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Micronesia, Federated States of

Introduction  to Micronesia, Federated States of

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. Present concerns include large-scale unemployment, overfishing, and overdependence on US aid.

Government

Capital:

Palikir 

Independence:

3 November 1986 (from the US-administered UN Trusteeship) 

National holiday:

Constitution Day, 10 May (1979) 

Economy

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. In November 2002, the country experienced a further reduction in future revenues from the Compact of Free Association - the agreement with the US in which Micronesia received id=mce_marker.3 billion in financial and technical assistance over a 15-year period until 2001. The country's medium-term economic outlook appears fragile due not only to the reduction in US assistance but also to the slow growth of the private sector. Geographical isolation and a poorly developed infrastructure remain major impediments to long-term growth. 

GDP:

purchasing power parity - $277 million
note: GDP is supplemented by grant aid, averaging perhaps$100million annually (2002 est.) 

GDP - composition by sector:

agriculture: 50%
industry: 4%
services: 46% (2000 est.)

Agriculture products:

black pepper, tropical fruits and vegetables, coconuts, cassava (tapioca), betel nuts, sweet potatoes; pigs, chickens 

Industries:

tourism, construction, fish processing, specialized aquaculture, craft items from shell, wood, and pearls 

Transportation

Highways:

total: 240 km
paved: 42 km
unpaved: 198 km (1999 est.)

Ports and harbors:

Colonia (Yap), Kolonia (Pohnpei), Lele, Moen

Airports:

6 (2003 est.)