Global Organized Crime Index, Federated States of Micronesia

From Habele Institute

Global Organized Crime Index, Federated States of Micronesia (Report). Global Initiative Against Transnational Organied Crime. 2021. p. 5.

Abstract: "...With a weak economy, high suicide rates and few employment prospects, people in the Federated States of Micronesia (FSM) are vulnerable to sexual exploitation and forced labour. The domestic market for sexual exploitation is mainly fuelled by foreign crew members or construction workers, but offending is more likely opportunistic than organized by sex-trafficking rings. Micronesian women are also forced into prostitution or labour abroad, in the United States and Guam, because of the visa-free entry granted to Micronesians. It is likely that foreign organized crime groups are involved in luring women from FSM and exploiting them abroad. Foreign nationals, especially from the Philippines, are vulnerable to labour trafficking into FSM. Workers from South-east Asian countries have reported suffering exploitation on fishing vessels in FSM or its territorial waters, sailing under Asian flags..."

"...FSM is a relatively stable democracy, although some vulnerability and fragility are present, caused particularly by external pressures on security and economics. In addressing such problems, the leadership of the country has shown some commitment to issues related to transnational organized crime, although measures are difficult to implement without external assistance. Even though corruption is not a major issue, there are concerns over low-level bribery and misuse of public resources. The lack of a national anti-corruption body and an adequate strategy has been criticized, but FSM took steps to establish such an authority in 2019..."

"...There are few incentives to do business in the country yet, at the same time, the economic regulatory framework appears quite constrictive. The country also depends on assistance from the US under the Compact of Free Association. In fact, 58% of government funding comes through the Compact of Free Association agreement, which runs out in 2023. It is unclear whether the agreement will be extended, which creates economic uncertainty. If it is not, a geopolitical shift to China is a possibility, which could bring new opportunities for Chinese organized crime groups that are already active in the region to engage in FSM markets..."