Pohnpei, FSM, 15/11/12- The President of the Federated States of
Micronesia, H.E Emanuel Mori has welcomed the peer review of FSM and urged the
peer review team to be frank but also fair and accurate in its assessment of
the country’s processes and systems.
The FSM Peer Review Team consists
of Mr Catolina Kijiner from the Government of the Republic of the Marshall
Islands, Ms Noumea Simi representing the Government of Samoa, Mr Johnson Naviti
of the Vanuatu Government and Mr Asif Chida from the UNDP Pacific Centre in
Fiji.
The FSM peer review continues the
series of peer reviews across the Pacific as part of the Cairns Compact on
Strengthening Development Coordination (Forum Compact) to review FIC’s national
development planning, budgeting, public financial and aid management processes
and systems. FSM is the 9th Forum Island Country to undertake this process.
FSM has also specifically
requested that in recognition of the pressing challenges facing the country,
the Peer Review Team should also consider the suitability of the existing
policy environment for promoting private sector development.
In a meeting with the peer review
team on 14 November in Palikir, Pohnpei, President Mori urged the peer review
team to take into consideration the special circumstances of FSM having a loose
federation with three layers of government operating in the four semi autonomous
states and a national government.
With funding under the Compact of
Free Association with the United States expected to end in 2023 the Government
of FSM is now discussing policies that will enable the country to fill the gap
that will be left in its budget.
H.E Mori explained that some of
the measures his Government has been pursuing include encouraging more
investment in the FSM Trust Fund, increasing revenue including introducing tax
reforms, scaling back on government expenditure and developing the private
sector.
“There is a need to enable
investment in the FSM both domestic and foreign direct investment,” President
Mori said.
“The Government needs to provide
what the private sector needs to develop. Our development partners must align
their assistance to FSM to fit in with these policies we are embarking on.”
“There a lot of opportunities
available to us. We just need to work out our internal arrangements. The
development partners are behind us. We the people of FSM need to decide whether
to continue to have the easy life of eating from the shops or we develop
ourselves,” said Mr Mori.
The Government is establishing a
2023 Taskforce to provide recommendations to policy makers on how to address
the expected fiscal challenges in the next 10 years and beyond.
The Peer Review Team, which is in
the FSM from 12 – 28 November 2012, will hold consultations with
representatives of government departments, non-government organizations, the
private sector and the development partners. The Team will also consult with
the states of Pohnpei, Chuuk, Kosrae and Yap.
At the end of the consultations,
the Team will produce a report that will include recommendations for the FSM
Government and its development partners. The report will only be released after
it has been endorsed by the Government of FSM.
ENDS.
For media enquiries, contact Mr
Johnson Honimae, the Forum Secretariat’s Media Officer on phone: 691 9248325 or
email: johnsonh@forumsec.org.fj
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