The payment program will be funded from a dedicated fund managing assets of more than $1.3 billion.
The Marshall Islands, a small Pacific nation in Micronesia, have become the first country in the world to officially implement a universal basic income at a national level. This was reported by the British publication The Guardian.
Every resident of the country, which has a population of about 63,850 people, will now receive a quarterly payment equivalent to approximately two hundred dollars. The method of receiving the benefit can be chosen: the money can be deposited into a bank account, issued in the form of checks, or provided as cryptocurrency through a government-supported digital wallet.
As explained by the Minister of Finance of the Marshall Islands, David Paul, the authorities resorted to basic income as a measure of "social protection" for the population. This is due to the fact that the government has recently been facing rising prices and an outflow of citizens.
The payment program will be funded from a dedicated fund managing assets of more than $1.3 billion. The fund was established as part of an agreement with the United States, which committed to compensating the Marshall Islands for decades of nuclear testing.
The characteristics defining the economic situation in the Marshall Islands are no different from those of other countries in Oceania: a vast exclusive economic zone, limited natural resources, remoteness from major global markets, and a shortage of highly skilled professionals. The economy of the Marshall Islands also faces serious challenges such as a budget deficit, a balance of payments deficit, and a low level of domestic savings. The country heavily relies on funds provided by the Asian Development Bank, the U.S., and other countries around the world. Therefore, the size of the Marshall Islands' government budget is largely determined by the amount of foreign financial aid.
