The Caroline Islands are a widely scattered archipelago in the western Pacific Ocean; they became part of a UN Trust Territory under US administration following World War II. The eastern four island groups adopted a constitution in 1979 and chose to become the Federated States of Micronesia. (The westernmost island group became Palau.) Independence came in 1986 under a Compact of Free Association with the US, which was amended and renewed in 2004. Present concerns include large-scale unemployment, overfishing, overdependence on US foreign aid, and state perception of inequitable allocation of US aid.
Location: Oceania, island group in the North Pacific Ocean, about three-quarters of the way from Hawaii to Indonesia
Border Countries: 0 km
Total Area: 702 sq km Land: 702 sq km Water: 0 sq km
Climate: Tropical; heavy year-round rainfall, especially in the eastern islands; located on southern edge of the typhoon belt with occasionally severe damage
Terrain: Islands vary geologically from high mountainous islands to low, coral atolls; volcanic outcroppings on Pohnpei, Kosrae, and Chuuk
Natural resources: Timber, marine products, deep-seabed minerals, phosphate
Land use: Agricultural land: 25.5% arable land 2.3%; permanent crops 19.7%; permanent pasture 3.5% Forest: 74.5% Other: 0% (2011 est.)
Ethnic groups: Chuukese/Mortlockese 49.3%, Pohnpeian 29.8%, Kosraean 6.3%, Yapese 5.7%, Yap outer islanders 5.1%, Polynesian 1.6%, Asian 1.4%, Other 0.8% (2010 est.)
Languages: English (official and common language), Chuukese, Kosrean, Pohnpeian, Yapese, Ulithian, Woleaian, Nukuoro, Kapingamarangi
Religions: Roman Catholic 54.7%, Protestant 41.1% (includes Congregational 38.5%, Baptist 1.1%, Seventh Day Adventist 0.8%, Assembly of God 0.7%), Mormon 1.5%, Other 1.9%, None 0.7%, Unspecified 0.1% (2010 est.)
Population: 104,719 (July 2016 est.)
Administrative divisions: 4 states; Chuuk (Truk), Kosrae (Kosaie), Pohnpei (Ponape), Yap
Economy: Economic activity consists largely of subsistence farming and fishing, and government, which employs two-thirds of the adult working population and receives funding largely - 58% in 2013 – from Compact of Free Association assistance provided by the US. The islands have few commercially valuable mineral deposits. The potential for tourism is limited by isolation, lack of adequate facilities, and limited internal air and water transportation.Under the terms of the original Compact, the US provided $1.3 billion in grants and aid from 1986 to 2001. The US and the Federated States of Micronesia (FSM) negotiated a second (amended) Compact agreement in 2002-03 that took effect in 2004. The amended Compact runs for a 20-year period to 2023; during which the US will provide roughly $2.1 billion to the FSM. The amended Compact also develops a Trust Fund for the FSM that will provide a comparable income stream beyond 2024 when Compact grants end.The country's medium-term economic outlook appears fragile because of dependence on US assistance and lackluster performance of its small and stagnant private sector.
Agriculture - products: Taro, yams, coconuts, bananas, cassava (manioc, tapioca), sakau (kava), Kosraen citrus, betel nuts, black pepper, fish, pigs, chickens
Industries: Tourism, construction; specialized aquaculture, craft items (shell and wood)
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