Speech
$3,000,000 Compact Infrastructure Maintenance Grant to the FSM States
By Miriam K. Hughes
U.S. Ambassador to the Federated States of Micronesia
(August 8, 2008, FSM President’s Office Conference Room, Palikir, Pohnpei, FSM)
The grant that our two governments have authorized today opens a small but significant window in our efforts to direct aid flexibly and responsibly at the grass roots level. The United States Government has made a special effort to innovate, with Compact money, a more effective delivery system.
On this proud occasion, I appreciate the opportunity to say it clearly and publicly: We need to target our aid in a fruitful way and make sure it is not wasted. We want our assistance to prepare the good people of the Federated States of Micronesia for all challenges. We aim to empower Micronesian officials to fulfill with pride the most basic obligation of governance – to anticipate, define and fulfill the needs of your citizens. Secretary of the Interior Dirk Kempthorne telephoned President Mori last May to offer this grant as an enabling mechanism, particularly at the state level.
The terms of the grant provide each state up to $750,000 in order to: construct, repair and renovate education and health facilities; provide potable water to these facilities; and to improve public safety. We encourage the states to use local contractors and employ local labor for these relatively small-scale projects. Starting today, with acceptance of the grant by the FSM National Government, a 30 day clock has begun to tick. No matching funds are required. Within 30 days, every state must provide, in priority order, a list and description of its proposed projects. In fact, the states are ahead of the game; they all have their lists ready.
This is an example of how Micronesians can take ownership of their own priorities. The states and municipalities are excited. They plan to use this money to repair toilets at schools, repaint classrooms, maybe purchase a fire truck, and patch leaking roofs, build shelves and hang doors at dispensaries and educational facilities. We look forward to seeing all the proposals, as well as the consequent results of your labor in the field. Timely attention to repairs will save money over the long run and enhance the dignity of your people, laying a foundation for future generations.
We hope this is just the beginning of a streamlined approach to development. In terms of a larger paradigm shift, we expect that you will also consider rightsizing, mobilizing civic participation, and establishing dynamic frameworks for private businesses that generate economic growth. You may need to make your own adjustments and to experiment with new models on your own terms, just as this grant is intended to do. But I want to reassure you, that the American Government is prepared to think beyond standardized approaches, if necessary, in order to maximize our aid effectiveness and to help you meet the needs of your people.
We need to hear from you. Now the clock is ticking.


