Micronesia

The Federates States of Micronesia is a nation of 607 islands and atolls spread across four island states—Yap, Chuuk, Pohnpei, and Kosrae—in the South Pacific and is a lower middle-income country with a GDP of 401.9 million USD in 2018. Micronesia has an agricultural sector that accounts for 26.3% of GDP and includes agricultural and fisheries products such as taro, coconuts, cassava, pigs, and fish. Additionally, ~10% of government revenue is derived from fishing licenses, which grant foreign vessels access to the offshore tuna fishery. As climate change is affecting both local agriculture and fisheries, there is a need to develop and implement novel solutions to the impacts of climate change in these Micronesian industries. Micronesia also has an industrial sector that is responsible for generating 18.9% of the country’s GDP and includes industries such as construction and the manufacturing of handicrafts.

The largest sector of Micronesia’s economy is the service sector, which contributes 54.8% to GDP. Government services is the dominant industry of Micronesia’s service sector, as it employs around two thirds of the workforce. Tourism is another industry in Micronesia’s service sector, which in 2018 saw 19,200 visitor arrivals and is based on the principles of sustainable development; however, geographic isolation as well as infrastructural and transportation issues remain persistent impediments to the long-term growth of Micronesia’s tourism industry. Micronesia’s economy is also supported by a Compact of Free Association with the United States until 2023, which provides funding and security to Micronesia in return for maintaining and operating a military base in the island nation.

Micronesia has a small but growing startup community. In recent years, Micronesia’s startup community has been supported through a startup program run by the University of Guam School of Business & Public Administration and the Pacific Islands Small Business Development Center that engages entrepreneurs from across the island nation’s four unique states. Startups in Micronesia are already participating in sustainable development initiatives, such as using banana leaves to create eco-friendly consumer goods. However, collaboration with startups in Micronesia is also possible in the aquaculture industry, which is partially managed with the assistance of the Micronesian Association for Sustainable Aquaculture. Additionally, collaboration with startups in the energy sector is also possible, as only 76% of households had access to stable electricity in 2018 as well as electrification rates that vary widely across the island nation’s four states.