Priorities of the People HARDSHIP IN THE FEDERATED STATES OF MICRONESIA September 2004 Asian Development Bank © Asian Development Bank 2004 All rights reserved This publication was prepared by consultants for the Asian Development Bank (ADB). The findings, interpretations, and conclusions expressed in it do not necessarily rep- resent the views of ADB or those of its member governments. ADB does not guar- antee the accuracy of the data included in this publication and accepts no responsibility whatsoever for any consequences of their use. Asian Development Bank P.O. Box 789, 0980 Manila, Philippines Website: www.adb.org Contents Introduction 1 Is Hardship Really a Problem in the FSM? 2 What is Hardship? 4 Who is Facing Hardship? 5 What Causes Hardship? 6 What Can be Done? 15 © Asian Development Bank 2004 All rights reserved This publication was prepared by consultants for the Asian Development Bank (ADB). The findings, interpretations, and conclusions expressed in it do not necessarily rep- resent the views of ADB or those of its member governments. ADB does not guar- antee the accuracy of the data included in this publication and accepts no responsibility whatsoever for any consequences of their use. Asian Development Bank P.O. Box 789, 0980 Manila, Philippines Website: www.adb.org Contents Introduction 1 Is Hardship Really a Problem in the FSM? 2 What is Hardship? 4 Who is Facing Hardship? 5 What Causes Hardship? 6 What Can be Done? 15 Introduction ardship and poverty in the Federated States of Micronesia (FSM) have not been viewed as important H national concerns until recent trends made them both Thirty percent daily issues at the household level. One of these trends is the poor performance of the economy. From 1995 to 1999 the average of households growth rate was a negative 3.9% per year. Since 2000 there has been some modest recovery with annual growth averaging 3.6% per year, were under the but there is a growing gap between rich and poor, and increasing numbers of landless or land-poor people. basic needs The 1998 Household Income and Expenditure Survey indi- cates that about 30% of households in the country had incomes poverty line below the estimated basic needs poverty line of US$768 per person per year. The highest level of hardship and income poverty was recorded in Chuuk at 32.9%, and Pohnpei at 29.5%. These house- holds were likely to experience some degree of financial hardship on a daily or weekly basis. To better understand the needs and views of those facing hardship in the FSM and develop programs to alleviate it, the government undertook a “Participatory Assessment of Hardship” People find it difficult to meet from late 2003 to early 2004. People from all sectors of society, their families’ needs 1 including the poor, were asked to describe poverty and hardship from their point of view and suggest priority actions to address their Widow with Eight Children, 50 Years Old concerns. Interviews were held at the household level, and focus group discussions and workshops were held with communities and “I am the second daughter of a big family’s home was very small for us, we Discussions at the national level. family of 10. My parents raised us in a decided to build a small lean-to for Three communities from each of the participating states small thatched roofed house. We used ourselves. were held with (Chuuk, Yap, and Pohnpei) were selected for the study to represent to sleep together with our mother and “We could not find jobs so we also ended up doing a little gardening, just both rural and urban areas, and various levels of access to services. A father under a big mosquito net. We always ate taro with grated copra. Most enough to feed our family. We have 8 people in 9 team made up of government and nongovernment representatives of the time we only ate two meals a day children who also grew up to live a hard consulted with about 350 people throughout the study, which because the preparation of the taro took life. We never had enough of anything, communities concluded with state-level workshops and a national workshop in several hours to cook. During breadfruit so most of our children also dropped out Pohnpei to validate the findings. The assessment was funded by season, we ate three meals a day. of school. My sons learned how to spear the Asian Development Bank (ADB). “My oldest sister, my oldest brother, fish and helped their father fish for our and I finished 6th grade. The rest of my food. Sometimes they sold them at the sisters and our second brother didn't market on Weno, if they were lucky we even finish elementary school due to our got about $50 from their catch. Then my mother’s death. She was in labor with husband died and my sons started going Is Hardship Really a our youngest brother when she bled to somewhere by themselves. I lost control death and didn’t survive. of them. None of them are able to help “Ever since she died, our lives me keep our family united. Problem in the FSM? became more miserable. Our father “I decided to start a small farm. The couldn’t take care of us. We older kids hardest part is finding transportation to had to quit school to take care of the bring the produce to sell in the capital. uring the participatory assessment, all communities younger ones. Our oldest sister got Sometimes I walk from my village to acknowledged that hardship is being experienced by married immediately after she turned 15 another village just to look for a boat. many families throughout the country. In the rural areas and moved away with her husband. Sometimes I can’t find one and then my D That left me with my oldest brother to produce gets wasted and rotten. and the outer islands, people find it difficult to earn the cash work harder with our dad. Our dad used Nowadays, my children go to our needed to meet the living expenses of their families. In the urban to make copra to earn a little money for relatives to eat whenever we don’t have areas, families with low incomes and limited access to subsistence our food, kerosene, soap, and clothes. food. After some time, my relatives agriculture find it extremely hard to maintain a satisfactory stan- We never had enough of anything. began to get tired of us. I wish very dard of living. “Then I met a young man who was much to have a bigger home and a boat People said they are facing an increasing need to pay cash for in high school and we got married. He for my children, to live in a good home and take my produce to the capital every store goods, food, utility bills, transport, education, and to make didn’t finish his education, but we wanted to get married. Because my time we have crops to sell.” contributions to community/social events and their church. Often traditional gifts are no longer enough, cash donations or purchased gifts are also expected. Frequently, even traditional gifts must be The personal stories in this booklet show that there are a purchased by households that no longer have the time or skills to growing number of people, particularly the jobless, youth and the make them. elderly, who are becoming worse off. Many youth find it difficult to The migration of people to state capitals and overseas is de- get the sort of jobs to which they now aspire; a traditional village populating some of the outer island and rural parts of the country. and subsistence agriculture lifestyle is no longer desirable. Condi- Those who remain tend to be the more dependent members of tions of financial hardship, while not widespread, are nevertheless society. At the same time, the increasing urban population is gener- leading to increased social and domestic tensions, rising crime, ating social tensions and increasing the numbers of those without increasing drug abuse and a deteriorating quality of life for those land. most affected. 2 3 including the poor, were asked to describe poverty and hardship from their point of view and suggest priority actions to address their Widow with Eight Children, 50 Years Old concerns. Interviews were held at the household level, and focus group discussions and workshops were held with communities and “I am the second daughter of a big family’s home was very small for us, we Discussions at the national level. family of 10. My parents raised us in a decided to build a small lean-to for Three communities from each of the participating states small thatched roofed house. We used ourselves. were held with (Chuuk, Yap, and Pohnpei) were selected for the study to represent to sleep together with our mother and “We could not find jobs so we also ended up doing a little gardening, just both rural and urban areas, and various levels of access to services. A father under a big mosquito net. We always ate taro with grated copra. Most enough to feed our family. We have 8 people in 9 team made up of government and nongovernment representatives of the time we only ate two meals a day children who also grew up to live a hard consulted with about 350 people throughout the study, which because the preparation of the taro took life. We never had enough of anything, communities concluded with state-level workshops and a national workshop in several hours to cook.