ABSTRACT
Micronesia is composed of three extensive archipelagos: the Northern Mariana Islands, the Caroline Islands, and the Marshall Islands. The westernmost islands of Kiribati (formerly the Gilbert Islands) sometimes are considered part of Micronesia, based on certain linguistic and cultural affinities. More than any colonial power before or since, between 1914 and 1945 the Japanese found it in their own interest to exploit the natural resources of Micronesia. The direct and indirect dependence of Micronesians on the US government for cash income and the dependence of local service industries on the demand resulting from government employment do not exhaust the dependency relationship of the area on the outside. The chapter shows, in general terms, how the actions taken by the United States to achieve its own political goals in Micronesia have affected several economic variables. These include employment, business opportunity, and external trade.
