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Insular Area Summary for the Marshall Islands

History & Political Status

Marshall  Islands (RMI)The Republic of the Marshall Islands (RMI) was a district of the Trust Territory of the Pacific Islands (TTPI) which the United States administered on behalf of the United Nations from 1947 until 1978.  The RMI came into being as a sovereign country in 1979 and entered into a Compact of Free Association with the United States in 1986.  The first financial package of the Compact lasted 15 years, from 1986 to 2003.  By the provisions of the Compact, the United States and the RMI negotiated a new financial package in 2003, covering 2004-2024.  Under the Compact, the United States provides economic and financial aid and defends the RMI’s territorial integrity.  In return, the RMI provides the Untied States with unlimited and exclusive access to its land and waterways for strategic purposes.  The close ties between the United States and the RMI that go back to the end of World War II are also reflected in the fact that the RMI uses the U.S. dollar as its currency.  Strategically, the RMI hosts the U.S. Army Kwajalein Atoll (USAKA) Reagan Missile Test Site, a key installation in the U.S. missile defense network.

Distances from places

Washington DC: 7,060 miles
Honolulu: 2,500 miles
Tokyo: 2,800miles
Guam: 1,860 miles

Political Leaders

President: Litokwa Tomeing
Speaker of the Nitijela (Parliament): Jurelang Zedkaia

Population & Demography

Total population: 63,100
Marshallese: 92.1%
Mixed Marshallese: 5.9%
Others: 2.0%

Economy & Income Sources

Estimated GDP: $149.6 million
Per capita GDP: $ 2,370
U.S. per capita GDP: $45,800
USAKA Reagan Missile Test Site
Kwajalein’s only major income source
USAKA’s population: 2,500
Civilian employees: 1,318 (13% of the RMI’s total payroll employment)
Compact Aid
Compact aid: $44.4 million (FY 07)
Other Federal grants: $9.6 million (FY 07)
Tourism by type
Total visitor arrivals: 9,173
Business visitors: 3,071
Holiday visitors: 2,727
Transit & stopover: 1,590
Tourists by origin
United States: 2,554
Other Pacific island countries: 2,024
Japan: 1,565
Services
Government services
Hotels and restaurants
Other services

Labor Force & Employment

Total payroll employment: 10,115
Private sector employment: 3,773
Government employment: 4,600

Government Finances

Total government revenues: $116.5 million
Total government spending: $110.2 million
Total Federal grants: $54.0 million

OIA Contacts

Joseph McDermott
Desk Officer for the Marshall Islands
Office of Insular Affairs
Washington, DC 20240
(202) 219-0037
Joseph_McDermott@ios.doi.gov

Alan Fowler
Field Officer – DOI Insular Affairs
C/O American Embassy
P.O. Box 1379
Majuro, MH 96960
011 (692) 247-4011
011 (691) 247-5371 Fax
EST + 17 hours DST + 16 hrs

Historical Overview

History

The Marshall Islands were claimed by Spain in l592, but were left basically undisturbed by the Spanish Empire for 300 years. In l885, Germany took over the administration of the Marshall Islands and located trading stations on the islands of Jaluit and Ebon to carry out the flourishing copra (dried coconut meat) trade. Marshallese iroij (chiefs) continued to rule under indirect colonial German administration. The traditional iroij system is still in use today.

RMI Map
Republic of the Marshall Islands (RMI) map.

At the beginning of the First World War, Japan assumed control of the Marshall Islands, first under civil and then a naval administration. Japan's headquarters remained at Jaluit.

United States Marines and soldiers with naval and air support took control from the Japanese in early l944 following intense fighting on Kwajalein and Enewetak atolls. In l947, the United States entered into agreement with the United Nations Security Council to administer the former Japanese mandate, of which the Marshalls were a part, known as the Trust Territory of the Pacific Islands.

In recognition of the evolving political status, on May l, l979, the United States recognized the Constitution of the Marshall Islands and the establishment of the Government of the Marshall Islands (RMI).

 The Compact

Arial view of Majuro, capital of the Marshall Islands.
Arial view of Majuro,
capital of the Marshall Islands.

The Government of Marshall Islands and the Government of the United States signed the first Compact of Free Association on June 25, l983. President Ronald Reagan signed thRMI Flage Compact into law on January l4, l986, (Public Law 99-239). The Compact entered into force for the Marshall Islands on October 2l, l986.  See Presidential Proclamation No. 5564 in the U.S. Federal Register.

The status of free association recognizes the Marshall Islands as a sovereign, self-governing state with the capacity to conduct foreign affairs consistent with the terms of the Compact. The Compact places full responsibility for the Marshall Islands' defense with the United States. The basic relationship of free association continues indefinitely. 

In 2003, the U.S. and the RMI signed the second Compact or what is called the Amended Compact Act of 2003 (PDF Format) under Public Law 108-188 for the next 20 years until 2023.  Although the basic relationship as enshrined in the first Compact were unchanged (see above), there were significant changes in the financial provisions of the amended Compact.  The Amended Compact included creation of a Trust Fund to serve as an ongoing source of revenue after Fiscal Year 2023 and to contribute to the long-term budgetary self-reliance of the RMI.  It also provided for sector specific grant assistance in six primary sectors: Education; Health Care; Public Infrastructure; Environment; Public Sector Capacity Building; Environment; and Private Sector Development.

USA and RMI flagsUnder the Compact, the State Department is responsible for government-to-government relations, while the Department of Interior’s Office of Insular Affairs is responsible for the oversight and coordination of U.S. programs and funding assistance.

 

The United Nations and Bilateral Relations 

On September 17, 1991, the Marshall Islands became a full-fledged member of the United Nations.  The Marshall Islands is a close voting ally of the U.S. and Israel at the UN.  The Marshall Islands has established bilateral relations with 72 countries which includes the USA, Taiwan, Israel, France and the Holy See.  For a complete list of countries with which the RMI has relations, click here (PDF Format).

The Marshall Islands Government published a book to promote their handicrafts.

 

Kwajalein Missile Range 

At home in the largest lagoon in the world, is the U.S. Kwajalein Missile Range.  A major subsidiary agreement of the Compact with the Marshall Islands allows the United States continued use in Kwajalein Atoll of the U.S. Army missile test range for up to thirty years. Kwajalein consists of some ninety islands surrounding the largest lagoon in the world. Under a lease agreement with Marshall Islands Government, the U.S. Department of Defense uses the atoll and controls some of its islands.

 

Nuclear Issues

Section 177 of the Compact with the Marshall Islands provided for settlement of all claims arising out of the nuclear testing programs which the United States conducted at Bikini and Enewetak Atolls from l946 to l958. Under Section 177, the US Government has made payments of over $500M which included $135M for Bikini and Rongelap resettlements.

 

Status of Marshall Islands citizens in the U.S.

See the U.S. Department of Homeland Security, USCIS Fact Sheet. (PDF Format) for the immigration status of Marshall Islands citizens entering and residing in the United States .

Employment Requirements for Marshall Islands citizens in the U.S. 

According to the Compact, Marshall Islands citizens are eligible to be employed in the United States without need for the Employment Authorization Document. Employment Eligibility (PDF Format).  Employers seeking more information may review the Department of Homeland Security's Employer Information Bulletin #106 (PDF Format).  Although the Employment Authorization Document EAD (PDF Format).  is not needed for employment, it serves as a valuable second form of identification for other services while residing in the U.S., and is strongly recommended. In 2005, the EAD for citizens of the Marshall Islands was given an extended validity of four years instead of one.


U.S. Department of the Interior • Office of Insular Affairs
1849 C Street, N.W. • Washington, DC 20240
Phone: (202) 208-6816 • FAX: (202) 219-1989
http://www.doi.gov/oia/
Last Updated on 09/16/09