United Nations Micronesia Policy Brief Series No. 4 Toward Sustainable Economic Development in Pohnpei State: A Tourism-Centred Industrial Strategy and Infrastructure Investment Framework

This policy brief outlines strategic pathways for achieving autonomous and sustainable economic development in Pohnpei State, Federated States of Micronesia (FSM), with a focus on tourism-led industrial growth. Based on field observations, stakeholder consultations and relevant literature, the author identifies tourism as the sector with the greatest potential for economic revitalization, surpassing fisheries, agriculture and light industry. A SWOT analysis reveals that while Pohnpei possesses rich marine and agricultural resources, these sectors face structural constraints such as limited processing capacity, unclear land tenure and small market size. In contrast, tourism benefits from unique assets, including the World Heritage site of Nan Madol, cultural heritage and natural beauty, positioning it as a viable growth driver. However, challenges such as limited transport connectivity, inadequate accommodation and environmental degradation must be addressed. The brief emphasizes the need for comprehensive infrastructure development, including air and port facilities, road networks, electricity supply, water and sanitation systems and waste management. It also highlights the importance of strengthening public services, healthcare, education, telecommunications and public safety, to enhance the visitor experience and ensure community-wide benefits. Integrating small-scale handicrafts and food processing industries with tourism can further promote economic diversification and local employment. The author calls for strategic public investment and policy support to build a tourism-centred development model that fosters economic self-reliance and resilience.