Fishing and the growing of coconuts, taro, breadfruit, and sweet potatoes form the basis of the mainly subsistence economy. The mining of Banaba's once thick phosphate deposits ended in 1979. Copra, coconuts, seaweed, and fish are the chief exports; foodstuffs, machinery and equipment, manufactured goods, and fuel are imported. Australia, Japan, Fiji, and the Unites States are the main trading partners.
A member of the Commonwealth of Nations, the nation is a republic governed under the constitution of 1979. The president, who is both head of state and head of government, is elected by popular vote for a four-year term and is eligible for two more terms. The unicameral House of Parliament has 42 members, most elected by popular vote, who serve four-year terms. Administratively the country is divided into three units (the Gilbert, Line, and Phoenix islands), and subdivided into six districts. There are also 21 island councils, one for each of the inhabited islands.
The islands were settled beginning more than two millenia ago by successive waves of migrants from Southeast Asia, Tonga, and Fiji. The first Europeans to sight the islands were the Spanish (1606). In the late 1800s many islanders were often taken against their will to work abroad. The islands were administered (1892-1916) with the Ellice Islands as a British protectorate that became (1916) the British Gilbert and Ellice Islands colony. They gained self-rule in 1971, and, after the Ellice Islands gained (1978) independence as Tuvalu, the remaining islands were granted independence (1979) as Kiribati. U.S. claims to several islands, including Kanton (formerly Canton) and Enderbury, were abandoned in 1979. Overcrowding has been a problem, and in 1988 it was announced that 4,700 residents of the main island group would be resettled onto less populated islands. In 1994 Teburovo Tito was elected president. In 1995, Kiribati moved the international date line to the eastern border of the sprawling island nation so that it would no longer be divided by the date line. Tito was reelected in 1998 and 2003, but in Mar., 2003, he was removed from office by a no-confidence vote, and replaced by a Council of State. Anote Tong was elected to succeed Tito in July, 2003, and was reelected in Oct., 2007.
From the early 19th century, Western whalers, merchant vessels and slave traders visited the islands, introducing diseases and firearms. The first British settlers arrived in 1837. In 1892 the Gilbert Islands consented to become a British protectorate together with the nearby Ellice Islands. They were administered by the Western Pacific High Commission based in Fiji. Together they became the crown colony of the Gilbert and Ellice Islands in 1916. Kiritimati (Christmas Island) became part of the colony in 1919 and the Phoenix Islands were added in 1937.
Tarawa Atoll and others of the Gilbert group were occupied by Japan during World War II. Tarawa was the site of one of the bloodiest battles in US Marine Corps history. Marines landed in November 1943; the Battle of Tarawa was fought at Kiribati's former capital Betio on Tarawa Atoll.
The Gilbert and Ellice Islands gained self-rule in 1971, and were separated in 1975 and granted internal self-government by Britain. In 1978 the Ellice Islands became the independent nation of Tuvalu. The Gilbert Islands became independent as Kiribati on July 12, 1979. Although the indigenous Gilbertese language name for the Gilbert Islands proper is "Tungaru", the new state chose the name "Kiribati", the Gilbertese rendition of "Gilberts", as an equivalent of the former colony to acknowledge the inclusion of Banaba, the Line Islands, and the Phoenix Islands, which were never considered part of the Gilberts chain. In the Treaty of Tarawa, signed shortly after independence and ratified in 1983, the United States relinquished all claims to the sparsely inhabited Phoenix Islands and those of the Line Islands that are part of Kiribati territory.
Overcrowding has been a problem. In 1988 it was announced that 4,700 residents of the main island group would be resettled onto less-populated islands. Teburoro Tito was elected president in 1994. Kiribati's 1995 act of moving the international date line far to the east to encompass Kiribati's Line Islands group, so that it would no longer be divided by the date line, courted controversy. The move, which fulfilled one of President Tito's campaign promises, was intended to allow businesses all across the expansive nation to keep the same business week. This also enabled Kiribati to become the first country to see the dawn of the third millennium, an event of significance for tourism. Tito was reelected in 1998. Kiribati gained UN membership in 1999.
In 2002 Kiribati passed a controversial law enabling the government to shut down newspapers. The legislation followed the launching of Kiribati's first successful nongovernment-run newspaper. President Tito was reelected in 2003, but was removed from office in March 2003 by a no-confidence vote and replaced by a Council of State. Anote Tong of the opposition party Boutokaan Te Koaua was elected to succeed Tito in July 2003. He was re-elected in 2007.
In the summer of 2008, the Kiribati officials asked Australia and New Zealand to accept Kiribati citizens as permanent refugees. Kiribati is expected to be first country which land territory disappears due to global climate change. In June 2008, the Kiribati president Anote Tong said that the country has reached "the point of no return.
The Kiribati Constitution, promulgated July 12, 1979, provides for free and open elections. The executive branch consists of a president (te Beretitenti), a vice president and a cabinet (the president is also chief of the cabinet and has to be MP). Under the constitution, the president, nominated from among the elected legislators, is limited to three 4-year terms. The cabinet is composed of the president, vice president and 10 ministers (appointed by the president) who are members of the House of Assembly.
The legislative branch is the unicameral Maneaba Ni Maungatabu (House of Assembly). It has elected members, including by constitutional mandate a representative of the Banaban people in Fiji (Rabi Island, former Ocean Islanders), in addition to the attorney general, who serves as an ex-officio member. Legislators serve for a four-year term.
The constitutional provisions governing administration of justice are similar to those in other former British possessions in that the judiciary is free from governmental interference. The judicial branch is made up of the High Court (in Betio) and the Court of Appeal. The president appoints the presiding judges.
Local government is through island councils with elected members. Local affairs are handled in a manner similar to town meetings in colonial America. Island councils make their own estimates of revenue and expenditure and generally are free from central government controls.
Kiribati has formal political parties but their organisation is quite informal. Ad hoc opposition groups tend to coalesce around specific issues. Today the only recognisable parties are the Maneaban te Mauri Party and the National Progressive Party. There is universal suffrage at age 18.
The island groups include:
Four of the former districts (including Tarawa) lie in the Gilbert Islands, where most of the country's population lives. Five of the Line Islands are inhabited (Malden Island, Starbuck Island, Caroline Island, Vostok Island and Flint Island). The Phoenix Islands are uninhabited except for Kanton, and have no representation. Banaba itself is sparsely inhabited now. There is also a non-elected representative of the Banabans on Rabi Island in the nation of Fiji. Each of the 21 inhabited islands has a local council that takes care of the daily affairs. Tarawa Atoll has three councils: Betio Town Council, Te Inainano Urban Council (for the rest of South Tarawa) and Eutan Tarawa Council (for North Tarawa).
Kiribati was admitted as the 186th member of the United Nations in September 1999.
Kiribati consists of about 32 atolls and one island (Banaba), with at least three in each hemisphere. The groups of islands are:
Banaba (or Ocean Island) is a raised-coral island which was once a rich source of phosphates, but it was mostly mined out before independence. The rest of the land in Kiribati consists of the sand and reef rock islets of atolls or coral islands which rise but a few metres (at most 6.5 feet) above sea level. The soil is thin and calcareous, making agriculture very difficult. Kiritimati (Christmas Island) in the Line Islands is the world's largest atoll. Based on a 1995 realignment of the International Date Line, Kiribati is now the easternmost country in the world, and was the first country to enter into the year 2000 at Caroline Island, which, not coincidentally, has been renamed Millennium Island.
According to the South Pacific Regional Environment Program, two small uninhabited Kiribati islets, Tebua Tarawa and Abanuea, disappeared underwater in 1999. The islet of Tepuka Savilivili (Tuvalu; not a Gilbertese name) no longer has any coconut trees due to salination. The United Nations Intergovernmental Panel on Climate Change predicts that sea levels will rise by about half a metre (20 in) by 2100 due to global warming and a further rise would be inevitable. It is thus likely that within a century the nation's arable land will become subject to increased soil salination and will be largely submerged.
Kiribati has few natural resources. Commercially viable phosphate deposits were exhausted at the time of independence. Copra and fish now represent the bulk of production and exports. Tourism provides more than one-fifth of GDP.
Foreign financial aid, largely from the United Kingdom and Japan, is a critical supplement, equal in recent years to 25% to 50% of GDP. Agriculture accounts for 12.4% of GDP and 71% of labour; industry 0.9% of GDP and 1.9% of labour; trade 18.5% of GDP and 4.1% of labour; commercial trade 5.7% of GDP and 1.4% of labour; and service industries 5.7% of GDP and 1.4% of labour. The main export and import countries are Australia, USA, France, Japan, Hong Kong and Germany.
In 1956 Kiribati established a sovereign wealth fund to act as a store of wealth for the country's earnings from phosphate mining. In 2008 the Revenue Equalization Reserve Fund was valued at US$ 400 million.
Kiribati's narrow export base and its enormous need for imports contribute to the country’s large deficit in the merchandise trade balance. However, the country has several sources of external income, including fishing licence fees, investment income, seamen’s remittances and external grants. These inflows are usually more than sufficient to finance the large trade deficit. As a result, Kiribati’s current account balance has been in surplus most of the time in the past decade. International reserves have remained at around US$300 million since 2001.
The native people of Kiribati are called I-Kiribati. The word Kiribati is the local spelling of the word Gilbert and the original name of this British colony was the Gilbert Islands. The indigenous format of the name was adopted when independence was gained in 1979.
Ethnically, the I-Kiribati are Micronesians. Recent archaeological evidence indicates that Austronesians originally settled the islands thousands of years ago. Around the 14th century, Fijians and Tongans invaded the islands, thus complicating the ethnic range; people of Polynesian ancestry further diversified the ethnic typologies. Intermarriage among all ancestral groups, however, has led to a population reasonably homogeneous in appearance and traditions.
The people of Kiribati speak a Micronesian dialect called "Gilbertese". Although English is the official language, it is not used very often outside the island capital of Tarawa. It is more likely that English is mixed in its use with Gilbertese. Older generations of I-Kiribati tend to use more complicated versions of the language.
Christianity is the major religion, having been introduced by missionaries in the 19th century. The population is predominantly Roman Catholic, although a substantial portion of the population is Congregationalist Protestant. Many other Protestant denominations, including more evangelical types, are also represented. The Bahá'í religion also exists in Kiribati, along with Jehovah's Witnesses and the Church of Jesus Christ of Latter-day Saints (Mormons), the latter numbering 11,511 at the end of 2005.
The population of Kiribati has a life expectancy at birth of 60 years (57 for males, and 63 for females) and an infant mortality rate of 54 deaths per 1,000 live births. The people of Kiribati mostly live in villages with populations between 50 and 3,000 on the outer islands. Most houses are made of materials obtained from coconut and pandanus trees. Frequent droughts hinder reliable large-scale agriculture, so the islanders have largely turned to the sea for livelihood and subsistence. Most are outrigger sailors and fishers. Copra plantations serve as a second source of employment. In recent years, large numbers of citizens have moved to the more urban island capital of Tarawa. To increase opportunities for the islanders, the government has placed greater emphasis on education. Primary education is free and compulsory for the first six years, now being extended to nine years. Mission schools are slowly being absorbed into the government primary school system. Higher education is expanding; students may seek technical, teacher or marine training, or study in other countries. To date, most choosing to do the latter have gone to Fiji, and those wishing to complete medical training have been sent to Cuba.