Economic Development Options for the Federated States of Micronesia at Independence

Cameron, John (12-1991). "Economic Development Options for the Federated States of Micronesia at Independence". Pacific Studies. 14 (4): 35–70.

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Abstract: "This article is intended to extend discussion of development strategies of Pacific small-island countries to include the Federated States of Micronesia (FSM). I The FSM archipelago, with its four constituent states,2 gained formal independence on 3 November 1986 with the end- ing of the United States' United Nations trusteeship, and this article describes development prospects at that moment.

"Much of the previous literature on the region constituting the FSM was written by US academics and administrators and concerned with evaluating US policy during the forty years of the UN mandate. Over- all, the evaluation appears to have been negative (a more sympathetic view can be found in Kanost 1985-1986, more typically negative views can be found in Kent 1982 and Kiste 1986). This negative evaluation can be split into two periods...""

Cameron's key points:

Import Challenges and Local Production: There is an emphasis on addressing the unsustainable level of national imports, which no individual state in FSM can claim exemption from responsibility. The paper advocates for significantly reducing food imports by increasing local food production.

Labor Considerations: The paper notes the lack of a large pool of cheap labor available for the development of agricultural resources based on large commercial estates, suggesting a different approach might be needed.

Small-scale vs. Large-scale Production: A major theme is the comparison between large-scale export promotion and small-scale import substitution. The discussion includes hypothetical strategic choices influencing the development of fisheries, such as the project on Dublon island, aiming to highlight strategic aspects rather than appraise alternatives. Despite the apparent attractiveness of investing in large-scale facilities like tuna processing and exportation, potential downsides include high infrastructure demands and the risk of financial losses if the economic decisions are incorrect.

Community Involvement and Sustainability: The study proposes strategies for promoting import-substituting small-scale farming and fishing, emphasizing community engagement and extension programs. These programs are seen as necessary for addressing production issues, increasing agricultural and fisheries output, and ensuring equitable resource distribution.

Infrastructure and Economic Risks: The paper discusses the need for infrastructure that supports large-scale, cheap technology, although this brings various economic risks and vulnerabilities.

Property Rights and Land Use: It touches upon debates on property rights over land and marine resources, suggesting the current community-based systems might continue to inform future land use strategies in FSM, given the political and cultural context.

Much of the previous literature on the region constituting the FSM was written by US academics and administrators and concerned with evaluating US policy during the forty years of the UN mandate. Over- all, the evaluation appears to have been negative (a more sympathetic view can be found in Kanost 1985-1986, more typically negative views can be found in Kent 1982 and Kiste 1986). This negative evaluation can be split into two periods.