The Unmaking of the Micronesian Family

Hezel, Francis X. (1990-03-13). [www.micsem.org The Unmaking of the Micronesian Family]. Micronesian Counselor (Report). Agana, Guam: Micronesian Seminar. pp. 1–8.

• Has attachment: File:8WSAEMVZ.pdf

Abstract: The most significant change occurring in these islands is the transition from subsistence to cash economy. In the post-war years and through the 1950s, most of the Micronesian people lived as they had always lived: from the resources of the land and sea. They ate breadfruit, taro, tapioca and fish. They built their houses largely of local materials. Whatever small cash income they might have was used to buy clothing, cigarettes, rice and other such items.

This pattern began to change in the early 60s as the US greatly increased its subsidies to what was then known as the Trust Territory of the Pacific. Prior to 1963 there were about 3,000 Micronesians with full-time employment. By 1965 the number doubled to 6,000, and by 1974 it had doubled again to 12,000. As of 1977 when limited self-government was granted, there were over 18,000 Micronesians working for a living in Palau, the Marshalls and what would soon become the Federated States of Micronesia (FSM). This enormous six-fold increase in a period of 14 years was due to the great increase in the US yearly allotment to the Trust Territory in keeping with its new policy of rapid development. The budget increases allowed many more Micronesians to find government jobs. This, in turn, led to the build-up of a service economy in the private sector as stores, restaurants, movie theaters and other service industries multiplied.

In 1962, just before the period of rapid growth began, Micronesians' total annual wages and salaries ($2,300,000) were about equal to the value of their yearly exports. By 1977, the total yearly earnings from salaries had skyrocketed to $42,000,000, while the value of exports remained about the same as it was in 1962.

The rapid increase in employment, of course, had the effect of putting more money in people's pockets. The yearly per capita income (from wages and exports combined) in 1962 was about $60. Fifteen years later it was over $400. Even with inflation figured in, the average real income was three times greater it had been in 1962. Thanks to the increase in employment, therefore, the average income had grown sufficiently to make cash a major resource in island life. For the first time, money could supplant land as the source of livelihood – and it actually did so for many families.