1. The Republic of the Marshall Islands and other Island Areas A Comparative Analysis of Selected Demographic, Social & Economic Indicators May 2003

2. National development and progress can be measured in many ways. In order to help us better plan for, implement, and measure development, social scientists have created a wide range of demographic, economic, social and other types of national statistical indicators. These indicators can serve as useful tools in our analysis of development progress, living standards and the overall quality of life within and across countries and regions. In this short analysis, twenty-one selected statistical indicators for the RMI are presented and compared with those of the other Freely Associated States (Palau and FSM), the US Insular Areas (Guam, American Samoa, CNMI, US Virgin Islands), and the US (where applicable). By doing this type of comparative analysis, we may gain some insight and perspective into the effectiveness of RMI development initiatives as well as how the RMI and its citizens generally compare to these other areas and peoples. All data contained herein are drawn from periodic censuses and surveys and other statistical and administrative records. NOTE: where shown, all RMI 2000 data from 1999 census and 1990 data from 1988 census; 1995 FSM data from 1994 census.

3. The 21 selected indicators analyzed here are: 1. 1.Total Population 2. 2.Male to Female Sex Ratio 3. 3.Percentage of Population Under Age 18 4. 4.Percentage of Foreign Nationals 5. 5.Percentage of Population which Speaks English at Home 6. 6.Average Household Size (persons per household) 7. 7.Percentage of Households with Telephones 8. 8.Percentage of Households with Electricity 9. 9.Percentage of Households with Radio 10. 10.Percentage of Households with One or More Vehicles 11. 11.Percentage of Adults with High School Education or Higher 12. 12.Percentage of Adults with College Education (BA/BS) or Higher 13. 13.Gross Domestic Product 14. 14.Inflation Rate 15. 15.Civilian Labor Force 16. 16.Employed Population 17. 17.Unemployed Population 18. 18.Unemployment Rate 19. 19.Median Household Income 20. 20.Per Capita Income 21. 21.Infant Mortality Rate

4. As of its last Census of Population and Housing (in mid-1999), the RMI population stood at just under 51,000 This makes the RMI population the second smallest of the seven FAS and Insular Areas From 1980 to 1999, the RMI population increased by nearly 65 percent, the third highest rate The RMI population grew at a faster rate during this period than did the USVI, Guam, Palau, FSM and US populations

6. There were slightly more males than females in the RMI in 1999 The RMI sex ratio, 1.05, was close to Guam’s, American Samoa’s, and the FSM’s Females outnumbered males in the USVI, CNMI and US

8. Just over half of the RMI population was under the age of 18 in 1999 This surpasses the percentage in all other FAS and Insular Areas, as well as the US This means that percentage-wise, the RMI has more younger people than any of these other areas

10. The vast majority of people in the RMI were native citizens, comparable to the FSM Only two percent of the population were non-RMI citizens in 1999 This compares to 12 percent in USVI, 18 percent in Guam, nearly 57 percent in the CNMI, 35 percent in American Samoa and 31 percent in Palau

12. Nearly all families and households in the RMI communicated in the native language Less than half a percent of people over the age of 5 spoke English at home English was spoken far more commonly in the other FAS and Insular Areas

14. RMI households were more crowded than those in all other FAS and Insular Areas There were nearly 8 people on average per household in the RMI in 1999 All other areas, except for American Samoa and FSM, had on average fewer than 5 people per household

16. Close to 40 percent of RMI households had telephones in 1999 Only the FSM had a lower percentage of households with telephones, at 29 percent Meanwhile, the majority (greater than 60 percent) of households in all other areas had telephones

18. Nearly 70 percent of RMI households had electricity in 1999 Palau’s rate was far higher at 98 percent, but FSM’s was lower at about 54 percent

20. The vast majority of RMI households owned and used radios (nearly 86 percent) Only Palau surpassed this rate, at close to 90 percent More than three-fourths of households in the CNMI and American Samoa used radios, but less than half of FSM households used radios

22. One in five RMI households had a vehicle This was the lowest rate among the areas Guam had the highest rate, at 92 percent, surpassing the US rate of about 90 percent

24. Less than 40 percent of adults in the RMI (age 25 or older) completed high school as of 1999 This was the second lowest rate among the areas, only slightly higher than the FSM’s 37 percent All other areas had a high school education rate of 60 percent or higher

26. The RMI had the lowest percentage of adults with a college education (Bachelor level), at 2.7 percent The FSM rate was slightly higher at 3.6 percent and Palau’s rate was nearly four times the RMI’s, at 10 percent One in five adults in Guam had earned college degrees and nearly a quarter of adults in the US had earned degrees

28. Nominal GDP (unadjusted for inflation) for the RMI in 2001 was nearly $100 million RMI GDP was approximately 16 percent lower than Palau’s ($120.8 million) and less than half that of FSM ($230.1 million)

30. The inflation rate is a measure of the upward change in prices in an economy or area RMI price levels rose by less than three percent per year during the last four years of the 1994 to 2001 period, but surpassed four percent during the first four years The RMI average annual inflation rate during this eight year period was 4.45 percent, higher than both the FSM (2.28) and US (2.58) rates This suggests that the general cost of living in the RMI has appreciated faster than that of these other areas

32. The civilian labor force (excluding military personnel) is made up of the employed and unemployed populations The RMI civilian labor force grew from 11,488 to 14,677 between 1988 and 1999 This translates into a 28 percent increase, higher than all areas except for CNMI and Palau (FSM 1990 data not available)

34. Among the 14,677 people in the RMI labor force in 1999, 10,141 were employed This was just slightly higher than the 10,056 employed 11 years earlier, in 1988 Employment in the RMI, therefore, grew by just.8 percent during this period The RMI had, by far, the lowest growth in employment of all the areas during this period (FSM data for 1990 not available)

36. The RMI unemployed population more than tripled between 1988 and 1999, from 1,432 to 4,536 This is an increase of well over 200 percent Only Guam had a higher increase in the unemployed population, at 262.3 percent Palau’s unemployed population, meanwhile, shrunk from 471 to 224 during the period

38. The RMI unemployment rate (unemployed population divided by labor force), stood at 31 percent in 1999 The RMI had the highest unemployment rate among all these areas

40. RMI median household income in 1999 was $6,840 (meaning half of all households earned more than this amount and half earned less) Median household income grew by 103 percent between 1980 and 1999 The RMI 1999 median household income was the second lowest of the areas

43. RMI per capita income (calculated by dividing the aggregate or total income of all households by the total population) in 1999 was $2,281 This was the lowest amount of all the areas Per capita income in Palau, FSM and American Samoa were all around $4,000 CNMI’s per capita income was four times greater than the RMI’s, USVI’s and Guam’s were more than five times greater, and the US’ was nearly ten times greater

45. The RMI infant mortality rate in 1999 was 37 While infant mortality in the RMI has decreased over the last several decades, it was still the highest among all these areas in 1999

47. SUMMARY The most notable findings of this comparative analysis are: Among the seven island areas compared here, the RMI had the second smallest population as of 1999, but its population growth rate between 1980 and 1999 was the third highest Among the seven island areas compared here, the RMI had the second smallest population as of 1999, but its population growth rate between 1980 and 1999 was the third highest The RMI had the highest percentage of young people (under 18) among the areas The RMI had the highest percentage of young people (under 18) among the areas The RMI had the second lowest percentage of foreign nationals The RMI had the second lowest percentage of foreign nationals English was far less commonly spoken in the RMI than in the other areas English was far less commonly spoken in the RMI than in the other areas The RMI had, by far, the most crowded households among the areas, with an average household size of nearly eight persons The RMI had, by far, the most crowded households among the areas, with an average household size of nearly eight persons A lower percentage of RMI households owned telephones and vehicles, but more households used radios in the RMI than in the other areas A lower percentage of RMI households owned telephones and vehicles, but more households used radios in the RMI than in the other areas RMI adults had the second lowest high school completion rate and the lowest college completion rate (Bachelor level) among all the areas RMI adults had the second lowest high school completion rate and the lowest college completion rate (Bachelor level) among all the areas The RMI had higher inflation during most of the 1990s than did the FSM or the US The RMI had higher inflation during most of the 1990s than did the FSM or the US The RMI had the third fastest growing labor force between 1980 and 1999, but had the lowest growth in employment The RMI had the third fastest growing labor force between 1980 and 1999, but had the lowest growth in employment As a result, the RMI had the highest unemployment rate among all the areas As a result, the RMI had the highest unemployment rate among all the areas The RMI had the second lowest median household income and the lowest per capita income The RMI had the second lowest median household income and the lowest per capita income The RMI had the highest infant mortality rate among the areas The RMI had the highest infant mortality rate among the areas