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Federated States of Micronesia

 
 

heading foldHow we are helping

2012/13 Expenditure

$5.1 million

2013/14 Proposed Expenditure

$4.8 million

 

Expenditure is total official development assistance inclusive of DFAT’s bilateral program, flows from DFAT regional and global programs and other government departments.

Implementation of the revised 2013-14 budget is currently under discussion with partner governments and organisations.

 

In August 2010, Australia and the Federated States of Micronesia agreed on a new Partnership for Development to reduce poverty and achieve the Millennium Development Goals. The Partnership guides Australia’s aid to the Federated States of Micronesia and focuses on reforms in support of budgetary and economic self-reliance, environment management and development coordination.

Australia has invested $14.8 million in total Overseas Development Assistance (ODA) in the Federated States of Micronesia over the past three years. Our investment has contributed to important development results, including:

  • development and passing of legislation to introduce a national value-added tax as well as legislation and institutional arrangements for the establishment of a Unified Revenue Authority
  • strengthening of Chuuk state revenue collection through the provision of technical assistance and staff training.
  • updating the national Environmental Protection Act and implementing this in each state to allow the Federated States of Micronesia to meet its international environmental obligations.
  • development of a nationwide ODA policy to improve coordination between national and state governments, and also between national government and development partners. The Federated States of Micronesia also hosted a successful Development Partners’ Forum which highlighted national development priorities.
  • providing essential scholarships to allow Micronesian students to study at Pacific regional and Australian institutions. These scholarships are helping the Federated States of Micronesia address human capacity gaps at all levels of government and private sector.

Australia expects to provide an estimated $5.2 million in development assistance from the North Pacific Country Program to the Federated States of Micronesia in 2013–14. Australia remains committed to delivering results in the Federated States of Micronesia through the bilateral program, including:

  • continuing to support short term inputs of tax reform to increase the Federated States of Micronesia’s internal revenue
  • helping to develop the capacity of both the Office of Statistics, Budget and Economic Management, Overseas Development Assistance and Compact Management and State ODA offices to implement the new policy effectively strengthening coordination of overseas development assistance
  • improving the lives of women in the Federated States of Micronesia through enhanced economic opportunities and activities aimed at eliminating violence against women
  • building the skills of the workforce in key sectors by providing scholarships.

Economic development

Recent results

  • An Australian environmental lawyer worked with the Office of Environment and Emergency Management in 2011 to amend the Federated States of Micronesia Code (Environmental Protection Act) to reflect national- and state-level responsibilities.

Commitments 2013–14

  • Through the Micronesian Conservation Trust, Australia will support the development of a Micronesia Challenge business plan. The Micronesia Challenge conservation effort aims to protect 30 per cent of Micronesia’s nearshore marine resources and 20 per cent of terrestrial resources by 2020.

More about economic development

Humanitarian

Commitments 2013–14

  • School-aged students and their surrounding communities will be taught valuable life skills and school infrastructure improvements will be made to reduce risk for disasters under the Climate Adaptation and Disaster Risk Reduction and Education (CADRE) Program. This program is implemented in partnership with the International Organization for Migration.

More about humanitarian

Governance

Recent results

  • An Australian adviser working to address tax compliance issues helped to achieve a 20 per cent increase in Chuuk State revenue since 2009.

Commitments 2013–14

  • Technical advisory assistance will be provided as needed to support FSM National Tax reforms.
  • Better coordination and use of donor funds is a priority for the Federated States of Micronesia Government. Australia will support this through the development and implementation of a national Official Development Assistance Policy.

More about governance

Research overview

Australia does not currently fund any research initiatives in the Federated States of Micronesia. Considerations for future research should focus around the Federated States of Micronesia priority outcome areas outlined in the Partnership for Development.

Where are the Federated States of Micronesia?



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Country statistics

Population: 111,000

GDP growth (5 year average): 3.1 per cent

GSNI per capita, Atlas method (Current US$, 2010): 2730

Human Development Index (2011): 116

Mean years of schooling (of adults over 25): 8.8

Adolescent fertility rate (Women aged 15-19 years, births per 1,000 women): 25.4

Under-five mortality (per 1,000 live births): 25.4

Life expectancy at birth: 69

Expenditure on public health (percentage of GDP): 12.6

 
 

heading fold Why we give aid

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The Federated States of Micronesia faces a number of major development challenges due to its small land mass and population, shortage of skilled labour, narrow economic base, fragile natural environment and geographic isolation that results in high transport and communication costs. Many of the country’s people live in poverty, have poor health, and cannot access opportunities. As a regional neighbour, Australia is well-placed to work closely with the Federated States of Micronesia Government and civil society to improve the country’s development.

Find out more about why we give aid to the Federated States of Micronesia

 
 

heading fold How we give aid

Through the Australia-Federated States of Micronesia Partnership for Development the two countries work together to support the Federated States of Micronesia’s development, especially in areas where help is most needed.

The Partnership commits the Federated States of Micronesia to provide sound laws, policies and public services for its citizens, and to effectively and transparently manage development resources. It commits Australia to increase our aid, give good technical advice and to work closely with the Federated States of Micronesia’s Government to deliver this assistance.

Find out more about how we give aid to the Federated States of Micronesia

Read the Federated States of Micronesia–Australia Partnership for Development document

 
 

heading foldProgress Against MDGs

  • Eradicate extreme hunger & poverty
  • Achieve universal primary education
  • Promote gender equality and empower women
  • Reduce child mortality
  •             Improve maternal health
  • Combat HIV/AIDS, malaria and other diseases
  • Ensure environmental sustainability
 
 

Last reviewed: 17 February, 2014