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Priorities of the People: Hardship in the Federated States of Micronesia

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Introduction

Hardship and poverty in the Federated States of Micronesia (FSM) have not been viewed as important national concerns until recent trends made them both daily issues at the household level. One of these trends is the poor performance of the economy. From 1995 to 1999 the average growth rate was a negative 3.9% per year. Since 2000 there has been some modest recovery with annual growth averaging 3.6% per year, but there is a growing gap between rich and poor, and increasing numbers of landless or land-poor people.

People find it difficult to meet their families’ needs

The 1998 Household Income and Expenditure Survey indicates that about 30% of households in the country had incomes below the estimated basic needs poverty line of US$768 per person per year. The highest level of hardship and income poverty was recorded in Chuuk at 32.9%, and Pohnpei at 29.5%. These households were likely to experience some degree of financial hardship on a daily or weekly basis.

To better understand the needs and views of those facing hardship in the FSM and develop programs to alleviate it, the government undertook a “Participatory Assessment of Hardship” from late 2003 to early 2004. People from all sectors of society, including the poor, were asked to describe poverty and hardship from their point of view and suggest priority actions to address their concerns. Interviews were held at the household level, and focus group discussions and workshops were held with communities and at the national level.

Three communities from each of the participating states (Chuuk, Yap, and Pohnpei) were selected for the study to represent both rural and urban areas, and various levels of access to services. A team made up of government and nongovernment representatives consulted with about 350 people throughout the study, which concluded with state-level workshops and a national workshop in Pohnpei to validate the findings. The assessment was funded by the Asian Development Bank (ADB).

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