Federated States of Micronesia

Federated States of Micronesia, independent federal nation in the western Pacific Ocean, composed of the states of Kosrae, Pohnpei, where the capital, Palikir, is located, Chuuk, and Yap. The 607 islands that make up the nation extend 2,900 km (1,800 mi) across the Caroline Islands archipelago and have a total land area of 702 sq km (271 sq mi). The combined population (2008 estimate) is 107,673, giving a density of 153 per sq km (397 per sq mi).

The official language across all states is English, but the states also have their own local languages (Chuuk, Kosraean, Ponapean, and Yapese), which hold co-official status and are more widely known. Several other Austronesian languages from the Malayo-Polynesian subset are spoken.

The islands have access to government-run and commercial radio and television broadcasting. In 1996 there were 240 km (149 mi) of road. More importantly, there are airports on each of the major islands, with flights being provided by Continental Airlines and Air Nauru.

Under the 1979 constitution there is a president and a 14-member National Congress. The president since May 2003 has been Joseph J. Urusema. The Federated States of Micronesia is a member of the United Nations (UN), the Asian Development Bank, the Secretariat of the Pacific Community, and the Pacific Islands Forum.

The economy consists primarily of subsistence farming and fishing. The islands have few mineral deposits, except for high-grade phosphate. The potential for a tourist industry exists following the construction of two new airfields in 1991; hitherto, any growth of tourism was hindered by the remoteness of the islands and a lack of adequate facilities. Financial assistance from the United States is the primary source of revenue. In 1995 the gross national product was US$252 million (World Bank figure; 2004), equivalent to US$2,390 per capita. The monetary unit is the US dollar.

The islands were first settled by Micronesian peoples about 3,000 years ago. European contact began with the Spanish in the mid-16th century. The islands were formally annexed, first by Spain and then Germany, only after 1874. In 1920 the League of Nations mandated control to Japan. In 1947 the islands became part of the UN Trust Territory of the Pacific Islands, set up in 1947 and administered by the United States. Kolonia (population, 1989, 6,169), in Pohnpei, was formerly the capital of the Federated States, and Moen Island (1990, 45,000), in Chuuk, is the largest community. Kolonia remains the centre of the federation, while Palikir is the site of the new congress buildings.

A Compact of Free Association, providing for full self-government but delegating responsibility for defence and foreign affairs to the United States, took effect in 1986. The trusteeship was dissolved by the UN Security Council in 1990, and the country was admitted to the UN in 1991. Following a general election that year Bailey Olter was unanimously elected president, and he was re-elected in 1995. Jacob Nena, his vice-president, succeeded him in 1997. Leo Amy Falcam served as president between 1999 and 2003. A state of emergency was declared in 1998 as a result of a severe drought caused by the El Niño phenomenon.

In November 2002 a new 20-year compact of association with the United States was signed, amounting to US$2 billion of finance for the nation.