Yap Summit Community Sector - Yap State Government
Yap Summit Community Sector - Yap State Government
Yap Summit Community Sector - Yap State Government
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YAP STATE GOVERNMENT<br />
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<br />
substantial improvement over Amended Compact period. The impetus to make these changes lies largely with the<br />
political leadership in the FSM, and is a priority as discussed in the recommendations section.”<br />
pp. 49. MEASURING PRIVATE SECTOR AS PERCENTAGE OF GDP: FY04-FY08. “ Private sector output, as a<br />
percentage of the GDP, has been stagnant across the FSM during the entire period of the Amended Compact … <strong>Yap</strong><br />
a significant decrease.”<br />
pp. 51. LACK OF TECHNOLOGY AND ECONOMIES OF SCALE: it has been highlighted as being the main impediment<br />
to the development of a strong private sector, together with the fact that private sector grants finance for the<br />
51% consumption (wages and salaries) [Working Group Note: exploring cooperative options to overcome<br />
technological and scale gaps, while considering consumers choices towards local productions to at least maximize<br />
the high share of private sector grants that covers consumption through wages and salaries].<br />
pp. 51. “<strong>Government</strong> can support private sector development by providing appropriate institutional and physical<br />
infrastructure, or direct support.”<br />
pp. 52. “Reliable and sufficient transportation, energy and communication networks are fundamental for an active<br />
private sector … The FSM thus proposes that economic infrastructure projects be treated with the same priority as<br />
social infrastructure … One of the most pressing needs of the private sector is reliable and cost-effective<br />
transportation of goods. The current commercial providers are unable or unwilling to provide routine or costeffective<br />
cargo services and current production volumes leave the existing private sector with limited negotiating<br />
leverage for bulk shipment rates.” [Working Group Note: Regarding cargo’s supply chains the efficiency of the<br />
schedule should be further analyzed to estimate the most cost effective way to manage transportation of goods<br />
into <strong>Yap</strong>.]<br />
pp. 53. INVESTMENT DEVELOPMENT FUND (IDF) by the U.S. <strong>Government</strong> is seen as crucial to the private sector<br />
development.<br />
<strong>Yap</strong>: work in progress towards a local perspective<br />
The <strong>Yap</strong>ese recommendations towards strengthening the Private <strong>Sector</strong> were formulated in occasion of the<br />
National Economic Symposium (NES) in 2011. They were summarized in the following “<strong>Yap</strong>-NES Priority Policy &<br />
Projects Matrix”.<br />
Private <strong>Sector</strong><br />
Critical Areas<br />
Institutional<br />
Reform<br />
Infrastructure<br />
Requirement<br />
Investment<br />
Opportunities<br />
I. ACCESSIBILITY TO CAPITAL & LENDING<br />
1. Banking &<br />
Lending<br />
Practices<br />
Research<br />
existing laws,<br />
regulations and<br />
practices to<br />
ease lending<br />
and expand<br />
Not Required.<br />
Increased number<br />
of business ventures<br />
in new tradable<br />
industries, joint<br />
ventures,<br />
22 | P a g e
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