Kiribati is one of the world's poorest countries. It has few natural resources. Commercially viable phosphate deposits on Banaba were exhausted at the time of independence. Copra and fish now represent the bulk of production and exports. Kiribati is considered one of the least developed countries in the world. In one form or another, Kiribati gets a large portion of its income from abroad. Examples include fishing licenses, development assistance, worker remittances, and tourism. Given Kiribati's limited domestic production ability, it must import nearly all of its essential foodstuffs and manufactured items; it depends on these external sources of income for financing.
The economy of Kiribati benefits from international development assistance programs. The multilateral donors providing development assistance in 2009 were the European Union (A$9 million), the United Nations Development Program (A$3.7 million), and the World Health Organisation (A$100,000). The bilateral donors providing development assistance in 2009 were Australia (A$11 million), Japan (A$2 million), New Zealand (A$6.6 million), Taiwan (A$10.6 million), and other donors providing A$16.2 million, including technical assistance grants from the Asian Development Bank.
The major donors in 2010/2011 were Australia (A$15 million), Taiwan (A$11 million); New Zealand (A$6 million), the World Bank (A$4 million), and the Asian Development Bank.
In 1956 Kiribati established a sovereign wealth fund to act as a store of wealth for the country's earnings from phosphate mining. In 2008, the Revenue Equalization Reserve Fund was valued at US$ 400 million. The RERF assets declined from A$637 million (420 percent of GDP) in 2007 to A$570.5 million (350 percent of GDP) in 2009. As the result of the Global Financial Crisis (GFC) the RERF was exposed to failed Icelandic banks, as well drawdowns were made by the government of Kiribati to finance budgetary shortfalls.
In May 2011 the IMF
