Asian Development Bank and Marshall Islands: Fact Sheet

Abstract

Updated yearly, this ADB Fact Sheet provides social and economic indicators on Marshall Islands as well as concise information on ADB's operations in the country and contact information. The Republic of the Marshall Islands joined the Asian Development Bank (ADB) in 1990. Since then, ADB has approved 13 loans for $87.63 million, 48 technical assistance projects for $19.58 million, and one grant for $1.76 million. ADB loans have supported development of the education, fisheries, health, water, and transport sectors, and assisted public sector reform and structural adjustment. One loan assisted typhoon emergency rehabilitation. The technical assistance program has also covered a wide range of sectors and issues, including support for ADB loans, capacity building in development banking, tourism management, environmental protection, and the formation of economic policy. The program has also helped privatize stateowned enterprises, develop the private sector, and reform the civil service. However, the development of the Marshall Islands has continued to be affected by external shocks of the global economic downturn and unprecedented food and fuel price rises. Economic output stagnated with no growth in the nation’s gross domestic product (GDP) in 2009. The fiscal position worsened significantly due to the combined impact of tax exemptions for diesel and basic food imports the government granted in 2008 to alleviate the effects of the global downturn; job cuts at the local United States (US) military base; and a continued weakness in expenditure control, particularly with respect to the public service wage bill and subsidies to state-owned enterprises. Gross official reserves, as of September 2009, were equal to 0.3 months of imports. This has left no room for the Marshall Islands to respond to further external shocks.