III. O ptions for I mproving K iribati ’ s F ishing L icense R evenues 1
1. Fishinglicensefees are a key income source for Kiribati. Fishinglicensefees, relative to total revenue or GDP, peaked in 2001 and have been on a declining trend since. 2 However these remain high at above 30 percent of total revenue (excluding grants) and around 20 percent of GDP, and are among the highest in Pacific Island countries (reflecting Kiribati’s relatively large and productive Exclusive Economic Zone (EEZ)).
Kiribati - FishingLicense
This Selected Issues paper focuses on recent developments with Kiribati’s Revenue Equalization Reserve Fund (RERF). The paper also examines fiscal aspects of climate change, and considers options for improving fishing license fees, which remain an important source of revenue. It also analyzes recent developments and the outlook for remittances to Kiribati, which is another important source of external revenue and brings important economic benefits, such as reducing poverty and stabilizing national income.
Ms. Shari Boyce, Mr. Sergei Dodzin, Mr. Xuefei Bai, Ezequiel Cabezon, Mr. Fazurin Jamaludin, Mr. Yiqun Wu, and Ms. Rosanne Heller
Fishinglicensefees are a major source of revenue in several Pacific island countries (Kiribati, the Marshall Islands, Micronesia, and Tuvalu). In 2013 the fee earnings ranged from 15 percent of total revenues in the Marshall Islands to 65 percent in Kiribati. Despite the large fishery-derived wealth, PICs still have enormous untapped marine resources and further efforts are under way to properly leverage and manage them. First, the ratio of the income PICs receive by selling fishing rights to foreign companies to the value of the fish catch is very low
International Monetary Fund. Asia and Pacific Dept
On May 29, 2013, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with Kiribati. 1
Kiribati’s key policy challenges include reducing structural fiscal imbalances and increasing medium-term growth potential. Growth in 2012 reached 2.8 percent, reflecting implementation of donor projects, higher than average fishinglicensefees, and remittances. Airport and seaport projects in particular boosted construction activities. Nevertheless, inflation remained negative on account of lower prices of rice