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Micronesia in Review: Issues and Events, 1 July 2005 to 30 June 2006 Reviews of Kiribati, the Marshall ernment at the advisory team’s Islands, and Nauru are not included urging. in this issue. The main impetus for the private- sector growth strategy was the public- Federated States of sector reforms instituted after the Micronesia third and last step-down in funding In this report, I discuss the progress under the first Compact for Free of the painful public-sector reforms Association. As conceptualized, the instituted after the third step-down reforms included reduction in govern- in Compact I funding in order to ment employment and salaries. These stimulate private sector growth in reforms were supposed to be continu- the FSM national economy. I touch ous. Initially under the reforms pro- on the role of politics in scaling back gram, all the states met their objec- these reforms. In addition, I address tives of reducing employment and the ever-present tension between the salaries in their respective government two political branches of the national sectors. Then some of the states began government. Rather than discuss the to roll back the accomplishments of progress of issues in much detail, this their reform programs, especially after
The Contemporary Pacific – University of Hawai'I Press
Published: Jan 17, 2007
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