Republic of the Marshall Islands: A Private Sector Assessment: Promoting Growth though Reform

Institutional Document | May 2003

The Republic of the Marshall Islands (RMI) economy has registered many years of low or negative growth and per capita income is now 20 percent below what it was at independence. The government has announced that future growth depends on a thriving private sector and is interested in promoting private sector friendly policies within a sustainable development framework.

This private sector assessment (PSA) examines the environment for doing business in RMI. Based on numerous interviews with private sector business people, it concludes that although the government has made the important commitment to improving the private sector environment, several important steps are necessary to improve the prospects for higher private sector growth. The PSA suggests policy initiatives to promote private sector growth by making it more competitive, changing some aspects of the role of the state in the economy and undertaking institutional reform that will promote private contracting and encourage financial market growth. The report concludes that the time is ripe for a national debate regarding the role of the state, the role of business and how reform should proceed.

Contents 

  • Diagnosis and Synopsis
  • Overview of Private Sector Issues
  • The State and the Private Sector
  • The Financial Market
  • Institutions and Private Sector Development
  • Sector Issues
  • Conclusion
  • Appendix