Marshall islands - business

Marshall islands - business -- Review

The government is the largest employer employing 34% of the workforce. GDP is derived mainly from payments made by the United States under the terms of the Compact of Free Trade Association. Direct U.S. aid accounted for $40 million of the Marshalls' 1992 budget of $65 million. The economy combines a small subsistence sector and a modern urban sector. The subsistence sector on the outer islands is fueled by the production of copra and handicrafts. The modern service-oriented economy is located in Majuro and Ebeye. It is sustained by government expenditures and the U.S. Army installation at Kwajalein Atoll which gives a boost to the economy in its own right. The airfield there also serves as a national hub for Air Marshall Islands. The modern sector consists of wholesale and retail trade restaurants banking and insurance construction and repair services professional services and copra processing. Copra cake and oil are by far the nation's largest exports. At $1.8 million copra accounted for 79% of 1989 exports. Copra production the most important single commercial activity for the past 100 years now depends on government subsidies however. The subsidies more a social policy than an economic strategy help reduce migration from outer atolls to densely populated Majuro and Ebeye. Marine resources including fishing opening a cannery and aquaculture as well as tourism development and agriculture are top government development priorities. The Marshall Islands is working to establish a fishing fleet and sells fishing rights to other nations as a source of income. As a small nation the Marshall Islands must import a wide variety of goods including foodstuffs consumer goods machinery and petroleum products.

Beginning***America and Pacific

Employment