Compacts of free association federated states of micronesia republic of the marshall islands
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Compacts of Free Association Federated States of Micronesia Republic of the Marshall Islands . Office of Insular Affairs U.S. Department of the Interior. Level and Structure of Assistance. Goal – supporting increased self-reliance of FAS $3.5 billion U.S. commitment over 20 years

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Compacts of Free Association Federated States of Micronesia Republic of the Marshall Islands

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Compacts of Free AssociationFederated States of MicronesiaRepublic of the Marshall Islands

Office of Insular Affairs

U.S. Department of the Interior


Level and Structure of Assistance

  • Goal – supporting increased self-reliance of FAS

  • $3.5 billion U.S. commitment over 20 years

  • Direct Grants – $125 million per year

  • Trust Fund Contributions - $34 million per year

  • Targeted Sectors – Education, Health, Public Sector Capacity Building, Private Sector Development, Environment

  • 30% set-aside for construction of public infrastructure facilities with priority on supporting delivery of education and health services


Program Management

  • The RMI and FSM governments are responsible for the management and monitoring of the day-to-day operations of all Sector grants and their activities.

  • Interior is not charged with program delivery.

  • Interior has limited resources for oversight. Compact program funding is not dedicated to oversight.

  • Interior supports (with limited funds) targeted technical assistance throughout all insular areas.

  • Comparatively, USAID allocates between 8%-15% of program funds for delivery, administration and monitoring of its programs.


Target: Accountability and Self-Sufficiency

  • Security, political independence, and stability was achieved – Compact 1987-2003

  • Economic provisions are not designed to guarantee results but rather to enhance opportunities.

  • Accountability standards under “Compact 2”are greatly enhanced- they have not translated into better outcomes or overall performance.

  • Sector grants are not directly targeted toward increased economic self-sufficiency.

  • Still, increased self-reliance, at whatever level may be attained, is expected as of FY 2023.


Challenges

  • FAS political and social conditions challenge, respectively, effective compact grant implementation and better health and education performance.

  • Success is immensely reliant upon:

    • Commitment of our FAS partners to design and implement fiscal and economic policy reforms;

    • FAS Capacity to manage, implement and administer available resources;

    • Political courage to realign resource allocations to match stated policy objectives;

    • Quality of the partnership


Where do we have influence?

  • overall quality and use of professional design standards for infrastructure projects.

  • minimally on what is happening inside the classrooms. Requiring qualified teachers and supplies in the classroom, allocation of funds toward basic instruction.


Tools

  • Country level diplomacy: voice of the Ambassador and the USG country team

  • JEM committee control of sector allocations (thumbs up/down)

  • Leverage at the margin in special cases

  • TA targeted at identified weaknesses

  • Donor coordination


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