Micronesia (Federated States of)

Region: Oceania-Micronesia

Capital: Palikir

Population: 111,500 (UNDP 2011)

Surface area: 702 sq km

Currency: US dollar (USD)

GDP per capita: Purchasing power parity US $2,200 (2008 CIA est.)

Background:
In 1979 the Federated States of Micronesia, a UN Trust Territory under US administration, adopted a constitution. In 1986 independence was attained under a Compact of Free Association with the US, which was amended and renewed in 2004. Present concerns include large-scale unemployment, overfishing, and overdependence on US aid.

Economy – Overview
Economic activity consists primarily of subsistence farming and fishing. The islands have few mineral deposits worth exploiting, except for high-grade phosphate. The potential for a tourist industry exists, but the remote location, a lack of adequate facilities, and limited air connections hinder development. Under the original terms of the Compact of Free Association, the US provided $1.3 billion in grant aid during the period 1986-2001; the level of aid has been subsequently reduced. The Amended Compact of Free Association with the US guarantees the Federated States of Micronesia (FSM) millions of dollars in annual aid through 2023, and establishes a Trust Fund into which the US and the FSM make annual contributions in order to provide annual payouts to the FSM in perpetuity after 2023. The country’s medium-term economic outlook appears fragile due not only to the reduction in US assistance but also to the current slow growth of the private sector. (CIA, 2012)

Major Export Commodities: fish, garments, bananas, black pepper, sakau (kava), betel nut

Remittances: Not available

Human Development Index 2011 ranking: 116 out of 187 countries (UNDP 2011)

Official Development Assistance and Major Development Partners: Net ODA US $125 million.

Major development partners include: United States, Japan, Australia, E.U. Institutions, AsDB Special Funds (OECD 2010).

Total External Debt: US $60.8 million (FY05 est.)

Life Expectancy at Birth: 69.0 (UNDP 2011)

Environmental Indicators:

                                               Endangered Species (as a % of all species):15

                                               Forested Area (percentage of land area): 91.5

                                               CO2 Emissions (tonnes per capita): 0.6

                                               (Data Source: UNDP 2011)

United Nations membership date: 17 September 1991  

New York Mission:
Permanent Mission of the Federated States of Micronesia to the United Nations
820 Second Avenue, Suite 17A
New York, N.Y. 10017 USA
Telephone: 212-697-8370
Fax: 212-697-8295.
Website: http://www.fsmgov.org/fsmun

Sources:

CIA World Factbook. Central Intelligence Agency. www.cia.gov

World Development Indicators. World Bank www.worldbank.org

Development, Recipient Aid Charts. Organization for Economic Co-operation and Development. www.oecd.org

Human Development Report 2011.United Nations Development Programme. www.undp.org

 

Updated July 2012