Since 2004, the development agenda of the Federated States of Micronesia (FSM) has been guided by the Strategic Development Plan 2004-2023. In November 2012, however, the government presented an updated development framework, which seeks to further align the development strategy with the current fiscal and economic context. The overriding theme of the framework is to establish a clear path of increasing fiscal and socioeconomic self-reliance.

ADB’s country operations business plan, 2014-2016, for FSM has been formulated to reflect the three key strategic messages in the updated development framework of the government. These are:

  • uphold core government functions and acceptable standards of public service delivery, while safeguarding fiscal sustainability;
  • pursue a growth strategy that is based on the sustainable management of natural and human resources; and
  • improve development effectiveness, including through better management of overseas development assistance.