Republic of the Marshall Islands country brief
Introduction
The Republic of the Marshall Islands (RMI) is an independent country in a Compact of Free Association with the United States. RMI is located in the Micronesia region north of Nauru and Kiribati in the South Pacific Ocean.
Political overview
Government
RMI has a semi-Westminster style constitution, adopted in 1979, with a Nitijela (Parliament) comprising 33 members, elected every four years by universal suffrage. Every inhabited atoll is represented, with Majuro with five members and Ebeye with three members having the largest representation. While there are no formal political parties in the RMI, there are two political groupings, the Aleon Kein AD (AKA) and UDP. The President is elected from the Nitijela and appoints a cabinet from its members. There is also an advisory council of High Chiefs - the Council of Iroij.
On 21 October 2009, a motion of no confidence in President Tomeing was passed in the Nitijela, and the RMI cabinet disolved. On 26 October 2009 the Nitijela elected Jurelang Zedkaia as President. Key ministers in the Zedkaia Government are John Silk (Foreign Affairs), Jack Ading (Finance) and Brenson Wase (Justice).
Compact of Free Association with US
After more than a decade of negotiation, the Marshall Islands and the United States signed a Compact of Free Association in 1983. It was subsequently approved in a UN-observed plebiscite. The US Congress added several amendments which were accepted by RMI, and the Compact entered into force in 1986. From 1999-2003, the two nations negotiated an Amended Compact that entered into force in 2004. Under the Amended Compact, the United States will give RMI at least US$57 million every year until 2023, including contributions to a jointly managed Trust Fund. Marshallese will continue to have access to many US programs and services. A Joint Economic Management and Financial Accountability Committee comprised of representatives of both governments meets to ensure that Compact assistance funds are spent effectively.
Under the Compact, the United States has full authority and responsibility for security and defence of the Marshall Islands, and RMI is obliged to refrain from taking actions that would be incompatible with this. RMI has full control of all other domestic and foreign policy and RMI citizens have access to favourable provisions for travelling to and working in the United States.
The US Department of Defense, under a subsidiary government-to-government agreement of the Compact, has use of the lagoon and several islands on Kwajalein Atoll. The atoll consists of approximately 90 islets around the largest lagoon in the world. The agreement allows the United States continued use of the US Army Kwajalein Atoll (USAKA) missile test range until 2066 (with an option until 2086) at a cost of US$2.3 billion. Another major subsidiary agreement of the original Compact provides for settlement of all claims arising from the US nuclear tests conducted at Bikini and Enewetak Atolls from 1946 to 1958. Under the Compact, more than 40 US Government agencies such as the Federal Aviation Administration, US Postal Service, the Small Business Administration, and the Federal Emergency Management Agency operate programs or render assistance to RMI.
Economic overview
The RMI economy remains dependent on revenue from the US under the compact, with over 80 per cent of government revenue being derived directly, or indirectly, from US grants. The Government is the major employer, followed by the commercial and retail sectors. The construction industry is expanding but there is limited domestic production - fisheries, copra, handicrafts and subsistence agriculture being the most significant sectors.
Commitment to reform
The RMI's failure to use the compact funding provided by the US to promote a sustainable income-generating economy was recognised by the RMI Government in 1996, when it commenced a reform program, assisted by the Asian Development Bank and other donors. The RMI Government took steps to increase considerably its returns from tourism, fisheries and other potential sources of revenue, reduce the size of the public sector and eliminate some subsidies to utilities, Air Marshall Islands and the copra industry. In 1998, the RMI Government announced a further package of reforms to help the general economy over the long-term, including measures to substantially reduce and eventually abolish import taxes. In 2008, precipitated by the fuel price hikes, the RMI declared a financial state of emergency. This included approaches to the ADB, US and Taiwan to secure additional funding.
Economic boost from relations with Taiwan
Government revenue has also been augmented by aid from Taiwan (the RMI established diplomatic relations with Taiwan in November 1998) and by a significant increase in returns from the fisheries sector through the activity in RMI waters of Taiwan purse seine fishing vessels, which also use Majuro as a base.
Bilateral relationship
Australia has friendly relations with the Republic of the Marshall Islands (RMI). Australia was the second country, after the US, to establish diplomatic relations, in 1987.
Australia has a modest development assistance program with RMI. The estimated total aid budget to the RMI bilateral program was $750,000 in 2008-09. This assistance is focused on scholarships, providing technical assistance and the small grant scheme which provides support to community organisations. Under the Defence Cooperation Program, Australia provides ongoing funding for the Pacific Patrol Boat Program. In 2008-09, the estimated total actual funding to RMI through the Defence Cooperation Program is $775,000.
RMI has provided two police officers to the Regional Assistance Mission to Solomon Islands since May 2006.
The then-Parliamentary Secretary for Pacific Island Affairs Mr Duncan Kerr SC MP visited RMI in July 2009 for bilateral discussions. Former President Litokwa Tomeing and Foreign Minister Silk visited Australia in August 2009 to attend the Pacific Islands Forum Leaders Meeting hosted by Prime Minister Rudd in Cairns.
Bilateral economic and trade relationship
Australian exports to the RMI in 2007–08 totalled $10.2 million (principally telecommunications equipment, rotating electric plant and parts, and ships and boats). Australia's imports from the RMI in the same period totalled $952,000 (principally insecticides, herbicides and disinfectants, plastic plates, sheets and film).
Foreign Relations
RMI is a member of the United Nations and Pacific Islands Forum. The United States is responsible for RMI's defence.
Visitor Information
Australians travelling to The Marshall Islands are advised to consult the Smartraveller travel advice.
Updated December 2009