The Federated States of Micronesia (FSM) is an independent country in a Compact of Free Association with the USA. It comprises 607 islands, 65 of which are inhabited.
FSM's economy is dominated by government services and is largely reliant on external grants, with only a modest private sector. FSM's small, remote and dispersed population, narrow range of natural resources, and vulnerability to external shocks, present challenges to growth.
The fisheries sector is regarded as having the greatest development potential, and fishery licensing fees account for nearly half of domestic budget revenue. With an EEZ of 2.7 million square kilometres, FSM bestrides major equatorial tuna migratory paths.
Australia's bilateral aid program in FSM focuses on basic education and improving social and economic opportunities for women and girls.
The tourism industry is another strong area of potential for FSM, particularly diving and eco-tourism. Some 21,000 tourists visit the islands each year. Tourism development is, however, constrained by limited airline links, limited infrastructure, including roads, power and water, and by the country's geographical isolation.
Connecting the Federated States of Micronesia, Kiribati and Nauru to the internet via submarine cable
Supporting improved internet connectivity
Australian High Commission, Pohnpei
2nd Floor, H&E Enterprises Building
Kolonia, Pohnpei
Tel +691 320 5448