World Bank Supports Federated States of Micronesia in Strengthening Public Financial Management and Service Delivery

POHNPEI, March 5, 2025 – The World Bank today approved its support to a transformative initiative led by the government of the Federated States of Micronesia (FSM) to strengthen the country's public financial management systems and practices. Through the US$13 million FSM Strengthening Public Financial Management II project, the World Bank assists FSM in its efforts to spend public resources more effectively, ultimately enhancing service delivery to communities across the nation and increasing the transparency of public finances.

The initiative will expand FSM’s fiscal management information systems, allowing government agencies to allocate, spend, and track resources more efficiently. It will also enhance procurement processes and establish an internal audit function, strengthening controls and reducing inefficiencies.

“This support will contribute to FSM’s broader efforts to improve governance and deliver services to its citizens more effectively,” said Rose Nakanaga, Secretary of Finance for FSM. “By reinforcing financial accountability, this work will help create a stronger, more resilient future for all Micronesians.”

The project will improve public access to financial information and increase citizen engagement on public finances. Making government financial records more accessible will help build trust in public institutions and help ensure that government programs align with the needs of the people. Efforts to streamline procurement will enhance access to opportunities for local businesses, fostering economic growth and job creation.

“For the people of FSM, this project is about more than financial management. It’s about ensuring that spending better serves people throughout the country,” said Omar Lyasse, World Bank Resident Representative for FSM. “Stronger public financial systems mean that resources for the country are allocated and spent efficiently, transparently, and accountably, which contributes to the improved delivery of essential services such as healthcare, education and infrastructure.”

To ensure that improvements last, the project will train local finance staff on financial reporting, accounting, budgeting, internal auditing, and procurement.

About The World Bank

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