In common with other small island atoll states Kiribati faces obstacles posed by remoteness, lack of scale and vulnerability to external shocks and environmental stress. Internal and external remoteness and weakness in business climate has kept the private sector small. This constrains economic growth and puts strain on public finances. Continuing the fiscal and structural reform program in Kiribati is essential. Notwithstanding its limited range of economic assets, Kiribati has largely had a solid record of financial stability since independence in 1979. Governments have adopted a cautious approach to domestic spending combined with a deliberate policy of capitalising its sovereign wealth fund, the Revenue Equalisation Reserve Fund (RERF). The RERF is used to supplement recurrent revenues and smooth volatility in other income sources, e.g. seasonal fluctuations in fishing revenue. (source Department of Foreign Affairs and Trade, Australian Government).
The culture of Kiribati has greatly been preserved by the isolation that comes with being in the middle of the Pacific Ocean. Although missionaries begun to arrive on the shores in the 1850’s, much of the traditions and beliefs of the people have remained the same, while the adoption of Christianity has created its own interesting history. Today many of the outer islands live in very traditional ways, and are always very welcoming of guests. Tarawa, the capital of Kiribati, is more influence by development and globalization – however spend a little time on Tarawa and you soon find out that beyond the busses, nightlife and shops people maintain traditional customs, values and way of life. Further information about Kiribati Culture and Customs can be obtain from Kiribati Tourism website www.kiribatitourism.gov.ki