Cracking the Nut: A Proposal for Reforming and Upgrading Kiribati’s Coconut Industry

Overview & Synopsis

This policy report studies Kiribati’s coconut sector, and proposes ways to remove distortions, increase efficiency, and encourage diversification. It does this while taking into account the coconut sector’s economic, social, and cultural significance. The report targets Kiribati’s Ministries, World Bank Group management, and other agencies, and is part of a larger World Bank initiative on economic diversification and social protection in Kiribati. The report is a high-level review of potential socio-economic development models and private sector opportunities for Kiribati’s consideration. It offers a rapid assessment of Kiribati’s coconut industry and the fiscal and economic effects that it has on the country. The study was prepared in a short time through desk research, so in-country stakeholder consultations were limited given the preliminary nature of the exercise. It largely utilizes qualitative assessments, which are particularly useful in data-scarce environments, such as Kiribati. It backs them with statistics where available. Owing to its qualitative and rapid nature, it is not a concrete guide for public investment nor a guarantee for securing private sector investment. Its findings are intended as background for discussion with the aim of prioritizing a shared assessment of reform that will be further researched in due course.