Marshall Islands

The Republic of the Marshall Islands (RMI) is a Micronesian island nation in the western Pacific Ocean, located north of Nauru and Kiribati, east of the Federated States of Micronesia and south of the U.S. territory of Wake Island.

Economy

Main article: Economy of the Marshall Islands

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United States Government assistance is the mainstay of this tiny island economy. Agricultural production is concentrated on small farms, and the most important commercial crops are coconuts, tomatoes, melons, and breadfruit. Small-scale industry is limited to handicrafts, fish processing, and copra. The tourist industry, now a small source of foreign exchange employing less than 10% of the labor force, remains the best hope for future added income. The islands have few natural resources, and imports far exceed exports. Under the terms of the Compact of Free Association, the US provides roughly $65 million in annual aid. Negotiations were under way in 1999 for an extended agreement. Government downsizing, drought, a drop in construction, and the decline in tourism and foreign investment due to the Asian financial difficulties caused GDP to fall in 1996-98.

Related Topics:
United States - Coconut - Tomato - Melon - Breadfruit - Copra - Compact of Free Association

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The United States also maintains The U.S. Army's Reagan Test Site (RTS) on Kwajalein Atoll. It is an important aspect of the Marshallese economy, as the Marshallese land owners receive rent for the base, and a large number of Marshallese work on base.

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