Regions and Countries

	Table of Contents
p. 3 of 20 BACK | NEXT I. Country Performance Assessment A. Economic Performance Assessment B. Poverty Assessment C. Assessment of Socio-Environmental Performance D. Governance: Sound Development Management E. Implementation Assessment II. Country Operational Strategy III. Sector Strategies IV. Regional Cooperation V. Donor Activities and Aid Coordination VI. Cofinancing and Catalyzing External Resources VII. ADB’s Operational Program VIII. Economic and Sector Work Program IX. Local Cost Financing

Country Assistance Plans - Federated States of Micronesia : I. Country Performance Assessment

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B. Poverty Assessment

8. The assertion that the Pacific is a region free of absolute or significant poverty where people live in subsistence affluence is being challenged despite very limited data. In FSM, of serious future concerns are the implications of population growth exceeding economic growth, and inequality of standard of living increasing between the population of the outer islands⁴ and migrants to Pohnpei and Chuuk⁵. Recent successive economic contractions suggests that there will be a decline in the already low standards of education, health and law and order enforcement which will have a negative impact particularly on the outer-islanders and migrants in the main islands who are virtually landless. Lack of land affects well over half the population of the FSM. Poverty assessment is further complicated by limited data on poverty as well as lack of consensus that significant poverty exists in the country. The Human Poverty Index of 26.7 indicates the fourth highest extent of poverty amongst PDMCs.

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