Micronesia

Background: 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. Present concerns include large-scale unemployment, over fishing, and over dependence on US aid.
Location: Oceania, island group in the North Pacific Ocean, about three-quarters of the way from Hawaii to Indonesia. Area: Total: 702 sq km, note: includes Pohnpei (Ponape), Truk (Chuuk) Islands, Yap Islands, and Kosrae, water: 0 sq km, land: 702 sq km. Area - comparative: Four times the size of Washington, DC. Land boundaries: 0 km. Coastline: 6,112 km.
Climate and Terrain: 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 Truk. Elevation extremes: Lowest point: Pacific Ocean 0 m, highest point: Dolohmwar (Totolom) 791 m. Natural resources: Forests, marine products, deep-seabed minerals.
People: Population: 135,869. Ethnic groups: Nine ethnic Micronesian and Polynesian groups. Religions: Roman Catholic 50%, Protestant 47%. Languages: English (official and common language), Trukese, Pohnpeian, Yapese, Kosrean, Ulithian, Woleaian, Nukuoro, Kapingamarangi.
Government: Government type: Constitutional government in free association with the US; the Compact of Free Association entered into force 3 November 1986 and is due for renegotiation. Capital: Palikir. Independence: 3 November 1986 (from the US-administered UN Trusteeship).
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 and a lack of adequate facilities hinder development. In 1996, the country experienced a 20% reduction in revenues from the Compact of Free Association - the agreement with the US in which Micronesia received $1.3 billion in financial and technical assistance over a 15-year period until 2001. Since these revenues accounted for 57% of consolidated government revenues, reduced Compact funding resulted in a severe depression. Economic activity recovered in 1999-2001. The country's medium-term economic outlook appears fragile due to likely further reductions in external grants made under the US Compact funding. Geographical isolation and a poorly developed infrastructure remain major impediments to long-term growth. GDP - composition by sector: Agriculture: 50%, industry: 4%, services: 46%.
Statistics: Telephones - main lines in use: 11,000. Radio broadcast stations: AM 5, FM 1, shortwave 0. Radios: 9,400. Television broadcast stations: 2. Televisions: 2,800. Internet users: 2,000. Highways: Total: 240 km, paved: 42 km, unpaved: 198 km. Airports: 7, with paved runways: 6, with unpaved runways: 1.