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FEDERATED STATES OF MICRONESIA
Insular Area Summary for the Federated States of MicronesiaHistory & Political Status Government OrganizationOver 600 islands divided into four states, Chuuk, Pohnpei, Kosrae and Yap with numerous languages and cultures. States also vary in population and topography. With one of the larger Exclusive Economic Zones in the Pacific, the FSM encompasses close to 1 million square miles of EEZ and extends 1,700 miles from east to west, harboring important coral reefs and marine assets. The National Government of the FSM representing the four states is located in Palikir, on Pohnpei. Distances from placesWashington DC: 7,710 miles Political LeadersPresident: Emanuel “Manny” Mori Population & DemographyTotal population: 108,000 Economy & Income SourcesEstimated GDP: $238.1 million Labor Force & EmploymentTotal payroll employment: 16,360 Government FinancesTotal government revenues: $ 166.0 million
OIA ContactsTanya Harris Joshua Historical OverviewHistory
In 1525, Portuguese navigators in search of the Spice Islands (Indonesia) came upon Yap and Ulithi. Spanish expeditions later made the first European contact with the rest of the Caroline Islands. Spain claimed sovereignty over the Caroline Islands until 1899. At that time, Spain withdrew from its Pacific insular areas and sold all of them to Germany, except for Guam which became a U.S. insular area. In 1914, German administration ended when Japanese naval squadrons took military possession of the Marshall, Caroline and Northern Mariana Islands. Japan began its formal administration by a League of Nations mandate in 1920. Sugar cane, mining, fishing and tropical agriculture became the major industries.
The President of the United States appointed a High Commissioner to administer the Trust Territory. Until 1979, the High Commissioner appointed a district administrator for each of the FSM states to oversee their programs. In support of the evolving political status, the United States recognized the FSM constitution in 1979 and establishment of the Government of the FSM, both national and state levels.
Under the Compact, the status of free association recognized the FSM as a sovereign state with the capacity to conduct foreign affairs consistent with the terms of the Compact. The Compact places full responsibility for FSM's defense with the United States. The Compact also provided grant funds and Federal program assistance for 15 years. The funding procedures provide for a graduated reduction after the fifth and tenth years. The majority of funds from the Compact are provided through the Department of the Interior. Under the Compact, the State Department is responsible for government-to-government relations, while Interior is responsible for the oversight and coordination of U.S. programs and funding assistance. Compact
In 2003, the U.S. and the FSM signed the second Compact or what is called the Compact of Free Association Amendments Act of 2003 (Public Law 108-188) ( The Department of the Interior continues to be responsible for oversight and coordination of U.S. funding assistance under the Amended Compact of Free Association. The UN and Bilateral RelationsThe Federated States of Micronesia was welcomed into the United Nations on September 17, 1991 and currently has diplomatic relations with 56 countries ( There are four countries with resident diplomatic missions in Micronesia: Australia, China, Japan and the USA. Micronesia has overseas diplomatic missions (embassies) in Washington, D.C., Tokyo and Suva, Fiji, a permanent mission at the United Nations in New York and two consulate offices in Guam and Honolulu. In 2004, Pohnpei, FSM was chosen to be the host of the Tuna Commission Headquarters or the Commission for the Conservation and Management of Highly Migratory Fish Stocks in the Western and Central Pacific Ocean. In 2006, the Director General of the Secretariat of the Pacific Community formalized with the FSM President establishment of an SPC Regional Office in the FSM. Status of FSM citizens in the U.S.See the U.S. Department of Homeland Security, USCIS Factsheet ( Employment Requirements for FSM citizens in the U.S.According to the Compact, FSM citizens are eligible to be employed in the United States without need for the Employment Authorization Document. Employment Eligibility (
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The Federated States of Micronesia (FSM) emerged from the Trust Territory of the Pacific Islands (TTPI) which the United States administered on behalf of the United Nations from 1947 until 1978. The FSM adopted its own constitution and became an independent country in 1979; it entered into a Compact of Free Association with the United States in 1986 and became a member of the United Nations in 1991. The first financial package of the Compact covered 15 years, from 1986 to 2001. Under provisions of the Compact, the Compact was extended for two years while the United States and the FSM completed negotiations for a new financial package in 2003, covering 2003-2023. A Trust Fund was also created to contribute to the long-term budgetary self-reliance of the FSM when the financial grant provisions of the Compact expire in 2023. Under the Compact, the United States provides financial assistance, defends the FSM’s territorial integrity, and provides uninhibited travel for FSM citizens to the U.S. In return, the FSM provides the United States with unlimited and exclusive access to its land and waterways for strategic purposes. The close ties between the United States and the FSM that go back to the end of World War II are also reflected in the fact that hundreds of FSM citizens serve in all branches of the U.S. Armed Forces and further their education in the United States. The FSM also uses the U.S. dollar as its currency.
![Sleeping Lady Island, Kosrae. [courtesy FSMVB]](../images/Sleeping-Lady-Island---Kosrae.gif)
The United Nations created the Trust Territory of the Pacific Islands (TTPI) in 1947. The islands of Pohnpei (formerly Ponape), Chuuk (formerly Truk), Yap and Kosrae (formerly Kusaie), now the Federated States of Micronesia (FSM), Palau, the Marshall Islands, and the Commonwealth of the Northern Mariana Islands all constituted the TTPI. The TTPI came under DOI responsibility in 1951.
The Governments of the FSM and the U.S. signed the first 
) for the next 20 years until 2023. Although the basic relationship as enshrined in the first Compact were unchanged (see above), there were significant changes in the financial provisions of the amended Compact. The Amended Compact included creation of a Trust Fund to serve as an ongoing source of revenue after Fiscal Year 2023 and to contribute to the long-term budgetary self-reliance of the FSM. It also provided for sector specific grant assistance in six primary sectors: Education; Health Care; Public Infrastructure; Environment; Public Sector Capacity Building; Environment; and Private Sector Development.