Micronesia

English/Nat While French Polynesia is coping with the after effects of French nuclear testing, another corner of the Pacific is facing a different kind of fallout from its colonial past The end of the Cold War has left the Federated States of Micronesia facing a drastic reduction in its economic base as the U-S ends decades of budget support -- part of a deal which has allowed the U-S military access to the region. In response, Micronesia is holding the largest summit in its history in an attempt to face the coming crunch head on. This is the island paradise of Micronesia -- a federation of 607 Pacific islands scattered across one thousand miles, home to about 100,000 people. The name means "little islands". It's a classic tropical paradise: sun, palm trees and the ocean lapping the shore. But some classic third world problems exist here too, as the local islanders appear adrift in a changing world. In Micronesia, which has been a trust territory of the U-S for more than 40 years, the effect of U-S dollars has taken a toll. After the Second World War, the U-S was given a mandate to administer the islands as a trust territory, giving them authority to set up military facilities. Such was the extent of the US military presence that until the early 1960s civilians required a security clearance to travel here. The islands gained independence in 1979. In 1986 the U-S agreed to provide more than a billion U-S dollars over 15 years for continued access. But the money has created an artificial economy, based on imported goods. The U-S dollar is Micronesia's official currency. Since funds flow directly to the government, the public sector accounts for 80 per cent of the gross national product. Despite huge public sector investment, there's been little to show save no economic growth. This once self-sufficient country of farmers and fishermen is now dependent on imports. But it's questionable as to whether the U-S will extend the agreement, known as the Compact, now that the Cold War is over. Funds are already being cut back and analysts say by the year 2001, funding may dry up altogether. SOUNDBITE: "Naturally we have created a dependency because over a 15-year period we will be giving the F-S-M 1.2 billion dollars. So naturally there will be a dependency created, by this country expecting this much money to operate. But I think we have to look at it this way: it's a mutual dependency. They depend on our money, our help, our technical assistance, but we depend on them to use this money to become a truly independent nation." SUPER CAPTION: March Fong Eu, U-S Ambassador There is hope here. Ever since the country achieved independence, determined government policy-makers have been preparing for the difficult transition. Evidence of the gravity of their concern: the largest ever Summit is being held. The subject: economic reform. The country's president, Bailey Olter, is an active participant. The U-S ambassador to Micronesia is attending, as well as elected officials, businessmen and traditional leaders from across the archipelago. Asterio Takesy has been with his government since independence and is currently the country's Secretary of External Affairs. He says the massive economic exercise is a way of looking forward. SOUNDBITE: "This is a national self-examination of our economic policies, of our performance economically as we are nearly halfway through the Compact. And it is not an examination anticipating the end of the Compact, rather including the end of the Compact. Life beyond the Compact." SUPER CAPTION: Asterio Takesy, Secretary of External Affairs, Micronesia The summit ends Monday (27 November). You can license this story through AP Archive: http://www.aparchive.com/metadata/youtube/60004e510c2df0a36210de1122379924 Find out more about AP Archive: http://www.aparchive.com/HowWeWork

• published: 21 Jul 2015
• views: 272