Federated States of Micronesia 2005: Economic Report Toward a Self Sustainable Economy

Publication | January 2005

The report focuses on the major economic reforms required to put the FSM economy on a sustainable growth path. This is especially important at this critical juncture for FSM with the more restrictive aid regime of the amended Compact of Free Association or Compact II following below potential economic performance during Compact I.

The need for major economic reforms is widely recognized in FSM, and the government has prepared a Strategic Development Plan (SDP) to facilitate the transformation of the economy. This report complements the SDP and is intended to enhance its implementation.


  • Chapter 1. Introduction
  • Chapter 2. Economic and Social History
  • Chapter 3. Social Institutions and Their Relevance for Economic Decisions
  • Chapter 4. Government Structures and Implications for Economic Development
  • Chapter 5. Economic Development, 1987-2003
  • Chapter 6. Economic Policy in Light of Amended Compact
  • Chapter 7. Challenges to Achieving Economic Self-Sufficiency
  • Chapter 8. Agriculture Sector
  • Chapter 9. Fisheries Sector
  • Chapter 10. Tourism Sector
  • Chapter 11. Emerging Economic Management and Policy Issues
  • Chapter 12. Conclusion: Challenges Management and Policy Issues