By Samson Odhiambo ,

National Trade Advisor

Background-Presentation Outline

1. Structure of the economy;

2. Creative Economy and National Development Strategy

3. Policy environment

4. Sector Specific Overview

5. Conclusions-Opportunities and policy recommendations

1.0: Structure of the Economy

1.0:Structure of the Economy

1.0: Structure of the Economy

1.0: Structure of the Economy

0200400600800

100012001400160018002000

Number of Registered Business per Island

Number of Registered Business

1.0:Structure of the Economy

0

50,000

100,000

150,000

200,000

1974

1977

198

0

198

3

198

6

198

9

199

2

199

5

199

8

200

1

200

4

200

7

2010

2013

2016

Trade Performance :Imports and Exports, 1974 to 2016

Exports Imports

1.0: Structure of the Economy

0

2000

4000

6000

8000

10000

12000

14000

16000

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

2010

2011

2012

2013

2014

2015

2016

Exports Trends by Sector 1996-2016

Coconut Fish and Marine Other Re-exports

2.0: Creative Economy and NationalDevelopment Strategy :Kiribati Development Plan(KDP)-2016-2019

Medium Term developmentstrategy

Creative Economy /Industry –notmainstreamed in the KDP

No reference in the KDP on theneed to develop creative industryrelated policies Cultural Policyetc-

KDP make Reference on the needto review business related laws(also include IP related laws) tocreate a conducive businessenvironment

2.0: Creative Economy and NationalDevelopment Strategy :Kiribati Development Plan(KDP)-2016-2019

Medium Term development strategy

KDP and National Human Resource Development(NHRD)

National HRD ;the Education Policy and National Human Resource Development Plan)

Intellectual Property Rights; highlighted as priority area in the NHRD Plan

2.0: Creative Economy and NationalDevelopment Strategy :Kiribati Development Plan(KDP)-2016-2019 Other vocational training

programmes related toCreative industry. notprioritised in the NationalHuman ResourceDevelopment ;

Hence limited scholarshipopportunities in the creativeIndustry related areas;

2.0: Creative Economy and National Development Strategy :20 Year Vision Development Plan -KV20 Priority Sectors -Tourism and

Fisheries Cultural Capital is one of the

Core areas of KV20 KV20 and cultural capital ;

implement measures to safeguard and revive traditional skills and knowledge.

KV20 -Recognises culturalindustry as instrument todevelop outer islands ;createadditional economicopportunity for the local people.

2.0: Creative Economy and NationalDevelopment Strategy :20 Year Vision Development Plan -KV20 KV20 –cultural capital can revive

and connect intangible culturalheritage and knowledge

KV20-Cultural capital can createemployment opportunities fortraditional craftspeople,composers, dance groups andtheir dancers, musicians andsingers.

KV20 -Recognises the linkagebetween culture and tourism

3.0: Policy Environment- NationalIntellectual Property Strategy (NIPS)

Adopted in February 2017

Vision: to achieve a modernwell-balanced intellectualproperty system whichenhances sustainable andinclusive social andeconomic developmentand supports the country’straditions and culture

3.0: Policy Environment- National Intellectual Property Strategy (NIPS)

Seeks to:

▪ Strengthen intellectualProperty regulatory frameworkincluding Copyrights ;.

▪ identify and address the capacityand capability issues related toimplementing a nationalintellectual property system inKiribati ;

▪ Implement Intellectual propertyrelated measures to exploit theeconomic, social and culturalvalue

3.0:Policy Environment- National Intellectual Property Strategy (NIPS)

Recent Policy Developmentson NIPS and Copyright

Kiribati Accession to BerneConvention for the Protectionof Literary and Artistic Works.

Draft Copyright Bill developedinline with Berne Convention tostrengthen the copyright regime;

Kiribati in the process ofaccession to –Marrakesh Treaty;to facilitate access to culturalmaterials especially for thevisually impaired.

3.0:Policy Environment- National Intellectual Property Strategy (NIPS)

Recent Developments onNIPS and Copyright

Institutional Strengtheningfor effective IP regime;

Creation of IP Division ;

2 New Posts for CopyrightOfficers to facilitate theimplementation of copyrightrelated aspects of the NIPS

IPR Sub committee-established in April 2017

3.0: Policy Environment- Fiscal Policy and Creative industry

▪ Key Tax laws ; Income Tax Act, Excise Act and theValue Added Tax Act

▪ corporate tax rate is 35 per cent;

▪ Import Duty is zero rate since 2014

▪ No specific fiscal incentives in place to benefit andencourage the creative industries in Kiribati

▪ Draft Investment Policy Recommendations-Proposes the need to have incentives forparticular sectors ;

3.0:Policy Environment- Global Economy and Creative industry

Kiribati has DFQF market accessto EU under everything ButArms initiative as an LDC;

A member of Pacific IslandCountries Trade Agreement(Facilitate Trade Among theForum Island Countries;

Kiribati is also a party to PACERPlus Trade Agreement ;

Kiribati Not a member ofWTO

3.0:Policy Environment- Global Economy and Creative industry

Ministry of Commerce ,throughTrade Promotion Division –Provide trade support services ;

Key issues is developingproductive creative capacity, tocomplement the existingmarket access opportunities.

Limited supply capacity forCreative industry products iscore challenge to takingadvantage of the Marketaccess opportunities

3.0:Policy Environment- SMEs Policy and Creative industry

Access to Credit for Creative Industry related SMEs

Lack of tailor made SMEs Financing Policy especially those targeting the creative industry

3.0:Policy Environment- ICT and Creative industry

The KV20 seeks to strengthen the ICTconnectivity especially on the outerIslands-opportunity to facilitateexchange of information.

National ICT Policy ; is focused oncreating a robust, stable, market--‐driven ICT sector;

Implementation of the ICT Policy–Contributed to improvedconnectivity in theCapital(Tarawa) and Selectedouter Islands

3.0:Policy Environment- Trade Promotion of Creative Industry

▪ National Cultural Day;

▪ National Cultural Trade Show;

▪ Lack of open integrated marketing infrastructure –Link producers with markets;

▪ Inter-Island Connectivity –Transport

3.0:Policy Environment : Institutional Framework

Ministry of Commerce industry and Cooperatives-IP Division

Implementing National Intellectual property strategy (NIPS)

Coordinating the review and implementation of IPR related legislations

Business promotion and development activities

Ministry of Internal Affairs-cultural division

In charge of Developing and implementing cultural related policies and regulations

Sector Associations

3.0:Policy Environment : Institutional Framework

4.0:Sector Specific Overview –Performing ArtsTraditional Dance Performance

Music ,dancing and Art are an importantpart of the traditional and contemporarysociety in Kiribati

Traditional dance performance isone of the Key Culturalexperiences for visitors

The Dance Te Mwaie” is an art form ofvarious styles –

its emphasis on the outstretched arms ofthe dancer and the sudden birdlikemovement of the head.

4.0:Sector Specific Overview –Performing ArtsTraditional Dance Performance

Traditional music seems to be mostlyused for live performances atceremonies, official events, andcommercial venues such as hotels andrestaurants

Exploitation of economic opportunitiesfrom the Traditional Dance is still achallenge’

Need for Protection of TraditionalKnowledge and cultural expressions;

4.0:Sector Specific Overview –Performing ArtsTraditional Songs and Music

Small Community musicians-performand record music ;

Kiribati Music Federation –Key role toprotect the rights of musicians;

Few opportunities for traditionalmusicians to perform and earnincome from their Arts;

Income generation through recoding isproblematic-Broadcasting andpublications Authority record localmusicians for broadcast purposes butdoes not pay the musicians;

4.0:Sector Specific Overview –Performing ArtsTraditional Songs and Music

Earning Money from local Recordingand CD production –constrained byfile sharing and copying;

Limited support for professionaldevelopment funding for artists

4.0:Sector Specific Overview –Craft SectorHandicraft and Souvenir

costume making, wood carving, weaving;

Done Small Scale by women groups andChurch groups including those on theouter Islands;

Has great potential given priority togenerate income through the tourismsector;

Potential impact on livelihood ofwomen and youth

Skills to produce good quality handicraftproducts remains to be a challenge;

Lack of incentives to foster thedevelopment of the sector;

4.0: Sector Specific Overview –Design

Traditional Garment Design-Tibuta

4.0:Sector Specific Overview –DesignTraditional Garment Design-Tibuta

Kiribati has its own Traditional GarmentDesign- “Tibuta” ;

Commonly designed and produced bylocal women groups ;

Has a potential of generatingopportunity for exports ,especially toKiribati families in other Pacific IslandCountries ,including Australia and NewZealand ;

Can benefit from the PACER Plus andPICTA Trade Agreement

Potential impact on livelihood of womenand youth

Challenges ;Supply capacity and limitedor no incentives to increase supplycapacity

4.0:Sector Specific Overview –Books Sector

Writing and Publishing of Books

Kiribati writers association ,though existstruggles to remain active;

Books by Kiribati Authors have beenmainly published through the Universityof South Pacific in Fiji through theMinistry of Education to use in Schools.

No dedicated bookshops in Kiribati.

5.0:Conclusion-Opportunities

Strong Political will/support Creative industry and sector

diversification KV2O with specific focus on

cultural capital and Tourismpresents great opportunity forreviving creative industry;

Rich traditions of music, dance,vast cultural heritage andprofound traditional knowledge;

Emerging Developments in theenabling environment framework–an entry point to exploitingopportunities

5.0:Conclusion : Policy Options and way forward

Mainstream training aspects of creativeindustry development into the NationalHuman Resource Development;

Mainstreaming creative industry into theNational Development plan and Sector plans;

Adopting Copyright Bill consistent with BernConvention and Marrakesh Treaty

Access to Marrakesh treaty-facilitate access tocultural materials for the visually impaired;

Need to develop and effectively implementNational Cultural Policy

Investment Policy to recognise the role ofcreative industry in economic development

Strengthen the institutional and regulatoryFramework related to creative industry

Strategic partnership with relevantinstitutions in order to develop productiveand supply capacity for creative industryrelated products.