A German trading company settled on the islands in 1885. They became part of the protectorate of German New Guinea some years later.

In 1914, Japan joined the Entente powers during World War I, and found it possible to capture German colonies in China and Micronesia. On September 29, 1914, Japanese troops occupied the atoll of Enewetak, and on September 30, 1914 the atoll of Jaluit the administrative center of the Marshall Islands. ^{- After the war, on June 28, 1919, Germany renounced all of its Pacific possessions, including the Marshall Islands. On December 17, 1920, the Council of the League of Nations approved the mandate for Japan to take over all former German colonies in the Pacific Ocean, located north of the equator. - The Administrative Center of the Marshall Islands atoll remained Jaluit.}

Unlike the German Empire, which had primarily economic interests in Micronesia, the accession of the territory, with a small area and few resources, to Japan would to some extent alleviate Japan's problem of increasing population but an ever increasing scarcity of land to house this exploding population. ^{- During the years of colonial rule in the Marshall Islands Japan moved more than 1,000 Japanese to the Marshall Islands. Unlike in the Mariana Islands and Palau, their share in the archipelago never exceeded the number of indigenous people.}

Under Japanese rule a greatly enlarged administration was introduced and local leaders were appointed by the Japanese, which weakened the authority of local traditional leaders. Japan also tried to change the social organization in the islands from Matrilineality to the Japanese Patriarchal system, but with no success. ^{- In addition during the 30s one third of all land up to the high water level was declared the property of the Japanese government. On the archipelago, before it banned foreign traders, the activities of Catholic and Protestant missionaries were allowed. -}

Indigenous people were educated in Japanese schools, studying Japanese language and Japanese culture. This policy was the government strategy not only in the Marshall Islands, but on all the other mandated territories in Micronesia. In March 27, 1933, Japan left the League of Nations, but despite that, it continued to manage the islands in the region and in the late 1930s, even started the construction of air bases on some atolls, which also further served local residents. The Marshall Islands were an important geographical position, being the easternmost point in Japan's defensive ring at the beginning of World War II. ^{- 5 -}

In 1986, the Compact of Free Association with the United States entered into force, granting the Republic of the Marshall Islands (RMI) its sovereignty. The Compact provided for aid and U.S. defense of the islands in exchange for continued U.S. military use of the missile testing range at Kwajalein Atoll. The independence procedure was formally completed under international law in 1990, when the UN officially ended the Trusteeship status.

Foreign affairs and defense

The Compact of Free Association with the United States give the U.S. sole responsibility for the international defense of the Marshall Islands. It allows islanders to live and work in the United States, and establishes economic and technical aid programs.

Under the terms of the Amended Compact of Free Association, the U.S. will provide US$57.7 million per year to the Marshall Islands (RMI) through 2013, and then US$62.7 million through 2023, at which time a trust fund made up of U.S. and RMI contributions will begin perpetual annual payouts.^{14 -}

The United States Army maintains its Ronald Reagan Ballistic Missile Defense Test Site on Kwajalein Atoll. Marshallese land owners receive rent for the base, and a large number^{quantify ]} of Marshallese work there. The main airport was built by the Japanese during World War II, and the only tarmac road of the capital was built partly by the Taiwanese and partly by the Americans.

In 2005, Aloha Airlines canceled its flight services to the Marshall Islands as part of its withdrawal from several markets in the region. Other international airlines still serve Majuro.

In 1999, a private company built a tuna loining plant with more than 400 employees, mostly women. But the plant closed in 2005, after a failed attempt to convert it to produce tuna steaks, a process that requires half as many employees. Operating costs exceeded revenue, and the plant's owners tried to partner with the government to prevent closure. But government officials personally interested in an economic stake in the plant refused to help. After the plant closed, it was taken over by the government, which had been the guarantor of a $2 million loan to the business.

The official language of the Marshall Islands is English.^{16 - The traditional language is Marshallese.}

Phones in Marshall Islands