This report provides a comprehensive analysis of current economic and fiscal development in the Federated States of Micronesia and of its reliance on external funding under the Compact of Free Association with the United States of America. The report focuses on the impact of the step down in funding this financial year and the possible end of such funding in 2001. Seventh in a series of studies published by ADB to help generate a better understanding of economic developments in the Pacific region.
Fisheries, in particular the tuna resource, offer investment opportunities in support of economic growth and the generation of employment and incomes for the ADB's Pacific developing member countries (PDMCs). Investment opportunities are however greatly influenced by the recipients' political, social, and economic circumstances.