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Federated States of Micronesia

jo18di edited this page Nov 21, 2018 · 3 revisions

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Table of Contents

Contact Information


Office of the President

H.E. Mr. Peter M. Christian
PS53, Palikir, Pohnpei State, FM 96941
Telephone: (691) 320-2228
Fax: (691) 320-2785
Website: https://www.fsmgov.org/ngovt.html

Department of Foreign Affairs

Secretary: The Honorable Lorin Robert
Deputy Secretary: Mr. Samson Pretrick
PS123, Palikir, Pohnpei State, FM 96941
Phone: (691) 320-2641/2613
Fax: (691) 320-2933
Email: foreignaffairs@mail.fm

Traditional and Contemporary Land Tenure in Federated States of Micronesia

Although patterns and rules of land ownership are changing within the FSM, complex traditional systems of land tenure still predominate. For instance, in the state of Yap land ownership has traditionally

involved multiple rights of use and one piece of land might belong to one person but be subject to the consent of another, be lived on by a third, and harvested by a fourth party. This complex system of land control [has] resulted in considerable diversity in management while preventing widespread changes to large pieces of land.
While the individual states have separate and distinct land tenure arrangements, there are some broad commonalities that persist throughout state land tenure systems. The FSM Constitution forbids land ownership to foreigners, as well as to domestic corporations that have non-FSM citizens among their shareholders.74 Group and communal ownership of land is prevalent throughout the FSM. There are differences, however, concerning rights of land transfer within the FSM. In Chuuk, Kosrae and Yap, land can be transferred by law to all FSM citizens. In Pohnpei, however, it can only be transferred to persons from that island.
Traditional and cultural institutions have a strong presence in Micronesian life. The keystone of Micronesian society is the extended family, which is collectively responsible for maintaining the family welfare—particularly as it relates to customary family land. Traditionally, land ownership in the FSM was limited to inheritance within a family or clan. As a result, many land parcels in the FSM are subject to the communal use and alienation rights of extended families, clans and communities. Private landholders—influenced to varying degrees by customary land tenure systems—nevertheless occupy most lands.
A tremendous variety of chiefly systems, as well as differences in their respective economic and social roles, are encompassed by the four states that comprise the FSM. In Pohnpei, for example, a political order based on the nahnmwarki or paramount chief, with a ranked set of 11 royal titles below this level, evolved several centuries ago. New settlement districts later established their own lines of royal titles. The German colonial administration in Pohnpei attempted to undermine chiefly power—primarily by redistributing land to commoners through individual titles of ownership. However, in modern times chiefs retain an important status as leaders of traditional affairs. As a report by the Asian Development Bank (ADB)observes, “Chiefly feast houses (nahs) are focal points for the cultural life of Pohnpeians, which revolves around competitive feast giving and competition for prestige and traditional titles.

Openness to, and Restrictions Upon, Foreign Investment

Foreign ownership of land is not permitted and lease terms are controlled exclusively at the state level. Kosrae law allows for a 55 year lease renewable for an additional 55 years, Chuuk law allows for up to 99 years, Pohnpei for 55 years renewable up to 99 years, Yap for no more than 100 years, and the FSM National Government for up to 99 years. In many locales, squatters, long-standing and multiple disputes over land ownership, lack of title certainty, poor surveying capabilities, and the absence of property records make leasing specific plots of land extremely difficult and costly. There have been reports of U.S. businesses that were successful in obtaining a foreign investment permit, but who gave up on specific projects in the FSM due to the difficulty in obtaining a secure lease for land for the project. Restrictions on land sales among citizens from other FSM states also drive transactions underground, which makes accurate pricing information difficult to obtain. There is no system for land title insurance in any of the four states of the FSM.
At present, there is little new net foreign private investment on an annual basis in the FSM. With few exceptions, recent foreign private investment in the FSM has been concentrated in small scale businesses located in population centers on the nation’s four main islands. The FSM does maintain a website for the promotion of foreign investment in each of the four states. The website lists some available projects and also provides some basic information on the application process. The address of the website is http://www.fsminvest.fm/. There is also an “Investment Guide” located on the website of the Department of Resources and Development which can be found at http://www.fsmrd.fm. No foreign investment incentives were reported.

Notes

source: https://scholar.law.colorado.edu/cgi/viewcontent.cgi?article=1166&context=books_reports_studies https://www.state.gov/e/eb/rls/othr/ics/2013/204694.htm

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