Daily Current Affairs : 18-October-2023

The United States has recently inked a new 20-year agreement with the Marshall Islands, offering economic assistance worth a substantial $2.3 billion. This agreement marks a significant development in the relationship between the two nations, signifying the United States’ ongoing commitment to the welfare and development of the Marshall Islands.

The Marshall Islands:

Located in the Pacific Ocean, the Republic of the Marshall Islands (RMI) consists of five volcanic islands and 29 coral atolls. With Majuro as its capital, the country recognizes English and Marshallese as official languages. The Marshall Islands operates as a presidential republic with a parliamentary system, where the President serves as both the head of state and head of government. The nation relies on agriculture and tourism to sustain its economy and adopts the United States dollar as its official currency. A unique fact is that in 2018, the Marshall Islands became the first country to launch its own cryptocurrency, which was certified as legal tender.

Historical Background:

The Marshall Islands have a rich history, having been under the influence of various colonial rulers. They were controlled by Spain from the late 1400s to the late 1800s, followed by German rule from 1885 to World War I and then Japan from 1914 to World War II. After World War II, the islands fell under the United States administration as part of the United Nations Trust Territory of the Pacific Islands.

The RMI Government was officially established in 1979, coinciding with the signing of its constitution. In a monumental step, the Marshall Islands achieved independence in 1986 by signing the Compact of Free Association with the United States, effectively ending the UN-US Trusteeship Agreement.

Compact of Free Association with the United States:

The Compact of Free Association is a pivotal agreement between the Marshall Islands and the United States. Under this compact, the Marshall Islands receive critical support in the form of financial assistance, defense protection, and access to U.S. government programs. This pact recognizes the Marshall Islands’ right to self-governance, reinforcing its sovereignty while promoting economic development and fiscal self-reliance.

Notable points regarding this compact include:
  • Financial Aid: The United States commits significant financial assistance, a lifeline for the economic growth of the Marshall Islands.
  • Defense Protection: The U.S. is responsible for the security and defense of the Marshall Islands, ensuring peace and stability in the region.
  • Access to Programs: The Marshall Islands can access various U.S. government programs, furthering its development and capacity-building initiatives.

Important Points:

  • New Agreement:
    • The United States signed a 20-year economic assistance agreement with the Marshall Islands worth $2.3 billion.
  • The Marshall Islands:
    • Located in the Pacific Ocean, it comprises five volcanic islands and 29 coral atolls.
    • Capital: Majuro
    • Official Languages: English and Marshallese
    • Economy: Relies on agriculture and tourism, uses the United States dollar as official currency.
    • Unique Fact: In 2018, it became the first country to issue its own cryptocurrency certified as legal tender.
  • Historical Background:
    • Colonial Rulers: Spain (late 1400s-1800s), Germany (1885-1914), Japan (1914-1945).
    • Post World War II: Became part of the United Nations Trust Territory of the Pacific Islands under US administration.
    • Independence: Gained independence in 1986 after signing the Compact of Free Association with the United States.
  • Compact of Free Association:
    • Provides financial assistance, defense protection, and access to U.S. government programs.
    • Recognizes Marshall Islands’ right to self-governance.
    • Promotes economic development and budgetary self-reliance.
    • U.S. responsible for the security and defense of the Marshall Islands.
  • Significance:
    • Strengthened Partnership: Demonstrates enduring commitment between the US and the Marshall Islands.
    • Economic Support: Provides critical financial aid, supporting the economic growth of the Marshall Islands.
    • Defense and Security: Ensures peace and stability through U.S. security and defense responsibility.
    • Access to Programs: Enables the Marshall Islands to access various U.S. government initiatives for development.
Why In News

The United States recently signed a new 20-year agreement on economic assistance to the Marshall Islands worth $2.3 billion, highlighting the commitment to fostering long-term economic stability and collaboration between the two nations.

MCQs about US-Marshal Islands 20-Year Economic Partnership

  1. What is the official currency of the Marshall Islands?
    A. Euro
    B. Japanese Yen
    C. United States Dollar
    D. British Pound Sterling
    Correct Answer: C. United States Dollar
    Explanation: The Marshall Islands uses the United States dollar as its official currency alongside its own cryptocurrency.
  2. When did the Marshall Islands gain its independence from the United States Trusteeship Agreement?
    A. 1965
    B. 1979
    C. 1986
    D. 1995
    Correct Answer: C. 1986
    Explanation: The Marshall Islands gained its independence in 1986 after signing the Compact of Free Association with the United States, terminating the UN-US Trusteeship Agreement.
  3. What role does the United States play in the security and defense of the Marshall Islands according to the Compact of Free Association?
    A. Limited advisory role
    B. No involvement in security matters
    C. Full authority and responsibility
    D. Shared responsibility with other countries
    Correct Answer: C. Full authority and responsibility
    Explanation: According to the Compact of Free Association, the United States holds full authority and responsibility for the security and defense of the Marshall Islands.

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