Myths of the FSM Economy

Hezel, Francis X.; Lightfoot, Chris (2005-11-24). [www.micsem.org Myths of the FSM Economy]. Micronesian Counselor (Report). Kolonia, Pohnpei: Micronesian Seminar. pp. 1–10.

• Has attachment: File:WLR5LC8G.pdf

Abstract: "Myths abound in struggling Pacific nations, as they do in other parts of the globe. For a while, the chants ring true to us, but gradu- ally we begin to realize that these self-evident truths are not borne out by our experience. Economists, international financial institutions, rich nations (like the US) and less wealthy ones (like FSM) may echo these for a time. But if genuine development is ever to occur, we would all do well to lay aside these fantasies and get on with the work of building a durable economy in a more realistic way while making good use of all the resources at hand.

The two authors were recruited by Asian Development Bank to give a series of presentations on the report on the FSM economy completed by a bank-sponsored team earlier in the year. Rather than bombard participants with a series of detailed graphs and tables illus- trating various aspects of the economy, we decide to focus on a few commonly held beliefs on economic development in the islands and examine these in the light of the data. In doing so, we cast ourselves as myth-busters. We present these myths and our comments on them here in the hope that they will stimulate serious reflection on FSM’s economic growth, past and future..."