Pacific Magazine > Magazine > August 30, 2007

Voices

Hang Tough, Hang Together

New President's Plea For Unity

By Francis X. Hezel, SJ

In his inaugural address on July 16, Federated States of Micronesia President Manny Mori offered an upbeat message while suggesting that it will not be business as usual for his government during the next four years. The problems that the FSM faces today are as serious as at any time in its 20 year history. The president’s address was a summons to hang tough and to hang together.

The appeal for unity, a refrain sounded throughout his address, was a timely one, for tensions among the four states have reached a new high. Aside from the usual quibbles over jurisdictional issues and the sharing of revenue, some of the states fear that their own economic future may be compromised by the fiscal irresponsibility of others.

Kosrae’s recent bankruptcy, compounded by its $1 million debt, forced the newly elected governor, Robert Weilbacher, to request a loan from the FSM.

Chuuk faces a debt of some $40 million (the exact numbers are unclear because of the poor financial reports) and a deficit of perhaps $2 or $3 million a year, even apart from the interest repayment on the loans it will be forced to take out. The repeated failures of Chuuk to comply with the recovery measures enjoined on it—especially reduction of the government payroll and stricter accounting of funds—has had a demoralizing effect on the other states.

Recent calls have come from the Pohnpei State Government to consider secession from FSM. Other states, all of them facing their own serious problems under Compact II funding, fear that they will be dragged under by Chuuk’s fiscal irresponsibility and apparent lack of political will to address its problems.

President Mori, himself a Chuukese, is signaling his readiness to tackle this sticky issue. But his government faces a real quandary. The FSM Constitution deliberately curtails the powers of the national government, as the president reminded his audience. This federalism was written into the document in the 1975 constitutional convention as a compromise that was intended to keep Palau and the Marshall Islands in the “Micronesian” fold.

Not only did it fail to achieve this end, but it has hampered the national government ever since in the enforcement of its policies. With the U.S. government breathing down its neck, the FSM National Government is painfully aware that it can do only what it is constitutionally permitted.

Another challenge that FSM faces, again at the insistence of the U.S., is to wean itself from its almost exclusive dependence of U.S. Compact funds to support its government. This, of course, means developing a solid tax base that can pay an increasing share of the cost of government. The improved tax system that the president mentioned in his address would increase local support for the government. But it would also mean reversing a decades-old mindset that sees the government as the principal source of support for the people–not just through services provided, but through jobs as well.

This all supposes a sound economy that will provide a solid foundation for the future. This is not easy for a small Pacific nation with few natural resources.  With tourism facing a possible decline as travel becomes more costly, access to fish within the FSM’s Exclusive Economic Zone offers one of the few real development possibilities. In view of the past failures of local and national fishing ventures, it may be a long shot. But, with the U.S. urging FSM on, all means must be explored.

President Mori, reminding his citizens of their shared past and the ideals on which FSM was founded, urges his people to hang on for what could be a rough ride, support one another, and look with hope to what can be achieved. The nation had a proud beginning years ago, he suggests; don’t lose faith in the enterprise now.

The writer is the director of the Micronesian Seminar, a research institute located in Pohnpei, Federated States of Micronesia.