Countries and Regions

	Table of Contents
p. 3 of 20 BACK | NEXT I. Country Performance Assessment A. Economic Performance Assessment B. Poverty Assessment C. Assessment of Socio-Environmental Performance D. Governance: Sound Development Management E. Implementation Assessment II. Country Operational Strategy III. Sector Strategies IV. Regional Cooperation V. Donor Activities and Aid Coordination VI. Cofinancing and Catalyzing External Resources VII. ADB’s Operational Program VIII. Economic and Sector Work Program IX. Local Cost Financing

Country Assistance Plans - Marshall Islands : I. Country Performance Assessment

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B. Poverty Assessment

8. Similar to many of the PDMCs, as a result of extended family ties and close relationships within a small population, pervasive poverty has never been a major problem in RMI. The Human Poverty Index (HPI) of 19.5 places RMI in the mid-range of poverty levels in PDMCs with literacy, access to safe water and health of children contributing to the high HPI. There exists considerable inequity between those living in the urban centers of Majuro and Ebeye and those who live in the outer islands in spite of access to subsistence farming in most of the outer islands. Contraction in the economy arising from the effects of the downsizing of Government under the Public Sector Reform Program may, in the short run, increase the number of poor households in the urban centers and will also lead to a decline of remittances to the outer islands. However, in the long run the reforms will release resources from inefficient to more productive and employment oriented expenditures.

9. Although poverty is not a serious problem in the Marshall Islands, the country remains vulnerable to natural disasters and to external economic shocks. The findings of the preliminary analysis of poverty indicate that while there is no abject poverty in RMI (partly due to the system of social support) there exists two forms of “poverty”: (i) where Marshallese are disadvantaged from poor nutrition, poor education or access to essential health and other social services, and (ii) where Marshallese are disadvantaged through lack of domestic opportunities for gainful employment or a “poverty of opportunity.”

10. These are aggravated by a stagnant economy and a policy environment which does not adequately promote equity or distribution of resources. Poverty assessment will be carried out to determine the extent of such “poverty” and how this can be addressed. Most of this will be reflected in the Pacific Islands Economic Report (PIER) currently under preparation. Once specifics are determined, ADB’s assistance program will be directed towards reducing poverty of opportunity and improving access to basic social services for the identified groups of disadvantaged.

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