Micronesia (Federated States of)

Region: Oceania-Micronesia

Capital: Palikir

Population: 105,681 (July 2014 CIA est.)

Surface area: 702 sq km

Currency: US dollar (USD)

GDP per capita: Purchasing power parity US $7,300 (2013 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 of subsistence farming and fishing and government which is funded largely by Compact of Free Association (Compact) assistance provided by the US. The islands have few known mineral deposits worth commercial exploration. The potential for tourism is also limited by isolation, lack of adequate facilities, and limited air and water connections hinder development. Under the terms of the original Compact, the US provided $1.3 billion in grants and aid in 1986-2001. The US and the Federated States of Micronesia (FSM) negotiated a second (amended) Compact agreement in 2002-2003 that took effect in 2004. The amended Compact runs for a 20-year period to 2024; during which the US will provide roughly $2.1 billion to the FSM. The amended Compact also includes a Trust Fund for the people of the FSM which is to provide an income stream beyond 2024 when Compact grants are to end. The country’s medium-term economic outlook appears fragile because of reduced US assistance and lackluster performance of its small and stagnant private sector. (CIA, 2014)

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

Remittances inflows: Not available

Human Development Index 2013 ranking: 117 out of 186 countries (UNDP 2013)

Official Development Assistance and Major Development Partners:
Net ODA US $115,040,000.
Major development partners include: United States, Japan, Australia, E.U. Institutions, AsDB Special Funds (OECD 2012).

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

Life Expectancy at Birth: 72.35 (CIA 2014)

Environmental Indicators:
Endangered Species (as a % of all species):13.7
Forested Area (percentage of land area): 91.7
CO2 Emissions (tonnes per capita): 0.6
(UNDP 2013)

United Nations membership date: 17 September 1991

New York Mission:
Permanent Mission of the Federated States of Micronesia to the United Nations
300 East 42nd Street, Suite 1600
New York, N.Y. 10017 USA
Telephone: (212)-697-8370
Fax: (212)-697-8295
E-mail: fsmun@fsmgov.org
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 2013.United Nations Development Programme. www.undp.org

Updated January 2015