Kiribati: Selected Issues
IMF Staff Country Reports, May 10, 2024
Source details
- Canonical URL
- Kiribati: Selected Issues
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Bibliographic details
- Published: May 10, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400275494.002
Overview
- Case study focus: copra subsidy in Kiribati.
- Nature of subsidy: disbursed as a minimum support price and constitutes a major part of the social safety net in Kiribati.
- Stated purposes of the subsidy:
- Transfer resources to the outer islands.
- Stem migration to the capital.
Modeling findings
- Horizontal diversification model:
- A higher subsidy on copra diverts production and labor towards copra.
- A higher subsidy on copra lowers overall income.
- Vertical diversification model:
- A subsidy on a primary product increases its supply.
- A subsidy on a primary product reduces production of the final good.
Policy options and recommendations
- Options considered for the government:
- Boost the subsidy’s efficiency.
- Replace the scheme with a poverty-targeted social assistance program.
- Impose a cap on payments.
- Development partner support:
- Development partners, including the IMF and the World Bank, stand ready to provide support in both areas as needed.
Content in this bundle
- Kiribati: Selected Issues; IMF Country Report No. 24/104; April 15, 2024