Micronesia - Tips
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.
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See http://www.state.gov/r/pa/bgn/ for all
Background
notes
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Micronesia
