National Campus

Palikir, Pohnpei


SS212 Economy of Micronesia

Spring 2002


Instructor: John R. Haglelgam



Office Location: Social Science Office in the Faculty Building


Office Hour: MWF: 10:00 11: 00 & 2:00 - 3:00 or by appointment

TuTh: 12:00 1:00 pm or by appointment


Office Phone: 320-2480/2481/2482, Extension 4510


E-Mail Address:


Classroom: Building B, Room 101


Class Days & Hour: TuTh; 9:30 10: 55 a.m.



DESCRIPTION: This course will focus on the economy of the Federated States of Micronesia and other political entities in the Micronesian region. It will address the composition of the economy; the role of the government and the private sector in the economy; the wastage and leakage in the economy.


Additionally, this course will also focus on such resources as land, fisheries, agriculture, and of course the people.


INSTRUCTION: The primary mode of instruction in this class is lecture, but movies will be shown and overhead projector presentation will also be utilized to amplify the main topics under discussion. The last ten minutes of each class is reserved for question and answer. I should, however, encourage you to stop me during lecture if you need clarification or you want to ask questions.


OBJECTIVES: The objectives of this course are (1) To teach the about economic realities in the Federated States of Micronesia and other Micronesian entities; (2) To make the students understand the role of government in the economy; (3) To make the students aware of the resources available in the FSM and development possibilities; (4) To make you aware of wastage and leakage in the economy.








Week One: Topics: (1) Introduction and Overview

(2) What is national economy?

Reading: (a) Chapters One & Two, Survey of Economic


Week Two: Topics: (1) History of Economic development in Micronesia

(a) Prior to 1914

(b) 1914 - 1945

Week Three: Topics: (1) Economic development during the Trusteeship

(2) Economic development during Compact Period

Week Four: Topics: (1) Government Roles & Monopoly

Reading: (a) Handout

(b)    Chapter 8, Survey of Economic

Week Five Topics: (1) Public Sector

Reading: (a) Chapter 16, Survey of Economic


Week Six Topics: (1) Private Sector

Reading: (a) Handout


Week Seven Topics: (1) International Trade & Finance

Reading: (a) Chapters 21, Survey of Economic


Weeks Eight & Nine Topics: (1) Money, Banking, and Monetary Policy

Reading: (a) Chapter 18, Survey of Economic

Weeks Ten & Eleven Topics: Unemployment

Reading: (a) Chapters 12, Survey of Economic


Weeks Twelve & Thirteen Topics: (1) Wastage and Leakage

Reading: (a) Handout


Week Fourteen Topics: (1) The Subsistence Economy

Reading: Bank of Hawaii Report

(b) Class handout


Weeks Fifteen & Sixteen Topics: (1) The Future Outlook


TEXTBOOKS: There are several copied materials for this course in the COM-FSM Bookstore that you should purchase. Ask the bookstore manager for assistance.


EVALUATION: There will be four (4) short papers (five to eight) pages. There is no mid term and final examinations for this course. Grade will be based on the COM-FSM grading system. Each student is responsible to complete his/her papers and hand them in to me on time.


Letter grades will be assigned based on the following scales:


A+ = 95 - 100

A = 90 -- 94

B+ = 85 -- 89

B = 80 -- 84

C+ = 75 -- 79

C = 70 -- 74

D = 65 -- 69

F = 64 & Below


Your course grade will be assigned based on the following:


5% . Participation in class.

95% .. 4 papers

REGULATIONS: You are required to strictly observe the rule against eating and drinking in the classroom. In addition, you are prohibited from chewing betel nut in areas outside of the cultural huts.


ABSENTEEISM, TARDINESS, CONVERSATION DURING CLASS: Five absences will get you a withdrawal from this class. The last day to withdrawal from this class with a W showing on your transcript is October 26, 2001. If you reach five absences after October 26th, you will automatically be withdrawn with a grade of F. I must alert you to the fact that the total missed classes (absences) include UNEXCUSED AND EXCUSED ABSENCES, SUCH AS SICKNESS, FUNERALS, AND ANY OTHERS.


You are required to come to class on time on every class day. If you are late THREE times, I will count it as ONE ABSENCE. In addition, I will not tolerate any conversation during class session. Thus, if you persistently carried on conversation during two-class days I will count it as ONE ABSENCE.