Background: In 1979 the Federated States of Micronesia a UN Trust Territory under US administration adopted a constitution. In 1986 independence was attained under a Compact of Free Association with the United States. Present concerns include large-scale unemployment overfishing and overdependence on US aid.
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 Truk
Legislative branch: unicameral Congress (14 seats; members elected by popular vote; four - one elected from each of state - to serve four-year terms and 10 - elected from single-member districts delineated by population - to serve two-year terms)
Economy overview: Economic activity consists primarily of subsistence farming and fishing. The islands have few mineral deposits worth exploiting except for high-grade phosphate. The potential for a tourist industry exists but the remoteness of the location and a lack of adequate facilities hinder development. Financial assistance from the US is the primary source of revenue with the US pledged to spend $1.3 billion in the islands in 1986-2001. Geographical isolation and a poorly developed infrastructure are major impediments to long-term growth.