Office of Insular Affairs and Perspectives on the Pacific

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Kristen H.L. OleyteSenior Policy Advisor to PACOM

Senior Policy Advisor to the Assistant Secretary of the Interior for Insular Areas

6 March 2013This brief is classified:

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Mission Department of the Interior (DOI): To protect and

manage America’s natural resources and heritage, uphold our trust relationship with indigenous communities, and supply energy to power our future.

Office of Insular Affairs (OIA): Administer the U.S. Federal Government’s relationship with U.S. territories

U.S. Virgin Islands Guam American Samoa Commonwealth of the Northern Mariana Islands (CNMI)

Administer financial assistance to the Freely Associated

States (FAS): Federated States of Micronesia (FSM) Republic of the Marshall Islands (RMI) Republic of Palau

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OIA Area of Responsibility

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Strategic Importance of the Insular Areas

National Security Interests Defense assets in insular areas Strategic location Guam military build-up

Economic Interests Proximity to Asian markets Commercial shipping lanes

Foreign Policy Interests Pacific Island Forum Micronesian Challenge

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OIA Lines of Effort

Improve Quality of Life OIA Infrastructure & Technical Assistance Energy Efficiency and Renewable Energy Initiative Compact Impact Initiative

Enhance Economic Opportunity Inaugural Gross Domestic Product (GDP) Estimates Pacific Business Partnership (PBP)

Promote Efficient and Effective Governance Interagency Group on Insular Areas (IGIA) Joint Economic Management Committees

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DOI-OIA Rebalance Engagement

Guam Military Realignment National Environmental Policy Act (NEPA) Activities Civil Military Coordination Council (CMCC)

Insular Area Health PACOM Asia Pacific Health Initiative US Pacific Fleet 2013 Pacific Partnership

Insular Area Energy DOI-DoD Energy Partnership MOU

Insular Area Resiliency PACOM Asia Pacific Disaster Risk Reduction and Resilience

(ADR3 Network) CDC Disaster Risk Reduction Workshop

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OIA Perspectives

Insular Area Strategic Importance

Whole of Government and Whole of Society Approach

Promoting Insular Area Resilience- Capacity building- Economic development- Infrastructure- Energy- Food Security- Disaster Preparedness, Response, Recovery, Mitigation- Climate Change

Back Up Slides

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American Samoa

Economic Base:- Tuna Canneries - Government- (Little tourism)

GDP: $634 million Per Capita Income (2010):

$6,311 U.S. Grants: $172 million Current Issues:

- Economy: Lost 2,000 jobs with Chicken of the Sea tuna cannery closure in 2009

- Energy Renewables & Efficiency: DOI & DOE Interagency Agreement

Guam

Economic Base:• Tourism spending:

- $1.35 billion• Military: Total estimated build up

spending: - $8.6 billion

U.S. grants: $362 Million Per Capita Income (2010): $16,549 Best deepwater port in the Western Pacific Current Issues:

- Military build up: 4,700 Marines (and 1,300 dependants) from Okinawa expected

- China Visa Waiver program- Energy Renewables & Efficiency: DOI & DOE

Interagency Agreement

Commonwealth of the Northern Mariana Islands

Economic Base:- Tourism

GDP: $756 million Per capita income (2010): $9,656 U.S. grants: $113 million Current Issues:

- CNMI Hospital: avoiding suspension of Medicaid certification (DOI and HHS MOU)

- Economy: loss of garment industry in 2009 resulted in severe contraction of employment and government revenue

- Energy Renewables & Efficiency: DOI & DOE Interagency Agreement

Republic of Palau

Economic base:• Tourism• Fishing and Agriculture• $560 million of Compact funds

(1994-2007); includes $149 million for construction of Balbedaob Road.

GDP: 179.9 million U.S. Grants: $25 million Current Issues:

- US Negotiated Amended Palau Compact

- Need new legislation with Offset  

Federated States of Micronesia

Economic Base:- Subsistence Farming & Fishing- Long Line Fishing Licenses- Dive Tours

GDP: 310 million U.S. Grants: $121 million Current Issues:

- Improving Compact Sector Grants for Education.  Pilot Education Review Board Launched in Chuuk this week.

- Preparing for Second Five Year Period Review of the Compact – Due end of FY13 for Compact Period 2009 - 2013

Republic of the Marshall Islands

Birth Rate: 33/1,000, among the highest in the world

Major Economic Activities:- Government Services- Tourism

GDP: 170 million U.S. Grants: $71 million Current Issues:

- Consequences of migration to the United States (Compact Impact)

- Impact of climate change- Legacy of U.S. military nuclear

testing