Trust Funds and Fiscal Risks in the North Pacific: Analysis of Trust Fund Rules and Sustainability in the Marshall Islands and the Federated States of Micronesia

Asian Development Bank (adb), Asian Development Bank (adb) (), Asian Development Bank (adb) and Asian Development Bank (adb)
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Asian Development Bank (adb): Pacific Department, ADB
Asian Development Bank (adb): Pacific Department, ADB

No RPT146714-2, ADB Reports from Asian Development Bank (ADB)

Abstract: This publication analyzes the trust funds established by the United States with the Republic of Marshall Islands and the Federated States of Micronesia, intended to provide budget support upon expiration of these countries’ Compacts of Free Association with the United States. Analysis shows future revenues from the funds will likely be volatile and unsustainable, but examines simple rule changes designed to reduce fund volatility and improve the sustainability of fund balances.

Keywords: Federated States of Micronesia; FSM; Republic of the Marshall Islands; RMI; Pacific island; Compact of Free Association; Amended Compact; trust fund; sovereign wealth fund; fiscal management; long term; fiscal rules; fiscal cliff; aid dependence; grant; government revenue; sustainability; volatility; withdrawal; distribution; drawdown; investment; uncertainty; investment return model; stochastic asset model; monte carlo simulation (search for similar items in EconPapers)
Pages: 88 pages
Date: 2015-10
New Economics Papers: this item is included in nep-sea
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Citations: View citations in EconPapers (2)

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