Kiribati

Kiribati, officially known as the Republic of Kiribati, is an archipelago nation of 33 islands in the central Pacific Ocean. After gaining independence from the United Kingdom in 1979, today Kiribati faces numerous economic challenges. With the public sector dominating employment and only a small share of the remaining labor force participating in the formal economy, foreign assistance and remittances are essential revenue sources. Despite efforts by the Investment Promotion Division to attract investment, regulatory inefficiencies hinder private-sector development.

While the rule of law is respected, Kiribati is also penalized by underdeveloped commercial regulations, high credit costs, and not being a member of the World Trade Organization. Given Kiribati’s limited domestic production ability, it must import nearly all essential goods and manufactured items. With a population of about 130,000 primarily concentrated in the Gilbert Islands, the republic is highly vulnerable to climate change-related hazards, particularly sea-level rise and saltwater intrusion into freshwater lenses.