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.