Regions and Countries

	Table of Contents
p. 4 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

---

C. Assessment of Socio-Environmental Performance

1. Gender Issues

9. In FSM, women lag significantly behind males in almost every respect: proportionately fewer attend secondary school and college, they have a smaller share of the job market and are mainly employed in subordinate and lowly paid jobs⁵, and, if reproductive health is counted, they have more health problems than men. Furthermore, they are weakly organized and underrepresented in terms of a voice for women in policy-making at state and national levels.

10. The FSM Government recognizes the need to improve the status of women and to include women in the development policy-making process. This is reflected by the FSM main gender policy objectives: (i) strengthening women's participation in economic and social development, (ii) research and data collection on the status of women⁶ , (iii) improving maternal and child health and community services, (iv) improving rural and outer island water and sanitation, and (v) household food security. The Government will address gender issues in preparing its Strategic Policy Framework, new development strategy for FSM, at national and state levels.

2. Human Development

11. A decline in the fertility rate, though still relatively high, and the suppressed rate of infant mortality may indicate some future containment of the rate of population growth. However, while annual population growth rates are eased by emigration to Guam, Northern Marianas and the US, the natural rate of population increase averages between 2.3 and 2.5 percent, which is high. FSM also has one of the youngest populations in the Pacific with some 50 percent under 18 years' of age. This is a result of the high fertility rate on the one hand and the migration of adults on the other. Therefore, the age-dependency ratio is very high, placing a large burden on the working-age population for funding of government services. In the medium term, the working-age (15~64 years) population is expected to increase considerably, both in proportion and in absolute numbers. Given a low economic growth perspective, providing adequate education and training, as well as employment for the existing and growing labor force is a major concern.

12. Health expenditure as a proportion of GDP is low by regional standards. The FSM allocates less than 8 percent of GDP for health compared to 16 percent of GDP for education⁷. The incidence of some diseases has increased partly as a result of improper nutrition and there is also concern over the distribution of health services between both income groups and between islands. As with other Pacific developing member countries (PDMCs), a much larger proportion of government health expenditures support curative rather than preventive health care which is not considered to be sustainable. Inadequate management of the hospitals and dispensaries is a major impediment to improving the health care system.

13. Levels of adult literacy and primary and secondary school enrolments are high by regional standards, but there are concerns over the declining standards and quality of education. FSM is not producing the range of skills required by a modernizing economy. The country is also failing to produce the levels of school graduates that were achieved in previous generations. The 1995 human resource development study notes that the poor performance of the education system results from a lack of proper facilities, well trained teachers, planning, monitoring and, most importantly, management. Access to quality health and education services will need to be addressed as part of poverty alleviation strategy.

3. Environment

14. There are no reliable environmental indicators for FSM. However, major environmental issues assessed by the South Pacific Regional Environment Programme (SPREP) in 1993 identify environmental problems to include climate change and sea level rise, increasing urban population concentrations, and poor solid waste management - including toxic and hazardous waste, overcultivation of sloping lands and soil erosion in the State of Pohnpei, destruction of reefs by dynamite fishing and cyanide poisoning in the case of Chuuk State, coastal pollution as a result of land reclamation, dredging and construction in all States, the poorly controlled entry of non-indigenous flora and fauna, and a lack of protection of the existing bio-diversity. It sets out four broad environmental objectives including (i) integrate environmental considerations in economic development; (ii) improve environmental awareness and education; (iii) manage and protect natural resources; and (iv) improve waste management and pollution control.

____________________

Back B. Poverty Assessment	Next D. Governance: Sound Development Management