Government of the Federated States of Micronesia

FSM set for Third Economic Summit

POHNPEI, Palikir (FSM Information Service): March 24, 2002 - The Federated States of Micronesia is primed for its Third Economic Summit set for March 29th through April 2nd 2004, at the College of Micronesia, FSM campus.

The resolve of the Summit, as with its predecessors, is to provide directions within the FSM to face rapidly changing fiscal and economic realities. But the distinguishing feature of the 3rd Economic Summit is the onset of the implementation of the amended Compact and the transitional adjustments required of the FSM governments.

The new realities under the amended Compact arrangements call for an update of the nation's economic strategy. The policy framework to be adopted must address the fiscal accountability procedures required for effective implementation of the amended Compact.

Two key components of the Summit are: first, to enhance the awareness of new provisions within the economic package and the fiscal accountability procedures required for effective implementation.

The second, to endorse the key requirements for FSM under the amended Compact:

  1. an FSM-wide Strategic Development Plan (SDP) - to guide the use of resources including annual sectoral grants; and

  2. an FSM-wide Infrastructure Development Plan (IDP) - to stress the linkages across the sectors.

The SDP and the IDP will provide a comprehensive economic strategy for the FSM at a critical time in its development. They will be important outcomes of the Summit which has the theme, "The Next 20 Years: Achieving Economic Growth and Self-Reliance."

The established objectives of the Summit are: to build awareness of the structure and projected impact of the amended Compact economic package; to achieve consensus on an overall strategy to support sustained economic growth; and to improve monitoring mechanisms to enhance implementation of policies and programs to support economic growth.

The expected sectors of discussion during the Summit include: Agriculture; Education; Environment; Fisheries; Gender; Health; Private Sector; Public Sector, and Tourism.

Of significance to the 3rd Economic Summit would be the updated report on actions taken pursuant to the 1st and 2nd Summits, together with documents reflecting the extensive policy development undertaken in key sectors since then.

The Economic Summit process has contributed significantly to the development of a coherent economic strategy for the entire nation. The Summits are highly participatory, involving months of technical preparations in each state and with inputs from government, the private sector, non-governmental organizations, and the community at-large.

The 1st FSM Economic Summit was held in November 1995 with ensuing Economic Summits in the four states. These resulted in significant improvements in economic management and adoption of an impressive policy reform agenda for the national and state governments. Partly as a result of that event, the difficult fiscal and economic reforms to adjust to the second Compact step down were implemented.

The 2nd FSM Economic Summit in September 1999, was held at the tail-end of a significant and painful reform period for the FSM. Although it also advanced the economic strategy of the nation, the timing of the Summit produced positive, but less than substantial outcomes.

Next week's Summit is expected to draw over 200 participants from throughout the FSM, this will include members of the legislatures, national, state and municipal governments, traditional leadership, the private sector, non-government organizations, women and youth.

The 3rd Economic Summit is being organized by a Summit Coordinating Committee, co-chaired by FSM Vice President Redley Killion and Senator Alik Alik, Chairman of the Resources and Development Committee of the Congress of the FSM. The FSM Department of Economic Affairs will be the facilitating agency for the Summit.

The Summit Coordinators for each of the four States are:

  • CHUUK - Ned Makaichy @ 330-2234
  • KOSRAE - Wesley Likiak and Stephen George @ 370-3163
  • POHNPEI - Semensin James @ 320-2238
  • YAP - Joseph Giliko @ 350-2182

Background papers and general information on the Summit can be found on the official website of the 3rd FSM Economic Summit, available online at http://www.summit.fm.


For further information on this release, please contact:

FSM Office of the President
Public Information: Press, Radio, Video
P.O Box 34
Palikir Station, Pohnpei, FM 96941
Tel.: (691) 320-2548/2092
Fax.: (691) 320-4356
e-mail: fsmpio@mail.fm
http://www.fsmpio.fm/