Kiribati was ranked 122 out of 187 countries on the human development index in 2011 (UNDP 2011). It has an estimated 0.1 million population with about 44% living on South Tarawa (UN DESA n.d.). About 35% of the population is below the age of 15, and nearly 6% is over the age of 60. The estimated gender ratio was 97 males per 100 females as of 2005 (Government of Kiribati 2005), and the estimated population growth rate was nearly 2% in 2011 (US Department of State n.d.). Currently, this population growth and high unemployment rates on outer islands is causing inward-migration towards urban centres, particularly the capital on Tarawa. In this area, a high population density is leading to environmental, urban management and health problems. Beginning in 1989, the Government attempted to combat urban over-crowding by resettling city dwellers on the sparsely populated Line and Phoenix Islands (UNESCO 2008).

The I-Kiribati, as nationals are called, are Micronesian. Most I-Kiribati speak the language I-Kiribati, while English, the official language, it is not spoken extensively outside of Tarawa. The population and culture are influenced both by contact with other Pacific Islanders and the Chinese (UNESCO 2008).

Kiribati had an economic growth rate of less than 2% as of 2010 (World Bank n.d.), and since 1979, economic growth has been modest and outstripped by a rapidly growing population. Therefore, the annual per capita growth of the economy has been negative since the late 1970s. Until 1979, Kiribati relied heavily on phosphate mining in Banaba. As a result, money was built up from phosphate taxation surplus and placed in the Revenue Equalization Reserve Fund, which is a vital source of revenue for the nation. Currently, the largest source of income is remittances from around 1,500 seamen employed by foreign, mainly German-owned, ships. The main cash crop and export is coconuts and harvesting them for domestic consumption and copra export is a major commercial activity (UNESCO 2008). Tourism provides over a fifth of the total GDP, while foreign aid accounts for 20 to 25%. Less than 3% of the labour force works in agriculture, while an estimated 32% is in industry and over 65% is employed in the service sector (Central Intelligence Agency n.d.). However, employment opportunities in both the public and private sectors are very limited and employment rates are high, according to the 2005 Census, which is the most recent source of available data. The Census indicated that the overall rate of unemployment in Kiribati was about 6% of the total labour force. In urban areas, the unemployment level was almost 11% compared with less than 3% in rural areas. However, some proposed including village workers as part of the unemployed, on the grounds that these persons would look for work if they believed cash work was available in their labour market community. Including village workers would increase the total unemployment level to about 64.5%. Between urban and rural areas, the level would be about 46% for the urban and about 77% in the rural areas (Government of Kiribati 2005).

Under the Independence Constitution of 1979, Kiribati became a sovereign and democratic republic with a unicameral legislature: the Maneaba ni Mauangatabu, or House of Assembly. The president is both head of state and of government. The cabinet is comprised of the president, the vice-president, the attorney-general and up to 8 other ministers (UNESCO 2008). Existing political parties resemble informal coalitions rather than organized factions, and have no party structures or official platforms. Therefore, most candidates act as independents (US Department of State n.d.).

Decision-making is 3-tiered in Kiribati separated into the national Government, the islands and the villages. National authority belongs to the national Government and its agencies, based out of South Tarawa. The islands are divided into 6 administrative districts: Banaba, Central Gilberts, Line Islands, Northern Gilberts, Southern Gilberts and Tarawa. At the island level, decisions are made by 21 government-sponsored island Councils (Central Intelligence Agency n.d.). Additionally, traditional island-wide councils of elders (unimane) often operate separately and alongside their government-sponsored counterparts. Women and youth groups are active on many islands, but have little power. At the village level, unimane are responsible for decisions about community activities. They may also make suggestions about facilities, which are acted upon by mature men (bouanikaua or rorobuaka), or youth (te ientaboniba). Government-sponsored Village Welfare groups focus on village health issues but are generally weak. Finally, Makoro are another, usually church-based, community body. Despite these many local organizations, village households tend to have a strong sense of individualism (UNICEF 2005).

Kiribati’s development constraints include the wide dispersion and isolation of component atolls, distance from major markets and external transport costs, vulnerability to natural disasters, and scarce natural resources (ADB 2010). Low-lying atolls are threatened by any substantial rise in sea levels, and because of poor, salty soil and limited fresh water supplies, there is little potential for agricultural development. Additionally over-reliance on the Government and on inefficient State-owned enterprises, a lack of private sector development, traditional land tenure and weak institutions further constrain development. At the same time, the pressure of population growth and associated sparse youth employment opportunities and environmental issues stymie growth. Finally, long distances between islands, coupled with a lack of adequate infrastructure and few transportation links hamper prospects for sustainable economic development (UNESCO 2008).