In World War I, the Empire of Japan occupied the Marshall Islands, which, in 1920, the League of Nations combined with other former German territories to form the South Seas Mandate. Later, Spain sold some of the islands to the German Empire in 1885, and they became part of German New Guinea that year, run by the trading companies doing business in the islands, particularly the Jaluit Company. They had been part of the Spanish East Indies formally since 1528.

Spain claimed the islands in 1592, and the European powers recognized its sovereignty over the islands in 1874. The islands were historically known by the inhabitants as ' jolet jen Anij' (Gifts from God). The islands derive their name from John Marshall, who visited in 1788. Other expeditions by Spanish and English ships followed. Spanish explorer Alonso de Salazar reported sighting an atoll in August 1526. Islands in the archipelago were first explored by Europeans in the 1520s, starting with Ferdinand Magellan, a Portuguese explorer in the service of Spain, Juan Sebastián Elcano and Miguel de Saavedra. Micronesian settlers reached the Marshall Islands using canoes circa 2nd millennium BC, with interisland navigation made possible using traditional stick charts. The UN also indicates a population density of 760 inhabitants per square mile (295/km 2), and its projected 2020 population is 59,190. In 2016, 73.3% of the population were defined as being 'urban'. About 52.3% of Marshall Islanders (27,797 at the 2011 Census) live on Majuro. The islands share maritime boundaries with Wake Island to the north, Kiribati to the southeast, Nauru to the south, and the Federated States of Micronesia to the west. It has the largest portion of its territory composed of water of any sovereign state, at 97.87%. The capital and largest city of the country is Majuro.

The nation's population of 42,050 people (at the 2021 World Bank Census ) is spread out over five islands and 29 coral atolls, comprising 1,156 individual islands and islets. Geographically, the country is part of the larger island group of Micronesia. The Marshall Islands ( Marshallese: Ṃajeḷ), officially the Republic of the Marshall Islands ( Marshallese: Aolepān Aorōkin Ṃajeḷ), is an island country near Guam in the Pacific Ocean, slightly west of the International Date Line.

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