Government of the Federated States of Micronesia

Select Committee issues resolution on growth strategies

PALIKIR, Pohnpei (FSM Information Service): April 5, 2004 – The President’s Select Committee on the 3rd Federated States of Micronesia Economic Summit, has issued a Resolution for endorsement of identified high-growth strategies.

The resolution addresses the new realities of the amended Compact of Free Association between the FSM and the United States and the challenges of economic management and adjustment. In light of the various presentations of FSM’s economic forefront, the Committee adopted the following resolution for endorsement by the Summit, “be it resolved that:

  1. The select committee endorses the high-growth strategy and recommends that the 3rd FSM Economic Summit supports the strategy, noting that environmental and cultural protection measures must be integrated into such strategy;

  2. The Select Committee requests the President of the FSM to seek the agreement of our major donor partners to convene a Consultative Group of Donors meeting at an early date so that our Strategic Development Plan and our high growth strategy can be presented for their review and support;

  3. The Select Committee further recommends that the President of the FSM request that the World Bank or other International Financial Institutions provide a pre-loan technical assistance team comprised of experts in aviation, airports, tourism, fisheries, and economics, and that the FSM seek to create a team along the lines of the EMPAT model with international economists and Micronesian counterparts in order to support the ongoing economic strategy and reform efforts of the nation.

  4. The Select Committee supports other reforms required to achieve high growth based on agriculture, fisheries, and tourism, including: Increasing investment in infrastructure, especially in airports, electricity, roads and health facilities;

    a. Raising revenue sufficiently to provide the funds:

    (i)the FSM will need to invest in infrastructure, and
    (ii)to compensate for declining Compact funds;

    b. Revising rules and laws with respect to investment and other matters to make the FSM an attractive place for investors;

    c. Carrying out other measures needed to achieve high growth including:

    (i) rules and regulations to facilitate the employment of foreign technicians and managers needed for rapid growth,
    (ii) to ensure also that over several years it is primarily Micronesians who benefit from high growth,
    (iii) to strengthen education to train people in skills needed for growing fisheries, tourism, and agriculture sectors,
    (iv) and other measures.”

The Select Committee was created by President Joseph J. Urusemal, to comprise of the Summit co-chairs, heads of delegations and a few others to work during the week on issues of major strategic directions that may not be addressed by the sector working groups.

He said that, “to the extent the Select Committee can add to the coherence and to the level of commitment to implementing the outcomes of this Summit, we will ensure that we make 2004 a positive turning point for the FSM.”