The Asian Development Bank (ADB) and the East-West Center in Washington held a presentation and discussion on “The Economic Impact of Freely Associated State Compact Renewal”.
About the Study
The United States and each of the three Freely Associated States (FAS) have negotiated renewals of the economic assistance provisions of their Compacts of Free Association. The Federated States of Micronesia (FSM) and the Republic of Palau signed agreements with the US in May 2023. The Republic of the Marshall Islands (RMI) signed a Memorandum of Understanding indicating agreement on a total funding level, and discussions are ongoing.
This presentation focused on the negotiated funding level and terms to be implemented over the next twenty years for each FAS. The presentation highlighted:
- The improved funding levels available to each FAS;
- The fiscal policy implications for managing the transition to improved funding levels; and
- The fiscal policy risks still facing each FAS until the Compact renewal agreements are authorized and appropriated by the US Congress.
Download Presentation Slides
Slides which were delivered during the presentation are available for download through the link below.
DOWNLOAD SLIDESAbout the Original Study
ADB engaged a team of Graduate School USA experts to study the range of actions being considered by US, FAS, and donor partner officials with respect to future funding levels under each Compact, and potential economic impacts.