AusAID / Countries / Pacific / Federated States of Micronesia

Strategic goals

Other information

Federated States of Micronesia

Contact //Tel: +61 2 6178 4000
Fax: +61 2 6178 4880 // Post: GPO Box 887, Canberra, ACT 2601, Australia

Overview
See our results
Funding
Research
Maps

Preserving Micronesia’s fragile environment

The Governor-General, Ms Quentin Bryce, visits the Island Food Community of Pohnpei

Promoting local island food in Micronesia

How we are helping

Our Funding for 2012/13

$2.8 million

Strategic goals

Priority	Spend (%)
Total	100
Saving lives	1
Promoting opportunities for all	9
Sustainable economic development View all initiatives	17
Effective governance View all initiatives	39
Humanitarian and disaster response View all initiatives	29
Cross cutting	3

In August 2010, Australia and the Federated States of Micronesia agreed on a new Partnership for Development to reduce poverty and achieve the Millennium Development Goals. The Partnership guides Australia’s aid to the Federated States of Micronesia and focuses on reforms in support of budgetary and economic self-reliance, environment management and development coordination.

Australia has invested $12.8 million in total ODA in the Federated States of Micronesia over the last three years. Our investment has contributed to important development results, including:

strengthening Chuuk state revenue collection through the provision of technical assistance and staff training. Since 2009, revenue has increased by 20 per cent.
assistance with updating the national Environmental Protection Act to allow the Federated States of Micronesia to meet its international environmental obligations.
provision of essential scholarships to allow Micronesian students to study at Pacific regional and Australian institutions. These scholarships are helping the Federated States of Micronesia address human capacity gaps at all levels of government and private sector.

Following the Government’s announcement on 17 December 2012 to reprioritise resources within the aid budget, the 2012-13 budget estimate for the Federated States of Micronesia bilateral program was reduced by $500,000. This consists of a deferral of funding to a regional International Organization for Migration (IOM) project into future financial years.

Australia expects to provide $2.8 million in development assistance to the Federated States of Micronesia in 2012-13. Australia remains committed to delivering results in the Federated States of Micronesia, including:

supporting state-level implementation of the new Environmental Protection Act, which will help protect the Federated States of Micronesia’s natural resources
continuing to support tax reform to increase the Federated States of Micronesia’s internal revenue
strengthening coordination of overseas development assistance (ODA), through the production of a national ODA policy, aimed at better guiding donor activity in the country
upskilling of the workforce in key sectors through the provision of scholarships.

More expected outcomes can be viewed under the ‘See our results’ tab above.

Sustainable economic development

Commitments 2012–13

Australia will support the training of Environmental Protection Agency staff in complying with the amended Environmental Protection Act. Australian volunteers will also work at the state level to implement legislation changes.

More about sustainable economic development

Humanitarian and disaster response

Commitments 2012–13

School-aged students and their surrounding communities will be taught valuable life skills and school infrastructure improvements will be made to reduce risk for disasters under the Climate Adaptation and Disaster Risk Reduction and Education (CADRE) Program. This program is implemented in partnership with the International Organization for Migration.

More about humanitarian and disaster response

Effective governance

Commitments 2012–13

A technical adviser will help establish a national Unified Revenue Authority to continue increasing revenue and financial independence.
Better coordination and use of donor funds is a priority for the Federated States of Micronesia Government. Australia will support this through the development of a national Official Development Assistance Policy.

More about effective governance

Australian ODA to the Federated States of Micronesia, 2001–02 to 2012–13 ($m)

View a larger version

The graph above shows the Australian Official Development Assistance to the Federated States of Micronesia, including AusAID funding and funding by Other Government Departments (OGD).

The exact values are as follows:

2001-02: AusAID $1,219,489, OGD $553,952
2002-03: AusAID $2,047,437, OGD $574,785
2003-04: AusAID $1,724,099, OGD $712,905
2004-05: AusAID $2,629,171, OGD $495,685
2005-06: AusAID $2,791,499, OGD $639,182
2006-07: AusAID $1,503,710, OGD $564,892
2007-08: AusAID $1,295,820, OGD $539,397
2008-09: AusAID $2,435,863, OGD $616,060
2009-10: AusAID $2,596,037, OGD $438,453
2010-11: AusAID $2,373,666, OGD $339,958
2011-12: AusAID $6,931,882, OGD $75,115
2012-13: AusAID $2,700,000, OGD $100,000

Australian ODA to the Federated States of Micronesia by strategic goal, 2009–10 to 2012–13 (%)

View a larger version

The graph above shows Australian Official Development Assistance to the Federated States of Micronesia by strategic goal.

The exact values are as follows (%):

2012–13
Saving lives: 1
Promoting opportunities for all: 9
Sustainable economic development: 17
Effective governance: 39
Humanitarian and disaster response: 29
Cross cutting: 3
2011–12
Saving lives: 0
Promoting opportunities for all: 16
Sustainable economic development: 50
Effective governance: 16
Humanitarian and disaster response: 14
Cross cutting: 3
2010–11
Saving lives: 0
Promoting opportunities for all: 36
Sustainable economic development: 12
Effective governance: 24
Humanitarian and disaster response: 0
Cross cutting: 28
2009–10
Saving lives: 4
Promoting opportunities for all: 38
Sustainable economic development: 17
Effective governance: 36
Humanitarian and disaster response: 0
Cross cutting: 5

Other ODA in Whole of Government 2010-11 to 2011-12

View a larger version

The graph above shows the Australian Official Development Assistance to the Federated States of Micronesia by Other Government Departments.

The exact values are as follows:

Defence:
2010-11: $337,600. 2011-12: $75,100.
Sustainability, Environment, Water, Population and Community:
2010-11: $2,300. 2011-12: $0.

Research overview

Australia does not currently fund any research initiatives in the Federated States of Micronesia. Considerations for future research should focus around the Federated States of Micronesia priority outcome areas outlined in the Partnership for Development.

Where are the Federated States of Micronesia?

View Larger Map

Country statistics

Population: 111,000

GDP growth (5 year average): 3.1 per cent

GSNI per capita, Atlas method (Current US$, 2010): 2730

Human Development Index (2011): 116

Mean years of schooling (of adults over 25): 8.8

Adolescent fertility rate (Women aged 15-19 years, births per 1,000 women): 25.4

Under-five mortality (per 1,000 live births): 25.4

Life expectancy at birth: 69

Expenditure on public health (percentage of GDP): 12.6

Why we give aid

The Federated States of Micronesia faces a number of major development challenges due to its small land mass and population, shortage of skilled labour, narrow economic base, fragile natural environment and geographic isolation that results in high transport and communication costs. Many of the country’s people live in poverty, have poor health, and cannot access opportunities. As a regional neighbour, Australia is well-placed to work closely with the Federated States of Micronesia Government and civil society to improve the country’s development.

Find out more about why we give aid to the Federated States of Micronesia

How we give aid

Through the Australia-Federated States of Micronesia Partnership for Development the two countries work together to support the Federated States of Micronesia’s development, especially in areas where help is most needed.

The Partnership commits the Federated States of Micronesia to provide sound laws, policies and public services for its citizens, and to effectively and transparently manage development resources. It commits Australia to increase our aid, give good technical advice and to work closely with the Federated States of Micronesia’s Government to deliver this assistance.

Find out more about how we give aid to the Federated States of Micronesia

Read the Federated States of Micronesia–Australia Partnership for Development document