Kiribati is an archipelagic country in Micronesia, where 5.5% of the population lives below the national poverty line. Despite economic challenges, Kiribati has shown improvement over the years, with its GDP increasing from 2.65% in 2023 to 5.27% in 2024. By exploring social protection programs, infrastructure developments and climate resilience efforts, this article highlights how Kiribati is reducing poverty in 2026.

Poverty in Kiribati

While Kiribati has experienced economic improvement, challenges continue to affect vulnerable communities. Within Kiribati, fisheries are essential to its economy. Since 2013, Kiribati has seen growth in its fishing license revenue. In 2025, the total fishing revenue exceeded government projections by AUD 18.9 million (approximately $13.3 million). However, fishing revenue can fluctuate due to climate conditions and global market changes, making long-term economic stability a challenge.

As a geographically isolated country, Kiribati’s economy also depends on foreign support for food and fuel, leaving it vulnerable to global price increases. Kiribati also faces climate-related risks, including rising adaptation costs and environmental challenges such as cyclones that threaten economic stability. These factors can make it more difficult for vulnerable households to access opportunities and maintain financial security.

Social Protection

Social protection is important for reducing poverty. From 2019 to 2023, the implementation of social protection programs contributed to a 75% decrease in poverty. These programs target those who are vulnerable. For example, Kiribati introduced old-age pensions, helping provide financial stability later in life and reducing overall poverty. These old-age pensions can also reduce the effects of gender inequality, as women often face unequal access to employment and have caregiving responsibilities.

Kiribati has also implemented tax reforms aimed at supporting women and girls. Tax reforms will ensure Value-Added Tax (VAT) is applied fairly to imports and remove VAT from essential menstrual health products to reduce costs for women and girls.

Through these efforts, social protection programs have lifted more than 19,000 citizens out of poverty, showing their positive effects on overall economic security and poverty reduction.

Infrastructure Development

Infrastructure development is another part of poverty reduction strategies in Kiribati. The government has invested in outer-island transportation, port and airport improvements and connectivity projects to better connect remote communities. Improved infrastructure can help residents access jobs, markets, health care and other important services.

Kiribati is also pursuing renewable energy and climate-resilient infrastructure projects. Since the country is highly vulnerable to climate-related events, these investments can help protect communities from economic disruptions while supporting long-term development.

Foreign Aid

Foreign aid plays an important role in poverty reduction in Kiribati. While the country does have local resources, its economy also heavily relies on foreign aid and remittances. In December 2025, the World Bank provided a $15 million grant toward financial reforms, such as increasing tax revenue and strengthening state-owned enterprises. These reforms also target environmental obstacles by supporting pollution and waste collection on beaches and increasing the number of elevated, cyclone-resistant homes. These improvements also open job opportunities for local citizens, contributing to economic opportunity. Overall, foreign aid remains an important part of how Kiribati is reducing poverty, helping fund development projects, creating jobs and addressing long-term economic challenges.

Although Kiribati continues to face challenges due to geographic isolation, climate instability and economic vulnerability, the country has made progress in improving economic security for its citizens. Through social protection programs, infrastructure development and support from international organizations, these efforts show how Kiribati is reducing poverty. Kiribati’s efforts highlight the importance of sustainable development and resilience in the global fight against poverty.

– Michelle Kurniali

Michelle is based in Dallas, TX and focuses on Good News and Technology for The Borgen Project.

Photo: Wikimedia Commons