Marshall Islands and ADB
In the Spotlight
The economies of countries in the Pacific are expected to recover over the next two years, although building resilience against natural hazards and climate change remains a key priority, according to a new ADB report.
Tourism in the Pacific is increasing and will be a key driver of economic growth in the coming decade. Yet despite more visitors to the Pacific, tourism growth is not inevitable for all countries in the region.
ADB is providing a $2 million grant to help reduce the Marshall Islands’ consumption of fossil fuels and increase renewable electricity generation in the country.
This country brief summarizes how the partnership of ADB and the Marshall Islands has been instrumental to the development of the country. Since becoming an ADB member, the Marshall Islands had received some $107 million in loans and technical assistance by year-end of 2010.
Just 181 square kilometers in area, the Republic of the Marshall Islands (RMI) is located in a rich fishery in the North Pacific. While the capital of Majuro and the atoll of Ebeye are heavily urbanized, small populations are dispersed across the country’s outer atolls.
Annual grant assistance to the RMI under the Compact of Free Association with the United States (the Compact) has been diminishing since 2003. After the Compact grant period expires in 2023, the RMI is expected to complement domestic revenues with returns from the Compact Trust Fund, which receives annual savings from fiscal surpluses and contributions from development partners. Building the trust fund is a major challenge, especially under prevailing global economic uncertainty.
ADB’s country operations business plan, 2017–2019 for RMI will focus on better and sustainable infrastructure, improved quality of basic education, better public sector management, and structural reform implementation.
Projects in the Marshall Islands