Summary: In response to a congressional request, GAO reviewed the institutional capability of the Micronesian governments to plan and administer public-sector programs and services. GAO also reviewed the conditions and the operations and maintenance of the extensive public works programs.
Under its Micronesia trusteeship, the United States has encouraged the formation of constitutional governments, supported the growth of educational programs, expanded the access of people to modern medical care, and invested extensively in physical facilities as a requisite to economic development. Despite these efforts, the Micronesian governments continue to face serious obstacles to becoming more self-sufficient. Geographic, social, and public policy constraints have and continue to limit the growth of the private-sector economy. GAO found that government budgets exceed the capabilities of the economies to support them and remain dependent on U.S. funds. Although much progress has been made under a 5-year capital improvement program, it has been estimated that $100 million would be required to fund full-scope restoration. The operations and maintenance of Micronesia's capital improvements and support equipment lacks funds, technically capable professionals, qualified trade skills personnel, planning, and work control programs. As a result, most Micronesian facilities and equipment are deteriorating. Resources will continue to be limited, and Micronesia is experiencing public administration problems in financial and personnel management and human resource development. Enhancing these institutional capabilities will continue to require substantial technical assistance from multiple sources.
