There are 607 islands, all in the Federated States of Micronesia, a subregion of Oceania that comprises four primary island groupings that make up the western Pacific Ocean. The Philippines and Indonesia are located to the west of the country. Freely associated with the United States, the government is a federal republic. The president is the head of state and government. Micronesia’s economy is mostly based on subsistence farming and fishing, which are the primary sources of income.
Geography
Yap, Pohnpei (Ponape), Chuuk (Truk), and Kosrae are part of the Federated States of Micronesia, a group of island nations in the Caroline Islands. Pohnpei, Kosrae, and Chuuk have volcanic outcroppings, whereas the high mountainous islands of Pohnpei, Kosrae, and Chuuk have low coral atolls. A 3,200-mile (5,150-kilometer) west-southwest trek will take you to these uninhabited islands in the northern Pacific Ocean.
History
In the 17th century, Spain invaded the islands that Micronesian and Polynesian peoples inhabited. In 1898, Germany bought them from Spain. When the Japanese invaded in 1914, American soldiers retook control of the islands. The Trust Territory in the Pacific Islands was established on April 2, 1947, by the United Nations Security Council. The United States was given control of the Northern Mariana, Caroline, and the Marshall Islands as a result of the Trust.
Self-determination for the Micronesian Federation (FMA) was achieved in 1979. In 1983, the Federated States of Micronesia (FMA) chose to adopt a Compact of Special Association with the United States. In November 1986, the United States government proclaimed the Trust Territory arrangements no longer in force, giving the Federated States of Micronesia complete independence. The agreement was extended for a further two decades in November 2002. It became a United Nations member on September 17, 1991. The country became a member of the IMF in July of that year.
Economic Overview
Most of FSM’s economic activity is based on government services and funding from other countries. It is difficult for the FSM to expand because of its tiny, scattered population, limited natural resources, and susceptibility to external shocks. The fishing industry is considered the most promising in terms of future growth. Fisheries in the Federated States of Micronesia (FSM) are encouraged by establishing the Vessel Day Program under the Nauru Agreement, which provides access to key equatorial tuna migratory routes. Revenue from fishing licence fees makes up over half of the national budget.
Divers and eco-tourists have a lot of promise in FSM’s tourism business, as well. Each year, the islands welcome around 21,000 visitors. However, the country’s geographical remoteness, limited airline connections, and insufficient infrastructure, including roads, electricity, and water, hinder tourism growth. The tourism business in the Federated States of Micronesia has suffered as a consequence of the border limitations imposed by COVID-19.
