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Growth has been strong in recent years and some moderation is expected, with risks skewed to the downside. High fishing revenues improved the fiscal position, but generated pressure to increase spending. There has been progress on fiscal and structural reforms. Yet, public spending needs are large, driven by an infrastructure gap and climate adaptation costs, and the country remains at high risk of debt distress.
The inadequate water supply and sanitation situation in South Tarawa has contributed to high rates of water-borne diseases and environmental degradation in the country's main urban center. There has been limited capital investment in water supply and sanitation infrastructure and ongoing operations and maintenance in South Tarawa, in part, as a result of low cost recovery in service delivery. To enable more informed policy responses to address the current situation, this study seeks to estimate the total economic costs associated with inadequate water and sanitation services in South Tarawa.
-A journey to the end of the world, documenting a vanishing culture threatened by climate change -Presented through maps, infographics, and a glossary, all masterfully illustrated Kiribati is an island nation in the vast blue of the Pacific Ocean. Composed of thirty-two atolls and three groups of islands, Kiribati lies halfway between Hawaii and Australia. The largest and best-known of the many coral islands is Kiritimati, where James Cook landed on December 24, 1777, which is why he called it 'Christmas Island'. In recent years the island world of Kiribati has achieved fame for the wrong reason: climate scientists have calculated that many of these atolls and the outer zones of the coral islands will sink into the ocean when sea levels rise as expected. When Alice Piciocchi and Andrea Angeli heard this, their desire to visit grew. Yet, instead of meeting desperate inhabitants sitting on their packed suitcases, they found people who had no intention of leaving. This book is a special kind of travel journal and a masterpiece of bibliophilism. The authors have succeeded in bringing us closer to the everyday culture and ideas of Kiribati's people, testifying to their deep connection to the ocean and the universe itself.
After two impressively peaceful decades, there are signs of a dangerous degree of complacency in Kiribati's view of its domestic and external affairs. Forms of cultural and political resistance to change have thus been encouraged, and these are handicapping the nation's response to development risks. Eight leading sources of development risk confronting Kiribati are identified, and these require understanding and appropriate responses in the form of well-formulated national development strategies. Based on a thorough assessment of risks, priorities, and options by sector in the main report, 16 policy actions are recommended as keys to the full range of responses that need to be formulated to cope with development risk.
Kiribati Country Study Guide - Strategic Information and Developments
KEY ISSUES Kiribati’s key economic challenges are to reduce large structural fiscal imbalances and increase growth and employment opportunities, while facing obstacles posed by remoteness, lack of scale, vulnerabilities to external shocks and climate change. The significant fiscal consolidation envisaged by the authorities will help stabilize Kiribati’s sovereign wealth fund (the Revenue Equalization Reserve Fund, or RERF) in real per capita terms. This stabilization effort would also require that fishing license fees remain close to recent exceptionally high levels, with windfall incomes relative to the conservative budgeted baseline saved. In the event of weaker fishing license fee revenues, a more ambitious adjustment in the non-fishing budget would be needed. The small private sector share in the economy due to remoteness and weaknesses in business climate constrains growth and puts strain on public finances. Continuing the fiscal and structural reform program is essential. Climate change brings additional risks and fiscal costs. Main Recommendations: • Continue fiscal reforms designed to deliver fiscal consolidation and improved public financial management. Seek to maintain fishing license fees above the current conservative budget baseline, with windfalls saved to strengthen RERF balances. If fishing license fee windfalls cannot be sustained, explore other options to further strengthen fiscal balances. • Continue reforms of state-owned enterprises (SOEs). • Facilitate growth through improving the business climate and infrastructure, including through streamlining government services.
Governments fail to provide the public goods needed for development when its leaders knowingly and deliberately ignore sound technical advice or are unable to follow it, despite the best of intentions, because of political constraints. This report focuses on two forces—citizen engagement and transparency—that hold the key to solving government failures by shaping how political markets function. Citizens are not only queueing at voting booths, but are also taking to the streets and using diverse media to pressure, sanction and select the leaders who wield power within government, including by entering as contenders for leadership. This political engagement can function in highly nuanced ways within the same formal institutional context and across the political spectrum, from autocracies to democracies. Unhealthy political engagement, when leaders are selected and sanctioned on the basis of their provision of private benefits rather than public goods, gives rise to government failures. The solutions to these failures lie in fostering healthy political engagement within any institutional context, and not in circumventing or suppressing it. Transparency, which is citizen access to publicly available information about the actions of those in government, and the consequences of these actions, can play a crucial role by nourishing political engagement.