2011 Inaugural Address By The Honorable Sebastian L. Anefal ...

that there were signs of stability. Just last year, I wanted to elevate us from beingstabilized to emerging, but the statistics have yet to be publicized. Today, if we allcontinue to make the right decisions, I believe that we will be on track and well onour way. By ‘the right decisions’, I refer to the need not only to significantlymodernize our tax laws and thereby expand our revenue base for the future, butalso the need to further strengthen our banking system and establish an effectivelegal framework for business activities, while continuing to work to contain thecost of government. These assumptions also depend upon successful discussionswith the FSM National Government and United States regarding the Compact ofFree Association and outcomes that will protect us all against unforeseen andimmediate external economic shocks.State of the StateLadies and Gentlemen, a review of the state of the State of Yap must first takeinto account the global economic crisis that has reached our shore. Like all majorinternational and regional development partners, we too have been experiencingthe adverse impacts of this economic turmoil. This international financial meltdown,in conjunction with an earlier fuel crisis and a continuing food crisis, hasplaced the small islands developing economies in a state of economic crisis. Inaddition, climate change has continued to threaten food security and our veryexistence throughout these tiny remote islands of ours.This global recession is intensified by our own national recession, which has beenon-going since 2005. The average income of our people has steadily declined10