In 1979 the Federated States of Micronesia, a UN Trust Territory under US administration, adopted a constitution. In 1986 independence was attained under a Compact of Free Association with the US, which was amended and renewed in 2004. Present concerns include large-scale unemployment, overfishing, and overdependence on US aid.
Location
Oceania, island group in the North Pacific Ocean, about three-quarters of the way from Hawaii to Indonesia
Geographic coordinates
6 55 N, 158 15 E
Map references
Oceania
Area
total
702 sq km
land
702 sq km
water
0 sq km (fresh water only)
note
includes Pohnpei (Ponape), Chuuk (Truk) Islands, Yap Islands, and Kosrae (Kosaie)
Area - comparative
four times the size of Washington, DC (land area only)
Land boundaries
0 km
Coastline
6,112 km
Maritime claims
territorial sea
12 nm
exclusive economic zone
200 nm
Climate
tropical; heavy year-round rainfall, especially in the eastern islands; located on southern edge of the typhoon belt with occasionally severe damage
Terrain
islands vary geologically from high mountainous islands to low, coral atolls; volcanic outcroppings on Pohnpei, Kosrae, and Chuuk
English (official and common language), Trukese, Pohnpeian, Yapese, Kosrean, Ulithian, Woleaian, Nukuoro, Kapingamarangi
Literacy
definition
age 15 and over can read and write
total population
89%
male
91%
female
88% (1980 est.)
Country name
conventional long form
Federated States of Micronesia
conventional short form
none
local long form
Federated States of Micronesia
local short form
none
former
Trust Territory of the Pacific Islands, Ponape, Truk, and Yap Districts
abbreviation
FSM
Government type
constitutional government in free association with the US; the Compact of Free Association entered into force 3 November 1986 and the Amended Compact entered into force May 2004
Capital
name
Palikir
geographic coordinates
6 55 N, 158 08 E
time difference
UTC+11 (16 hours ahead of Washington, DC during Standard Time)
3 November 1986 (from the US-administered UN trusteeship)
National holiday
Constitution Day, 10 May (1979)
Constitution
10 May 1979
Legal system
based on adapted Trust Territory laws, acts of the legislature, municipal, common, and customary laws
Suffrage
18 years of age; universal
Executive branch
chief of state
President Emmanuel MORI (since 11 May 2007); Vice President Alik L. ALIK (11 May 2007) note - the president is both the chief of state and head of government
head of government
President Emmanuel MORI (since 11 May 2007); Vice President Alik L. ALIK (11 May 2007)
cabinet
Cabinet includes the vice president and the heads of the eight executive departments
elections
president and vice president elected by Congress from among the four senators at large for a four-year term (eligible for a second term); election last held 11 May 2007 (next to be held May 2011); note - a proposed constitutional amendment to establish popular elections for president and vice president failed
election results
Emmanuel MORI elected president; percent of Congress vote - NA; Alik L. ALIK elected vice president; percent of Congress vote - NA
Legislative branch
unicameral Congress (14 seats; 4 - one elected from each state to serve four-year terms and 10 - elected from single-member districts delineated by population to serve two-year terms; members elected by popular vote)
elections: last held 6 March 2007 (next to be held in March 2009)
light blue with four white five-pointed stars centered; the stars are arranged in a diamond pattern
Economy - overview
Economic activity consists primarily of subsistence farming and fishing. The islands have few mineral deposits worth exploiting, except for high-grade phosphate. The potential for a tourist industry exists, but the remote location, a lack of adequate facilities, and limited air connections hinder development. The Amended Compact of Free Association with the US guarantees the Federated States of Micronesia (FSM) millions of dollars in annual aid through 2023, and establishes a Trust Fund into which the US and the FSM make annual contributions in order to provide annual payouts to the FSM in perpetuity after 2023. The country's medium-term economic outlook appears fragile due not only to the reduction in US assistance but also to the current slow growth of the private sector.
GDP (purchasing power parity)
$277 million; note - supplemented by grant aid, averaging perhaps $100 million annually (2002 est.)
GDP (official exchange rate)
$232 million (2005)
GDP - real growth rate
0.3% (2005 est.)
GDP - per capita (PPP)
$2,300 (2005 est.)
GDP - composition by sector
agriculture
28.9%
industry
15.2%
services
55.9% (2004 est.)
Labor force
37,410 (2000)
Labor force - by occupation
agriculture 0.9%, industry 34.4%, services 64.7%
note: two-thirds are government employees (FY05 est.)
Unemployment rate
22% (2000 est.)
Population below poverty line
26.7% (2000)
Household income or consumption by percentage share
lowest 10%
NA%
highest 10%
NA%
Inflation rate (consumer prices)
2.2% (2005)
Budget
revenues
$127.3 million ($69 million less grants)
expenditures
$144.2 million; including capital expenditures of $17.9 million (FY05 est.)
Agriculture - products
Industries
tourism, construction; fish processing, specialized aquaculture; craft items from shell, wood, and pearls
Industrial production growth rate
NA%
Electricity - production
192 million kWh (2002)
Electricity - production by source
NA
Electricity - consumption
178.6 million kWh (2002)
Electricity - exports
0 kWh (2002)
Electricity - imports
0 kWh (2002)
Current account balance
-$34.3 million (FY05 est.)
Exports
$14 million (f.o.b.) (2004 est.)
Exports - commodities
fish, garments, bananas, black pepper, sakau (kava), betel nut
Exports - partners
Japan, US, Guam (2006)
Imports
$132.7 million f.o.b. (2004)
Imports - commodities
food, manufactured goods, machinery and equipment, beverages
Imports - partners
US, Japan, Hong Kong (2006)
Debt - external
$60.8 million (FY05 est.)
Economic aid - recipient
$86.3 million
note: under terms of the Compact of Free Association, the US pledged $1.3 billion in grant aid during the period 1986-2001; the level of aid has been subsequently reduced (2004)
Currency (code)
US dollar (USD)
Currency code
USD
Exchange rates
the US dollar is used
Fiscal year
1 October - 30 September
Telephones - main lines in use
12,400 (2005)
Telephones - mobile cellular
14,100 (2005)
Telephone system
general assessment
adequate system
domestic
islands interconnected by shortwave radiotelephone (used mostly for government purposes), satellite (Intelsat) ground stations, and some coaxial and fiber-optic cable; cellular service available on Kosrae, Pohnpei, and Yap
no ministry of defense and no standing armed forces; the paramilitary Maritime Wing, a small maritime law enforcement unit, is responsible to the Division of Maritime Surveillance within the Office of the Attorney General (2003)
