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RMI Ecomony

     The majority of RMI's governmental budget comes from the U.S. in the form of annual compact grants, rent for military bases, monies for developmental projects, and compensatory income for the victims of the nuclear testing. The GDP is $1,922.00. RMI has the lowest per capita income of all of Micornesia.

     RMI does have some small scale industry. Locally generated incomes include handicrafts and copra production. Aquaculture projects are also being developed. Fishing is also a large industry in RMI.

     In hopes of generating more income for its people, RMI has entertained the idea of becoming a dumping ground for other countries' trash. In 1994, RMI upped the ante by agreeing to accept nuclear waste products. This would bring an estimated $70 million a year into the Marshallese economy, but this proposal has divided the Marshallese people. Also, many of RMI's neighbors are concerned as to what harm would befall them if RMI accepted a lot of nuclear wastes.

     Tourism is growing, but at a very slow rate. Most who come to the islands are there on business and do not generate much revenue for the local people. Efforts are being made by the Marshallese government, however, to attract more visitors to the islands.


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