Micronesia

 

Bureau of East Asian and Pacific Affairs                                      
June 2007                                                                     
                                                                       
  Background Note: Micronesia                                                 
                                   
  Women play volleyball in Kosrae,                                            
  Micronesia April 9, 2004. [© AP                                             
  Images]                                                                     
                                                                       
  Flag of Micronesia is light blue with four white five-pointed stars centered;
  the stars are arranged in a diamond pattern.                                
                                                                       
  PROFILE                                                                     
                                                                       
  OFFICIAL NAME:                                                              
  Federated States of Micronesia                                              
                                                                       
  Geography                                                                   
  Area: 702 sq. km (about 270 sq. mi.) in four major island groups (Pohnpei,  
  Chuuk, Yap and Kosrae).                                                     
  Cities: Capital--Palikir. Other cities--Kolonia, Weno, Colonia, Lelu.       
  Terrain: 607 mountainous islands and low-lying coral atolls.                
  Climate: Tropical.                                                          
                                                                       
  People                                                                      
  Nationality: Noun and adjective--Micronesian.                               
  Population: 108,000.                                                        
  Growth rate: 0.26%.                                                         
  Ethnic groups: Nine ethnic Micronesian and Polynesian groups.               
  Religion: Roman Catholic 53%, Protestant 42.4%, others 4.6%.                
  Language: English, and nine ethnic languages.                               
  Education: Literacy--91%.                                                   
  Health: Life expectancy--male 65.6 yrs.; female 66.9 yrs. Infant mortality  
  rate--40.4/1,000.                                                           
  Work force: More than one-half of workers are government employees.         
                                                                       
  Government                                                                  
  Type: Constitutional confederation in free association with the U.S. The    
  first Compact of Free Association entered into force in 1986, and an Amended
  Compact entered into force June 30, 2004.                                   
  Independence (from U.S.-administered UN trusteeship): November 3, 1986.     
  Constitution: May 10, 1979.                                                 
  Branches: Executive--President (chief of state and head of government),     
  cabinet. Legislative--unicameral Congress with 14 seats. Judicial--Supreme  
  Court.                                                                      
  Major political parties: No formal parties.                                 
                                                                       
  Economy (FY 2004 figures)                                                   
  GDP: $218 million.                                                          
  GDP per capita (nominal): $2,018.                                           
  National income (GDP + foreign assistance): $360 million.                   
  National income per capita: $3,100.                                         
  GDP composition by sector: services 77%, agriculture 19%, industry 4%.      
  Industry: Types--fishing, agriculture, tourism.                             
  Trade: Exports ($14 million)--fish, kava, betel nut. Export market--Japan   
  (21%), US (25%), others (53%), U.S. Imports ($133 million)--food,           
  manufactured goods, fuel. Import sources--U.S. (50%), Japan (11%), others   
  (39%).                                                                      
  External debt: $ 60.81 million.                                             
  Currency: U.S. dollar.                                                      
                                                                       
  GEOGRAPHY AND PEOPLE                                                        
  The Federated States of Micronesia (FSM) consists of 607 islands extending  
  1,800 miles across the archipelago of the Caroline Islands east of the      
  Philippines. The four states are the island groups of Pohnpei, Chuuk, Yap,  
  and Kosrae. The federal capital is Palikir, on Pohnpei.                     
                                                                       
  The indigenous population consists of various ethnolinguistic groups. English
  has become the common language. The birth rate remains high at more than 3%,
  but the population of the four states remains almost constant due to        
  emigration.                                                                 
                                                                       
  HISTORY                                                                     
  The ancestors of the Micronesians settled the Caroline Islands over 4,000   
  years ago. A decentralized chieftain-based system eventually evolved into a 
  more centralized economic and religious empire centered on Yap. European    
  explorers--first the Portuguese in search of the Spice Islands and then the 
  Spanish--reached the Carolines in the 16th century, with the Spanish        
  establishing sovereignty. The current FSM passed to German control in 1899, 
  and then to the Japanese in 1914 Following World War II, these islands became
  part of the United Nations Trust Territory of the Pacific Islands,          
  administered by the United States.                                          
                                                                       
  On May 10, 1979, four of the Trust Territory districts ratified a new       
  constitution to become the Federated States of Micronesia. The neighboring  
  trust districts of Palau, the Marshall Islands, and the Northern Mariana    
  Islands chose not to participate. The FSM signed a Compact of Free          
  Association with the U.S. in 1986. An Amended Compact entered into force in 
  June 2004.                                                                  
                                                                       
  GOVERNMENT AND POLITICAL CONDITIONS                                         
  The FSM is governed under a 1979 constitution, which guarantees fundamental 
  human rights and establishes a separation of governmental powers. The       
  unicameral Congress has 14 members elected by popular vote. Four            
  senators--one from each state--serve 4-year terms; the remaining 10 senators
  represent single-member districts based on population and serve 2-year terms.
  The President and Vice President are elected by Congress from among the four
  senators who serve in 4-year seats. Once elected, the President and Vice    
  President serve for four years. Their congressional seats are then filled by
  special elections. An appointed cabinet supports the president and vice     
  president. There are no formal political parties.                           
                                                                       
  The FSM is a confederation with a weak central government. Each of FSM's four
  states has its own constitution and its own elected legislature and governor.
  The state governments maintain considerable power, particularly regarding the
  implementation of budgetary policies.                                       
                                                                       
  The FSM's highest court is the Supreme Court, which is divided into trial and
  appellate divisions. The President appoints judges with the advice and      
  consent of the Congress.                                                    
                                                                       
  Principal Government Officials                                              
  Head of State and Government--President Emmanuel Mori                       
  Secretary of Foreign Affairs--Lorin Robert (acting)                         
  Speaker of the Congress--Isaac V. Figir                                     
  Ambassador to the U.S.--James A. Naich, Charge d' Affaires                  
  Permanent Representative to the UN--Masao Nakayama                          
                                                                       
  The FSM maintains an Embassy at 1725 N Street NW, Washington, DC 20036 (tel:
  202-223-4383). It also maintains consulates in Honolulu and Guam.           
                                                                       
  ECONOMY                                                                     
  Under the terms of the Compact of Free Association, the U.S. provided the FSM
  with about $2 billion in grants and services between 1986 and 2001. The     
  Compact's financial terms were renegotiated for the 20-year period 2004     
  through 2023. The U.S. will provide almost $100 million in direct assistance
  every year until 2023, including contributions to a jointly managed Trust   
  Fund. U.S. grants to the FSM in addition to these funds total approximately 
  $35 million annually. Assistance under the Amended Compact will be          
  distributed via grants to the following six sectors: education, health,     
  infrastructure, public sector capacity building, private sector development,
  and the environment.                                                        
                                                                       
  The FSM public sector plays a central role in the economy as the            
  administrator of Compact funds. The national and state-level governments    
  employ over half of the country's workers, government services accounting for
  more than 40% of GDP. Real wages nationwide have been flat for the past     
  decade, as has the number of jobs in the economy (about 15,500.)  Private   
  sector jobs pay about half as much as public sector jobs.                   
                                                                       
  The fishing industry is highly important. Foreign commercial fishing fleets 
  pay over $14 million annually for the right to operate in FSM territorial   
  waters. These licensing fees account for 28% of the national government     
  revenues. Exports of marine products, mainly to Japan, account for nearly 85%
  of export revenues.                                                         
                                                                       
  Visitor attractions include SCUBA diving, World War II battle sites, and the
  ancient ruined city of Nan Madol on Pohnpei. Some 18,000 visit the islands  
  each year. However, the tourist industry has been hampered by a lack of     
  infrastructure and limited commercial air connections. The Asian Development
  Bank has identified tourism as one of FSM's highest potential growth        
  industries.                                                                 
                                                                       
  Agriculture is mainly subsistence farming. The principal crops are          
  breadfruit, coconuts, bananas, betel nuts, cassava, taro, and kava. Less than
  10% of the formal labor force and less than 7% of export revenue come from  
  the agricultural sector.                                                    
                                                                       
  The large inflow of official assistance to FSM allows it to run a substantial
  trade deficit--imports outstrip exports by a seven-to-one ratio--and to have
  a much lighter tax burden than other states in the region (11% of GDP in FSM
  compared to 18%-25% elsewhere). The government borrowed against future      
  Compact disbursements in the early 1990s, yielding a significant external   
  debt, close to $60 million. In 2005, the FSM Government and Congress took   
  positive steps toward nationwide tax system to improve collections and more 
  fairly distribute the tax burden.                                           
                                                                       
  FOREIGN RELATIONS                                                           
  The Government of the Federated States of Micronesia conducts its own foreign
  relations. Since independence, the FSM has established diplomatic relations 
  with a number of nations, including most of its Pacific neighbors, Japan,   
  Australia, and the People's Republic of China. Regional cooperation through 
  various multilateral organizations is a key element in its foreign policy.  
  The FSM became a member of the United Nations in 1991.                      
                                                                       
  U.S.-MICRONESIAN RELATIONS                                                  
  The Governments of the FSM and the U.S. entered into the first Compact of   
  Free Association on November 3, 1986. An Amended Compact entered into force 
  on June 30, 2004. Under the Compact, the U.S. has full authority and        
  responsibility for the defense of the FSM. This security relationship can be
  changed or terminated by mutual agreement. The U.S. will provide about $100 
  million annually in assistance to the FSM over the next 20 years. A Joint   
  Economic Management Committee (JEMCO) consisting of representatives of both 
  nations will ensure that assistance funds are spent effectively. The basic  
  relationship of free association continues indefinitely.                    
                                                                       
  Under the Amended Compact of Free Association, Americans can live and work  
  freely in the FSM without the need for a visa.                              
                                                                       
  The United States is the FSM's largest trade partner. See the FSM Country   
  Commercial Guide at http://www.buyusainfo.net/ for further information on the
  business climate of the FSM.                                                
                                                                       
  Principal U.S. Officials                                                    
  Ambassador--Suzanne K. Hale                                                 
  Deputy Chief of Mission--Richard K. Pruett                                  
  Management Officer--Michael Pace                                            
                                                                       
  The mailing address for the U.S. Embassy is P.O. Box 1286, Kolonia, Pohnpei,
  Federated States of Micronesia 96941. Telephone: 691-320-2187. Fax:         
  691-320-2186. Email: USEmbassy@mail.fm.                                     
                                                                       
  TRAVEL AND BUSINESS INFORMATION                                             
  The U.S. Department of State's Consular Information Program advises Americans
  traveling and residing abroad through Consular Information Sheets, Public   
  Announcements, and Travel Warnings. Consular Information Sheets exist for all
  countries and include information on entry and exit requirements, currency  
  regulations, health conditions, safety and security, crime, political       
  disturbances, and the addresses of the U.S. embassies and consulates abroad.
  Public Announcements are issued to disseminate information quickly about    
  terrorist threats and other relatively short-term conditions overseas that  
  pose significant risks to the security of American travelers. Travel Warnings
  are issued when the State Department recommends that Americans avoid travel 
  to a certain country because the situation is dangerous or unstable.        
                                                                       
  For the latest security information, Americans living and traveling abroad  
  should regularly monitor the Department's Bureau of Consular Affairs Internet
  web site at http://www.travel.state.gov, where the current Worldwide Caution,
  Public Announcements, and Travel Warnings can be found. Consular Affairs    
  Publications, which contain information on obtaining passports and planning a
  safe trip abroad, are also available at http://www.travel.state.gov. For    
  additional information on international travel, see http://www.usa.gov/     
  Citizen/Topics/Travel/International.shtml.                                  
                                                                       
  The Department of State encourages all U.S citizens who traveling or residing
  abroad to register via the State Department's travel registration website or
  at the nearest U.S. embassy or consulate abroad. Registration will make your
  presence and whereabouts known in case it is necessary to contact you in an 
  emergency and will enable you to receive up-to-date information on security 
  conditions.                                                                 
                                                                       
  Emergency information concerning Americans traveling abroad may be obtained 
  by calling 1-888-407-4747 toll free in the U.S. and Canada or the regular   
  toll line 1-202-501-4444 for callers outside the U.S. and Canada.           
                                                                       
  The National Passport Information Center (NPIC) is the U.S. Department of   
  State's single, centralized public contact center for U.S. passport         
  information. Telephone: 1-877-4USA-PPT (1-877-487-2778). Customer service   
  representatives and operators for TDD/TTY are available Monday-Friday, 7:00 
  a.m. to 12:00 midnight, Eastern Time, excluding federal holidays.           
                                                                       
  Travelers can check the latest health information with the U.S. Centers for 
  Disease Control and Prevention in Atlanta, Georgia. A hotline at 877-FYI-TRIP
  (877-394-8747) and a web site at http://www.cdc.gov/travel/index.htm give the
  most recent health advisories, immunization recommendations or requirements,
  and advice on food and drinking water safety for regions and countries. A   
  booklet entitled "Health Information for International Travel" (HHS         
  publication number CDC-95-8280) is available from the U.S. Government       
  Printing Office, Washington, DC 20402, tel. (202) 512-1800.                 
                                                                       
  Further Electronic Information                                              
  Department of State Web Site. Available on the Internet at http://          
  www.state.gov, the Department of State web site provides timely, global     
  access to official U.S. foreign policy information, including Background    
  Notes and daily press briefings along with the directory of key officers of 
  Foreign Service posts and more. The Overseas Security Advisory Council (OSAC)
  provides security information and regional news that impact U.S. companies  
  working abroad through its website http://www.osac.gov                      
                                                                       
  Export.gov provides a portal to all export-related assistance and market    
  information offered by the federal government and provides trade leads, free
  export counseling, help with the export process, and more.                  
  STAT-USA/Internet, a service of the U.S. Department of Commerce, provides   
  authoritative economic, business, and international trade information from  
  the Federal government. The site includes current and historical            
  trade-related releases, international market research, trade opportunities, 
  and country analysis and provides access to the National Trade Data Bank.   

 

***********************************************************
See http://www.state.gov/r/pa/bgn/ for all Background notes
************************************************************
To change your subscription, go to http://www.state.gov/misc/echannels/66822.htm