Region: Oceania-Micronesia

Capital: Palikir

Population: 108,155 (July 2004 est.)

Surface area: 702 sq km

Currency: US dollar

GDP per capita: purchasing power parity - $2,000 (2002 est.)

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, overfishing, and overdependence on US aid.

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, a lack of adequate facilities, and limited air connections hinder development. In November 2002, the country experienced a further reduction in future 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. The country's medium-term economic outlook appears fragile due not only to the reduction in US assistance but also to the slow growth of the private sector. Geographical isolation and a poorly developed infrastructure remain major impediments to long-term growth.

United Nations membership date: 17 September 1991

New York Mission:
Permanent Mission of the Federated States of Micronesia to the United Nations
820 Second Avenue, Suite 17A
New York, N.Y. 10017 USA
Telephone: 212-697-8370
Fax: 212-697-8295

Website: http://www.fsmgov.org/fsmun