Micronesia is a developing and lower-middle-income nation with a per capita GDP of around USD 3000. It has somewhat developed its economic, social and other aspects — facilitating the improvement in the living conditions for its citizens — and has a huge developmental potential. It has the potential to draw more investment, boost the private sector, leverage its abundant marine resources through enhanced fisheries and ensure sustainable tourism sector. The country’s pristine natural environment due to a large number of islands and cultural heritage offer potential for high-end eco-tourism and attracting visitors. Among others, there is a potential for renewable energy, developing stronger institutions and improving human capital in Micronesia.
But there are economic, connectivity-based and other development challenges to the Federated States of Micronesia, which became an independent nation on November 3, 1986 when it entered into a Compact of Free Association with the United States which was its former administrator under a UN Trust Territory. High poverty rates, geographical dispersion, a small domestic private sector, the lack of human capital, vulnerable infrastructure and dependency on foreign aid are some of the crucial development challenges in the Pacific country. There are also weaknesses in public investment management, underdeveloped administrative capacities and persistent corruption within the government, which can not only lead to a lack of accountability for officials and impunity for human rights abuses but also hinder the desirable development.
There are also several other development challenges including complex land ownership and usage rights, discrimination and difficulties in accessing necessary supplies due to remoteness in Micronesia, which has four states such as Kosrae, Pohnpei, Chuuk and Yap and a relatively stable democratic system. But discrimination is one of the crucial challenges to development in Micronesia, where the violation of political and civil rights is less, and is most evident in traditional caste systems — especially in Yap — that limit opportunities for outer-island and lower-status individuals and there are societal barriers that hinder access to leadership roles for many. Among others, the ongoing threat of climate-related disasters is a crucial development challenge in Micronesia.
The government of Micronesia, which consists of executive, legislative and judicial branches, has made policy-based and other efforts that have been helping address its various development challenges and improving its economic, political and other aspects. Economic and other plans and policies including the FSM Infrastructure Development Plan 2024-2034 and a comprehensive Agriculture Policy have been helping improve the private sector, generate investment in infrastructure, enhance food security and income, improve fiscal management capacity and strengthen climate change resilience in Micronesia. The BlueEARTH Model, a comprehensive and integrated development model, has been contributing to economic diversification through a variety of ways including the “blue economy” and increased tourism.
Dhaka Opinion Magazine is a global/international opinion magazine. It publishes for you all. The magazine publishes with the aim to help address concerns, improve conditions, solve problems and mitigate conflicts all over the world. Your support is important for the esteemed magazine. You can sponsor the magazine and/or donate to it.
But there are various flaws in the government efforts, leading to limited impacts of various development initiatives in Micronesia, which low crimes and vibrant and well-preserved diverse culture. There is a lack of comprehensive development plans that can promote human development at the desired level, ineffective implementation of development policies and plans and ineffective monitoring and evaluation of development programs. Efforts are also less to address inadequate strategies for private sector development and there is also a failure to integrate climate adaptation into its planning in a plausible manner despite its pronounced vulnerability to climate change, a crucial development challenge to Micronesia.
Addressing developing challenges is vital for improving conditions that can facilitate human development in Micronesia. The government of Micronesia needs to improve economic development for all. For this, Micronesia needs to improve its infrastructure and secure connectivity among dispersed islands. Its present economic conditions will make it difficult to drastically improve its infrastructure. While it needs to address foreign aid reliance with short, medium and long-term approaches, it needs to ensure cooperation from countries — as without the collaboration of other countries it is difficult for it to ensure its planned development.
The development of its tourism may help improve its economic conditions and reduce foreign dependency. But discrimination needs to be addressed. Though the constitution provides for freedom of expression and there are no notable restrictions on the media, there is a lack of availability of internet access. Increased internet access will be helpful especially for those living in remote areas. A strong political will can help address development challenges in Micronesia.
