Federated States of Micronesia Public Expenditure Analysis : Getting Ready for 2024
The Federated States of Micronesia (FSM) has a very narrow production base, with subsistence agriculture and fisheries and the public sectors dominating the economy, both with regard to employment and value added. The contribution of institutional...
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| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/459201506345399463/Getting-ready-for-2024 http://hdl.handle.net/10986/28441 |
| Summary: | The Federated States of Micronesia (FSM)
has a very narrow production base, with subsistence
agriculture and fisheries and the public sectors dominating
the economy, both with regard to employment and value added.
The contribution of institutional sectors to growth suggests
that private enterprises relied on the public sector for
growth opportunities and households tended to fall back to
subsistence when growth slows. Growth accelerations and
decelerations were largely influenced by the implementation
of the U.S. funded airport upgrade project and Compact
grants although over the long run, the net effect of public
investment on growth has been small. Economic growth and
international competitiveness are severely constrained by
the country’s small size, remoteness, geographic isolation
and dispersion, and thin institutional and human capacity.
This Public Expenditure Review (PER) is aimed at filling a
knowledge gap to support the Government of FSM (GoFSM) in
improving the design of public expenditure policies to
address these key challenges. The main recommendations of
this PER to support the GoFSM in addressing the
aforementioned challenges are centered on how to (a) improve
public expenditure management to support macroeconomic
stability and growth, and (b) improve public expenditure
management to support efficient, effective, and equitable
service delivery. The PER is composed of a concise set of
chapters analyzing macroeconomic and fiscal trends,
intergovernmental relationships, public investment
management (PIM) issues, and the two largest expenditure
sectors: education and health. Data limitations may result
in some inaccuracies and inadvertent distortions in outcomes. |
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