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Investment Guide - Federated States of Micronesia



ABOUT THE FEDERATED STATES OF MICRONESIA

Geography

he Federated States of Micronesia (FSM) is a grouping of 607 small islands in the Western Pacific about 2,500 miles southwest of Hawaii, lying just above the Equator. Generally speaking, FSM comprises what is known as the Eastern and Western Caroline Islands. Specifically, the FSM consists of the four States of Chuuk, Kosrae, Pohnpei and Yap. While the country’s total land area amounts to about 271 square miles, it occupies more than one million square miles of the Pacific Ocean and ranges 1,700 miles from East (Kosrae) to West (Yap).

The states differ in size and topography. Pohnpei State has the largest land area of about 134 square miles, of which 130 is accounted for by Pohnpei Island. Chuuk State follows with a total land area of 49.2 square miles and includes seven major island groups. Yap State is made up of 4 large islands, 7small islands and 134 atolls, with a total land area of 45.9 square miles. Kosrae State is essentially one high island of 42.3 square miles. Each of the four states centers around one or more "high islands", and all but Kosrae include numerous atolls.

Climate

FSM enjoys a tropical climate, with relatively even, warm temperatures throughout the year. The average temperature is 80 degrees fahrenheit with little yearly variation. Rainfall is generally plentiful, and Pohnpei reputedly is one of the wettest place on Earth, with up to 330 inches of rain per year. Nevertheless, drought conditions do occur periodically throughout FSM, especially when the El Nino condition moves into the Western Pacific. At these times ground water supplies dwindled to emergency proportions. Tropical typhoons constitute an annual threat, particularly to the low-lying atolls.

Population

According to the preliminary results of the 2000 FSM-Wide Census, the FSM has a total population of 107,008 excluding those residing outside the FSM. Chuuk, which has 53,595 about 50%, is the most populated; Pohnpei has 34,692 (32%); Yap has 11,241 (11%); and Kosrae with 7,886 (7%). The population is young, with the median age of 18.9.

Federal Government

The FSM Constitution, like that of the U.S., provides for three separate branches of government at the national level: Executive, Legislative and Judiciary. It contains a Declaration of Rights similar to the U.S. Bill of Rights, specifying basic standards of human rights consistent with international norms. It also contains a provision protecting traditional rights. Unlike the U.S. system, however, most major governmental functions other than the conduct of foreign affairs and defense are carried out by the State Governments.

The Congress of the FSM is unicameral with fourteen members – one from each state elected for a four-year term, and ten who serve two-year terms whose seats are apportioned by population. Currently, Chuuk has six seats, Pohnpei four, and two each are held by Yap and Kosrae. The President and Vice-President are elected to four-year terms by the Congress, from among the four-year Senators, and the vacant seats are then filled in special elections. The Judiciary Branch of the National Government is headed by the Chief Justice of the FSM Supreme Court that currently is comprised of three Justices who sit in trial and appellate divisions.

State Governments

The State Governments under their Constitutions are structurally similar, all utilizing three branches of government – Executive, Legislative and Judiciary. Their make-ups vary according to their different circumstances.

Brief History

The FSM became an independent nation in November of 1986 and entered into a long-term treaty called the Compact of Free Association with the United States. It was later admitted to the United Nations in September of 1991.

The FSM was part of the part of the U.N. Trust Territories of the Pacific Islands (TTPI) established in July of 1947. The United States was designated as the Administering Authority following a succession of colonial administration under the Spanish (1886-1899), Germans (1899-1914), and the Japanese (1914-1945).

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Department of Resources and Development
P.O. Box PS-12, Palikir, Pohnpei 96941, Federated States of Micronesia
Phone: (691) 320-2648, Fax: (691) 320-5854, Email: fsmrd@dea.fm