budget deficits underminds the fund's capacity to provide a permanent source of budget support.

Public spending has been far exceeding government revenues, with a 25% GDP deficit in 2006 and a 21% deficit in 2007, funded by drawing down cash reserves in the Revenue Equalisation Reserve Fund (which was valued by the Ministry of Finance at USD$400m in 2008). The public sector is the main employer and the many state owned enterprises incur substantial losses and require government subsidies or government-guaranteed loans to stay liquid. Control of prices of goods and services is widespread, and the government argues that this has been reasonably successful keeping inflation at around five per cent. But the quality of good and services provided by state owned enterprises is not monitored, and there is little transparency in public enterprise accounts. Infrastructure and utilities, also government owned, provide reasonable services for the urban population and businesses, but they are loss-making and in need of investment. The overarching strategic framework is the Kiribati Development Plan 2008-2011, which is interpreted into ministerial strategic plans typically running for four years. Annual operational plans are developed each year, and from these divisional work plans. The introduction of complex, central financial management systems (PEBAM and Attache`) in the late 1990s proved difficult and were all but abandoned after a short period of use. Government agencies generally rely on paper-based record keeping or electronic spreadsheets, and the lack of systematic and harmonised data collection and analysis makes it difficult to monitor spending and progress against the national development plan. Recently, increased effort has gone into developing program budgeting and developing an information and communications technology strategy across government. In accordance with the Procurement Act, ministerial expenditure of amounts above $5,000 requires consideration by the Procurement Committee.

VISION

Kiribati budget development framework

Step 1: Set budget ceilings	The budget ceiling is determined by calculating expected revenue less expenditure, however there is often a gap which is funded by drawing from the Revenue Equalization Reserve Fund. All ministries submit their proposals for program expenditure for the coming financial year. The Ministry of Finance and Economic Development (MFED) along with the Ministry of Internal and Social Affairs (MISA) form the Budget Taskforce, which sets the recommended budget levels for cabinet consideration.
Step 2: Budget formulation	Based on the ceilings determined by the Budget Taskforce, each ministry allocates their budget by activity. The Permanent Secretary is responsible for allocating the amount between the divisions, and then each director allocates this to programs within their division.
Step 3: Cabinet approval	The ministerial budgets are consolidated and presented firstly to a mini cabinet chaired by the President and the Minister of Finance as a member. After review by the mini cabinet the draft budget is presented to the full Cabinet, which recommends the budget be taken to Parliament for approval.
Step 4: Parliament approval	The draft budget is sent to Parliament to be debated. The Minister of Finance raises and presents the first reading of the appropriation bill. The second reading is where there is some debate; the committee stage is where people can question individual figures from individual ministries. When the budget is approved (the appropriation bill is passed) parliament issues a general warrant, which gives authority to use the budget. The warrant has to be signed by the President, the Speaker, and the Attorney General before the first of January.
Step 5: Implementation	Each ministry is responsible for spending. The MFED monitors actual versus budgeted spending through the central financial reporting system.

GNI per person 2007 (Atlas method)	US$1,120 ^[2]
GDP current (2009 estimate)	US$114m ^[3]
GDP per capita (2009 estimate)	US$1,142 ^[3]

Labour market‚ Formal sector (2005 census)

Number of employees	13,133 ^[4]
% of workforce	37.8% ^[4]
% Female	38.4% ^[4]
% Public sector	52.9% ^[4]
% Private Sector	47.1% ^[4]

Kiribati has experienced relatively slow or at times negative growth since 2004. High population growth in this period has increased the impact of his relatively poor economic performance. The economy is dependent on external sources of revenues, including fishing license fees and remittances. The limited data available suggests that remittances have been declining as have proceeds from fishing licenses. Other factors affecting domestic revenue include rising international commodity prices, unstable returns from the Revenue Equalisation Reserve Fund due to volatile international capital markets, and losses incurred by state owned enterprises. With few natural resources, Kiribati faces enormous challenges to grow its economy. Commercially viable phosphate deposits were exhausted at the time of independence and copra and fish now represent the bulk of production and exports. Economic development is further constrined by a shortage of skilled workers, weak infrastructure and the remoteness from international markets. The Kiribati Development Plan 2008-2011emphasises the need to develop the workforce to better equip the population in accessing international labour markets. The government considers improved access to the international markets as an essential adaptation strategy in the face of climate change. The number and range of state owned enterprises cramps the space that would otherwise be occupied by the private sector. There is an annual National Business Convention aimed at fostering private sector development. Strategic priorities agreed at the mot recent convention include improving infrastructure, reforming license fees and promoting easier access to credit.

Kiribati is essentially an egalitarian society where culture and religion exerts considerable influence on both formal and traditional governance systems and structures. Beyond the urban centre the state has limited reach and the maneaba (traditional meeting house) remains central to social and political life in Kiribati. It is in the maneaba that elders from each extended family sit in council and make decisions in matters involving more than a single family. Decisions reached under the roof of the maneaba often hold more weight than formal laws. Since independence, the churches have closely aligned themselves with the maneaba system, which in turn has adapted to the emergence of young leaders in politics, the churches and government administration. Despite their age, these young people are permitted to speak alongside the Unimane (elders) in the maneaba. Pursuant to the Laws of Kiribati Act 1989, customary law may be considered in specified matters in criminal and civil proceedings, including the determination of boundaries of, and titles to, customary land. The determination and recognition of customary law is detailed in Schedule 1 to the Act.

No local television programming, however access to New Zealand's and Australia's networks via satellite.

Telephone	Telecommunication and Internet services provided by Telecom Services Kiribati Limited (TSKL).
Internet	2000 users as of December 2001 ^[6] 2400 Facebook users (2.13% population) ^[7].
Newspapers	Te Uekera a fortnightly newspaper is government owned. There are two church run weekly newspapers, Te Itoi ni Kiribati and Te Mauri and two independent weekly newspapers, Kiribati New Star and Atoll Pioneer.
Radio	Radio Kiribati (state broadcaster) relays news from Radio Australia, Radio New Zealand and the BBC.

Under the Constitution no security forces can be established other than the Kiribati Police, the Prison Service, the Marine Protection Service and the Marine Training School. The Constitution prohibits a military force. Defence assistance is provided by Australia and New Zealand.

Development funds come from overseas donors accounts for approximately 20-25% of GDP. Donors include Australia, New Zealand, Japan, European Union, Taiwan and international agencies including the World Bank, Asian Development Bank and United Nations agencies.