Micronesia, Federated States of Micronesia, Federated States of Background In 1979 the Federated States of Micronesia, a UN Trust Territory under US administration, adopted a constitution. In 1986 independence was attained under a Compact of Free Association with the US. Present concerns include large-scale unemployment, overfishing, and overdependence on US aid. Micronesia, Federated States of Economy Economic activity consists primarily of subsistence farming and fishing. The islands have few mineral deposits worth exploiting, except for high-grade phosphate. The potential for a tourist industry exists, but the remote location, a lack of adequate facilities, and limited air connections hinder development. In November 2002, the country experienced a further reduction in future revenues from the Compact of Free Association - the agreement with the US in which Micronesia received $1.3 billion in financial and technical assistance over a 15-year period until 2001. The country's medium-term economic outlook appears fragile due not only to the reduction in US assistance but also to the slow growth of the private sector. Geographical isolation and a poorly developed infrastructure remain major impediments to long-term growth. Micronesia, Federated States of Location Oceania, island group in the North Pacific Ocean, about three-quarters of the way from Hawaii to Indonesia Micronesia, Federated States of Flag light blue with four white five-pointed stars centered; the stars are arranged in a diamond pattern
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