Economy Profile Summary: Kiribati (Doing Business 2013)
Core Content
The Doing Business 2013 report provides an analysis of the business environment in Kiribati, focusing on regulations affecting small and medium-sized enterprises (SMEs) across 11 key areas. The report uses a set of quantitative indicators to assess and compare the ease of doing business across 185 economies.
Main Points
- Ease of Doing Business Index: Kiribati ranked 117th in 2013, down 2 positions from 2012.
- Indicator Coverage: The report includes metrics for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency, and employing workers.
- Methodology: The index is calculated based on the simple average of percentile rankings across the 10 topics (excluding employing workers). The data are current as of June 1, 2012, except for paying taxes, which covers January–December 2011.
- Comparative Analysis: The report compares Kiribati with other economies, including comparator economies and regional averages, to provide insights into its relative performance.
- Distance to Frontier: This measure shows how far Kiribati is from the best practices in each indicator set, highlighting areas where improvements are possible.
Key Indicators
| Indicator |
Kiribati DB2013 |
Kiribati DB2012 |
Comparator Economies |
| Starting a Business |
Rank: 145 |
Rank: 141 |
Best: New Zealand |
| Procedures |
7 |
7 |
Fiji: 138; Marshall Islands: 48 |
| Time (days) |
31 |
31 |
Fiji: 58; Marshall Islands: 17 |
| Cost (% of income per capita) |
22.3 |
22.2 |
Fiji: 24.0; Marshall Islands: 13.6 |
| Paid-in Min. Capital (% of income per capita) |
21.3 |
21.1 |
Fiji: 0.0; Marshall Islands: 0.0 |
| Dealing with Construction Permits |
Kiribati DB2013 |
Kiribati DB2012 |
Comparator Economies |
| Rank |
120 |
112 |
Best: Hong Kong SAR, China |
| Procedures |
16 |
16 |
Fiji: 17; Marshall Islands: 8 |
| Time (days) |
170 |
170 |
Fiji: 148; Marshall Islands: 87 |
| Cost (% of income per capita) |
164.8 |
163.7 |
Fiji: 43.8; Marshall Islands: 22.3 |
| Getting Electricity |
Kiribati DB2013 |
Kiribati DB2012 |
Comparator Economies |
| Rank |
159 |
156 |
Best: Iceland |
| Procedures |
6 |
6 |
Fiji: 4; Marshall Islands: 5 |
| Time (days) |
97 |
97 |
Fiji: 81; Marshall Islands: 67 |
| Cost (US$ per container) |
1,120 |
1,120 |
Fiji: 655; Marshall Islands: 945 |
| Registering Property |
Kiribati DB2013 |
Kiribati DB2012 |
Comparator Economies |
| Rank |
71 |
70 |
Best: Georgia |
| Procedures |
5 |
5 |
Fiji: 4; Marshall Islands: no practice |
| Time (days) |
513 |
513 |
Fiji: 69; Marshall Islands: no practice |
| Cost (% of property value) |
0.0 |
0.0 |
Fiji: 2.0; Marshall Islands: no practice |
| Getting Credit |
Kiribati DB2013 |
Kiribati DB2012 |
Comparator Economies |
| Rank |
159 |
158 |
Best: United Kingdom |
| Strength of legal rights index (0-10) |
5 |
5 |
Fiji: 7; Marshall Islands: 9 |
| Depth of credit information index (0-6) |
0 |
0 |
Fiji: 3; Marshall Islands: 0 |
| Public registry coverage (% of adults) |
0.0 |
0.0 |
Fiji: 0.0; Marshall Islands: 0.0 |
| Private bureau coverage (% of adults) |
0.0 |
0.0 |
Fiji: 69.5; Marshall Islands: 0.0 |
| Protecting Investors |
Kiribati DB2013 |
Kiribati DB2012 |
Comparator Economies |
| Rank |
49 |
46 |
Best: New Zealand |
| Extent of disclosure index (0-10) |
6 |
6 |
Fiji: 3; Marshall Islands: 2 |
| Extent of director liability index (0-10) |
5 |
5 |
Fiji: 8; Marshall Islands: 0 |
| Ease of shareholder suits index (0-10) |
7 |
7 |
Fiji: 7; Marshall Islands: 8 |
| Strength of investor protection index (0-10) |
6.0 |
6.0 |
Fiji: 6.0; Marshall Islands: 3.3 |
| Paying Taxes |
Kiribati DB2013 |
Kiribati DB2012 |
Comparator Economies |
| Rank |
9 |
9 |
Best: United Arab Emirates |
| Payments (number per year) |
7 |
7 |
Fiji: 34; Marshall Islands: 21 |
| Time (hours per year) |
120 |
120 |
Fiji: 163; Marshall Islands: 128 |
| Cost (US$ per container) |
1,120 |
1,120 |
Fiji: 635; Marshall Islands: 970 |
| Trading Across Borders |
Kiribati DB2013 |
Kiribati DB2012 |
Comparator Economies |
| Rank |
88 |
89 |
Best: Singapore |
| Documents to export (number) |
6 |
6 |
Fiji: 10; Marshall Islands: 5 |
| Time to export (days) |
21 |
21 |
Fiji: 22; Marshall Islands: 21 |
| Cost to export (US$ per container) |
1,120 |
1,120 |
Fiji: 655; Marshall Islands: 945 |
| Documents to import (number) |
7 |
7 |
Fiji: 10; Marshall Islands: 5 |
| Time to import (days) |
21 |
21 |
Fiji: 23; Marshall Islands: 25 |
| Cost to import (US$ per container) |
1,120 |
1,120 |
Fiji: 635; Marshall Islands: 970 |
| Enforcing Contracts |
Kiribati DB2013 |
Kiribati DB2012 |
Comparator Economies |
| Rank |
73 |
72 |
Best: Luxembourg |
| Time (days) |
660 |
660 |
Fiji: 397; Marshall Islands: 476 |
| Cost (% of claim) |
25.8 |
25.8 |
Fiji: 38.9; Marshall Islands: 27.4 |
| Procedures (number) |
32 |
32 |
Fiji: 34; Marshall Islands: 36 |
| Resolving Insolvency |
Kiribati DB2013 |
Kiribati DB2012 |
Comparator Economies |
| Rank |
185 |
185 |
Best: Japan |
| Time (years) |
no practice |
no practice |
Fiji: 1.8; Marshall Islands: 2.0 |
| Cost (% of estate) |
no practice |
no practice |
Fiji: 10; Marshall Islands: 38 |
| Recovery rate (cents on the dollar) |
0.0 |
0.0 |
Fiji: 45.2; Marshall Islands: 17.4 |
Summary of Business Registration in Kiribati
- Procedures: 7
- Time: 31 days
- Cost: 22.3% of income per capita
- Paid-in Minimum Capital: 21.3% of income per capita
Changes Over Time
- Rank: Increased from 141 in 2012 to 145 in 2013.
- Procedures: Remained the same (7 procedures).
- Time: Remained the same (31 days).
- Cost: Increased slightly from 22.2% to 22.3% of income per capita.
- Paid-in Minimum Capital: Increased slightly from 21.1% to 21.3% of income per capita.
Business Registration Reforms
- No significant reforms were recorded in Kiribati between DB2008 and DB2013 as measured by Doing Business.
Key Findings
- Kiribati's business environment is among the most challenging in the Doing Business sample, with a low rank in most indicators.
- The country has made minimal progress in improving its regulatory environment for SMEs.
- Comparisons with comparator economies and regional averages highlight the need for reforms in areas such as starting a business, dealing with construction permits, and registering property.
- The distance to frontier measure indicates that Kiribati is far from the best practices in several areas.
- The report emphasizes the importance of streamlining procedures, reducing costs, and improving the legal and regulatory framework to support SMEs.