2024 Investment Climate Statements: Micronesia
2024 Investment Climate Statements: Micronesia. 2024 Investment Climate Statements (Report). Washington, DC: Department of State. 2024. p. 49.
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Abstract: “2024 Investment Climate Statements: Micronesia” provides an in-depth analysis of various aspects that impact the investment climate within Micronesia. It covers several areas including legal frameworks, industrial policies, and responsible business conduct.
Political and Legal Environment: The national political power in Micronesia is largely decentralized, with significant decisions delegated to the four states, especially regarding foreign investment and lease restrictions. The legal system involves a traffic light regulatory approach where business activities are classified into red (prohibited), amber (restricted), and green (unrestricted), varying across states. However, transparency and enforcement of regulations are inconsistent, and accessing public records can be challenging.
Infrastructure Challenges: The country faces significant challenges in integrating renewable energy due to outdated power grids, with regions like Pohnpei only able to integrate a fraction of potential solar power production.
Investment and Economic Policies: While the government does not currently incentivize green energy investments, there is an expressed commitment to environmental goals, such as reducing electricity-generated emissions by 65% by 2030 and achieving net zero by 2050.
Responsibility and Cultural Heritage: Efforts are being made to highlight Micronesia’s cultural heritage. However, the government lacks incentives for sustainable energy investments, which could hinder green development.
Data and Reporting: The document notes a lack of up-to-date governmental audits and statistical reports, which may affect economic planning and transparency. Some economic data is publicly accessible, such as statistics on U.S. foreign direct investment.
