About the CBI

September 2005

Background Note: Kiribati

Kiribati flag has upper red half with a yellow frigate bird flying over a
yellow rising sun; the lower half is blue with three horizontal wavy white
stripes to represent the ocean.

PROFILE

OFFICIAL NAME:
Republic of Kiribati

Geography
Area: 719 sq. km (266 sq. mi.) in 32 atolls and one island.
Cities: Capital--Tarawa (pop. 30,000).
Terrain: Archipelagos of low-lying coral atolls surrounded by extensive
reefs.
Climate: Maritime equatorial or tropical.

People
Nationality: Noun and adjective--I-Kiribati (for both singular and plural).
Population (2005 est.): 103,092. Age structure--38.9% under 14; 3.3% over 65.
Growth rate: 2.25%.
Ethnic groups: Micronesian 98%.
Religion: Roman Catholic 52%, Kiribati Protestant 40%.
Languages: English (official), Gilbertese/I-Kiribati (de facto).
Health: Life expectancy--male 58.71 yrs., female 64.86 yrs. Infant mortality
rate--48.52/1,000.
Work force: Majority engaged in subsistence activities.

Government
Type: Republic.
Independence (from United Kingdom): July 12, 1979.
Constitution: July 12, 1979.
Branches: Executive--president (head of state and government, known as Te
Beretitenti), vice president, cabinet. Legislative--unicameral House of
Assembly. Judicial--High Court, court of appeal, magistrates' courts.
Major political parties: Parties are only very loosely organized--Maneaban Te
Mauri (Protect the Maneaba), National Progressive Party, Liberal Party.

Economy (all figures in U.S.$)
GDP(2004): $70 million
GNI 2003): $83 million.
GDP per capita(2004): $760.
GDP composition by sector: Services 75%, agriculture 14%, industry 11%.
Industry: Types--tourism, copra, fish.
Trade: Exports--$33.5 million: copra, pet fish, seaweed. Export
markets--Japan, South Korea, Australia, United States, Thailand, , U.S.
Imports--$87.2 million: food, manufactured goods. Import sources--Australia,
Fiji, New Zealand, South Korea, JapanAid per capita (2003): $191.
Currency: Australian dollar (A$).

GEOGRAPHY AND PEOPLE
Kiribati (pronounced "keer-ih-bahs") consists of 32 low-lying atolls and one
raised island scattered over an expanse of ocean equivalent in size to the
continental United States. The islands straddle the Equator and lie roughly
halfway between Hawaii and Australia. The three main groupings are the
Gilbert Islands, Phoenix Islands, and Line Islands. In 1995 Kiribati
unilaterally moved the International Date Line to include its easternmost
islands, making it the same day throughout the country.

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 an annual population growth rate of around 2.5% and severe
overcrowding in the capital on South Tarawa, a program of migration has been
implemented to move nearly 5,000 inhabitants to outlying atolls, mainly in
the Line Islands. The Phoenix Islands have never had any permanent
population. A British effort to settle Gilbertese there in the 1930s failed
due to lack of water. A new program of settlement to the Phoenix Islands was
begun in 1995.

HISTORY
The I-Kiribati people settled what would become known as the Gilbert Islands
between 1000 and 1300 AD. Subsequent invasions by Fijians and Tongans
introduced Micronesian and Polynesian elements to the Micronesian culture,
but extensive intermarriage has produced a population reasonably homogeneous
in appearance and traditions.

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 known as 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 collection was made a British
colony in 1916. The Line and Phoenix Islands were incorporated piecemeal over
the next 20 years.

Japan seized 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 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 became the
independent country of Tuvalu. The Gilberts obtained internal self-government
in 1977, and formally 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. Teburoro Tito's tenure as
President, 1994-2003, also was curtailed by the three-term limit, though in
his case 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.

GOVERNMENT
The constitution promulgated at independence establishes Kiribati as a
sovereign democratic republic and guarantees the fundamental rights of its
citizens.

The unicameral House of Assembly (Maneaba) has 42 members: 40 elected
representatives, one appointed member from Banaba island, 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, locally
referred to as "His Excellency Te Beretitenti." The voting public then elects
the president from among these candidates. A cabinet of up to 10 members is
appointed by the president from among the members of the Maneaba. Although
popularly elected, the president can be deposed by a majority vote in
Parliament. In this case, a new election for President must be held. A person
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. All judicial appointments are made by the president.

Principal Government Officials
Head of State/Government--President Anote Tong
Vice President--Teima Onorio
Ambassador to the United States--vacant

POLITICAL CONDITIONS
Political parties exist but are more similar to informal coalitions in
behavior. They do not have official platforms or party structures. Most
candidates formally present themselves as independents. Campaigning is by
word of mouth and informal gatherings in traditional meeting houses.

While he is head of a minority party, President Anote Tong enjoys a
comfortable majority in Parliament. The biggest political issue today is
finding employment opportunities for a crowded and growing population. In
2003, the losses incurred by government-owned Air Kiribati became a major
political issue as well.

An emotional issue has been the protracted bid by the residents of Banaba
Island to secede and have their island placed under the protection of Fiji.
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. The Kiribati Government has responded by
including several special provisions in the constitution, such as the
designation of a Banaban seat in the legislature and the return of land
previously acquired by the government for phosphate mining. Only 200-300
people remain on Banaba.

ECONOMY
Kiribati's per capita GNP of less than U.S. $1,000 makes it one of the
poorest countries in the world. Phosphates had been profitably exported from
Banaba Island since the turn of the century, but the deposits were exhausted
in 1979.

The end of phosphate revenue 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. A trust fund financed by phosphate earnings over the
years--the Revenue Equalization Reserve Fund--still exists and contained more
than U.S. $400 million in 2003. Kiribati has received high marks for its
prudent management of 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, worker
remittances, and tourism. In particular, about 2000 I-Kiribati work as
sailors on foreign merchant ships. Given Kiribati's limited domestic
production ability, it must import nearly all of its essential foodstuffs and
manufactured items, and it depends on these external sources of income for
financing.

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. Due
to its small land mass and huge maritime area, however, Kiribati also loses
untold millions of dollars per year from illegal, unlicensed fishing in its
exclusive economic zone.

Another U.S. $20 million to $25 million of external income takes the form of
direct financial transfers. Official development assistance amounts to
between U.S. $15 million and $20 million per year. The largest donors are
Japan, the United Kingdom, Australia, and New Zealand. In addition, Taiwan is
widely expected to become an important bilateral donor in the coming years.
U.S. assistance is provided through multilateral institutions. Remittances
from Kiribati workers living abroad provide more than $7.5 million annually.

Tourism is a relatively small, but important domestic sector. Between 3,000
and 4,000 visitors per year provide U.S. $5 million to $10 million in
revenue. 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 via weekly charter flights from
Honolulu.

Most islanders engage in subsistence activities ranging from fishing to the
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,
but there are plans to process copra in Tarawa. 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. International
air links to the capital of Tarawa are provided only by the near-bankrupt Air
Nauru. 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. Hawaiian
Air flies to Christmas Island once a week. It is not possible to travel from
the Line Islands to the Gilbert Islands by air without traveling via Hawaii
and either Fiji or the Marshall Islands.

Telecommunications are expensive, and service is mediocre. There is no
broadband. The monopoly Internet provider on Tarawa is one of the most
expensive in the world.

FOREIGN RELATIONS
Kiribati maintains friendly relations with most countries and has
particularly close ties to its Pacific neighbors--Japan, Australia, New
Zealand, and Fiji. Under President Tito, Kiribati had particularly close
relations with China and allowed Beijing to establish a satellite tracking
station on South Tarawa. In November 2003, however, President Tong announced
the establishment of full diplomatic relations with Taiwan. China's tracking
station closed shortly thereafter. Australia, Taiwan, New Zealand, and the
United Kingdom maintain resident diplomatic missions in Kiribati.

U.S.-KIRIBATI RELATIONS
Relations between Kiribati and the United States are excellent. Kiribati
signed a treaty of friendship with the United States after independence in
1979. The United States has no consular or diplomatic facilities in the
country. Officers of the American Embassy in Suva, Fiji, are concurrently
accredited to Kiribati and make periodic visits. The U.S. Peace Corps has
maintained a program in Kiribati since 1967. Currently there are about 50
Peace Corps volunteers serving in the county.
Kiribati became a member of the United Nations in 1999, but does not maintain
a resident ambassador in New York. In September 2003, President Tong
requested authority from Parliament to establish a UN mission. 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
Ambassador--Larry M. Dinger
Deputy Chief of Mission--Ted A. Mann
Political/Economic/Commercial Affairs--Brian J. Siler
Consul--Kirk Lindly
Management Officer--Jeffrey Robertson

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.