Business Profile
Economy
The economy suffers many of the problems faced by the small, remote island states of the Pacific. Aid subventions from the USA remain essential, while repeated and diverse attempts to broaden the base of the economy have met with mixed success. Agriculture is of a subsistence nature, with coconuts, tomatoes, melons and breadfruit as the main products. The fishing industry is dominated by a commercial tuna operation, which includes canning and transhipment. The islands’ international shipping registry – a flag of convenience – has been a key source of income since the end of the 1980s, when many operators reflagged from Panama. The government had high hopes for a major tourist development, but the plans have been scaled down following the economic downturn in the Asia-Pacific region and may yet be further undermined by the islands’ remote location. There is also an important offshore financial services industry. However, in April 2002 the Marshall Islands were one of seven countries ‘named and shamed’ by the Organisation for Economic Co-operation and Development, which has spearheaded a global assault on money-laundering, for their failure to tackle the issue. The USA provides around US$65 million annually in aid. The Marshall Islands is a member of the South Pacific Commission and the South Pacific Forum.
Commercial Information
For further information contact the Majuro Chamber of Commerce, Majuro MH 96960 (tel: 625 2525; fax: 625 2500).
|
