Kiribati Threshold - Constraints Analysis

MCC’s evidence-based approach to its investments begins with a mutual understanding of a country’s main growth challenges. During the first phase of the compact or threshold program development process, MCC and the selected partner country, jointly conduct a constraints-to-growth analysis (CA). This analysis identifies the constraints to private investment and entrepreneurship that are most binding to economic growth in the country. The results of this analysis enable the country, together with MCC, to select activities most likely to contribute to sustainable, poverty-reducing growth.

The Constraints Analysis Report for the Kiribati Threshold Program highlights the following binding constraints to economic growth: 

1. Disproportionately low participation of I-Kiribati (“I-Kiribati” is both the noun and adjective used to refer to the Kiribati people) workers in opportunities for international labor mobility;
2. Insufficient fiscal capacity and public financial management to meet climate-resilient development needs; and
3. Vulnerability to degradation of critical coastal natural capital, exacerbated by population pressures and climate change.