Micronesia

Compiled from the December 2007 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:

Federated States of Micronesia (FSM)

PROFILE

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 adjectiveMicronesian.

Population: 108,000.

Growth rate: 0.26%.

Ethnic groups: Nine ethnic Micronesian and Polynesian groups.

Religions: Roman Catholic 53%, Protestant 42.4%, others 4.6%.

Languages: 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.

Government branches: Executive—President (chief of state and head of government), cabinet. Legislative—unicameral Congress with 14 seats. Judicial—Supreme Court.

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 ethno-linguistic 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

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 based principally in Yap and Pohnpei. 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 through the Treaty of Versailles to the Japanese in 1919. 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 at large—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 at large 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

Last Updated: 2/1/2008

President: Joseph J. URUSEMAL

Vice President: Redley KILLION

Sec. of Economic Affairs: Akillino K.SUSAIA

Sec. of Finance & Administration: John EHSA

Sec. of Foreign Affairs: SebastianANEFAL

Sec. of Health, Education, & SocialAffairs: Eliuel K. PRETRICK

Sec. of Justice: Paul E. MCILRATH

Sec. of Transportation, Communication, & Infrastructure: Akillino K. SUSAIA

Ambassador to the US: JesseMAREHALAU

Permanent Representative to the UN, NewYork: Masao NAKAYAMA

The FSM maintains an Embassy at 1725 N Street NW, Washington, DC 20036. Telephone: 202-223-4383. Fax: 202-223-4391. Email: [email protected]. Internet website: www.fsmembassydc.org. The FSM 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, with the aim of encouraging sustainable development. The U.S. will provide almost $100 million in direct assistance every year until 2023, which includes the systematic reallocation of a portion of the direct aid to a jointly managed Trust Fund. Additional federal grants to the FSM total approximately $35 million annually. Assistance under the Amended Compact is distributed by grants in response to a transparent FSM budget process, focusing on the following six sectors: education, health, infrastructure, public sector capacity building, private sector development, and the environment. The U.S. Department of the Interior is responsible for monitoring and implementing the Amended Compact. The FSM government sector plays a central role in the economy as recipients and domestic administrators of Compact funds. The national and state-level governments employ over half of the country's workers, with 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, ecotourism, and the ancient ruined city of Nan Madol on Pohnpei. Some 18,000 tourists 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 establishing a 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 of China. Regional cooperation through various multilateral organizations is a key element of 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. maintain deep ties and a cooperative relationship. Reflecting a strong legacy of Trusteeship cooperation, over 25 U.S. federal agencies continue to maintain programs in the FSM. Under the Amended 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. Also under the Compact, Micronesians can live, work, and study in the United States without a visa. Micronesians volunteer to serve in the U.S. Armed Forces at approximately double the per capita rate as Americans. Americans can live and work freely in the FSM without the need for a visa.

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 is responsible for ensuring that assistance funds are spent effectively, with the aim of fostering good governance and economic self-reliance. The basic relationship of free association continues indefinitely.

The United States is the FSM's largest trade partner.

Principal U.S. Embassy Officials

Last Updated: 2/19/2008

KOLONIA (E) P.O. Box 1286, POhnpei FM 96941, APO/FPO No APO/FPO available at Post., 691-320-2187, Fax 691-320-2186, INMARSAT Tel 011-872-383-132633, Workweek: Monday—Friday 8a.m. to 5 p.m., Website: http://kolonia.usembassy.gov 8a.m. to 5 p.m., Website: http://kolonia.usembassy.gov.

TRAVEL

Consular Information Sheet

January 22, 2008

Country Description: The Federated States of Micronesia (FSM) is composed of four states spanning dozens of atolls scattered over a million square miles of the north central Pacific. The four states are: Pohnpei (formerly Ponape), Kosrae (formerly Kusaie), Chuuk (formerly Truk) and Yap. The federal capital is located at Palikir, on the island of Pohnpei, close to Pohnpei's largest town, Kolonia. The FSM is a constitutional democracy and is party to a Compact of Free Association with the United States.

Entry Requirements: U.S. citizens require a U.S. passport, a completed FSM Immigration Arrival and Departure Record (FSM Form 5004) and a completed FSM Customs Form to enter the FSM. The passport must be valid for at least 120 days beyond the date of entry into the FSM. The air carrier distributes the FSM Immigration Arrival and Departure Record and Customs Form prior to passengers’ arrival at the point of entry. There is no limit to the length of time U.S. citizens and nationals may remain in the FSM. All states except Yap levy a departure fee. A health certificate may be required if the traveler is arriving from an area experiencing an epidemic. Visit the Embassy of the Federated States of Micronesia web site at www.fsmem-bassydc.org for the most current visa information.

For more information about FSM entry requirements, travelers may consult the Embassy of the Federated States of Micronesia at 1725 N Street NW, Washington, DC 20038, tel: (202) 223-4383 or the Embassy's web site at http://www.visit-fsm.org/visitors/entry.html. The FSM also has Consulates in Honolulu and Guam.

Safety and Security: U.S. citizens in the FSM should review their own personal security practices, be alert to any unusual activity around their homes or businesses, and report any significant incidents to local police authorities. For the latest security information, Americans traveling abroad should regularly monitor the Department of State, Bureau of Consular Affairs’ web site at http://travel.state.gov, where the current Travel Warnings and Travel Alerts, as well as the Worldwide Caution, can be found. Up-to-date information on safety and security can also be obtained by calling 1-888-407-4747 toll free in the U.S. and Canada, or for callers outside the U.S. and Canada, a regular toll-line at 1-202-501-4444.

Crime: On occasion, foreigners have been subject to, and possibly singled out for, theft and verbal and physical abuse. Modern Western swimwear may be considered immodest by local standards, and persons wearing such clothing outside of hotels that cater to tourists could be subject to harassment.

Information for Victims of Crime: The loss or theft abroad of a U.S. passport should be reported immediately to the local police and the nearest U.S. Embassy or Consulate. If you are the victim of a crime while overseas, in addition to reporting to local police, please contact the nearest U.S. Embassy or Consulate for assistance. The Embassy/Consulate staff can, for example, assist you to find appropriate medical care, contact family members or friends and explain how funds could be transferred. Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney if needed.

Medical Facilities and Health Information: Health care facilities in the FSM consist of hospitals on each of the four major islands and a few scattered clinics. These facilities sometimes lack basic supplies and medicines, and the quality of health care varies. Doctors and hospitals may expect immediate cash payment for health services. U.S. medical insurance is not always valid outside the United States. Supplemental medical insurance with specific coverage for overseas treatment and medical evacuation may prove useful. Medical evacuation for non-ambulatory patients may not be immediately available and can be very expensive. Scuba divers are advised that there are only two decompression chambers in the FSM (in Yap and Chuuk); their availability and staff experience in treating dive injuries varies. A small outbreak of dengue fever, a flu-like illness which may be complicated by hemorrhage or shock, was reported from Yap in October 2007. Visitors to Yap should wear long sleeves, long pants, hats and shoes (rather than sandals). It is advised that you apply insect repellents containing 20-35% DEET or 20% picaridin to exposed skin.

Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention's hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747) or via the CDC's web site at http://wwwn.cdc.gov/travel. For information about outbreaks of infectious diseases abroad consult the World Health Organization's (WHO) web site at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith/en.

Medical Insurance: The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and whether it will cover emergency expenses such as a medical evacuation.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Micronesia is provided for general reference only, and may not be totally accurate in a particular location or circumstance.

In the FSM, driving is on the right-hand side of the road, as in the United States. However, unlike most cars in the United States, the majority of vehicles in FSM have the driver's seat situated on the right side. Traffic, particularly in the state capitals, is increasing. Congestion may be a problem at the beginning and end of the workday. Most roads are narrow and without sidewalks, creating a hazard for both drivers and pedestrians. Many roads are in poor condition, with potholes and little or no shoulder. Road conditions can worsen after heavy rains; coral surfaces are particularly likely to be slippery. Driving skills vary; drivers often make turns or stop to pick up pedestrians without warning. Roads outside the towns are often unpaved, and are used by pedestrians, children playing, animals, and drivers alike. Streetlights are rare. Taxis are available in state capitals, but visitors are advised to be careful, since some taxi drivers are reckless. There is no formal training in road safety, so many drivers are unaware of road safety rules. Drunk drivers pose serious hazards, in particular on weekend evenings and holidays. Drivers are required by law to report immediately to local police authorities all accidents involving property damage or personal injury. Visit the web site of the FSM's national tourist office and national authority responsible for road safety at www.visit-fsm.org.

Aviation Safety Oversight: As there is no direct commercial air service to the United States by carriers registered in the FSM, the U.S. Federal Aviation Administration (FAA) has not assessed Micronesia's Civil Aviation Authority for compliance with International Civil Aviation Organization (ICAO) aviation safety standards. For more information, travelers may visit the FAA's web site at http://www.faa.gov.

Continental Airlines is the only commercial carrier serving the FSM. Flight schedules and routes are limited and subject to change. There may be few alternatives if flights are canceled or missed. Flights are usually 100% booked, and aircraft weight is an issue due to short runways and the type of aircraft used. Because of these limitations and the numerous transit stops made (the typical routing to get to Kolonia would be via Honolulu with intermediate stops in Majuro, Kwajalein and Kosrae, or via Guam with a stop in Chuuk), with exiting and arriving passengers at each location, baggage sometimes may not be loaded at the departure point or may be off-loaded by mistake and left behind at an intermediate stop. Americans are advised to keep these logistical challenges in mind when traveling in this region. Missing baggage should be reported immediately to Continental Airlines ground personnel before onward flight departure.

Special Circumstances: Micronesian customs authorities assess import taxes on cigarettes, tobacco, alcoholic beverages, gasoline, and other personal items that exceed specified amounts. All imports are subject to physical inspection by customs officials. There are strict quarantine regulations restricting entry of plant and animal products. It is advisable to contact the Embassy of Micronesia in Washington or one of Micronesia's consulates in Honolulu or Guam for specific information regarding customs requirements.

Criminal Penalties: While in a foreign country, a U.S. citizen is subject to that country's laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses. Persons violating Micronesian laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession of, use of, or trafficking in illegal drugs in Micronesia are severe, and convicted offenders can expect long jail sentences and heavy fines. Engaging in sexual conduct with children or using or disseminating child pornography in a foreign country is a crime, prosecutable in the United States.

Children's Issues: For information on international adoption of children and international parental child abduction, see the Office of Children's Issues website at http://travel.state.gov/family.

Registration and Embassy Locations: Americans living or traveling in the Federated States of Micronesia are encouraged to register with the nearest U.S. Embassy or Consulate through the State Department's travel registration web site so that they can obtain updated information on travel and security within Micronesia.Americans without Internet access may register directly with the nearest U.S. Embassy or Consulate. By registering, American citizens make it easier for the Embassy or Consulate to contact them in case of emergency. The U.S. Embassy in Kolonia does not issue U.S. passports; it accepts passport applications from persons living or traveling in the FSM and forwards them to the Honolulu Passport Agency in Hawaii for processing. The U.S. Passport Office in Guam does not issue U.S. passports, but it does accept passport applications and forwards them to Hawaii for processing. The U.S. Embassy is located on Kaselehlie Street (the main downtown street) across from the Pohnpei Botanical Gardens. The mailing address is PO Box 1286, Pohnpei, Federated States of Micronesia 96941. The telephone number is (691) 320-2187. The Duty Officer phone number is (691) 920-2369. The fax number is (691) 320-2186. The U.S. Embassy's web site can be accessed at http://kolonia.usembassy.gov.