By Nikita Espangel
The International Monetary Fund visits its member countries every year to assess the state of its economy. This year a team of consultants from the organization visited the Federated States of Micronesia and published its Article IV consultation Report for the country on January 14, viagra approved 2013.
According to this report, the IMF found that government workers were making twice as much as those in the private sector.
The country currently ranks only behind Kiribati in compensating government employees at a high rate compared to employees in the private sector.
In the consultation, the IMF also found that employees of FSM state owned enterprises such as FSM telecom and the utility companies were on average making three times as much as those in the private sector.
The IMF suggested slightly reducing public wages pointing out other Pacific countries have done so without negative effects.
Slightly reducing public wages paid would allow the funds saved by doing such to be used towards infrastructure projects in the country.
If a country’s infrastructure is developed, experts point out to helping a country attract investors. This in turn, helps grow the private sector, thereby creating more jobs.
The IMF is an international organization whose goal is to foster global growth and economic stability by providing policy advice to its member countries working with developing nations to reduce poverty.
The IMF currently has 188 nations in its membership, with FSM being a member since 1993.