UNIVERSAL BASIC INCOME IN RMI
First of its kind - update
The Marshall Islands are pushing the envelope with the ongoing rollout of their historic Universal Basic Income scheme, known as Enra—the first permanent, nationwide program of its kind. We continue to closely follow these developments in the Marshall Islands and elsewhere across Micronesia as our islands grapple with these sweeping economic shifts.
The Majuro Model: High-Tech Meets Hard Cash
Here’s the deal: Every resident Marshallese citizen is now eligible for roughly $212 per quarter, totaling about $850 annually, delivered straight into their pockets regardless of employment or status. Speaking to ABC Australia, RMI Finance Minister David Paul emphasized that this baseline economy is vital to offset skyrocketing living costs driven by global conflicts—like the war involving Iran—while working to curb outmigration.
Best of all? It costs local taxpayers zero, as a COFA trust fund fully underwrites the program.
But moving money across an ocean territory the size of Mexico is a structural nightmare. Traditional banking infrastructure is slow, and waiting weeks for a physical check to arrive in the mail just doesn’t cut it when families need to buy groceries today. To bridge the gap, the RMI is pairing traditional banking and mail services with a cutting-edge digital currency framework.
Through a government-backed digital wallet named Lomalo (meaning “shared waters”) and a U.S. dollar-pegged sovereign bond (USDM1), the RMI is bypassing correspondent banking delays to push funds instantly via satellite networks straight to remote outer-island communities. Despite early skepticism, the digital rollout has seen immense popularity, with interest in the latest phases shattering the government's original expectations.
Why This Matters for the FSM
We are currently in a state of emergency, even if we don’t always call it that. Our last census was a gut punch: our population has plummeted to just 75,000 people. We used to be over 100,000 strong.
We are losing our heartbeat. Our brothers, sisters, and children are migrating to the U.S. not necessarily because they want to leave our shores, but because they have to to survive.
Is it time for our move?
The Marshall Islands are treating their citizens like an investment. They aren’t waiting for the population to hit zero before they act. By securing this financial baseline and leveraging innovative technology to reach every citizen, they are telling their people: “We want you here.”
With only 75,000 of us left, can the FSM afford to wait any longer? Or is it time we look at our own Compact funds and ask why we aren’t investing directly in the people who keep our culture alive?