MARSHALL ISLANDS: National Strategic Plan 2015-2017

Meta Data

Draft:

Revision of previous policy?:

Draft Year:

2014

Effective Start Year:

2015

Effective End Year:

2017

Scope:

National

Document Type:

Plan/Strategy

Economic Sector:

Energy, Power, Transport, Multi-Sector

Energy Types:

Oil, Power, Renewable, Other

Issued by:

Republic of the Marshall Islands

Source:

Economic Policy, Planning and Statistics Office

File:

National Strategic Plan 2015-2017

Overall Summary:

The RMI National Strategic Plan, (NSP) is an instrument, which provides for the RMI development strategies for the three year period 2015–2017. The NSP of the Republic of the Marshall Islands (RMI) was developed through a collaborative process among government ministries and agencies, non-governmental organizations (NGOs) and the private sector. The NSP provides for the development of strategies for the three year period 2015–2017 towards self-sustainability and efficiency. This will be achieved through enhanced access to energy, renewable energy in outer islands and energy efficiency, including the development of a building code. It was developed through a collaborative process among government ministries and agencies, non-governmental organizations (NGOs) and the private sector. It represents a roadmap for government leaders for development and progress in the medium term (2015–2017). ---Note: MEC (Marshalls Energy Company).

Access

Energy access priorities:

National Development Themes: Ensuring outer islands populations receive access to all necessary services allowing all RMI citizens to enjoy a high quality of life: National Goals: [...] energy security: - Access to all necessary and relevant services in a timely and cost effective manner; - Infrastructure security (access to all relevant infrastructure).

Efficiency

EE priorities:

National Goals: Oil and conventional energy resources used efficiently.

EE action plans:

---Development Objectives: Continue to Implement the MEC Comprehensive Recovery Program:  Minimize power network distribution losses[...].

Renewable Energy

RE priorities:

National Goals: Alternative energy resources developed.

Environment

Energy environmental priorities:

Through the Focus on Five Key Energy Sectors (RMI Energy Policy) Provide Clean, Reliable, Affordable, Accessible, Environmentally Appropriate and Sustainable Energy Services. ---Development objectives: Continue to Implement the MEC Petroleum Program: To develop high [...] environment [...] response standards through upgraded facilities and skilled and competent people.

Pricing

Energy pricing:

Continue to Implement the MEC Petroleum Program:  To develop effective mechanisms for fair import prices of petroleum fuels and equitable pricing of fuel products throughout the RMI.

Energy Supply and Infrastructure

Infrastructure development priorities:

National Development Themes: Building a sound infrastructure that provides energy, environmental, infrastructure [...] security for all atolls.---National Goals: [...]  Infrastructure security (access to all relevant infrastructure). ---Development Objectives: Continue to Implement the MEC Comprehensive Recovery Program:  Minimize power network distribution losses  Continue the ongoing rehabilitation of Majuro Power Plant  Continue the ongoing rehabilitation of the Tank Farm. ---Development objectives: Continue to Implement the MEC Petroleum Program:  To develop and assure high quality fuel products, their storage and their transportation within the RMI.

Governance

Energy management principles:

National Goals: [...] energy security:  Access to all necessary and relevant services in a timely and cost effective manner ---Continue to Implement the MEC Comprehensive Recovery Program:  Minimize power network distribution losses.

National policy structure:

National Targets: [...] energy and Information Communications Technology policies focus on national issues

Technology

R&D renewable energy:

National Goals: Alternative energy resources developed.

Full Document Text

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Republic of the Marshall Islands

NATIONAL STRATEGIC PLAN 2015–2017

June 2014

This document is available for re-publication and public use. Any modification of any kind is strictly prohibited without the expressed permission of the Economic Policy, Planning and Statistics Office (EPPSO).

Map of the Republic of the Marshall Islands

MESSAGE FROM THE PRESIDENT

His Excellency President Loeak

It gives me great pleasure and privilege to present to all stakeholders, the RMI National Strategic Plan, (NSP). This Instrument provides for the RMI development strategies for the next three year period, (2015–2017).

As our young nation faces difficult challenges in its daily activities and planning, we tend to look to the past for guidance for the present and future, to ensure that we steady the course towards progress and self-sufficiency. The NSP is such the instrument steadying the course and navigating us toward this goal.

The development of this National Strategic Plan was accomplished through joint collaborative efforts of governmental ministries, agencies, businesses, as well as private sector entrepreneurs, nongovernmental organizations, and numerous others in civil society, who shared in one goal and objective aiming to ensure that the course and future of RMI is steered toward self-sustainability and efficiency.

As President, I strongly encourage stakeholders to allocate sufficient resources to support the implementation of the development goals and objectives identified in the National Strategic Plan, for the continued development of good governance and a vibrant Marshallese society.

I extend to the RMI development partners, especially the United Nations Development Fund and the Asian Development Bank, the warm gratitude and appreciation of the Government, and the people of the Republic of the Marshall Islands, for their full on-going support and assistance, towards the implementation and progress of the National Strategic Plan.

I encourage stakeholders to come together in the spirit of joint collaboration and efforts, as enshrined in the words of our forefathers, “Jepelpelin Ke Eju Kaan”, to achieve successful results and progress of RMI national priorities, in order to ensure a greater and brighter future for our young nation. Please accept the assurances of my highest gratitude.

Christopher J. Loeak President

ACKNOWLEDGEMENTS

The Government of the Republic of the Marshall Islands wishes to thank the National Strategic Plan Steering Committee for their guidance and oversight in designing and developing this document. The Steering Committee was led by the Chief Secretary. Other members of the Committee include the Secretary of Finance, the Secretary of Foreign Affairs, the Director of Economic Policy Planning and Statistics Office, the Director of the Office of Compact Implementation, the President of the Marshall Islands Mayors Association, and representatives from the Office of Attorney General, the Private Sector and the Non-Governmental Organization Community.

Special appreciation is given to the Marshall Island Government’s line Ministries, Agencies and State Owned Enterprises, and most importantly, all of Marshallese society for their valuable input and contributions to the development of this National Strategic Plan.

RMI government would also like to acknowledge the United Nations Development Program (UNDP) Fiji for sponsoring the Technical Assistance Team, comprised of Chris M. Yanckello, for their assistance in preparing this document. The Government also wishes to acknowledge the Asian Development Bank (ADB) for their assistance in printing this document and providing technical assistance for the initial implementation of the National Strategic Plan, including the development of the National Strategic Plan Electronic Platform found at www.eppso.org.

Acknowledgement is also extended to the staff of the College of the Marshall Islands and EPPSO for their efforts in reviewing and preparing this publication.

All photographs used by permission.

For further information on the material contained in this report, please contact:

Government of the Marshall Islands Economic Policy Planning and Statistics Office Office of the President PO Box 7 Majuro, Republic of the Marshall Islands 96960

TABLE OF CONTENTS

ABBREVIATIONS AND ACRONYMS .................................................................................................. ix

EXECUTIVE SUMMARY ................................................................................................................................xiii

1. SNAPSHOT OF THE RMI......................................................................................................................... 1

2. INTRODUCTION..................................................................................................................................... 2

3. NSP COMPONENTS AND NSP TIMELINE ............................................................................................... 5

NSP Components ................................................................................................................................... 5

NSP Timeline ......................................................................................................................................... 6

4. RMI BACKGROUND OVERVIEW............................................................................................................. 7 Government .......................................................................................................................................... 7

Economy ................................................................................................................................................ 7

Geography ............................................................................................................................................. 8

People .................................................................................................................................................... 9

5. NATIONAL PLANNING HISTORY IN THE RMI ....................................................................................... 12

History ................................................................................................................................................. 12

6. ORGANIZATION OF THE NSP ............................................................................................................... 13

7. COORDINATION OF THE NSP WITHONGOING PLANNINGAND BUDGETING .................................... 15

8. NSP NATIONAL CONTEXT AND NATIONAL DEVELOPMENT THEMES.................................................. 17

Vision 2018 and NSP National Context ............................................................................................... 18

9. THE NATIONAL STRATEGIC PLAN VISION ............................................................................................ 22

Vision Statement ................................................................................................................................. 23

10. THE NATIONAL STRATEGIC PLAN OBJECTIVE ...................................................................................... 24

NSP Objective ...................................................................................................................................... 24

11. SOCIAL DEVELOPMENT SECTOR.......................................................................................................... 25

SECTOR OVERVIEW............................................................................................................................. 26

SECTOR DEVELOPMENT OBJECTIVES.................................................................................................. 29

NSP NATIONAL PRIORITIES AND SOCIAL DEVELOPMENT SECTOR DEVELOPMENT OBJECTIVES........ 32

12. ENVIRONMENT, CLIMATE CHANGE AND RESILIENCY SECTOR............................................................ 34

SECTOR OVERVIEW............................................................................................................................. 34

SECTOR DEVELOPMENT OBJECTIVES.................................................................................................. 38

NSP NATIONAL PRIORITIES AND ENVIRONMENT, CLIMATE CHANGE AN RESILIENCY SECTOR DEVELOPMENT OBJECTIVES................................................................................................................ 40

13. INFRASTRUCTURE DEVELOPMENT SECTOR ........................................................................................ 42

SECTOR OVERVIEW............................................................................................................................. 43

SECTOR DEVELOPMENT OBJECTIVES.................................................................................................. 47

NSP NATIONAL PRIORITIES AND INFRASTRUCTURE DEVELOPMENT SECTOR DEVELOPMENT OBJECTIVES ......................................................................................................................................... 50

14. SUSTAINABLE ECONOMIC DEVELOPMENT SECTOR ............................................................................ 52

SECTOR OVERVIEW............................................................................................................................. 53

SECTOR DEVELOPMENT OBJECTIVES.................................................................................................. 57

NSP NATIONAL PRIORITIES AND SUSTAINABLE ECONOMIC DEVELOPMENT SECTOR DEVELOPMENT OBJECTIVES ......................................................................................................................................... 60

15. GOOD GOVERNANCE SECTOR............................................................................................................. 63

SECTOR OVERVIEW............................................................................................................................. 64

SECTOR DEVELOPMENT OBJECTIVES.................................................................................................. 69

NSP NATIONAL PRIORITIES AND GOOD GOVERNANCE SECTOR DEVELOPMENT OBJECTIVES........... 72

16. HUMAN RESOURCE CAPACITY DEVELOPMENT................................................................................... 74

17. NSP IMPLEMENTATION AND MONITORING ....................................................................................... 75

NSP Implementation and Monitoring and Evaluation Framework (M&E) Overview ......................... 75

Monitoring Methodology .................................................................................................................... 76

Summary of NSP Monitoring and Evaluation Framework .................................................................. 77

ANNEX 1.............................................................................................................................................. 79

ANNEX 2.............................................................................................................................................. 85

ANNEX 3.............................................................................................................................................. 89

ANNEX 4............................................................................................................................................ 101

ANNEX 5............................................................................................................................................ 109

ANNEX 6............................................................................................................................................ 111

ANNEX 7.............................................................................................................................................131

ANNEX 8 ............................................................................................................................................ 133

ANNEX 9............................................................................................................................................ 145

ANNEX 10.......................................................................................................................................... 147

ABBREVIATIONS AND ACRONYMS

ACRONYM DEFINITION

ADB Asian Development Bank AG Attorney General ALRO Alab Lebje Relatives Organization AMI Air Marshall Islands ANZ Australian and New Zealand APSC Australian Public Service Commission ATT Arms Trade Treaty BOMI Bank of the Marshall Islands BPOA Barbados Plan of Actions CAP Comprehensive Adjustment Program CBGS Community Based Governance System CCA Climate Change Adaptation CEDAW Convention on the Elimination of All Forms of Discrimination against Women CFC Chlorofluorocarbons CMAC Coastal Management Advisory Council CMI College of the Marshall Islands CNMI Commonwealth of the Northern Mariana Islands CPI Consumer Price Index CRC Convention on the Rights of the Child CROP Council of Regional Organizations of the Pacific CRPD Convention on the Rights of Person with Disability CTBT Comprehensive Nuclear-Test-Ban Treaty DAC Development Assistance Committee DHS Demographic Health Survey DOT Direct Observation Therapy DRM Disaster Risk Management DUD Darrit-Uliga-Delap ECM Enhanced Consultative Mechanism EEZ Exclusive Economic Zone EIA Environmental Impact Assessment ELA English Language Arts EPA Environmental Protection Authority EPPSO Economic Policy, Planning and Statistics Office EU European Union FEMA Federal Emergency Management Agency FFE Food for Education FIC Forum Island Countries FMM Financial Management Model FSM Federated States of Micronesia FY Fiscal Year GAO Government Accountability Office GDI Gender Development Index GDP Gross Domestic Product GHG Greenhouse Gases

ACRONYM DEFINITION

GNI Gross National Income HDI Human Development Index HIPC Heavily Indebted Poor Countries HIV/AIDS Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome HPI Human Poverty Index HRD Human Resource Development HRH Human Resource for Health HRM Human Resource Management HRMIS Human Resource Management Information System ICT Information and Communications Technology ILO International Labor Organization IWRM Integrated Water Resource Management JNAP Joint National Action Plan KAJUR Kwajalein Atoll Joint Utility Resources M&E Monitoring and Evaluation MAWC Majuro Atoll Waste Company MBC Marshalls Broadcasting Company MCG Forum Ministerial Contact Group on Fiji (MCG MDGs Millennium Development Goals MDRI Multilateral Debt Relief Initiative MEC CRP Marshalls Energy Company Comprehensive Recovery Plan MEC Marshalls Energy Company MICNGOS Marshall Islands Council of Non-Governmental Organizations MICS Marshall Islands Conservation Society MIDB Marshall Islands Development Bank MIJ Marshall Islands Journal MIMA Marshall Islands Mayors’ Association MIMRA Marshall Islands Marine Resources Authority MIR Marshall Islands Resort MISAT Marshall Islands Standard Achievement Test MISC Marshall Islands Shipping Corporation MISGLB Marshall Islands Scholarship, Grant and Loan Board MISSA Marshall Islands Social Security Administration MIVA Marshall Islands Visitors Authority MMR Measles, Mumps, Rubella (triple cocktail vaccination) MOE Ministry of Education MOF Ministry of Finance MOFA Ministry of Foreign Affairs MOH Ministry of Health MOIA Ministry of Internal Affairs MOJ Ministry of Justice MPW Ministry of Public Works MSI Mauritius Strategy of Implementation MTBIF Medium Term Budget and Investment Framework MWSC Majuro Water and Sewer Company NCCPF National Climate Change Policy Framework NCDs Non Communicable Diseases

EXECUTIVE SUMMARY

A. INTRODUCTION

The National Strategic Plan (NSP) of the Republic of the Marshall Islands (RMI) has been developed using a collaborative process among government ministries and agencies, non-governmental organizations (NGOs) and the private sector.

The NSP is designed as a framework to coordinate the articulated medium term development goals and objectives of the RMI government at the national level. The NSP will be used by government leaders as the roadmap for development and progress in the medium term (2015–2017) and will be continually updated for use in meeting longer term objectives as the RMI moves towards the scheduled completion of The Compact of Free Association, as Amended funding in 2023.

The NSP will enable RMI government leaders to articulate the direction of priorities over the coming three year period, in anticipation of 2023. RMI government, through the NSP, can now clearly outline the chronological pathway for implementation of national priorities.

Electronic Platform

The NSP is designed as a dynamic document. Going forward, the NSP will be housed on an electronic platform. The NSP document is to be web-based and located on an internet website at the Economic Policy Planning and Statistics Office (EPPSO). EPPSO will serve as the gatekeeper for revisions and updating links in the NSP. Ministries and agencies will provide EPPSO with updates so that the NSP continually reflects “real time” policies, activities and accomplishments. The NSP will be accessible on line to all stakeholders for review and for information.

The web-based NSP includes hyper-links to ministry and agency strategic plans, national policy documents and monitoring matrixes that can be used to monitor progress. The hyper-links also provide donors and other interested stakeholders with information to make decisions regarding NSP planning, implementation and progress.

The NSP hyper-links also provide links to the NSP implementation matrixes. These implementation matrixes will be used by EPPSO to monitor and evaluate progress regarding NSP implementation. EPPSO will also use these matrixes to prepare an annual progress report.

NSP Timeframe

The initial NSP outlook is three years (FY15–17).The NSP has been developed in coordination with the RMI planning and budgeting cycle. As such, the NSP is designed as a three-year rolling plan.

Three-year rolling plans are updated annually during the annual budget process. The NSP will be updated annually during the same time so that it reflects current and ongoing goals and priorities. This includes adding an additional year forward to the plan during each budget cycle in keeping with the rolling format.

Although the NSP is developed with an initial three year timeframe, it must also be forward looking to the year 2023. At that time, grant funding from The Compact of Free Association, as Amended is scheduled to end.

B. ORGANIZATION OF THE NSP

The National Strategic Planning Steering Committee (SC), appointed by the Cabinet, played a significant role in the development, design and organization of the NSP. The SC presented the idea that the National Plan be built around the design concept of 1-5-3. The SC maintained that the design concept of 1-5-3 provides for a plan that is straightforward, with a user friendly format. The 1-5-3 design follows this pattern:

(1) Clear concise objective

(5) Sectors with development objectives, aligned with ten National Development Themes

(3) Year rolling plan framework resulting in a dynamic plant that can be updated in accordance with the annual budgeting process

NSP Sectors

The NSP includes five sectors with each sector broken down into several related strategic areas. The strategic areas are intended to coordinate with national policies and ongoing and/or planned strategic plans in the RMI government ministries, agencies and SOEs. The Sector Diagram that follows provides an overview of the five sectors and related strategic areas.

C. THE NATIONAL STRATEGIC PLAN VISION

The NSP Vision considers both the RMI Constitution and Vision 2018. The development of the NSP Vision focuses on continuing to build a resilient, productive and self-supportive RMI. As such, it is founded on the attributes of self-reliance, mutual respect, tolerance and integrity in line with constitutional obligations and international promises.

The RMI NSP Vision Statement:

The NSP Vision encompasses all the priorities, targets and policies that make up the ongoing efforts at development in the RMI and is consistent with the forward looking approach the government is taking with the development and implementation of this NSP.

D. THE NATIONAL STRATEGIC PLAN OBJECTIVE

The RMI Planning Guide, drafted by EPPSO in 2009, defines objectives as:

Objective – The term objective refers to a planned outcome or end result that is to be achieved

at some future time as a result of social or economic development.

The objective of the NSP is successful national development that reflects success in all aspects of Marshallese society including economic, political, social and cultural areas. The objective addresses the needs, views and concerns of all Marshallese so that as progress occurs, each individual has a shared and common stake in national development.

In this way, the people and the culture of the Marshall Islands are the source of inspiration for the priorities of the NSP. Through successful implementation, the NSP moves Marshallese society so that all citizens can achieve their potential through opportunities provided by strategic and organized sustainable development at both national and local levels. The NSP Objective:

This objective empowers each citizen with both responsibility and opportunity. Through the successful implementation of the NSP, every citizen can expect to enjoy improved quality of life in all areas including (but not limited to), health, education, energy, food security, law and order, gender equality, employment opportunities and disaster mitigation. Furthermore, this empowerment is more deeply broadened by the embracing of culture as a unifying force for sustainable development of the Marshall Islands.

E. NSP NATIONAL CONTEXT AND NATIONAL DEVELOPMENT THEMES

Developing the NSP National Context

Vision 2018 is crucial to the development of the NSP national context. Other national planning documents and reports as well as international information including The Pacific Plan Annual Progress Report, 2012 were also critical to the development of the national context. Stakeholder consultations and inputs were also essential to the development of the NSP national context. A list of documents referenced is located in Annex 3. A directory of stakeholders consulted is in Annex 10.

Vision 2018 and NSP National Context

Vision 2018 provides the RMI with a long range view of national context and perspective. This national context continues to provide relevant national priorities.

A review and analysis of the goals of Vision 2018 is located in Annex 4. The analysis resulted in the development of ten National Development Themes and corresponding National Goals and National Targets. The following table provides a visualization of the alignment of the ten National Development Themes with the corresponding National Goals and Targets.

Furthermore, an individual matrix has been designed for each respective sector providing the correlation of the Over-Arching Development Objectives in each sector with the ten National Development Themes.

NSP National Development Themes

The NSP was developed with the understanding of the importance of the enabling conditions outlined in Vision 2018 to national development. Through analysis of Vision 2018 and with stakeholder inputs, a series of ten broad National Development Themes have been developed providing the NSP with a national perspective. The ten National Development Themes are:

1. Ensuring and applying the practice of good governance principles to achieve effective governance through community planning and developing effective linkages between local and national governments.

2. Empowering people and communities to reduce the incidence of “access related” poverty through improvements in all areas including social, economic, environment, governance and infrastructure.

3. Strengthening ability to mobilize local and traditional knowledge to address emerging challenges facing people, communities and governments.

4. Building up a caring society embodied by traditional culture and values through continued focus on cultural awareness and cultural responsibility.

5. Promoting an innovative people by improving health and education access and opportunities.

6. Addressing globalization and regional cooperation challenges through focused legislations, international agreements and implementation of regional and national policies.

7. Ensuring broad-based growth and food security through a cross-cutting approach.

8. Building a sound infrastructure that provides energy, environmental, infrastructure and transportation security for all atolls.

9. Mitigating the impacts of climate change and creating awareness of the importance of environmental assets through community, national, regional and international approaches and specifically the implementation of the Majuro Declaration.

10. Ensuring outer islands populations receive access to all necessary services allowing all RMI citizens to enjoy a high quality of life.

1. Ensuring and applying the practice of good governance principles to achieve effective governance through community planning and developing effective linkages between local and national government

• Communication across and among making dialogue
• Cultural identity and traditional practice as an integral part of all decision making
• Effective decision government leaders
• Cultural identity and traditional practice as an integral part of all decision making
• Paperless offices way work is processed
• E-Government is the
• More timely decision-making and information dissemination
• Improve access and dissemination of all relevant information
• Government electronic filing system
• Speedy and impartial law enforcement
• Impartial legal system
• Accountable and transparent judiciary
• Fisheries and marine resources used efficiently coordinated with
• Regulatory compliance
• Water and resources used efficiently sustainable development
• Deep sea mining addressed

2. Empowering people and communities to reduce the incidence of “access related” poverty through improvements in all areas including social, economic, environment governance and infrastructure

• Decrease dependence on foreign economic security

• Economic and financial

and technical assistance

• Rules and regulations encouraging and participation in

• Private sector growth

expansion of private sector and job creation economic development

• Access to job opportunities on all atolls

• Rules and regulations encouraging foreign climate

• Favorable investment

investment

• Vulnerable groups mainstreamed for access services and

• Equitable access to all necessary areas of society opportunities

Small business opportunities for all atolls
Agriculture extension in outer islands (coconut replanting and other programs)

3. Strengthening ability to mobilize local

• Building patriotism and national identity and traditional knowledge to address

• Maintain traditional

Respecting religion and maintain peace and emerging challenges facing people, family and spiritual harmony in society communities and governments values

• Cultural security

• All society active in promoting and preserving Marshallese culture

4. Building up a caring society embodied by traditional culture and values through continued focus on cultural awareness and cultural responsibility

• Traditional Leaders continue to oversee responsibility

• Traditional and cultural traditional law

• Traditional Courts continue resolve land issues

• Traditional and

• Active Council of Iroij constitutional freedoms

• Active Traditional Leaders protected

5. Promoting an innovative people by improving health and education access and opportunities

• High quality education

• Student enrollments and attendance available

Student results addressed
Teacher quality addressed
Community partnerships
Technical education programs providing workforce

Competitive and skilled workforce development

Secure high quality

• Focus on NCDs health care

Preventive health care addressed
Hospital services addressed
Outer island health care addressed

F. SOCIAL DEVELOPMENT SECTOR

The Social Development Sector is comprised of five strategic areas:

Each strategic area is coordinated with rolling strategic plans at the ministry/agency level and/or a national policy such as the Ministry of Health Strategic Plan and the National Gender Policy.

NSP National Priorities and Social Development Sector Development Objectives

The table below provides the synthesis of NSP National Development Themes with the Social Development Sector Over-Arching Development Objectives identified for each strategic area (1A-1E). This table illustrates the association of each Over-Arching Development Objective with the ten National Development Themes. This correlation serves as a macro-indicator regarding NSP alignment with RMI national priorities.

G. ENVIRONMENT, CLIMATE CHANGE AND RESILIENCY SECTOR

The Environment, Climate Change and Resiliency Sector is comprised of three strategic areas:

Each strategic area is coordinated with rolling strategic plans at the ministry/agency level and/or a national policy such as the Climate Change Policy or the Environmental Protection Authority Strategic Plan.

NSP National Priorities and the Environment, Climate Change and Resiliency Sector Development Objectives

The following table provides the synthesis of NSP National Development Themes with the Environment, Climate Change and Resiliency Sector Development Objectives identified for each strategic area (2A-2C). This table illustrates the association of each Over-Arching Development Objective with the ten National Development Themes. This correlation serves as a macro-indicator regarding NSP alignment with RMI national priorities.

H. INFRASTRUCTURE DEVELOPMENT SECTOR

The Infrastructure Development Sector is comprised of five strategic areas:

Each strategic area is coordinated with rolling strategic plans at the ministry/agency level and/or a national policy such as the National Energy Policy or the Ministry of Transportation and Communication Strategic Plan.

NSP National Priorities and Infrastructure Development Sector Development Priorities

The following table provides the synthesis of NSP National Development Themes with The Infrastructure Development Sector Development Objectives identified for each strategic area (3A-3E). This table illustrates the association of each Over-Arching Development Objective aligns with the ten National Development Themes. This correlation serves as a macro-indicator regarding NSP alignment with RMI national priorities.

I. SUSTAINABLE ECONOMIC DEVELOPMENT SECTOR

The Sustainable Economic Sector is comprised of six strategic areas:

Each strategic area is coordinated with rolling strategic plans at the ministry/agency level and/or a national policy such as the RMI National Trade Policy or the Ministry of Resources and Development Strategic Plan.

NSP National Priorities and Sustainable Economic Sector Development Objectives

The following table provides the synthesis of NSP National Development Themes with The Sustainable Economic Development Sector Development Objectives identified for each strategic area (4A-4F). This table illustrates the association of each Over-Arching Development Objective aligns with the ten National Development Themes. This correlation serves as a macro-indicator regarding NSP alignment with RMI national priorities.

J. GOOD GOVERNANCE SECTOR

The Good Governance Sector is comprised of six strategic areas:

Public Financial Management and Reform (5B)
Law, Justice and Public Safety (5C)

(5) Good Governance

Legal and Regulatory (5D)
SOE Management and Reform (5E)
Macroeconomic Planning (5F)

Each strategic area is coordinated with rolling strategic plans at the ministry/agency level and/or a national policy such as the Public Safety Strategic Plan or the draft Tax Reform Legislation.

NSP National Priorities and Good Governance Sector Development Objectives

The following table provides the synthesis of NSP National Development Themes with The Good Governance Sector Development Objectives identified for each strategic area (5A-5F). This table illustrates the association of each Over-Arching Development Objective aligns with the ten National Development Themes. This correlation serves as a macro-indicator regarding NSP alignment with RMI national priorities.

K. HUMAN RESOURCE CAPACITY DEVELOPMENT

Human resource capacity development is identified throughout the RMI government as a cross cutting issue for all ministries and agencies. For this reason this issue is detailed in a standalone section.

The Public Service Commission (PSC) and the National Training Council (NTC) are currently working on several facets of Human Resource Development (HRD) for the RMI public service and for the general population of the RMI. PSC is focusing on the following:

Public Service Commission Workforce Plan
RMI Public Service Strategic Development Plan
Human Resource Information Management System (HRMIS)
Human Resource Management (HRM) System Framework Development
Human Resource Development (HRD) System Framework Development
Remuneration and Classification System Reform
Expansion of PSC roles and functions in championing Good Governance Principles
Strategically redesigning/re-structuring of PSC

The NSP is designed to coordinate with the ongoing PSC HR reform initiatives. The NSP electronic platform will include hyper-links that will link stakeholders to all ongoing work in HRD for both the PSC and NTC.

L. NSP IMPLEMENTATION AND MONITORING

NSP Implementation and Monitoring and Evaluation Framework (M&E)

EPPSO is responsible for monitoring the implementation of the NSP. The NSP is designed to be webbased and housed at EPPSO. The web-based NSP provides for a dynamic document that can be updated on a regular basis. Real time monitoring will be conducted using the NSP electronic platform.

EPPSO serves as the gatekeeper for updating progress of the NSP and updating links to all relevant information. Ministries and agencies will provide EPPSO with updates so that the NSP electronic platform reflects “real time” information. This NSP electronic platform is to be accessible to all stakeholders for review and for information. In addition to providing the necessary platform to conduct M&E in real time, the electronic platform also:

Provides, for the first time, a “one-stop shop” for all RMI and international stakeholders to find real time information regarding government planning, budgeting, legislation, and international commitments
Provides access, in real time, for Ministers and other government officials to review ongoing progress with regard to implementing the NSP and related plans, budgets and policies.
Underscores that it is imperative that all government plans and policies are updated so that the most up to date information is available.
Emphasizes the critical role of EPPSO pertaining to planning and with regard to monitoring NSP implementation and progress.

The NSP electronic platform includes hyper-links to ministry/agency strategic plans, national policy documents, RMI international and regional agreements and other relevant information such as the 2011 RMI Census. This platform also includes links to an additional range of information including links to other RMI websites. With this menu the NSP electronic platform provides government, donors and other interested parties with information, in real time, not only of NSP progress, but also of ongoing progress in other areas of government.

The electronic platform also provides links to the NSP implementation matrixes. These implementation matrixes will be used by EPPSO, and government leaders, to monitor and evaluate progress regarding NSP implementation. EPPSO will also use these matrixes to prepare an annual progress report. An example of the NSP implementation matrixes is located in Annex 1.

The implementation matrixes are coordinated with ministry/agency strategic plans and budgets. This provides for a two-tiered M&E framework. The NSP implementation matrixes provide the initial level of monitoring (National/Tier 1). The matrixes include the following information regarding the Over-Arching Development Objectives:

NSP over-arching development objective
NSP ministerial objectives
Issues to address (development challenges)
Medium term strategies
Medium term outcomes
Medium term indicators and targets (developed by implementing agencies and EPPSO)
Budget information
Links to relevant planning and policy documents

Additionally, hyper-links to individual strategic plans in each RMI ministry/agency provide the secondary level of M&E (Ministerial/Tier 2), providing a further drill down of details regarding implementation and progress of the Ministerial Development Objectives including:

Implementing activities (specific activities linked to medium term strategies)
Short term outcomes/milestones (specifically lined to medium term outcomes)
Short term indicators(where possible to monitor changes in shorter terms)
Responsible divisions (and positions)
Coordination responsibilities (external and internal of ministry/agency, other stakeholders)
Specific funding amounts and sources of funding
Timeframes

This two tiered M&E framework provides the RMI government and all stakeholders the opportunity to see both a broad view (medium term) of progress, and also a more targeted view (short term/annual). EPPSO will prepare an annual NSP progress report. This report will provide a status update for each sector and also will include an update regarding the NSP status vis-à-vis selected core indicators located in Annex 8. Reporting on specific data in the areas of health, education and environment is currently provided by relevant ministries on a quarterly basis, this is expected to continue.

SNAPSHOT OF THE REPUBLIC OF THE MARSHALL ISLANDS

2. INTRODUCTION

NSP Overview

The NSP was Developed in Coordination with Current and Ongoing Ministry and Agency Plans

In addition to reviewing relevant planning and policy documents information was also gathered through a series of stakeholder consultations (large forums, smaller strategic group forums and individual meetings with stakeholders). The NSP brings together this input with ongoing planning, strategies and policies into a coordinated national framework for development. Using the identified priorities in RMI ministry and agency plans and national policies, the NSP provides clear identification of RMI priorities.

The Initial NSP Outlook is Three Years (FY15–17)

The NSP is developed in coordination with ongoing planning in the RMI. Planning in the RMI is primarily completed through a three-year rolling plan framework. The NSP is designed as a three-year rolling plan to coordinate with the rolling plans in RMI ministries and agencies.

Three-year rolling plans are designed to be updated on an annual basis, concurrent with the annual budgeting cycle. As a rolling plan, the NSP will be updated prior to the beginning of each fiscal year (as part of the budget process). By following this annual cycle, the NSP will reflect current and ongoing goals and priorities.

The NSP is Forward Looking

Even though the NSP is developed with an initial three year outlook, it is also forward looking to the year 2023. At that time funding from The Compact of Free Association, as Amended is scheduled to end.

At the end of every three year period (2015–2017), (2018–2020) and (2021–2023), a national “stocktake” will be completed in order to determine progress and to make necessary adjustments and revisions for the medium term (three years) based on progress and accomplishments.

The NSP National Context is Based on the Development Objectives as Detailed in Vision 2018 and Relevant Information from Selected National/International Documents, Plans and Reports

The Vision 2018 Master-plan (Vision 2018), completed in 2001, defined where the RMI planned to be by the year 2018 in terms of sustainable development. Vision 2018 presented long term goals, objectives and strategies, which were developed through an extensive consultative process. In addition to Vision 2018, other documents were used to develop the NSP national context including, but not limited to, the RMI Peer Review, The Barbados Plan of Action, The RMI Millennium Development Goals Progress Report 2009 and The RMI National Report for Small Island Development States (SIDS).

The NSP is a Dynamic Document

The NSP is designed as a dynamic document rather than a static document. Going forward, the NSP will be housed on an electronic platform. The NSP document is to be web-based and located on an internet website at the Economic Policy Planning and Statistics Office (EPPSO). EPPSO will serve as the gatekeeper for revisions and updating links in the NSP. Ministries and agencies will provide EPPSO with updates so that the NSP continually reflects “real time” policies, activities and accomplishments. The NSP will be accessible on line to all stakeholders for review and for information.

The NSP is Monitored through Implementation Matrixes

The Electronic NSP Platform Provides National Linkages to the Status of all Ongoing Ministry and Agency Plans

The NSP electronic platform addresses several national issues including:

• Providing, for the first time, a “one-stop shop” for all RMI and international stakeholders to find real time information regarding government planning, budgeting, legislation, and international commitments.

• Providing access, in real time, for Ministers and other government officials to review ongoing progress with regard to implementing the NSP and related plans, budgets and policies.

• Underscoring that it is imperative that all government plans and policies are updated so that the most up to date information is available.

• Emphasizing the critical role of EPPSO pertaining to planning and with regard to monitoring NSP implementation and progress.

3. NSP COMPONENTS AND NSP TIMELINE

NSP Components

The components of the NSP provide information regarding the coordination of priorities, objectives and milestones at the national level. The body of the NSP includes:

RMI Background Information: Information to provide RMI perspective

Overview of RMI government, economy, geography and people
Overview of planning and national planning in the RMI (since 1991)

Organization of the NSP: Organization and introduction to the NSP sectors and strategic areas

Links to Ongoing Planning and Budgeting: The NSP is linked to the Medium Term Budget and Investment Framework (MTBIF), ongoing government strategic plans and annual budgets

NSP National Context: Overview of the design of the national development themes that provide the over-arching national perspective and priorities of the NSP

NSP Vision Statement: Broad vision based on the RMI Constitution and Vision 2018

NSP Objective: The objective for successful National Development

NSP Sectors and Strategic Areas: Information in each sector includes: 1) listing of relevant documents, 2) sector development challenges, 3) sector development objectives, and 4) sector indicators. There is also a brief overview of each strategic area.

Additionally, in the electronic NSP document, hyper-links will provide access to the implementation matrixes. The implementation matrixes include the following:

NSP over-arching development objective
NSP objectives
Issues to address (development challenges)
Medium term strategies
Medium term indicators and targets (developed by implementing agencies and EPPSO)
Budget information
Links to relevant planning and policy documents

Human Resource Development (HRD): HRD capacity issues crosscut every NSP sector. Currently, the Public Service Commission (PSC) is developing information and plans regarding human resource management to be used at the national level in coordination with the NSP.

Monitoring and Evaluation (M&E): The M&E framework is performance based, incorporating Millennium Development Goals (MDGs), locally focused indicators, and a set of international core indicators. The M&E framework is designed to meet the monitoring needs regarding evaluation of NSP implementation. Baseline data from various national and international sources will be used for M&E purposes. Indicators are designed to be results based. EPPSO and the government agencies will be responsible for identifying relevant indicators for M&E purposes. All data used for M&E is projected to be collected consistently and on a regular basis.

NSP Timeline

The initial NSP outlook is three years (FY15–17). The NSP has been developed in coordination with the RMI planning and budgeting cycle. As such, the NSP is designed as a three-year rolling plan.

Although the NSP is developed with an initial three-year timeframe, it must also be forward looking to the year 2023. At that time, grant funding from The Compact of Free Association, as Amended is scheduled to end.

In order to continue to “look forward”, a national stock-take will be completed at the end of every three-year period (2015–2017), (2018–2020) and (2021–2023). This stock take will be conducted to review progress and accomplishments during the previous three years. The stock-take will also consider the proposed development objectives for the next three years. At that time, any major revisions that are necessary based on changes to national priorities, funding realities, progress and accomplishments will be added to the NSP.

4. RMI BACKGROUND OVERVIEW

Government

Citizens of RMI live under a democratic political setup combined with a hierarchical traditional culture.

In July 1977, the Marshall Islands voted in favor of separation from the Trust Territories of the Pacific Islands and in May 1979, it declared self-government under its own constitution. In March 1982, the Marshall Islands declared itself a Republic and in September 1991, the Republic of the Marshall Islands (RMI) became a member of the United Nations.

The government is modeled after the British Westminster parliamentary system with a bi-cameral legislature composed of two houses; the Council of Iroij (Chiefs) and the Nitijela (Parliament) with the Council of Iroij sitting as the upper house and the Nitijela sitting as the lower house. The Council of Iroij, comprised of 12 traditional leaders, does not have legislative or executive power, but can make comments on bills in reference to customary law and other traditional practices. Legislative power rests in the Nitijela, consisting of the 33 senators elected by universal suffrage of citizens above the age of 18.

The President is elected from within the Nitijela. Executive power is exercised by the President and the Cabinet. Members of the Cabinet are selected by the President and must be members of the Nitijela. At the municipal level, each atoll has a local government comprised of an elected Mayor and Council.

Economy

The remoteness of the RMI from major markets historically has had a negative impact on the economy. Furthermore, the economy is small in relative terms, with a narrow export base and limited production capacities. As such, it is vulnerable to external shocks. The economy remains dependent on donor funding, with funding from The Compact of Free Association, as Amended providing approximately 50% _{of the FY14 budget.}(FY14 Ministry of Finance)

Employment data shows that the economy has generated a number of additional jobs amounting to 0.6% per annum during the period of The Compact of Free Association, as Amended. Both the private and public sectors have grown, despite declines at the Kwajalein military base. However, the generation of additional jobs has been insufficient to provide gainful employment opportunities for those seeking work, and outward migration remains substantial, averaging 1.7% annually since 2004. ^{(USDA Graduate School 2012)}

The RMI public sector continues to dominate the economy in terms of contribution to GDP and overall employment. The primary commercial industries include:

Wholesale/retail trade
General business services
Commercial fisheries
Construction
Tourism
Light manufacturing

Table 1 provides employment data from the 2011 RMI Census:

Annual export values continue to increase primarily due to continued exports of tuna by locally based fishing operations. However, the RMI continues to rely heavily on imports and continues to run a negative balance of payments. The primary export products include:

Frozen fish (tuna)
Topical fish
Ornamental clams and corals
Coconut oil and copra cake
Crafts

Geography

The RMI is located in the northern Pacific Ocean. The RMI is comprised of 29 coral atolls and 5 coral islands with a total land mass of approximately 180 sq. km (70 square miles). The land rises over 6,000 meters from the ocean floor to no more than two meters above the surface. Due to this geography the RMI is always vulnerable to tidal surges and large waves.

The archipelagic islands are spread over an ocean area of 750,000 square miles in two roughly parallel chains: the “Ratak” (Sunrise) and the “Ralik” (Sunset). Table 2 provides basic RMI land characteristics.

Source: World Bank 2012

The RMI is isolated with a distance of approximately 2,300 miles from Honolulu, 1,900 miles from Guam and 2,800 miles from Tokyo. Geographically, the nearest neighbors are the nations of Kiribati and the

Federated States of Micronesia. As the land is not very nutrient rich, the agricultural base is rather limited. However, the marine resources base is large.

The RMI Exclusive Economic Zone (EEZ) encompasses approximately 2.1 million sq. Km (1.3 million sq. miles). Approximately 50% of the EEZ borders international waters with the remaining 50% bordering the FSM, Nauru, Kiribati and Enen Kio (Wake Island). ^{(Secretariat of the Pacific Community, 2004)}

People

The RMI is a sovereign nation in “Compact of Free Association” with the United States. The first Compact of Free Association was signed in 1983 and continued in force through 2003. The Compact of Free Association, as Amended entered into force on May 1, 2004, and is in effect through 2023.

The 2011 RMI Census recorded a total population of 53,158. The two urban atolls: Majuro and Kwajalein (Ebeye Island) are home to approximately 74% of the population in 2011. The remainder is scattered over the other atolls and islands. Table 3 below provides details.

* According to the 2011 RMI Census, 352 Rongelapese were relocated to Mejatto island on Kwajalein Atoll.

The population increases rapidly due a fertility rate at around 4.1%. The RMI continues to rank high in the Pacific with regard to population density with an average household size of 6.8 persons per

_household.(2011 RMI Census)

Principal population indicators are provided in Table 4.

The fact that 40% of the population is 15 years of age or younger leads to critical negative impacts on health, education, youth and employment policies. Furthermore, migration of Marshallese to the United States and other countries, taking with them their skills and talents, impacts the direction and implementation of employment and other policies and also influences cultural and traditional practices and values.

5. NATIONAL PLANNING HISTORY IN THE RMI

History

The RMI has a history of development planning. RMI development planning first started in 1986 with a focus on the beginning of the first Compact of Free Association with the U.S. Commencing with this initial planning effort, the RMI has continued to be committed to sustainable development through the design and implementation of national and sector planning strategies.

The first RMI Five Year Plan was developed for the period 1986–1991.

The Second Five Year Plan followed immediately after that on through 1996. This second five year plan was considered the second phase of the fifteen year development plan under the first Compact of Free Association.

The Third National Development Plan was for the period 1996–2001 and included the Public Sector Investment Program which was a follow up to the 1995–97 Policy Reform Program

(RMI Concept Paper, UNDP 2010).

Further background information on RMI planning history is located in Annex 2.

6. ORGANIZATION OF THE NSP

NSP Steering Committee Oversight

(1) Clear concise objective

(5) Sectors with development objectives, aligned with ten National Development Themes

(3) Year rolling plan framework resulting in a dynamic plant that can be updated in accordance with the annual budgeting process

NSP Sectors

The NSP includes five sectors with each sector broken down into several related strategic areas. The strategic areas are intended to coordinate with national policies and ongoing and/or planned strategic plans in the RMI government ministries, agencies and SOEs. Diagram 1 provides an overview of the five sectors and related strategic areas.

DIAGRAM 1: NSP SECTORS AND STRATEGIC AREAS

7. COORDINATION OF THE NSP WITH ONGOING PLANNING AND BUDGETING

Performance Based Budgeting

The RMI government has been implementing Performance Based Budgeting (PBB) in selected ministries since 2003. Ministries receiving grants from The Compact as Amended were the first ministries to implement PBB. PBB is a performance management tool that improves accountability by emphasizing performance. PBB promotes government transparency by providing clear and direct linkages among funding (budgets), results and impacts. The Portfolio Budget Statements (PBS) provides information necessary for government managers to map expenditure to performance. This allows for ongoing monitoring of performance with regard to funding.

Strategic Planning

In coordination with the implementation of PBB, selected ministries create, implement and annually update three-year rolling strategic plans. Rolling plans are designed to:

Allow for annual updates and revisions
Provide effective platforms to address changing priorities and issues
Include timelines
Address medium term funding priorities

The three-year rolling strategic plans are a crucial starting point for the development of the NSP and will be the key to successful implementation. Furthermore, the use of the MTBIF as a guide to future funding availability is critical to the success of the NSP.

The three-year rolling strategic plans, in coordination with the annual PBS, present a solid outlook of government funding priorities. These plans are linked to, and coordinated with, this NSP and provide a critical foundation of priorities, strategies, targets and indicators. The NSP is designed to reflect the goals, objectives and priorities of the ministries with the aim of improving information flow among all stakeholders. This will help to ensure coordination and effective use of planning and budgeting tools, and the coordination and implementation of priorities at the all levels of government.

NSP Informed by MTBIF, Ministry Plans and Annual Budgets

Diagram 2 provides an illustration of the coordinated flow of information among the NSP, the MTBIF, the ongoing three-year rolling strategic plans and the annual PBS.

DIAGRAM 2: PLANNING AND BUDGETING FLOW CHART

8. NSP NATIONAL CONTEXT AND NATIONAL DEVELOPMENT THEMES

Developing the NSP National Context

Vision 2018 and Enabling Conditions for Development

As Vision 2018 stated there are ten enabling conditions necessary to reach the RMI development objectives. The enabling conditions, as in 2001, are still relevant to development in the RMI. The ten enabling conditions are:

Sound system of governance with political stability and a competent, honest public service.
High investment in education and research.
Fostering a culture of high savings, investment and productivity.
The ability to take advantage of emerging global trends.
Effective and responsible economic and financial institutions.
Facilitation of equitable development in the outer islands.
Strengthening the spirituality of the Marshallese people.
More harmonized development in the context of healthy lifestyles, the prevailing culture and sustainable environment.  Fostering fundamental change in the attitudes and behavior of all citizens, governments, businesses, public corporations, and Non-Government Organizations (NGOs).

 Effective partnership and coordination among national government, local governments, NGOs, the private sector and civil society and the citizens^.⁽^{Vision 2018}⁾

RMI National Development Challenges

Progress with regard to Vision 2018 enabling conditions continues, however this progress persists in being impacted by ongoing development challenges facing the RMI. These development challenges were outlined in the December 2010 Concept Paper on the RMI National Development Plan and Strategies 2011–2015:

• Limited national resource base

• Remoteness of atolls/islands

• Increasing urbanization and urban unemployment

• Limited access to international Markets

• Limited land development

• Limited social development progress

• Limited human, financial and technical resources

• Limited social security base

• High cost of living

• Narrow economic base

• High cost of doing business

• External debt challenges (affecting traditional macro-economic structure)

• Climate change threats and challenges

Vision 2018 and NSP National Context

Vision 2018 provides the RMI with a long range view of national context and perspective. This national context continues to provide relevant national priorities.

A review and analysis of the goals of Vision 2018 is located in Annex 4. The analysis resulted in the development of ten National Development Themes and corresponding National Goals and National Targets. Table 5 provides a visualization of the alignment of the ten National Development Themes with the corresponding National Goals and Targets.