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Federated States of Micronesia

 
 

heading foldHow we are helping

2013/14 Estimated Outcome

$4.3 million

2014/15 Budget Estimate

$4.6 million

 

Australia and the Federated States of Micronesia (FSM) share regional interests, particularly ensuring maritime and transnational security, sustainable management of fisheries and a common interest in supporting economic and human development.

Federated States of Micronesia landscape
Federated States of Micronesia landscape (credit: DFAT).

The FSM faces major long-term development challenges and the four states that comprise the FSM—Yap, Chuuk, Pohnpei and Kosrae—differ markedly in their development outcomes, necessitating a calibration of Australia’s aid to fit differing needs in each state. The only two MDGs that FSM is on track to meet relate to achieving gender equality and combating HIV/AIDS and other diseases. Australian aid to the FSM focuses on improving economic governance and donor coordination. Australia will support the implementation of FSMs recently endorsed donor coordination policy, to optimise the allocation and use of donor funds. In collaboration with the Asian Development Bank Australia will also support an enhanced economic reform programme to promote increased economic self-reliance in FSM.

Australian Regional Development Scholarship recipients Bertha from the Federated States of Micronesia
Australian Regional Development Scholarship recipients Bertha from the Federated States of Micronesia, Rendy from the Marshall Islands, and Joren from Palau are studying at the University of the South Pacific (credit: DFAT).


Archived details of expenditure for this program for 2013–14 can be found here.

Archived details of expenditure for DFAT’s aid program, following the Government’s announcement on 18 January 2014 to revise the aid budget, can be found here.

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.

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.

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.

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

 
 

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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: 25 September, 2014