The legend says that at the beginning of time the powerful gods planned to create this mountainous island in the shape of a man. Later they thought that if they made it into the shape of a man it would not produce seeds known as people. So they created the mountains in the shape of a sleeping woman instead. The island of the sleeping lady was borne.
History
Hundreds of years ago a feudal aristocracy ruled Kosrae from Lelu. Today the ruins of Insaru, their great stone city, still adorn the island.
Early in the 19th century whalers arrived from Boston. They were followed by Congregationalist Missionaries who preached Christianity to the native population, and today the majority of people are still Congregationalists.
Between the two world wars thousands of Japanese took residence on Kosrae. By the end of World War II the Japanese rule had ended. In 1947 the Micronesian islands were made part of the Trust Territory of the Pacific Islands under the United Nations and were administered by the United States of America.
Kosrae became part of the District of Pohnpei until 1977 when it was given status as a separate state of the Federated States of Micronesia (FSM). The FSM achieved its political independence on November 3, 1986.
Geography
Kosrae State is located in the Pacific Ocean at 5º 19' north latitude and 163°east longitude. The distances in statute miles to major regional metropolitan areas are: Hong Kong (2,661), Honolulu (2,960), Los Angeles (5,313), Manila (2,968), Sydney (3,417) and Tokyo (3,529).
Kosrae is the second largest island in the FSM with its 43.2 square miles of land area. The ancient volcanoes create an interior with steep mountain ridges, peaks and valleys that occupies 70 per cent of the land area. Mt. Finkol (2,064 feet) is the dominating landmark. This undisturbed upland is covered with tropical rain forest that are home to many species of rare plants and animals. Dense jungle occupies the sloping very fertile land from the interior to the coastal zone. Large areas of mangrove forest maintain the beautiful coral reef that surrounds Kosrae.
The state is divided geographically and administratively, into four municipalities: Lelu, Malem, Tafunsak and Utwe.
Climate
The temperature is pleasantly warm and close to 80° Fahrenheit year round. The average annual rainfall is around 200 inches evenly distributed throughout the year. Humidity is usually from 75% to 95%.
The People
Kosraeans are a warm smiling and friendly people. Most Kosraeans speak English and enjoy a relaxed island lifestyle. The culture is traditional Kosraean yet adaptable, and is a source of identity and inspiration. Traditional authority rests with the men within the families.
Religion plays an important role to the Kosraean people. On Sundays most people attend church and throughout the day the unique and beautiful Kosraean choral singing can be heard all over the island. Family, church and community are the things closest to the Kosraeans hearts.
Demographics
In 1997 the population of Kosrae was 7,517 people (1997 Statistical Bulletin). Kosrae has a very young population with a median age of 19.5 years. 51% of the population were males and 49% females. The population on Kosrae is expected to grow slowly at around 2.4% annually.
Education
Education is compulsory through eighth grade or age 15. The majority of the young people receive a High School education modeled after the US system.
Some move on to obtain a degree from College of Micronesia or abroad in the Marshall Islands, Guam, Hawaii or mainland USA.
Infrastructure
The infrastructure is dominated by the scenic circumferential road. The primary road network consists of 25 miles of roadway from Okat dock and airport along the edge of the island to Utwe. The majority of this main road is paved and the remaining part is improved gravel surface. A Secondary road network consists of 10-15 miles of which four miles are paved. This road system provides access to rural lands for agricultural purposes.
Okat Harbor and airport service all commercial vessels and airplanes arriving at Kosrae. Both of these feature modern facilities the are described in more detail under Kosrae Business Environment.
Residents and visitors travel the island by car. There is no public transportation, however the locals are quick to offer a ride. The majority of vehicles are of American or Japanese origin.
Government
Kosrae State Government is a constitutional democracy with three branches of government: Executive, Legislative and Judiciary. The Governor is the highest elected official and directs ten government departments and offices. The legislature is comprised of 14 senators from the four municipalities.
The Judiciary is headed by a Chief Justice, appointed by the Governor and confirmed by the legislature. Each government serves for a period of four year term, except for the Justices who serve for a term of six years.
The director of the Department of Commerce and Industry, among others, oversees development activities for the executive branch of the state government. Five divisions support activities of the department: Consumer Services, Housing and Renovation, Industrial Development, Marketing and Research and Tourism. Foreign Investment belongs under the division of Industrial Development and is monitored by the Foreign Investment Office.
Economy
Kosrae's economy still greatly depends on the cash economy of the United States. As part of the FSM the state receives US funding through the Compact Agreement which is set to run until the year 2001. A much lower level of funding is expected upon the renewal of the agreement. The funds received in 1997 came to USD 60 million a step down of 21% from 1996.
Recent years have seen a growth in the states cash economy mainly due to an inflow of funds from the US. Gross domestic product (GDP) in 1994 was estimated at USD 14.4 million or USD 1,963 per capita annually.
The major economic sectors are marine resources, tourism, agriculture and small scale and cottage industries. Combined output from these sectors contributed an estimated USD 1.6 million, or 10% of the state product.
The public sector dominates the economy; its spending in 1994 was USD 12.4 million, 81% of the total state product. This sector still employs the majority of Kosraeans (58.5% in 1997), however a small increase in the private sector has occurred (from 40.4% in 1996 to 41.5% in 1997). The majority of public employees (86.7%) hold positions within one of the 10 different governmental departments.
The estimated annual wage level in 1993 for private sector employees was USD 2,736 compared to USD 6,150 in the public sector.
The State government owns and operates all infrastructure facilities, all health and almost all education services, extensive commercial activity in fisheries, marketing and other small enterprises.
In the private sector the main occupations are: Retail outlets, restaurants and resorts, farming, fishing and some service businesses. Traditional subsistence economy remains very important and almost every family catches fish and has gardens as well as live stock for food production.
The Kosrae State Government seeks to promote foreign investment as a mean to improve the states trade balance and dependency on foreign funding. In 1994 the merchandise trade balance was in deficit by USD 5.3 million. The imbalance has declined as financial and economic restrictions have reduced imports.
