FSM History

National

Nena sends a restructuring bill cutting the national workforce 20%, using $3 million of an $18 million ADB loan.

What happened

Workers 57 or older could take a lump sum of six pay periods, and younger workers a larger lump sum, if they gave up future national government jobs. The first phase aimed to cut 50 positions by October 1997, saving about $800,000.

Why it matters

The ADB later rated the reform “successful,” though two states and the national government missed their staffing targets.

Who’s who

  • Jacob NenaFourth President of the FSM, 1996–1999 (acting until May 1997); from Kosrae

Sources for this note

Sources for the event

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