The Federated States of Micronesia (FSM) is an independent country in a Compact of Free Association with the USA. It comprises 607 islands, 65 of which are inhabited.
FSM's economy is dominated by government services and is largely reliant on external grants, with only a modest private sector. FSM's small, remote and dispersed population, narrow range of natural resources, and vulnerability to external shocks, present challenges to growth.
The fisheries sector is regarded as having the greatest development potential, and fishery licensing fees account for nearly half of domestic budget revenue. With an EEZ of 2.7 million square kilometres, FSM bestrides major equatorial tuna migratory paths.
Australia's bilateral aid program in FSM focuses on basic education and improving social and economic opportunities for women and girls.
The tourism industry is another strong area of potential for FSM, particularly diving and eco-tourism. Some 21,000 tourists visit the islands each year. Tourism development is, however, constrained by limited airline links, limited infrastructure, including roads, power and water, and by the country's geographical isolation.
A highlight of recent Australian development support is the Improving Quality Basic Education Project. Initiated in 2017 and co-financed with the Government of FSM and the Asian Development Bank, the project is improving the effectiveness and efficiency of FSM education systems to strengthen early grade learning in all schools.
East Micronesia Cable
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Australian High Commission, Pohnpei
2nd Floor, H&E Enterprises Building
Tel +691 320 5448