Unravelling the Pacific Paradox - the case of Kiribati

Abstract

The poor performance of the Kiribati economy during the 1980s and 1990s had little to do with the lack of capital or good policies but had more to do with the lack of incentives to be able to exploit those resources to the maximum. This paper examines the role that institutions play in the growth performance of Kiribati. Unless the Kiribati authorities undertake appropriate institutional reform measures with the conditions necessary for a broad-based, sustained economic growth, Kiribati economy will continue to live out the 'Pacific Paradox'. Show more