Yap Summit Community Sector - Yap State Government

2012 

YAP STATE GOVERNMENT 

Second Economic and 

Social Summit 

YAP STATE 

[INFORMAL & TRADITIONAL 

SECTOR] 

This Dossier provides data and inputs for reflection on the working topics assigned to the Informal & 

Traditional Sector Standing Committee of the Second Economic and Social Yap State Summit. 

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CONTENTS 

CONTENTS ..................................................................................................................................................................... 2 

Table of Figures ............................................................................................................................................................. 3 

INTRODUCTION TO THE STANDING COMMITTEES ........................................................................................................ 4 

METHODOLOGY ............................................................................................................................................................. 5 

INFORMAL & TRADITIONAL SECTOR: Topics & Goals -suggested - ............................................................................... 6 

Strategic Development Plan (2004-2023) ................................................................................................................. 6 

SUBSISTENCE ACTIVITIES & PRIVATE SECTOR ........................................................................................................... 7 

Point of Reflection ................................................................................................................................................ 7 

Inputs on Private Sector ........................................................................................................................................ 7 

Inputs on Agriculture and Fisheries .................................................................................................................... 26 

CONSUMERS’ CHOICES ............................................................................................................................................ 43 

Input .................................................................................................................................................................... 43 

WELFARE & ENVIRONMENT .................................................................................................................................... 45 

Inputs .................................................................................................................................................................. 45 

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Table of Figures 

Figure 1. Economic Triopod ........................................................................................................................................... 4 

Figure 2 Private Sector & MDG 1 ................................................................................................................................. 10 

Figure 3 Labor Force 2010 & Private Sector ................................................................................................................ 11 

Figure 4 Labor Force 2010 & Gender & Private Sector ................................................................................................ 13 

Figure 5 Employment by Industry & Private Sector..................................................................................................... 14 

Figure 6 Employment by Industry & Gender & Private Sector .................................................................................... 17 

Figure 7 Class of Workers & Private Sector ................................................................................................................. 18 

Figure 8 Class of Workers & Gender & Private Sector ................................................................................................. 20 

Figure 9 Yap-NES Priority Policy & Projects Matrix ..................................................................................................... 26 

Figure 10 Extent of Agriculture Activities FY95-FY10 .................................................................................................. 29 

Figure 11 Employment by Industry & Agriculture ....................................................................................................... 30 

Figure 12 Crop Production ........................................................................................................................................... 32 

Figure 14 Break down of Fish Consumption and Sales ................................................................................................ 38 

Figure 13 Extent of Fisheries Activities FY95-FY10 ...................................................................................................... 38 

Figure 15 Employment by Industry & Fisheries ........................................................................................................... 39 

Figure 16 Marine Harvesting & Fisheries ..................................................................................................................... 41 

Figure 17 Imports of Food FY2000-FY2010 .................................................................................................................. 43 

Figure 18 The Role of Consumers Choices in the Economy ......................................................................................... 44 

Figure 19 Environment & MDG 7 ................................................................................................................................ 51 

Figure 20 Population 2010 ........................................................................................................................................... 53 

Figure 21 Population Growth Rate 1980-2010 ............................................................................................................ 54 

Figure 22 Unemployment Rate 2010 ........................................................................................................................... 54 

Figure 23 Gender & MDG 3 ......................................................................................................................................... 60 

Figure 24 Disability by Age & Gender # 9 .................................................................................................................... 65 

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INTRODUCTION TO THE STANDING COMMITTEES 

The economy of the State of Yap can be looked at from the tripod of three main areas that influence the macro 

economy, and that are fed by the activities developed in the productive sectors of the economy such as 

agriculture, fisheries, tourism, etc. The three core areas referred to are Public Sector, Private Sector, and Informal 

and Traditional Economy. 

Figure 1. Economic Triopod 

Hence three Standing Committees were created: Public Sector, Private Sector, and Informal & Traditional 

Economy. 

The three Committees will be working both separately and interacting with each other according to the topic 

under discussion. 

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METHODOLOGY 

The Standing Committees will articulate their work on each assigned topic as follows. 

a. Mapping the problem 

1. The Problem affects Yap from having different angles: 

• Local 

• Regional 

• Global 

2. Are the initial problems identified the most critical to be addressed? Not surface 

problem, but underlying causes. 

3. Determine the relationship between different contributing factors to focus on the Local 

level. 

b. Clarifying Expectations 

1. WHAT parts of the problem can be controlled/affected at Local level: What can Yap do? 

2. WHO can act on the problem at State Level? WHO are the ACTORS? 

c. Results Setting 

1. WHAT are achievable goals under the full control of the State? Determining short, mid 

and long term interventions that may be necessary for a sustainable solution.` 

2. HOW budget and human resources influence the process? How can Budget, Human 

Resources and the projects’ implementation be monitored? [CAPACITY] 

d. Recommendations Draft 

1. Defining WHO/which Departments/Organizations should consider this issue in their 

planning and monitoring. Identifying the partnership that may be necessary to 

effectively address the problem. 

2. Defining WHAT are the goals. 

3. Defining HOW budget and human resources should be planned to overcome the 

problem. Identifying resources and sources that may be required to deal with the 

problem. Addressing the roles that different stakeholders may need to play in solving 

the problem. 

4. Defining HOW can they be monitored. 

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INFORMAL & TRADITIONAL SECTOR: Topics & Goals -suggested - 

Topics: Subsistence Activities & Private Sector; Consumers’ Choices; Welfare & Environment. 

Goals: Linking subsistence activities and private sector, and bringing traditional activities into the formal economy; 

Strengthening the informal economy addressing people’s consumption habits towards local products; Developing 

recommendations for traditional and alternative welfare and environment solutions. 

Strategic Development Plan (2004-2023) 

The policy document that currently addresses the Yapese social, economic and environmental strategy is the 

Strategic Development Plan (SDP) 2004-2023. The plan was drafted at the national level in 2003 and it has not 

been tailored so far to the specific Yapese reality. The SDP defines four main development objectives. The first 

stresses the importance of achieving “Stability and Security” to maintain macroeconomic stability. 

Macroeconomic stability is indispensable given the progressively increasing cuts in the Compact funding towards 

the end of the Compact itself. The second objective advocates for the creation of an “Improved Enabling 

Environment for Economic Growth” where through institutional capacity an environment able to support “open, 

outward-oriented and private sector led development” should be created. The third objective aims at supporting 

an “Improved Education and Health Status”, providing basic Health and Education services. Finally, the fourth 

objective focuses on creating “Assured Self-Reliance and Sustainability” through the establishment of a trust fund 

aiming at replacing in the long term the annually appropriated transfers from the U.S.. 

These four objectives shape the framework within which the different sectors of the Yapese Social and Economic 

system are planned. The sectors as defined in the SDP are framed by sub-Goals inspired by the four main 

objectives described. 

The SDP does not directly include activities related to the Energy Sector, as well as initiatives undertaken by Public 

Works & Transportation (PW&T). However, the Energy Policy to be adopted at the nation level in the upcoming 

future and the logic under which PW&T operates explicitly respond to the needs expressed by the four main SDP 

objectives. PW&T and YSPSC should be highly involved in relation to the SDP Goals related to Environment and 

Public Sector Management. 

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SUBSISTENCE ACTIVITIES & PRIVATE SECTOR 

Enhancing the Positive Impact Subsistence Activities 

Subsistence activities are the reason why from Compact I to Compact II, despite the great extent of the cuts in 

financial aid, the State did not undergo a major recession. 

→ The Committee will explore the potential of traditional and subsistence activities, and how to link it to 

private and public sector, revitalizing its role as “comparative advantage” of the State. The Committee will 

also discuss how to address the impact of climate change on local practices. 

Point of Reflection 

• Gender, Small Business and Collateral 

o 

Women are more than 50% of Market Oriented Home Production 

Inputs on Private Sector 

SDP Private Sector Goals 

Departments Interviewed: YCC (all), PW&T (all) 

Private Sector # 1: Create a sound economic policy making environment, in full consultation with the private 

sector, to support export-oriented, private sector-led growth. 

policy making environment, in full consultation with the private sector: achieved; 

support export-oriented: strong impediments; 

private sector led growth: no elements to value it. 

Positive aspects towards the achievement of the Goal: 

• There is the perception that a policy making environment in full consultation with the private sector 

exists. The Yap Chamber of Commerce (YCC) well represents the existing link between the two sectors. 

Critical aspects were highlighted that may affect the final achievement of the Goal: 

• In order to target the private sector properly, first of all a definition of what private sector comprehends 

should be given. Agriculture fisheries, tourism can and should all follow under the definition of private 

sector. In fact, in the case of Yap purchasing chains are almost absent as the producer and the seller very 

often coincide. Therefore framing private sector as retailing does not apply. 

Recommendations were made to support the achievement of the Goal: 

• A definition of the very peculiar characteristics that the private sector may have in Yap should be given to 

avoid pursuing Goals set for other private sector realities. As mentioned in the critical aspects towards the 

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achievement of the Goal, the almost complete absence of purchasing chains in the local market should be 

taken into account preventing the setting of unrealistic targets and Goals. 

• For the private sector highlighting links between sectors is particularly important in terms both of 

comparative advantages and multiplier effects. 

• The domains within the private sector that have been identified as having more economic potential are 

the followings: tourism, fisheries, and the IT sector. Export oriented activities have been considered a 

realistic solution only applied to fisheries (25% of the world's tuna resources are located within the FSM 

Exclusive Economic Zone (EEZ, and Yap has the main water extension in the FSM). IT initiatives have the 

advantage of overcoming logistics and transportation costs that are the first impediment for 

internationally traded economic activities in Yap. However, further research should be undertaken in 

terms of costs and logistic aspects related to the continuous upgrades in IT technology in relation to costs 

of transportation and second hand markets to absorb outdate IT resources. 

Private Sector # 2: Improve the competitiveness of the factors of production to promote private sector 

development. 

strong impediments 


• Land tenure is perceived as the major impediment to the development of private sector 

entrepreneurship. The impediment has been identified as affecting mainly women entrepreneurship as 

they cannot use land as collateral not having direct ownership rights. 


• A strong emphasis has been placed on the potential of an IT sector development on island. 

Private Sector # 3: Improve the environment for FDI and expand entrepreneurial and business development 

support services. 



• Lack of local skills is perceived as an impediment to the attraction of FDI. This may lead to the import of 

foreign workers in relation to FDI, jeopardizing the potential benefits of FDI in Yap, as local employment 

trends and the economy won’t fully benefit from foreign investments. 

• Lack of local skills has been associated with the rate of failures of Yapese students under scholarship. 

[Secretariat Note: The actual causes of failure of Yapese students should be further explored, and other 

sources of capacity building should be object of additional research. E.g. voluntarism as knowledge 

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sharing and capacity building, foreign workers obligations to train local personnel to be effectively 

monitored, motivational workshops to promote a client oriented culture for the tourism industry, etc.] 


• No specific recommendations were suggested. [Secretariat Note: Geopolitical inputs, potential, 

implications and risks of FDIs attraction should be further explored.] 

Private Sector # 4: Reduce the direct role of the Government in the economy. 

not understood 


• Although there are pilot projects that tried to transfer the management of activities into the hands of 

private actors, these initiatives never moved to the next level ensuring private sector autonomy and a 

leading role in the economy. 

• The critical aspects related to enhancing the role of the private sector in the economy are seen as linked 

to the lack of skills and local capacity (Private Sector Goal #3). 

• Historically the Government is perceived as having more authority than the private sector. This affects 

both entrepreneurial projects, the ability/trust to tackle potential difficulties encountered in running 

private business or applying for SMEs funding. 


• The concept of Public-Private partnerships should be further explored, and it is perceived as the “way 

out” a dependency of the Yapese economy on the Public Sector. 

Private Sector # 5: Provide efficient and cost-effective economic infrastructure to support competitive private 

sector development. 

being achieved 


• Education, telecommunication and transportation infrastructures are perceived as gradually improving. 


• Good management has been identified as the main critical obstacle to a cost-effective economic 

infrastructure development. 

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• No specific recommendations were made. [Secretariat Note: It is highly recommended to undergo further 

research to identify the nodes that impede a cost effective use of local resources, grants and loans 

dedicated to infrastructures. A closer look at IPIC is also recommended.] 

Related MDGs 

MDG 1. Poverty, Hardship, Hunger 

Target 1-B. Employment 

GDP per person employed 

- wage sector 

-salary sector 

GDP per person employed (growth rate) 

Population employed (wage and salary sector) 

Person 15+ years of age in labor force (%) 

- Total/Male/Female 

Labor force in wage and salary jobs (%) 


Labor force unemployed (%) 


Working poor (households in lowest 30% expenditure 

with one or more workers) 

FY95 

FY08 

FY95 

FY08 

YAP 

$ 13,927 

$ 14,936 

YAP 0.5% 

[FSM] 

[$ 13,069] 

[$ 13,939] 

[FSM 

0.4%] 

2008 YAP 21.2% [FSM 

2000 YAP 

69/70/68 

2000 % YAP 

44/57/31 

2000 YAP 

4/6/3% 

[FSM] 

[59/67/50 

[FSM] %] 

[37/44/39 

[FSM] 

[22/21/24 

%] 

2005 YAP 66.9% [FSM 

77.9%] 

Figure 2 Private Sector & MDG 1 

Source: Millennium Development Goals & The Federated States of Micronesia, Status Report 2010 

Census Information Relevant to the Sector 

Labor Force 

Status 

FSM 

Yap 

Persons 15+ 

years 

66,163 7,693 

In labor force 35,276 5,046 

Percent 53.3 65.6 

Employed 31,791 4,869 

Formal work 15,134 2,465 

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Labor Force 

Status 

FSM 


Home 

production 

16,657 2,404 

Subsistence 8,562 1,807 

Market oriented 8,095 597 

Unemployed 3,485 177 

Percent of labor 

force 

Not in labor 

force 

Could have 

taken job 

Not available 

for work 

9.9 3.5 

30,887 2,647 

2,638 134 

28,249 2,513 

Figure 3 Labor Force 2010 & Private Sector 

Source: Yap State Census 2010 

Gender & Labor 

Force Status 

FSM 


Females 15+ years 32,762 3,956 

In labor force 14,679 2,545 

Percent 44.8 64.3 

Employed 13,143 2,477 

Formal work 5,568 976 

Home production 7,575 1,501 

Subsistence 4,394 1,164 

Market 3,181 337 

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Force Status 

FSM 


oriented 

Unemployed 1,536 68 

Percent of labor 

force 

10.5 2.7 

Not in labor force 18,083 1,411 

Could have taken 

job 

Not available for 

work 

With own children 

under 6 yrs 

1,167 53 

16,916 1,358 

7,569 838 

In labor force 3,803 604 

With own children 

6-17 yrs only 

4,679 688 

in labor force 2,673 535 

Subsistence Activity FSM Yap 

Total subsistence 

persons 15+ 

20,540 3,444 

For sale 793 31 

Own consumption 10,980 2,582 

Both 8,767 831 

Subsistence Activity 

& Gender 

FSM 


Total subsistence 

females 15+ 

8,949 1,939 

For sale 399 21 

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Force Status 

FSM 


Own consumption 5,298 1,502 

Both 3,252 416 

Figure 4 Labor Force 2010 & Gender & Private Sector 


Industry FSM Yap Yap 

% 

Current formal 

workplace 

persons 15+ 

Agriculture, 

hunting, & 

forestry 

15,134 2,465 

218 4 0.16 

Fishing 529 15 0.61 

Manufacturing 219 29 1.18 

Electricity, gas 

and water 

supply 

304 92 3.73 

Construction 1,167 183 7.42 

Wholesale & 

retail trade, 

repair of motor 

vehicles or 

motorcycles & 

personal or 

household 

goods 

Hotels and 

restaurants 

2,650 385 15.62 

778 168 6.82 

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Industry FSM Yap Yap 

% 

Transportation, 

storage and 

communication 

Financial 

intermediation 

Real estate, 

renting and 

business 

activities 

Other 

community, 

social & 

personal 

service 

activities 

Private 

households 

with employed 

persons 

819 116 4.71 

219 39 1.58 

286 70 2.84 

432 68 2.76 

321 42 1.70 

Figure 5 Employment by Industry & Private Sector 


Industry & 

Gender 

Male, Current 

formal 

workplace 15+ 

Agriculture, 

hunting, & 

forestry 

FSM Yap Yap 

% 

9,566 1,489 

154 3 0.20 

Fishing 485 12 0.81 

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Industry & 

Gender 


% 



and water 

supply 

271 81 5.44 

Construction 1,124 180 12.09 

Wholesale & 

retail trade, 


vehicles or 

motorcycles & 

personal or 

household 

goods 

Hotels and 

restaurants 


storage and 

communication 

Financial 


Real estate, 

renting and 

business 

activities 

Other 

community, 

social & 

personal 

service 

activities 

Private 

households 

with employed 

1,356 182 12.22 

374 85 5.71 

650 80 5.37 

71 7 0.47 

190 41 2.75 

267 43 2.89 

94 20 1.34 

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Industry & 

Gender 


% 

persons 

Female, Current 

formal 

workplace 15+ 

Agriculture, 

hunting, & 

forestry 

5,568 976 

64 1 0.10 

Fishing 44 3 0.31 



and water 

supply 

33 11 1.13 

Construction 43 3 0.31 

Wholesale & 

retail trade, 


vehicles or 

motorcycles & 

personal or 

household 

goods 

Hotels and 

restaurants 


storage and 

communication 

Financial 


Real estate, 

renting and 

business 

1,294 203 20.80 

404 83 8.50 

169 36 3.69 

148 32 3.28 

96 29 2.97 

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Industry & 

Gender 


% 

activities 

Other 

community, 

social & 

personal 

service 

activities 

Private 

households 

with employed 

persons 

165 25 2.56 

227 22 2.25 

Figure 6 Employment by Industry & Gender & Private Sector 


Class 

Worker 

of 


% 

Current 

formal 

workforce 

persons 15+ 

Private for 

profit 

company 

Private nonprofit 

company 

Self 

employed 

Formal 

Sector Sub- 

Total 

15,134 2,465 

5,742 875 35.50 

745 142 5.76 

440 51 2.07 

6,927 1,068 43 

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Class 

Worker 

Unpaid 

family 

worker 

of 


% 

49 3 0.12 

Home 

production 

activities for 

own 

use/sale 

285 12 0.49 

334 15 1 

TOTAL 7,261 1,083 44 

Figure 7 Class of Workers & Private Sector 


Gender 

Class 

Worker 

& 

of 


% 

Male, Current 

formal 

workforce 15+ 

9,566 1,489 

Private 

profit 

company 

for 

3,653 528 35.46 

Informal 


Total 


company 

Self 

employed 

Male, Formal 


426 71 4.77 

242 29 1.95 

4,321 628 42 

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Gender 

Class 

Worker 

Total 

& 

of 


% 

Unpaid family 

worker 

Home 

production 


own use/sale 

22 2 0.13 

163 3 0.20 

Male, 

Informal 

Sector 

Total 

185 5 0.33 

Male, TOTAL 4,506 633 42.33 

Female, 

Current 

formal 

workforce 15+ 

yrs 

5,568 976 

Private 

profit 

company 

for 

2,089 347 35.55 

Sub- 


company 

Self 

employed 

Female, 

Formal Sector 

Sub-Total 

Unpaid family 

worker 

319 71 7.27 

198 22 2.25 

2,606 440 45.07 

27 1 0.10 

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Gender 

Class 

Worker 

& 

of 


% 

Home 

production 


own use/sale 

Female, 

Informal 


Total 

Female, 

TOTAL 

122 9 0.92 

149 10 1.02 

2,755 450 46.09 

Figure 8 Class of Workers & Gender & Private Sector 


Links with other sectors 

Existing 

Critical links between private sector entrepreneurship and gender related organizations/initiatives. 

Private sector as defined by other sectors/domains: agriculture, fisheries, tourism. 

Suggested 

Private Sector – DOE – COM – Vocational Training Institutions/initiatives. 

Strengthen explicit links with agriculture, fisheries, tourism. 

Private sector and IT technology/business. [Secretariat Note: explore the following: “The National Department of 

Education has contracted the FSM College of Micronesia to assist in the development of Information and 

Communications Technology (ICT) standards for students, teachers and administrators. These standards will guide 

the integration of ICT in future years. Training and purchase plans will be developed based on the standards.” 

Source: FSM: Comments from the Federated States of Micronesia on the Five Year Review of the Amended Compact of Free 

Association (2011), pp. 23. Explore also: E-Commerce Micronesia, Made-in-Micronesia, and Micronesia Saves. 

Endorsed the establishment and alignment of the e-commerce initiative supporting the RWDC's entrepreneurial 

priority area. This includes positioning a product signature identity "Made-in-Micronesia" strategy. This 

endorsement extended to the corresponding recommendation to establish a similar strategy entitled „Micronesia 

Saves‟, which supports the RWDC's computer and financial literacy strategy. Explore also: “Tonga Declaration”, a 

“Framework for Action on ICT for Development in the Pacific”, assignment of the lead coordination role of the 

Secretariat of the Pacific Community (SPC), and the establishment of regional initiatives including the Pacific 

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Computer Emergency Response Team (PacCERT), Pacific ICT Regulatory Resource Center (PIRRC), and ICT Capacity 

Building for Pacific ACP Countries (ICB4PAC).] 

The Sector through existing reviews and/or policies 

U.S. Department of Interior: Report to Congress on the First 5years Review of the Compact of free Association 

with the Federated States of Micronesia (2010) 

pp. 15. “The value of private sector production, excluding households, … it averaged 26.8 percent in 1995-2008.” 

pp. 16. “According to the IMF, the FSM was ranked 126 th in the world in the most recent Doing Business Report 

from the World Bank. This ranking, the IMF notes, was not only lower than the previous one, but also the lowest 

among the Pacific Island countries.” 

pp. 18. “This unavoidable reduction in Compact grant and public spending translates to jobs and income, which 

have so far not been replaced by gains in private sector outputs and jobs.” 

pp. 18. BUSINESS AND TAXES: “the call for growth in business and, therefore, the tax base more urgent.” 

pp. 18. PUBLIC INFRASTRUCTURE: “one way to increase economic output quickly is to expand public infrastructure 

that would add to the productive capacity of the economy in the longer term and create jobs in the near term.” 

pp. 18. INFRASTRUCTURE – TOURISM: “ Infrastructure such as improvements in roads and port and airport 

facilities may particularly be helpful to tourism, which despite slow growth in recent years holds some potential … 

specialty groups such as divers, the so called eco-tourists and regional and world explorers of the oceans.” 

FSM: Comments from the Federated States of Micronesia on the Five Year Review of the Amended Compact of 

Free Association (2011) 

pp. 47. “private sector output has declined by 1.9% across the FSM from FY04 to FY08 … Yap a significant decrease. 

This lackluster performance is attributable to a number of factors including delays in the implementation of 

infrastructure projects, the erosion of household spending power, the continued weakness of exports, the 

worldwide economic slowdown, the slumping of the nation’s tourism industry, the impacts of the global financial 

markets crisis, the slowing of remittances from overseas workers and the shift in productive factors based on 

consumption-induced price shifts.” 

pp. 47. TAX REFORM: “The major components of the proposed reform include: 

• Modernization and strengthening of Tax Administration through a unified Revenue Authority Act (URA); 

• Elimination of the Gross Receipts Tax (GRT) and the Wage and Salary Tax and replacement by a 25%Net 

Profits Tax (NPT); 

• Introduction of a 10% value-added tax (VAT) to replace current national customs duties and state sales 

taxes, as well as state ability to impose an exercise tax. “ 

pp. 48. “Institutional structures are the investment, employment, fiscal, monetary and external policies that 

contribute to the nature of the private sector climate. The World Bank identifies each of these policy areas as 

contributing to the “Ease of Doing Business” (EDB) index in a particular country. The FSM debuted on the World 

Bank’s EDB index in 2009 as the 125 Th most business friendly country of the 183 countries tracked … Overall the 

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FSM lags well behind its sister states in terms of the EDB index [Palau 92 nd ; RMI 93 rd ] and has failed to show any 

substantial improvement over Amended Compact period. The impetus to make these changes lies largely with the 

political leadership in the FSM, and is a priority as discussed in the recommendations section.” 

pp. 49. MEASURING PRIVATE SECTOR AS PERCENTAGE OF GDP: FY04-FY08. “ Private sector output, as a 

percentage of the GDP, has been stagnant across the FSM during the entire period of the Amended Compact … Yap 

a significant decrease.” 

pp. 51. LACK OF TECHNOLOGY AND ECONOMIES OF SCALE: it has been highlighted as being the main impediment 

to the development of a strong private sector, together with the fact that private sector grants finance for the 

51% consumption (wages and salaries) [Working Group Note: exploring cooperative options to overcome 

technological and scale gaps, while considering consumers choices towards local productions to at least maximize 

the high share of private sector grants that covers consumption through wages and salaries]. 

pp. 51. “Government can support private sector development by providing appropriate institutional and physical 

infrastructure, or direct support.” 

pp. 52. “Reliable and sufficient transportation, energy and communication networks are fundamental for an active 

private sector … The FSM thus proposes that economic infrastructure projects be treated with the same priority as 

social infrastructure … One of the most pressing needs of the private sector is reliable and cost-effective 

transportation of goods. The current commercial providers are unable or unwilling to provide routine or costeffective 

cargo services and current production volumes leave the existing private sector with limited negotiating 

leverage for bulk shipment rates.” [Working Group Note: Regarding cargo’s supply chains the efficiency of the 

schedule should be further analyzed to estimate the most cost effective way to manage transportation of goods 

into Yap.] 

pp. 53. INVESTMENT DEVELOPMENT FUND (IDF) by the U.S. Government is seen as crucial to the private sector 

development. 

Yap: work in progress towards a local perspective 

The Yapese recommendations towards strengthening the Private Sector were formulated in occasion of the 

National Economic Symposium (NES) in 2011. They were summarized in the following “Yap-NES Priority Policy & 

Projects Matrix”. 

Private Sector 

Critical Areas 

Institutional 

Reform 

Infrastructure 

Requirement 

Investment 

Opportunities 

I. ACCESSIBILITY TO CAPITAL & LENDING 

1. Banking & 

Lending 

Practices 

Research 

existing laws, 

regulations and 

practices to 

ease lending 

and expand 

Not Required. 

Increased number 

of business ventures 

in new tradable 

industries, joint 

ventures, 

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Institutional 

Reform 


Requirement 

Investment 

Opportunities 

the private 

sector. 

employment, etc. 

2. Taxation & 

Incentives 

Research 

existing laws 

and regulations 

including VAT 

to provide 

incentives for 

private sector 

capital 

formation and 

expansion. 

Not Required. 

Increased capital 

formation and 

expansion through 

capital gains, R&D 

and other activities 

in support of 

business growth. 

3. Foreign 

Investment 

Research 

existing laws 

and regulations 

to attract 

appropriate 

foreign 

investment. 

Creation of 

new 

infrastructures 

for tradable 

industries 

through 

foreign 

investments. 

Creation of joint 

ventures for small 

and large scale 

industries for export 

markets. 

II. DOMESTIC & FOREIGN MARKETS ACCESSIBILITY 

1. Marketing 

Feasibility 

Study Program 

Policy 

endorsement 

with 

appropriate 

representation 

from Gov't and 

the Private 

Sector. 

Not Required. 

Creation of tradable 

industries through 

selection and 

formulation of 

appropriate 

technologies and 

export markets. 

2. Public 

Market-Place 

Designation of 

vacant lot 

across from 

YCA. 

A&E Required 

for 

Construction. 

A marketplace for 

buying & selling of 

Local Produce and 

Crafts & Arts 

products. 

3. Access to Mandate Establish Improved marketing 

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Institutional 

Reform 


Requirement 

Investment 

Opportunities 

Foreign 

Investors 

Department of 

Foreign Affairs 

to coordinate 

marketing of 

Yap/FSM 

products. 

outlets in US 

Mainland & 

neighboring 

countries to 

showcase Yap 

and FSM 

products. 

of Yap/FSM 

products. 

III. TRADE & INDUSTRY DEVELOPMENT & EXPANSION 

1. Product 

Processing 

Plant(s) 

Product 

Certification & 

Quality Control 

Measures. 

A&E Required 

for 

Construction. 

Small Scale: 

Agriculture Produce; 

Pelagic & Reef Fish 

Processing. 

2. Fishing 

Industry 

Review existing 

laws and 

regulations for 

YFA to market 

fish and other 

marine species 

and for MRMD 

to regulate 

sustainable use 

and 

production. 

Purchase 

additional 

Purse Seiners, 

long-liners and 

in-shore fishing 

vessels, etc.. 

NORMA to scale 

back on licensing of 

foreign fishing 

vessels; increase 

volume of 

processed exports 

to markets in Guam, 

Japan, Mainland 

China, Taiwan & US 

markets. 

3. 

Manufacturing 

Industry 

Research laws 

on creation of 

a zone for tax 

free products 

into US 

Mainland and 

China 

Mainland 

markets 

A&E Required 

for Free Trade 

Zone 

Construction if 

FSM is eligible. 

On 

construction of 

appropriate 

facilities for 

manufacturing 

goods. 

Tradable Industries 

can be created for 

niche markets in the 

US Mainland and 

China. Ex; Value- 

Added industries 

from Trochus, 

Coconut/Copra, 

product 

components, etc 

4. Trademark & Review FSM Not Required. Secured marketing 

24 | P a g e




Institutional 

Reform 


Requirement 

Investment 

Opportunities 

Copy Right 

laws on 

creation of 

trademarks 

and patents. 

& protection of 

Yap/FSM products 

through patents and 

Intellectual Property 

Rights, etc.. 

5. Inter/Intra- 

Island 

Transportation 

Review exiting 

FSM laws on 

inter and intraisland 

commerce for 

improvement. 

Inter/Intra- 

Island viable 

marine and air 

transport 

vessel(s). 

Established marine 

and air trade routes 

for intra-island 

commerce. Secure 

more frequent air 

transport with air 

carriers/Continental 

, etc for cargo and 

passengers. 

6. 

Communicatio 

n & 

Information 

Technology 

Review exiting 

FSM laws on 

communicatio 

n commerce 

and 

capabilities for 

improvements. 

FSM Telecom 

to review and 

upgrade where 

needed its 

communicatio 

n hardware to 

meet demand 

for on-line or 

e-commerce. 

Improved 

accessibility to 

international 

businesses for 

marketing of local 

arts and crafts, 

marine and 

agriculture 

products. 

IV. HUMAN RESOURCE DEVELOPMENT 

1. Vocational 

Education 

Manpower and 

Employment 

Survey in 

progress. 

Not Required. 

Manpower & 

Employment needs 

for construction, 

hospitality 

industries and other 

tradable skills. 

2. Academic 

Education 

Manpower and 

Employment 

Survey in 

progress. 

Not Required. 

Manpower & 


in management, 

business, education, 

etc.. 

25 | P a g e




Institutional 

Reform 


Requirement 

Investment 

Opportunities 

3. Professional 

& Specialized 

Education 

Manpower and 

Employment 

Survey in 

progress. 

Not Required. 

Manpower & 


for engineers, 

medical services, 

biology, physics, 

etc.. 

V. PUBLIC-PRIVATE PARTNERSHIP 

1. Yap Chamber 

of Commerce - 

Business 

Forum- 

Relations 

Policy 

endorsement 

of a pro-active 

entity to liaise 

and coordinate 

programs and 

projects 

between the 

Gov't and the 

Private Sector. 

Not Required. 

Improved 

coordination of 

priority projects and 

programs between 

the Gov't and the 

Private Sector. 

Figure 9 Yap-NES Priority Policy & Projects Matrix 

Inputs on Agriculture and Fisheries 

SDP Agriculture Goals 

Departments Interviewed: YINS (all), DAF (all) 

Agriculture # 1: A well resourced and properly focused agriculture sector operating within a stable and 

consistent policy framework. 



• The Agriculture Sector has clear and focused Goals such as the formulation and implementation of the 

Consumption Survey. This is internally perceived as a point of strength, despite the declared lack of 

resources limited the implementation of those Goals. 


26 | P a g e


• The Agriculture Sector perceives itself as not being supported. The sector perceives itself as not being a 

priority in budget terms. 

• There is no explicit Agriculture Policy established by the local Government. [Secretariat Note: The effects 

of the yet to be approved National Agriculture Policy still have to be produced, however there is a need of 

a more specific and rooted local planning.] 


• A cooperative of farmers should be created. 

• The sector perceives as a necessity looking at extra source of funding to complement the perceived lack of 

budget support. Being Food Security a recognized priority by International Banks and Organizations, the 

possibility of applying for food security funds was highlighted as recommendable by the sector’s internal 

stakeholders. 

• The budget allocated for agriculture should reflect the +6% suggested in the SDP. 

• Agriculture should be recognized as a priority towards self-reliance. 

Agriculture # 2: Increase production of traditional farming systems for home nutritional and traditional needs 

and cash incomes. 

strong impediments/no elements to value it 

Positive aspect towards the achievement of the Goal: 

• Subsistence farming presently plays a major role in the local communities 


• There are no data to measure the extent of the consumption of traditional farming product, and their 

percentage of the total food consumption within the state. This is an impediment in identifying why and 

under which circumstances (price, cooking time, values, etc.) people consume locally produced food or 

imported products. 

• The long lasting debate on how to foster the economic potential of an increasing of the production of 

local food faces the dilemma on whether the focus should be on the demand or on the supply side. 


• A consumption survey has been recommended to determine the level of consumption of local versus 

imported food. 

27 | P a g e


• The importance of rethinking prices of local products in their relation to imported food has been 

highlighted. 

• The creation of a cooperative was recommended to help controlling and matching local products price 

needs. 

Agriculture # 3: Increased volumes of saleable surpluses to be marketed by the private sector into local and 

regional markets. 



• Although informally, small entrepreneurs are already involved in the production of agricultural products 

for sale (e.g. tuba, bettlenuts, coconut oil, etc.). 


• In targeting the local market, the dilemma is on whether the focus should be on supporting demand or 

supply. 

• There is a lack of data on agricultural production, both in terms of locally consumed products, and in 

relation to small amounts of food informally sent abroad without being recorded. 


• As for Goal #2, rethink pricing of locally produced products is necessary, to readdress consumers’ choices 

and of purchasing imported food. Experimentations have been done in terms of subsidies to support local 

production, but were unsuccessful. . 

• As for Goal #2, the creation of a cooperative was recommended to help controlling and matching local 

products price needs. 

• Export solutions and new products should be explored. Bettlenuts and bananas were identified as the 

only two sustainable products with value added potential, and with low long term sustainability risk. 

• Meat slaughtering should be for local market not for export as there are too many requirements and costs 

to export meat products. A decline in imports will be a great achievement per se. 

• The potential of new and faster recipes to be made with local products should be explored. The creation 

of new local recipes may also support the branding of local products as “niche products”, which may 

support their exports. 

28 | P a g e


Agriculture # 4: Promote environmentally sound and sustainable production. 

being achieved/strong impediments 


• There is already an established network of cooperation over environmental sustainability of agricultural 

production. [Refer to the Existing Links Session of the Agriculture Sector for further details]. 

• Samples of good practices towards the achievement of the Goal are the defeated pesticides’ abuse, and 

an SPC project that targeted invasive species. 


• The Goal is being achieved in practice; however there is a perceived lack of Government’s attention and 

institutional capacity. 

• Environmentally and sustainable production issues tend to be discontinuous as they are subjected to 

extra budgetary funding. 


• It was recommended that DAF continues to work together with EPA to promote further environmental 

awareness in agricultural development. 

Agriculture Data 

12.00 

10.00 

8.00 

6.00 

4.00 

2.00 

0.00 

25.00% 

20.00% 

15.00% 

10.00% 

5.00% 

0.00% 

Agriculture, Hunting and Forestry 

Percentage Change 

Linear (Agriculture, Hunting and Forestry) 

Figure 10 Extent of Agriculture Activities FY95-FY10 

DATA Source: DOI and Pacific Island Training Initiative, “Federated States of Micronesia, Fiscal Year 2010 Economic 

Review”, available online via www.pitiviti.org . 

29 | P a g e



Industry FSM Yap Yap % 

Current formal workplace persons 

15+ 

Agriculture, hunting, & 

forestry 

15,134 2,465 

218 4 0.16 

Industry & Gender FSM Yap Yap % 

Male, Current formal workplace 

15+ 


forestry 

Female, Current formal workplace 

15+ 


forestry 

9,566 1,489 

154 3 0.20 

5,568 976 

64 1 0.10 

Figure 11 Employment by Industry & Agriculture 


Crops Total Yap Yap % 

SAKAU 

Total 4,105 3 

Consume 1,582 2 66.67 

Sell 231 - 

Both 2,292 1 33.33 

COCONUT 

30 | P a g e



Total 15,068 2,093 

Consume 11,948 1,756 83.9 

Sell 177 7 0.33 

Both 2,943 330 15.77 

BANANA 

Total 15,437 2,140 

Consume 12,267 1,952 91.21 

Sell 170 9 0.42 

Both 3,000 179 8.36 

CITRUS 

Total 7,642 923 

Consume 6,257 827 89.60 

Sell 107 1 0.11 

Both 1,278 95 10.29 

BREAD FRUIT 

Total 14,629 1,841 

Consume 12,277 1,736 94.30 

Sell 113 - - 

Both 2,239 105 5.70 

TARO 

31 | P a g e



Total 12,879 2,052 

Consume 10,655 1,907 92.93 

Sell 137 4 0.19 

Both 2,087 141 6.87 

YAM 

Total 7,075 1,405 

Consume 5,934 1,296 92.24 

Sell 105 2 0.14 

Both 1,036 107 7.62 

BETELNUT 

Total 8,906 1,935 

Consume 5,264 1,227 63.41 

Sell 479 14 0.72 

Both 3,163 694 35.87 

VEGETABLE 

Total 5,921 1,557 

Consume 4,703 1,463 93.96 

Sell 89 9 0.58 

Both 1,129 85 5.46 

Figure 12 Crop Production 



32 | P a g e


Existing 

Link between the DAF and EPA. 

Suggested 

Link between agriculture and private sector targeting mainly the local market, and possibly promoting export of 

agricultural products. 

Link between private sector small entrepreneurs and local communities [possibly through a cooperative] to 

promote, and possibly enhance, subsistence farming selling surpluses in the local market. 




pp. 50 Agriculture is not comprehended in the Sectors that have “Sector Grant” dedicated to them. Many activities 

are funded by the U.S. Department of Agriculture (USDA) and other agencies outside the main Compact umbrella. 

The Compact Sector Grants however support Environmental projects on issues supporting the achievement of Goal 

4 of the SDP: “Promote environmentally sound and sustainable production”. More specifically, “Environment 

sector grants support Government efforts to protect the country’s land and marine environment and to conserve 

and achieve the sustainable use of natural resources. Allowable activities include the ongoing development, 

adoption and enforcement of policies, laws and regulations; the reduction and prevention of environmental 

pollution and degradation; the protection of biological diversity; the establishment of conservation areas; 

environmental infrastructure planning, design construction and operation; interaction and cooperation with 

nongovernmental organizations; the promotion of increased environmental awareness; and , the promotion of 

increased citizen involvement in conservation.” 



The Comments from the Federated States of Micronesia on the Five Year Review of the Amended Compact of Free 

Association do not include an overview of the Agriculture Sector. The Policy Proposal of the Agriculture National 

Policy, designed based on the SDP structure, will be taken into consideration during the formulation of the final 

policy recommendations. [Working Group Note: Members of the Task Force participated into the meetings with 

national Government officials related to the mentioned Agriculture Policy Plan.] 


Yap has currently no specific agricultural policy, and has not so far planned agriculture related activities using the 

SDP as a point of reference. The impact of the national Agriculture Policy designed on the SDP structure, and 

currently subjected to approval at the national level is currently unknown. Independently from the outcome of 

national decisions over the new Agriculture Policy there is a perceived need to translate macro objectives as stated 

in the national policy documents into a realistic and locally tailored policy, allowing in this way the agriculture 

sector to gain institutional, political and budgetary support. 

[Secretariat Note: It would be useful to conduct a survey on the consumption of local food. The survey will be 

relevant to address the definition and thresholds of poverty in Yap, and the role played by subsistence agriculture 

in mitigating poverty. Additionally the consumption of local food should be considered for the GDP calculation is to 

33 | P a g e


track the impact that local food. The survey will finally help to highlight whether and which kind of import 

substitution practices may be suitable in Yap.] 

Inputs for reflection 

• Not a budget priority: lack of government support despite being the biggest share of the GDP and +6% 

recommended in the SDP 

o 

o 

Lack of explicit Agriculture Policy at State Level 

SDP experience shows that tailoring at local level is fundamental for ownership, and hence 

efficiency: critical approach to cuts and growth 

• Major role to play in addressing local demand and consumption (food security and dependency): reexploring 

critically cooperative options 

o 

o 

o 

o 

Need to collect data on reasons and extent of consumption of local and imported food 

Agriculture as part of Private Sector Development & Informal Economy Potential 

Weather Index Insurance to Incorporate Informal Economy & Support Government-citizens 

relations 

Tailoring retail of local products to the local context: bringing the cooperative to the villages 

instead of centralizing it 

• Addressing Exports aims and concerns: 

o 

o 

Strengthening and branding locally to substitute imports first 

Focusing on export of niche products in phase two: overcoming the limits of lack of economies of 

scale with feasible solutions to address transportation constraints, high quality and high 

revenues per unit (e.g. slaughtering malfunction) 

• Networks and crosscutting approach to planning (FIRST) and funds hunting: DAF – EPA – 

NGO/Individuals – COM – R&D (Researchers Coordinator) + DOE (sustainability) 

SDP Fisheries Goals 

Departments Interviewed: MRMD (all), YFA (all) 

Fisheries # 1: Stakeholders and personnel contributing to fisheries and marine resource management and 

development are suitably trained and skilled to effectively participate in sectoral activities. 



• Personnel resources are perceived as limited but sufficient to promote successfully agency programs. 

• Agencies have access and are collaborating with third party specialists and consultants. 

34 | P a g e



• Achieving an effective use of limited personnel to coordinate programs and achieve tasks is considered a 

major challenge. 

• Achieving an effective use of limited funding and budget is another major challenge. 

• The lack of coordination and planning between agencies represents an additional constraint. 

• The lack of knowledge transfer to local staff by international experts minimizes the effectiveness of 

consultancy expenditures. 


• Capacity building and training have been highly recommended. There is a perceived need to define and 

follow Action Plans, as well as to consider change management operations. 

• More personnel and funding is perceived as a necessity. 

Fisheries # 2: Inshore and Coastal marine resources are monitored and managed in a consultative and 

participatory manner that respects traditional practice, utilizes established scientific methodology, sustains 

biodiversity and resource abundance. 



• The presence of many Marine Protected Areas (MPAs) sites around Yap was highlighted as a positive 

factor. 

• Many programs and public awareness activities targeting the Goal were estimated being successfully 

implemented. The locally tailored approach used to monitor biodiversity that involved significantly the 

communities was considered a positive asset. 


• The lack of continuous monitoring activities and data collection was identified as a constraint. The 

monitoring of biodiversity should be undertaken on a yearly basis to be effective. 



• Achieving an effective use of limited funding and budget is another major challenge. The lack of 

coordination and planning between agencies represents an additional constraint. 


• More personnel and funding are perceived as a necessity. 

• YFA should contribute/be able to contribute to the monitoring of biodiversity and its extent. 

35 | P a g e


• More communication between MRMD and YFA has been recommended. 

Fisheries # 3: Inshore and Coastal marine resources are effectively exploited to meet subsistence and artisanal 

needs and optimized stakeholder social and economic benefits within sustainable parameters. 

achieved 


• The presence of many Marine Protected Areas (MPAs) sites around Yap was highlighted as a positive 

factor. 

• There is a perceived significant presence of market opportunities to sell costal marine resources. 

• There is evidence of public awareness of the economic potential of an effective use of costal marine 

resources. 


• The lack of continuous monitoring activities and data collection was identified as a constraint. 



• Achieving an effective use of limited funding and budget is another major challenge. The lack of 

coordination and planning between agencies represents an additional constraint. 



• No other significant recommendations were made. 

Fisheries # 4: Oceanic resources are monitored and managed with best practice methodology to ensure harvest 

levels remain within sustainable parameters. 



• There is evidence of community involvement in the monitoring and management of oceanic resources. 

The presence of many Marine Protected Areas (MPAs) sites around Yap was highlighted as a positive 

factor. 


• The lack of coordination between sectors represents a major constraint. 

• The lack of continuous monitoring activities and data collection was identified as a constraint. 

36 | P a g e


• The lack of funding and personnel was highlighted as the main challenge towards the achievement of the 

Goal. 



• No other significant recommendations were made. 

Fisheries # 5: Oceanic resources are exploited in a manner that assures optimum economic benefit to FSM. 



• There is the perception that there is no monitoring of the oceanic resources exploited. 

• There is the perception that there are currently no data on the economic benefits derived from the 

exploitation of oceanic resources. 


• There is the perception that enhancing the coordination between different sectors involved will support 

the achievement of the Goal. [Working Group Note: Refer to the suggested links between sectors 

section.] 

• The establishment of a fishing cooperative for the local exploitation of oceanic resources was suggested. 

More specifically the fish harvested in oceanic waters was suggested to be shipped directly to Palau or 

Guam and returning to Yap only at the end of the sale. 

• The Ngulu Island has been recommended as a suitable spot for aquaculture. 

• Setting up an efficient system of monitoring and data collection was highly recommended. 

37 | P a g e


Fisheries Data 

9.00 

8.00 

7.00 

6.00 

5.00 

4.00 

3.00 

2.00 

1.00 

18.00% 

16.00% 

14.00% 

12.00% 

10.00% 

8.00% 

6.00% 

4.00% 

2.00% 

Fisheries 

Percentage Change 

Linear (Fisheries) 

0.00 

FY1995 FY1996 FY1997 FY1998 FY1999 FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 

0.00% 

Figure 13 Extent of Fisheries Activities FY95-FY10 

DATA Source: DOI and Pacific Island Training Initiative, “Federated States of Micronesia, Fiscal Year 2010 Economic 

Review”, available online via www.pitiviti.org . 

Tuna, Reef Fish, Sea Cucumber Trochus, Lobster, Crab, 

Clam 

Consume Average 86.85% 

Sell Average 2.39% 

Both Average 8.62% 

Figure 14 Break down of Fish Consumption and Sales 

38 | P a g e



Industry FSM Yap Yap % 

Current formal workplace persons 

15+ 

15,134 2,465 

Fishing 529 15 0.61 

Industry & Gender FSM Yap Yap % 

Male, Current formal workplace 

15+ 

9,566 1,489 

Fishing 485 12 0.81 

Female, Current formal workplace 

15+ 

5,568 976 

Fishing 44 3 0.31 

Figure 15 Employment by Industry & Fisheries 


Marine Life Total Yap Yap % 

TUNA 

Total 5,347 963 

Consume 3,379 904 93.87 

Sell 95 3 0.31 

Both 1,873 56 5.82 

REEF FISH 

Total 10,770 1,720 

Consume 7,343 1,569 91.22 

Sell 162 4 0.23 

39 | P a g e



Both 3,265 147 8.55 

SEA CUCUMBER 

Total 4,971 37 

Consume 3,477 29 78.38 

Sell 282 6 16.22 

Both 1,212 2 5.41 

TROCHUS 

Total 3,663 400 

Consume 2,157 223 55.75 

Sell 134 23 5.75 

Both 1,372 154 38.50 

LOBSTER 

Total 5,642 1,102 

Consume 4,260 1,047 95.01 

Sell 89 3 0.27 

Both 1,293 52 4.72 

CRAB 

Total 8,517 1,883 

Consume 6,965 1,840 97.72 

Sell 96 3 0.16 

Both 1,456 40 2.12 

40 | P a g e



CLAM 

Total 6,499 1,254 

Consume 5,283 1,229 98.01 

Sell 82 3 0.24 

Both 1,134 22 1.75 

Figure 16 Marine Harvesting & Fisheries 



Existing 

Link between MRMD and YFA. 

Suggested 

Link between Marine Resource, YFA, Public Safety, OPB, and DY&CA. 




N/A 



pp. 58. “The primary source of local revenue at the national level remains through the sale of tuna fishing licenses 

and the foreign fleets in FSM waters are growing per the pecuniary prerogatives of a developing nation. Ecological 

pressures therefore are on upswing.” 


As recalled in the Private Sector Session, during the National Economic Symposium (NES) held in 2011, few 

recommendations were given to define a Yapese vision on the local Fisheries Sector. These included reviewing 

existing laws and regulations for YFA to market fish and other marine species, and for MRMD to regulate 

sustainable use and production. Infrastructural improvements such as purchasing additional purse seiners, longliners 

and in-shore fishing vessels were perceived as needed. Additionally the further investment 

recommendations were identified during the NES: scaling back NORMA’s licensing of foreign fishing vessels; 

41 | P a g e


increasing volume of processed exports should try to access markets in Guam, Japan, Mainland China, Taiwan and 

US markets. 

Furthermore hypothesis of reducing transportation costs of exporting fish to Guam and Palau are being developed 

at YFA by a JICA volunteer, and should be further explored. 

Inputs for reflection 

• Not a budget priority 

• Lack of monitoring and data (climate change impact) 

• Poor Planning: Lack of Policy/Action Plans Framework at State and Agency 

o 

Ownership & efficiency: critical approach to cuts and growth 

• Major role to play in addressing local demand and consumption (food security and dependency) 

• Good Practices with MPAs and Community Involvement 

• Addressing Exports aims and concerns: 

• Transportation routs (JICA) & National-State relations 

• Networks and crosscutting approach to planning (FIRST) and funds hunting: YFA – MRMD – EPA – 

NGO/Individuals – COM – R&D (Researchers Coordinator) + DOE (sustainability) 

Fisheries additional Info to consider 

Pacific Islands Forum Fisheries Agency (FFA) http://www.ffa.int/ 

Regulatory Framework: “The Vessel Day Scheme (VDS) is a scheme where vessel owners can purchase and trade 

days fishing at sea in places subject to the Parties to the Nauru Agreement (PNA).The purpose of the VDS is to 

constrain and reduce catches of target tuna species, and increase the rate of return from fishing activities through 

access fees paid by Distant Water Fishing Nations (DWFNs).” 

The Regional Tuna Management and Development Strategy (RTMADS) 2009: 

http://www.ffa.int/system/files/Regional%20Tuna%20Management%20and%20Development%20Strategy.pdf 

“The FFA member waters are the most productive in the WCPO (Figures 4). Total production in FFA waters in 2009 

was a record 1.1 million Mt, up 4% on 2008 and accounting for 57% total catch in WCPO. Over the period 1997- 

2009, the catch from FFA waters ranged between 0.5 and 1.1 million Mt, with the last four years showing 

increasing trends consistently above the 1.0 million Mt mark.” Source: SPC-OFP, August 2010. 

“Some interesting statistics were brought up by the debate teams. All teams stressed that 25% of the world's tuna 

resources are located within the FSM Exclusive Economic Zone (EEZ). The Pohnpei team, when arguing in favor of 

limiting access of the EEZ to foreign fishing companies, stated that currently these companies make $144 million 

per year from fishing in the EEZ, whereas local FSM fishing companies make an average of $1.6 million per year. 

The Kosrae team, also when arguing for the proposition, revealed that the FSM imports $2.5 million of canned 

tuna per year and proposed cutting down on such imports.” Source: http://www.fsmgov.org/press/pr071310.htm. 

42 | P a g e


CONSUMERS’ CHOICES 

Unsustainable Consumers’ Choices 

The Consumer Price Index -CPI- that shows how people decide and chose to spend their money responding to price 

changes, highlights that the two main areas of households’ expenditure are food and fuel. Food in this case is 

imported food (soft drinks, tuna cans, spam cans etc.), and this consumers’ choice is harming the local economy, 

despite the fact that Yap has all the resources to substitute the imported food with local food. 

→ The Committee will discuss how to strengthen the informal economy addressing people’s consumption 

habits towards local products and promoting innovative agriculture practices (i.e. CRI). It will also try to 

identify potential links between traditional practices, health and education. 

Input 

→ Good Practice currently in place to be monitored and possibly expanded: Local Food Promotion 

Project by the Tobacco and Diabetes Coalition 

Figure 17 Imports of Food FY2000-FY2010 

DATA Source: DOI and Pacific Island Training Initiative, “Federated States of Micronesia, Fiscal Year 2010 

Economic Review”, available online via www.pitiviti.org . 

43 | P a g e


Figure 18 The Role of Consumers Choices in the Economy 

As Cameron (1991) highlighted in a FAO study on Food Security in the FSM, “an imported food item is 

qualitatively essential if it contains a nutritional component that cannot be obtained within the local 

environment at any price … [or] prices are too high … to afford”. 

Food security is another lens through which the contradiction of “self-reliance” in Yap can be examined. In the 

Report to the US Congress on the “First 5 years Review of the Compact of Free Association with the Federated 

States of Micronesia (2010)” the US Department of Interior defines as “economically self-sufficient” an economy 

that “produces goods and services in sufficient quantities to meet the demands of the population.” What is not 

clear in this definition is whether the “goods” mentioned are “essential goods” as highlighted by Cameroon (1991) 

or goods pushed into the local economy by a “Cargo Cult”. In fact, there is no poverty in Yap, if poverty is defined 

as insufficient access to food. In Yap the “severity of poverty” target that measures the first Millennium 

Development Goal (MDG) defining Poverty, Hardship and Hunger is only 1.7 (Millennium Development Goals & 

The Federated States of Micronesia, Status Report 2010). What is curious is that despite the fact that subsistence 

agriculture is practiced by every family on the island the food poverty line for Yap is set at 6,394 USD per day 

(Millennium Development Goals & The Federated States of Micronesia, Status Report 2010). It is therefore 

reasonable to suggest that the food poverty line as set actually includes imported food that was defined through 

the “Cargo Cult” as “essential”, despite the complete availability of nutritional goods on the island. In this respect it 

is worth highlighting how the high “vulnerability” of Small Island States is due to, within other factors, a high 

“dependence on strategic imports” (Briguglio, 1995). What should be taken under consideration is the extended 

definition of “strategic imports” that aid dynamics constructed over time. Food and beverages represent the best 

sample in this respect, and they are within the highest components of household expenditures according to the 

Consumer Price Index (CPI). In fact in 2010, of the total basket of items attributed to Yapese households that was 

weighted as being 18.5% of the total FSM purchases (100%), food was set as being 4.8%, beverages 1.9%, and 

apart from fuel which was weighted 0.8%, all the other commodities were below 0.3% (FSM SBOC, 2011). Soft 

drinks, alcohol and tuna cans are within the main items imported and sold by local retail businesses (DOI and 

Pacific Island Training Initiative, 2010). All of these items have local substitutes, namely coconut water, tuba and 

fresh tuna. Not only do all these items have a local substitute, but each family has access to these products 

through land, which makes them affordable to anyone in economic terms, while equivalent imported items 

undermine the extent of the impact on the local economy of retail businesses: if the items sold would be local 

products, the impact of the retail business on the Yapese economy would be greater. 

44 | P a g e


WELFARE & ENVIRONMENT 

Anticipating Upcoming Challenges & Preventing Disruptive Impacts 

Extended family erosion and migration trends, as well as environmental challenges will soon have a stronger 

impact on the Islands. 

Inputs 

→ The Committee will discuss the potential of the role of community volunteerism in the effective 

implementation of environmental initiatives (i.e. waste management, recycling, etc.). It will also discuss 

alternative welfare solutions (i.e. elderly care) acknowledging social changes and suggesting culturally 

appropriate initiatives. 

SDP Environment Goals 

Departments Interviewed: YSPC (#3); APA (all); MRMD (#1, #2, #4, #5, #6, #7, #9), YINS (#1, #3, #4, #5, #6, #7, #8, 

#9) 

Environment # 1: Mainstream environmental considerations, including climate change, into national policy and 

planning as well as in all economic development activities. 

being achieved/ strong impediments 


• There is an increased awareness of climate change threats and of the need to formulate policies dealing 

with climate change issues and the conservation of the environment as a whole. 

• Environment risk mitigation is seen as established and operating well. 

• There is the perception that adequate advocacy efforts are in place. 


• Presently advocacy attention seems to have geared mainly towards climate change, not targeting the 

environment as a whole. 

• There is no perception of a policy plan for climate change yet, and also uncertainties on which 

environmental considerations to mainstream. 

• Funding and personnel are often perceived as the key factor that impedes the implementation of plans. 

• Perceived lack of a continuous monitoring system, and of technical skills necessary for a proper evaluation 

of complex projects (e.g. solar panels). 

• Perceived lack of a of long term project sustainability. 

• Perceived lack of distribution of information and sharing of policies amongst stakeholders. 

45 | P a g e


• Stakeholders’ involvement is perceived as insufficient and not comprehensive of all the relevant factors 

involved and/or needed (involving external stakeholders is often perceived as problematic due to budget 

timelines). 


• Climate change as an issue as well as overall environmental considerations need to and should be 

strengthened. 

• Baselines need to be identified. 

• Establish a policy plan: identify and prioritize environmental considerations to be made. 

• Improve implementation and monitoring of projects. 

• Improve stakeholders’ involvement and communication. 

• Improve awareness of the importance of mangroves in environmental preservation and disaster 

preparedness. 

Environment # 2: Improve and Enhance the Human Environment (Improve waste management (reduce, recycle, 

reuse) and pollution control. 



• Recycling is already a reality targeting the majority of non-biodegradable wastes such as bottles and cans. 

• Collecting and cleaning up activities were successfully organized in the past, revealing community 

cohesion, and the potential of volunteerism towards a collective environmental education (Joint clean-up 

efforts between EPA and MRMD). 


• Irregularities in activities relating to waste management and pollution control were highlighted as core 

impediments. 

• There are no dedicated personnel or agency to coordinate and implement activities with solid waste 

management in the State with planning, monitoring, and limited activities conducted as practicable by a 

number of entities. However, a State Solid Waste Management Strategy (SSWMS) is being developed, 

aimed to guide and direct needed actions, responsible entities, and resources for implementation and 

improvement. 


• No specific recommendations were made in relation to the Goal. Volunteerism as techniques of waste 

management should be further explored. 

46 | P a g e


• Finalization, endorsement, and implementation of the SSWMS will improve overall waste management 

activities, coordination, and pollution control related to waste management in the State. 

Environment # 3: Reduce energy use and convert to renewable energy sources / Minimize emission of 

greenhouse gases. 

strong impediments/being achieved 


• There are good practices targeting the Goal, such as the action plans on renewable energies developed by 

YSPSC for the electrification of the Neighboring Islands through solar panel systems. 

• Projects targeting the Goal are well documented through summaries and other technical reports. 


• Funding sources and other management mechanisms are perceived as a strong impediment towards the 

achievement of the Goal. 

• Maintenance seems to be a core constraint. 

• Managing legal compliance, policy Goals and financial resources is perceived as a major challenge, mainly 

due to the misalignment and lack of coordination between the formers. 


• Improving the flow of information between different Government entities. 

• Further research relating to renewable energy is perceived as needed. [Working Group Note: The ongoing 

Energy Audit and the drafting of National Energy Plan may support the process.] 

• Maintenance should be considered a priority and included from the real beginning of the project’s 

implementation into the project strategy and budget. 

Environment # 4: Enhance the benefits of sustainable use of the FSM’s genetic resources and ensure benefits 

derived are fairly shared amongst stakeholders. 

being achieved/strong impediments/not understood 


• Policies and legal documents being drafted at the National level to protect local genetic resources from 

external exploitation. 

• There is a perceived excellent information sharing and collaboration on the status of coral reefs among 

the four states. 

• Agreements and contracts with foreign bio-prospectors, mainly Japanese, to test genetic resources. 

47 | P a g e



• Outdated marine resources inventory. 

• Lack of trained locals/personnel: the perception is that capacity building at present has not been tackled 

as a priority. 

• The risk of exploitation by foreigners of local genetic resources is not perceived as a major risk in Yap. 


• Need to update inventory of marine resources. 

• Expanding the data collection has been highly recommended. 

• Conduct capacity building workshops for local individuals is seen as fundamental to ensure the continuity 

of the formers, and hence to support a proper management of local genetic resources. In this respect, 

foreign experts coming to work in the State should be responsible for the training of local staff. The 

results of the training should be effectively monitored. 

• Awareness should be raised to frame genetic resources as an environmental and financial asset that 

needs to be protected. 

Environment # 5: Manage and Protect the Nation's Natural Environment/Protect, conserve, and sustainably 

manage a full and functional representation of the FSM's marine, freshwater, and terrestrial ecosystems. 



• Micronesia Challenge, DAF, MRMD, and other entities are ensuring the management and protection of 

the state’s marine, freshwater, and terrestrial ecosystems. 

• Establishments of Marine Protected Areas (MPAs). 

• Environmental advocacy and education is been promoted through newsletters distributed by MRMD to 

the schools. 


• Limited efforts relating to terrestrial ecosystem’s management and protection. 

• Limited personnel. 


• Collaboration of Environment Agencies with DOE to promote environmental education, as the distribution 

of newsletters to the schools is currently done informally targeting individual teachers who may or may 

not use them in class. 

• Improve public awareness. 

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• Develop an implementation and monitoring plan. 

• Tailor advocacy and education initiatives at the communities’ level; develop municipal plans to have 

people participating in their community in the planning, implementation, and monitoring phases of the 

projects. 

Environment # 6: Improve environmental awareness and education and increase involvement of citizenry of the 

FSM in conserving their country's natural resources. 

achieved/being achieved 


• Micronesia Challenge, agriculture and fisheries, and other entities are overseeing the achievement of this 

Goal. 

• Newsletters distributed by MRMD are promoting awareness through distribution in the education system 

to raise environmental awareness. [Working group Note: Informal distribution, not through DOE, hence 

not formally introduced into school’s curricula.] 

• There are projects targeting the transmission of local knowledge related to the usage of local techniques 

and traditional materials. A sample of a good practice was indicated to be an assembling fish nets 

workshop. 

• Annual observance of Earth day, Environment Week, Tree Planting Day, etc. 

• Cooperation with Queens University’s through the Geographic Information Science (GIS) project. 


• There is a history of academic research on the island; however there is the perception that foreign 

academicians did not support knowledge sharing processes. 


• The network of universities to be invited on the island should be expanded. 

• To better manage relationship with universities, Yap-Cap or R&D have been indicated as a suitable 

intermediaries to ensure that during future cooperation with academic institutions local capacity will be 

built through direct training and knowledge sharing. 

• Organizing a tropical ecology course first taught by foreign teachers, and later on by Yapese properly 

trained during the first phase : linking past traditions and new technologies, and mixing foreign capacity 

and local teachers, have been indicated as the most suitable solutions to promote local capacity and 

awareness. 

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Environment # 7: Establish effective bio-security (border control, quarantine and eradication) programs to 

effectively protect the FSM's biodiversity from impacts of alien invasive species. 

achieved/being achieved 


• An Office of Quarantine is in place and implements effective bio-security programs. 

• An invasive species task force was established including other agencies DAF, MRMD, and EPA. 


• Limited funding and personnel are perceived as the core critical factor. 


• Increasing the number of the agencies and departments involved in the eradication of invasive species 

was highly recommended. 

Environment # 8: Create sustainable financing mechanisms for environmental and sustainable resource 

initiatives (FSMES, NBSAP). 

strong impediments/being achieved 


• There are public fora and action plans that target the Goal: FSM Environmental Summit, National 

Biodiversity Strategic Action Plan (national level), Yap Biodiversity Strategic Action Plan (state level). 

• The Micronesia Conservation Trust (MCT) is successfully acting as NGOs funding collector and resources 

allocator supporting small local NGOs. 

• Establishment and support for effective management of several MPAs and locally managed marine areas 

(LMMAs) have been led and provided by YapCAP and the MRMD. 


• The minimal level of direct participation/assistance to individual/households due to the lack of skills to 

access financial mechanisms has been highlighted as a critical factor. 


• There is the need to map through a comprehensive picture of all the initiatives that target and fund 

environmental issues. 

• Yap-Cap can play a very positive role helping communities to draft small grant proposals at the 

community level. 

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Environment # 9: Enhance and Employ In-Country Technical Capacity to Support Environmental Programs. 



• The Geographic Information Science (GIS) Summer Program of Queens College, South Carolina, is 

supporting the mapping of local resources. There is the perception that good technical capacity already 

exists. 


• Although there are people trained in environment related fields, there are limited job opportunities in this 

area. 

• Qualified/trained locals are migrating overseas seeking better employment opportunities. 


• Establishing networks of cooperation with other universities through OPB and R&D. 

• There is a perceived need for continuous improvement in capacity building and technical support. 

• Local job opportunities in environment related fields should be created. 

Related MDGs 

MDG 7. Environmental Sustainability 

Target 7-A. Integrate the principles of sustainable development into policies and programs; 

reverse the loss of envoronmental resources 

Land area covered by forests % 

Water resources utilization (Yap proper) 

- Normal conditions 

- Drought conditions 

2006-7 YAP 72% [FSM 89%] 

YAP 

37% 

58% 

[FSM] 

[23%] 

[37%] 

Target 7-B. Reduce biodiversity loss and by 2010, achieve a significant reversal of loss 

Area in protection status 

- Marine/Terrestrial 

2010 YAP 

10% / 0% 

[FSM ] 

[6% / 15%] 

Target 7-C. Have the proportion of the population without sustainable access to improved 

water sanitation 

Access to improved drinking water 

Access to improved sanitation 

Households with toilets facilities 

2005 YAP 61% [FSM 57%] 

2005 YAP 24% [FSM 25%] 

2005 YAP 59% [FSM 73%] 

Target 7-D. By 2020 to have achieved significant improvement in the lives of urban slum 

dwellers 

Households with security tenure 

Figure 19 Environment & MDG 7 

2000 YAP 98% [FSM 94%] 

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Links of Environment and Welfare with other sectors 

Existing 

MRMD and teachers (informal link); DAF-EPA- MRMD (invasive species); YINS-EPA-MRMD (quarantine); MCT 

[Working Group Note: MCT resources deployment to other departments should be subjected to further analysis]- 

Yap-Cap -Micronesia Challenge. 

Suggested ` 

MRMD-DOE (newsletter); Environment –Tourism-Communities (e.g. eco-tourism); YINS-OPB-R&D-COM-DAF- 

MRMD-YFA-Our Yap Youth-Communities-Foreign Universities (capacity building). 

[Secretariat Note: the link between COM Land Grant and DAF community based agriculture practices should be 

explored.] 




N/A 



pp. 59. “Recognizing this lack of prior funding, as well as the fact that many planned outcomes have yet to be 

achieved, the Office of Environment and Emergency management developed, in 2009, a 5-year Environment 

Sector Plan. This plan lays out distinct priorities and indicators for the environment sector as well as the programs 

that need to be funded in order to achieve these Goals.” [Working Group Note: explore its effective 

implementation.] . 

pp. 59. “Unfortunately, incomplete, inconsistent and non-standardized indicator reporting precludes any 

systematic presentation or analysis of the environment sector. Projects have not historically been planned for, or 

renewed, on a long-term basis and as such there are no consistent indicators of performance, or means by which 

to assess improvement or digression … Yap had no measures for which year on year comparison is available.” 

pp. 60. Despite the fact that under the Compact Environment shifted from being a crosscutting issue to become a 

self-standing sector, “Environment sector expenditures are clearly only a small fraction of Compact expenditures, 

averaging 3.5% of compact expenditures from FY04-FY08. Additionally, there has been a steady decline in spending 

on the environment sector from 4.2% of Compact expenditures in FY04 to 2.6% in FY08. The lack of measurable 

environmental indicators, much less progress in those indicators, can largely be attributed to relative dearth of 

environment sector funding which precludes sustained environmental projects.” 

pp. 61. Figure 9.3: Yap has the lowest salaries and wages percentages of the Environmental Sector Expenditures. 

pp. 62. “The environment sector grant is an important addition to the Amended Compact and the FSM believes 

that through proper vision and planning it can achieve the expectations set forth during negotiations.” 

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[Secretariat Note: the value of ecological resources should be monitored together with the possibility to develop 

projects that link past traditions and new technologies.] 

Population Data 

Gender FSM Yap 

Total 102,843 11,377 

Male 52,193 5,635 

Female 50,650 5,742 

Age FSM Yap 

1-14 36,680 3,684 

15-59 60,574 6,872 

60-64 2,299 326 

65+ 3,317 495 

Gender & Age FSM Yap 

Male, 1-14 18,792 1,898 

Male, 15-59 30,876 3,364 

Male, 60-64 1,172 180 

Male, 65+ 1,380 193 

Female, 1-14 17,888 1,786 

Female, 15-59 29,698 3,508 

Female, 60-64 1,127 146 

Female, 65+ 1,937 302 

Figure 20 Population 2010 


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Population Annual Growth rate (%) 

1980 1989 1994 2000 2010 1980- 

1989- 

1994- 

2000- 

1989 

1994 

00 

2010 

Yap 8,100 10,365 11,178 11,241 11,376 2.7 1.5 0.1 0.1 

FSM 73,159 95,740 105,506 107,008 102,624 3.0 1.9 0.3 -0.4 

Figure 21 Population Growth Rate 1980-2010 

Source: U.S. Dept. of Interior (2009); FSM SBOC (2011) 

Unemployment (2010) Total Percent of potential labor force 

Yap 177 2% 

FSM 3,485 5% 

Figure 22 Unemployment Rate 2010 


Key issues: 

• To understand main population and migration trends. 

• To address population trends and economic consequences in the working population versus dependent 

population ratio (e.g. age, subsistence activities, etc.). 

• To address gender in economic terms. 

• “The FSM is a rare case of an economy where total employment in 2008 is lower than it was in 1995 

while population has increased”. Source: U.S. Department of Interior: Report to Congress on the First 5years 

Review of the Compact of free Association with the Federated States of Micronesia (2010), pp.17. 

• "As some critics of American policies in the Pacific point out, as long the United States provides a 

guaranteed source of income as well as a place to migrate to the FSM's economy does not have to 

become any more dynamic than it already is”. Source: U.S. Department of Interior: Report to Congress on the 

First 5years Review of the Compact of free Association with the Federated States of Micronesia (2010), pp.16. 

54 | P a g e


SDP Gender Goals 

Departments Interviewed: DY&CA (all); YWA (all) 

Gender # 1: Enhance and promote the cultural, economic, legal, political and social development of women and 

children throughout their life cycles. 



• YWA & WIO are promoting women economic, legal and political participation of women, mainly in terms 

of networking and initiatives (e.g. Food Security Day). 

• The promotion of communication within women circles is improving. 


• Lack of funding and volunteerism seem not to be any more a resource, as people’s attitude towards 

volunteer initiatives changed. Please refer to the recommendations paragraph to follow up on the 

challenges and potential of volunteerism. 

• There are advocacy initiatives in place, however tangible projects are lacking. 

• Girls and young women are being targeted, while elderly women tend to be neglected. 


• The cultural participation is a controversial aspect of the Goal, as the inclusion of Yapese women in the 

cultural development is perceived in different ways by different groups of women. [Working Group Note: 

This aspect should be further explored and understood by breaking down the reasons brought in by 

different sides: those that feel discrimination and those that do not perceive social structures in this way.] 

• More awareness raising and advocacy should be supported to promote traditional values that are getting 

lost. Mainly in relation to volunteer activities, there is a need to rediscover a traditional commitment 

towards Yap as a whole. An analysis of the impact of FEMA aid impact and usage after Typhoon Sudal has 

been strongly recommended to rediscover individual, family, and community values that can be 

promoted by women circles. [Working Group Note: the potential of men’s groups should also be 

explored, as gender is about gender roles, and their interaction, it is not only about empowering women.] 

Gender # 2: Enhance the Leadership Capacity and Roles of Women. 

being achieved/not understood 


• A successful project sample is the Yap Women Association Building. 

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• The Goal is being achieved very slowly, as traditionally women are strong in their leadership, but in the 

new Government structure the relations were substantially complicated. It is perceived as arguable 

whether this Goal applies to the Yapese reality, as there are women in public positions, including 

leadership positions in the Government. Additionally many Yapese women believe that there should be a 

meritocracy system in place, and that horizontal positive discrimination should not be the way through 

which women get into leadership positions. 

• Many women do actually have both training and background to be in key leadership roles. The critical 

aspect is that they actually do not get the jobs. Although the cause may be attributed to the gender 

hierarchies in terms of ownership of businesses, mainly in the private sector, the lack of use of gained 

training and education by women do represent an economic loss, an a manpower disempowerment. 


• Further analysis should be done regarding the Yapese relevance of the Goal, and its different perception 

by different women and stakeholders. 

Gender # 3: Mainstream Gender Issues into Decision- Making, Policies and Strategic Development Plans. 



• Gender is starting to be targeted explicitly in policies that involve the youth. 


• It is extremely difficult to tackle gender related issues, as gender is not openly mainstreamed, despite the 

fact that gender issues are silently what drive many decision making processes. 

• The definition and perception of priority related to gender issues is substantially different at a National 

level and at a Yap State level: while women in the other states seem to support positive discrimination 

initiatives to insure women representations in the public arena, a consistent part of Yapese women 

supports meritocracy instead, opposing policies promoting positive discrimination. 


• A Yapese debate on how and in which domain gender issues should be mainstreamed should be 

undertaken. 

Gender # 4: Maximize Women’s Contribution to and Participation in Democratic and Development Processes by 

Creating Opportunities for women’s Active Involvement. 

being achieved/no elements to value it 

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• The Goal may not apply to the Yapese reality as there are no social movements tackling democracy, de 

facto or attempted. 

• The confusion around the different roles and mission of YWA and WIO is impeding any potential action to 

be taken towards maximizing women’s contribution to and participation in democratic and development 

processes by creating opportunities for women’s active involvement. 


• More communication and advocacy initiatives should give visibility to both YWA and WIO and their 

potential role in promoting a more active women’s role in tackling social problems. 

Gender # 5: Strengthen the Institutional Capacity of the Women’s Programs in FSM. 



• Through YWA institutional capacity is being promoted. A good sample is represented by the Yap Women 

Association Building, and the role it may play to support several social problems such as elderly care, 

domestic violence, etc. 

• WIO, once separated from YWA, may have the potential to complement YWA activities sponsoring and 

supporting training initiatives. 


• Addressing explicitly gender issues and advocating for women empowerment may raise resistance 

conflicting with a traditional division of roles. 


• Further research should be undertaken in terms of defining what is changing over time naturally in terms 

of women’s gain of institutional capacity, and what needs actually to be supported through specific 

initiatives. 

Gender # 6: Strengthen the institutional capacity, effectiveness and impact of Youth Organizations. 



• Since 2009 Youth Organizations are consistently emerging. Starting from the First Youth Summit in 2009, 

the youth became more aware of its role into political and social dynamics. In 2010 another Youth Summit 

57 | P a g e


was held and Our Yap Youth was established. Our Yap Youth represents the first time that the youth tided 

together under one organization. 

• Our Yap Youth is getting involved in several initiatives contributing to tackle a wide range of problems. A 

significant sample in this respect is represented by Our Yap Youth involvement with the Fire Division for 

training and fire prevention activities (Wild Land Fire Initiative). 

• The Government is perceived as very supportive of Youth Organizations, although it is still exercising a 

strong control over their activities. 


• No critical aspects were highlighted. 


• The links suggested in the “Links with over sectors” section should be further explored to promote a more 

effective social action and cohesion to tackle existing and emerging social problems. 

• Training may be needed to introduce networking and cooperative skills between the different 

stakeholders involved in Gender activities understood as the relation between horizontal categories such 

as, for example, women and youth. 

Gender # 7: Strengthen Youth Development through Social, Economic and Political Participation. 


[Same arguments as for Goal #6] 


• Since 2009 Youth Organizations are consistently emerging. Starting from the First Youth Summit in 2009, 

the youth became more aware of its role into political and social dynamics. In 2010 another Youth Summit 

was held and Our Yap Youth was established. Our Yap Youth represents the first time that the youth tided 

together under one organization. 

• Our Yap Youth is getting involved in several initiatives contributing to tackle a wide range of problems. A 

significant sample in this respect is represented by Our Yap Youth involvement with the Fire Division for 

training and fire prevention activities (Wild Land Fire Initiative). 

• The Government is perceived as very supportive of Youth Organizations, although it is still exercising a 

strong control over their activities. 


• No critical aspects were highlighted. 

58 | P a g e




effective social action and cohesion to tackle existing and emerging social problems. 

• Training may be needed to introduce networking and cooperative skills between the different 

stakeholders involved in Gender activities understood as relation between horizontal categories such as, 

for example, women and youth. 

Gender # 8: Establish social protection and social welfare services for seniors. 

strong impediments/not understood 


• The Yap Women Association Building may have a strong potential in tackling the lack of elderly welfare 

care services, and other social problems, in a context of erosion of the extent of the support of the 

extended family. 


• My Care does not include a specific plan that addresses elderly needs. 

• The sense of family responsibility in relation to elderly care may be challenged by the changes in the 

broader social and State context where migration, economic constraints and changes in working needs 

and schedules may not insure complete coverage of elderly needs based on the support of a modified 

family extension and structure. 


• Further analysis through focus groups to identify the economic extent of the changes in the extended 

family structure may help to identify the most suitable way to support families’ needs related to welfare 

services for seniors. 

• Pensions and Retirement plans have not yet being considered in the analysis of seniors’ services. 

[Working Group Note: Further investigation in this respect is needed to provide accurate 

recommendations.] 

Gender # 9: Address the special economic, political and social needs of disabled persons and persons with special 

needs. 



• Disability, as seniors’ care, is traditionally handled as a family responsibility. However the changes in the 

broader social and State context of migration, economic constraints and changes in working needs and 

59 | P a g e


schedules may not insure complete coverage of persons with disability needs based on the support of a 

modified family extension and structure. Additionally inclusive initiatives supporting social integration of 

people with special needs cannot always being tackled with family resources. 



effective inclusiveness and economic resources to support people with special needs and their families. 

Related MDGs 

MDG 3. Promote gender equality and empower women 

Target 3-A. Equality in education 

Ratio of girls to boys primary eductaion 

SY08-09 YAP 0.90 [FSM 0.96] 

Ratio of girls to boys secondary eductaion 

SY08-09 YAP 0.83 [FSM 1.02] 

Ratio of girls to boys enrolled in COM 

SY08-09 YAP 1.20 [FSM 1.14] 

Ratio women to men in wage employment 

2000 YAP 0.70 [FSM 0.49] 

Ratio women to men earnings 

2000 YAP n/a [FSM 0.87] 

Legislative seats held by women 

2007 YAP 0.0 [FSM 0.0] 

legislative compliance with CEDAW 

- Full/partial/out of compliance 

2004 YAP 

26/14/60% 

[FSM] 

[27/16/57%] 

Figure 23 Gender & MDG 3 



Disability by age FSM Yap Yap % 

Persons under 20 years 48,672 4,862 

SEEING, EVEN WITH GLASSES 

Some difficulty 376 47 0.97 

A lot of difficulty 79 10 0.21 

Cannot do at all 57 2 0.04 

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HEARING, EVEN WITH HEARING 

AID 




WALKING, CLIMBING STEPS, OR 

USE OF ARMS 




REMEMBERING OR 

CONCENTRATING 




OTHERS 




Persons 20 to 39 years 29,539 3,083 


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Cannot do at all 22 - - 


AID 





USE OF ARMS 





CONCENTRATING 




OTHERS 



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Persons 40 to 59 years 19,016 2,611 


Some difficulty 2,853 605 23.17 




AID 





USE OF ARMS 





CONCENTRATING 




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OTHERS 



Cannot do at all 19 - 

Persons 60 years and over 5,616 821 






AID 





USE OF ARMS 




64 | P a g e




CONCENTRATING 




OTHERS 




Figure 24 Disability by Age & Gender # 9 



Existing 

[Working Group Note: the relation between DY&CA and YWA/WIO should be further explored.] 

Suggested 

YWA/WIO and Our Yap Youth in relation to Youth’s support of gender related initiatives for community cohesion 

and eventually volunteerism (involving both men and women, not only targeting women empowerment). 

DOE-DHS-DY&CA-Our Yap Youth over disability issues. More specifically sport and disability, and peer to peer 

support for disabled youth should be explored. 




N/A 

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N/A 


N/A 

YWA/WIO additional info to consider 

YWA as NGO was established in 1953 to target Yap women. In 1974 the first renegotiation took place extending 

YWA mandate to both Yap proper and Outer Islands women, as well as women of any other ethnicity living in Yap. 

When the FSM joined the UN in 1991, a Women Interest Office (WIO) was created in each of the FSM States as a 

Public Office to be financed with local revenues resources. Today YWA and WIO operate as one entity also from an 

administrative point of view. Within the end on 2012 the two entities should be split to regain their different roles 

although they share complementary mission statements. More specifically WIO is concerned with how policies 

introduced at a State level affect women interests. WIO also actively contributes to bills proposals that support 

women’s interests by the Government. In this respect WIO acts as a support entity for women association. YWA on 

the other hand is an NGO supported by Japanese, Chinese, U.S., Australian and New Zealand funds in addition to 

other local fund raising campaigns that include Day Care and other events. YWA has as mission promoting the 

empowerment of women in the State, and covering this role participated into the First Economic and Social 

Summit, although Gender wasn’t framed as a topic/sector per se at that time. The reason behind the “no-need” of 

explicitly addressing gender issues during the First Economic and Social Summit was attributed to the fact that the 

division of gender roles in Yap did not exclude women, but regulated their influence in the public sphere through 

non public fora of discussion. Additionally, in more than one occasion Yapese women opposed positive 

discrimination policies aiming at “insuring” a given number of women positions under the belief that meritocracy, 

and not positive discrimination throughout horizontal societal categories, should be the mean for any given role. 

66 | P a g e

Yap Summit Community Sector - Yap State Government

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