Land and People

Marshall Islands, officially Republic of the Marshall Islands, independent nation (2005 est. pop. 59,000), in the central Pacific. The Marshalls extend over a 700-mi (1,130-km) area and comprise two major groups: the Ratak Chain in the east, and the Ralik Chain in the west, with a total of 34 atolls, c.900 reefs, and a land area of 70 sq mi (181 sq km). The major atolls are Majuro, the capital; Arno; Ailinglaplap; Jaluit, with a fine natural harbor, the archipelago's chief trade center; and Kwajalein, the largest atoll and site of a U.S. intercontinental ballistic missile test range.
The population of the Marshalls is largely Micronesian and Christian (mainly Protestant). English is the official language; two native dialects of Marshallese, a Malayo-Polynesian tongue, and Japanese are also spoken. The chief industries are agriculture, fishing, and tourism; copra, sugar, and handicrafts are the major exports. A large portion of the Marshallese economy is dependent on U.S. aid.

Economy

United States Government assistance is the mainstay of the 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. Around 1999 a tuna loining plant was built and employed upwards of 400 people, mostly women. After absorbing significant training costs and lack of government assistance the plant was closed in 2005. Although the plant brought almost $6 million into the economy, and provided a significant number of jobs that previously had not existed, the government let the plant close and chose not to provide any incentives to the owners to keep it open. Under the terms of the Amended Compact of Free Association, the US will provide millions of dollars per year to the Marshall Islands (RMI) through 2023, at which time a Trust Fund made up of US and RMI contributions will begin perpetual annual payouts. Government downsizing, drought, a drop in construction, the decline in tourism and foreign investment due to the Asian financial difficulties, and less income from the renewal of fishing vessel licenses have held GDP growth to an average of 1% over the past decade.
The United States also maintains the U.S. Army's Ronald Reagan Ballistic Missile Defense Test Site 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 at the base. It is noted that the Majuro Atoll benefited from many foreign assistances. The main airport was built by the Japanese (during World War 2), the only tarmac road of the capital was built by the Americans.

History

Some of the islands were visited by Spanish explorers in the early 16th cent. They are named after a British captain who visited in 1788. Much mapping was done on Russian expeditions under Adam Johann von Krusenstern (1803) and Otto von Kotzebue (1815 and 1823). Germany annexed the group in 1885 and tried with little success to establish a colony. Administrative affairs continued to be managed largely by private German and Australian interests. In 1914, Japan seized the Marshalls and in 1920 received a League of Nations mandate over them.
In World War II the islands were taken by U.S. forces (1943–44); they were included in the Trust Territory of the Pacific Islands in 1947. After the war both Enewetak and Bikini atolls were used as U.S. nuclear weapons test sites. In 1983, the United States gave $183.7 million to the Marshalls for damages from the tests. The Marshalls became (1979) self-governing under U.S. military protection and achieved free-association status in 1986. The first president, Amata Kabua, died in Dec., 1996. Imata Kabua was elected to succeed him in Jan., 1997. Kabua was succeeded in Jan., 2000, by Kessai H. Note, who began a second term in 2004. An amended compact of free association, extending the defense relationship with the United States and the lease on the U.S. base on Kwajalein, was signed in 2003.