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

during this period, from $1,934 per person in 2005 to $1,832 in 2007, and it isestimated at around $1,700, if not less, in 2010. This figure is an indication of notonly lower wages, but also of lost jobs. While figures are not yet final, it isprojected that this economic crisis will continue this year and very likely into thenear future.These recessions have left our island home, our country, with unprecedentedfinancial challenges. For example, the Yap Monetization Program within the FSMPooled Investment Portfolio had lost a staggering $8.75 million in 2008. Partiallyas a result of the financial turmoil, the FSM Social Security System's underfundedliability has increased dramatically. Likewise, our Mi-Care Health Care Plan hascontinued to operate in deficit over the past years. Both of these mandatedNational Government responsibilities will require immediate attention andsignificant capital infusion to survive in the coming years. Left unattended, theimpact would be devastating on our people, including you and me.In addition, the banking sector has shown an overall slowdown in commerciallending and a reduction in consumer spending. In 2008, consumer loansdecreased by $1.3 million and development bank loans decreased by $1.5 million.These trends may likely continue unless remedied sooner rather than later.Sadly, no citizen has been left untouched by this current global crisis. And thereare no quick and easy fixes to the recession plaguing our economy. Indeed, it islikely to get worse before it gets better.11