History

While they were settled by Micronesians in the 2nd millennium BC, little is known of the early history of the islands. Spanish explorer Alonso de Salazar was the first European to sight the Marshalls in 1526, but the islands remained virtually unvisited by Europeans for several more centuries, before being visited by English captain John Marshall in 1788; the islands owe their name to him.

A German trading company settled on the islands in 1885, and they became part of the protectorate of German New Guinea some years later. Japan conquered the islands in World War I, and administered them as a League of Nations mandate.

In World War II, the United States invaded the islands (1944), and they were added to the Trust Territory of the Pacific Islands (including several more island groups in the South Sea).

In 1979 the Republic of the Marshall Islands was established and a Compact of Free Association with the U.S. government was signed, becoming effective in 1986. The independence was formally completed under international law in 1990, when the UN officially ended the trust given to the USA.

Economy

United States Government assistance is the mainstay of the economy. Agricultural production is concentrated on small farms, and the most important commercial crops are coconuts, tomatoes, melons, and breadfruit. Small-scale industry is limited to handicrafts, fish processing, and copra. The tourist industry, now a small source of foreign exchange employing less than 10% of the labor force, remains the best hope for future added income. The islands have few natural resources, and imports far exceed exports. Around 1999 a tuna loining plant was built and employed upwards of 400 people, mostly women. After absorbing significant training costs and lack of government assistance the plant was closed in 2005. Although the plant brought almost $6 million into the economy, and provided a significant number of jobs that previously had not existed, the government let the plant close and chose not to provide any incentives to the owners to keep it open. Under the terms of the Amended Compact of Free Association, the US will provide millions of dollars per year to the Marshall Islands (RMI) through 2023, at which time a Trust Fund made up of US and RMI contributions will begin perpetual annual payouts. Government downsizing, drought, a drop in construction, the decline in tourism and foreign investment due to the Asian financial difficulties, and less income from the renewal of fishing vessel licenses have held GDP growth to an average of 1% over the past decade.

The United States also maintains the U.S. Army's Ronald Reagan Ballistic Missile Defense Test Site on Kwajalein Atoll. It is an important aspect of the Marshallese economy, as the Marshallese land owners receive rent for the base, and a large number of Marshallese work at the base. It is noted that the Majuro Atoll benefited from many foreign assistances. The main airport was built by the Japanese (during World War II), the only tarmac road of the capital was parlty built by the Taiwanese and partly by the Americans.

Demographics

The Marshallese are of Micronesian origin and migrated from Asia several thousand years ago. Although English is an official language and is spoken widely, although not fluently, Marshallese is used by the government. Japanese is also occasionally spoken in some areas of Marshall Islands.

Virtually all Marshallese are Christian, most of them Protestant.