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Compacts of Free Association: Development Prospects Remain Limited for Micronesia and Marshall Islands
David Gootnick (au)
In 1987, the U.S. began providing economic aid to the Federated States of Micronesia (FSM) & the Republic of the Marshall Islands (RMI) through a Compact of Free Association. In 2004, through amended compacts with the FSM & the RMI, the U.S. committed to provide more than $3.5 billion until 2023. Joint U.S.-FSM & U.S.-RMI compact management committees are required, among other things, to monitor progress toward specified development goals & address implementation of policy reforms to stimulate investment. This report examines each country’s: (1) political & social environment, (2) economic environment, & (3) status of economic policy reforms. Charts & tables.
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