MarketHistory of the Federated States of Micronesia
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History of the Federated States of Micronesia

The Federated States of Micronesia are located on the Caroline Islands in the western Pacific Ocean. The history of the modern Federated States of Micronesia is one of settlement by Micronesians; colonization by Spain, Germany, and Japan; United Nations trusteeship under United States-administered Trust Territory of the Pacific Islands; and gradual independence beginning with the ratification of a sovereign constitution in 1979.

Pre-colonial history
The Austronesian ancestors of the Micronesians settled there over 4,000 years ago. A decentralized chieftain-based system eventually evolved into a more centralized economic and religious culture centered on Pohnpei. People from the Caroline Islands had regular contact with the Chamorro people of the Marianas Islands, as well as rarer voyages into the eastern islands of the Philippines. Yap and the Yapese Empire Yapese Empire From circa 1500 BC, before the beginning of foreign colonial administration by Western powers, the island of Yap created and maintained a unique set of socio-economic and political relationships with neighbouring islands to its east and southwest in what is known as the Yapese Empire. Although small-scale and informal, the Empire per se was formed when what is now known as Gagil Municipality through the chief village of Gatchaper, developed and maintained a maritime trade and political network with smaller atolls and island groups between Yap and Chuuk, covering over approximately 1,500 kilometres (932.01 miles) of the western Pacific. Through a relationship known as sawey, the Empire demanded tribute known as Pitigil Tamol to be given to the paramount chief of Gagil in Gatchaper. These tributes would include bagiiy (lavalava), coconut rope, coconut oil, mats and shells. In return, Gagil would reciprocate with mutual support from the main island in case of natural emergencies as well as goods. These goods from Gagil would include Yapese canoes, turmeric, flint stone and other Yapese resources. Although each village has its own class ranking within the municipality based on the number of military victories, each village also has its own internal set of social classes exclusive to that group. All low classes and low-class villages were under the authority of villages that were ranked higher since the latter had considerable power and voice (lungun). to ); and Mwehin Nahnmwarki (Period of the Nahnmwarki, to ). Pohnpeian legend recounts that the Saudeleur rulers, the first to bring government to Pohnpei, were of foreign origin. The Saudeleur centralized form of absolute rule is characterized in Pohnpeian legend as becoming increasingly oppressive over several generations. Arbitrary and onerous demands, as well as a reputation for offending Pohnpeian deities, sowed resentment among Pohnpeians. The Saudeleur Dynasty ended with the invasion of Isokelekel, another semi-mythical foreigner, who replaced the Saudeleur rule with the more decentralized nahnmwarki system in existence today. Isokelekel is regarded as the creator of the modern Pohnpeian nahnmwarki social system and the father of the Pohnpeian people. Nan Madol offshore of Temwen Island near Pohnpei, consists of a series of small artificial islands linked by a network of canals, and is often called the Venice of the Pacific. It is located near the island of Pohnpei and was the ceremonial and political seat of the Saudeleur Dynasty that united Pohnpei's estimated 25,000 people until its centralized system collapsed amid the invasion of Isokelekel. Isokelekel and his descendants initially occupied the stone city, but later abandoned it. ==European colonisation==
European colonisation
in the Marianas and Carolinas, Boxer Codex European explorers - first the Portuguese in search of the Spice Islands (Indonesia) and then the Spanish - reached the Carolines in the 16th century, with the Spanish establishing sovereignty. ==Empire of Japan==
Empire of Japan
During World War I, many of the German possessions in the Pacific were conquered by Japan, who fought on the side of the Allies of World War I and was active in the Asian and Pacific theatre of World War I. The Empire of Japan administered the islands from 1920 under the South Seas Mandate granted by the League of Nations. During this period, the Japanese population grew to over 100,000 throughout Micronesia, while the indigenous population was about 40,000. Sugar cane, mining, fishing and tropical agriculture became the major industries. World War II In World War II, Japanese-held Yap was one of the islands bypassed in the U.S. "leapfrogging" strategy, although it was regularly bombed by U.S. ships and aircraft, and Yap-based Japanese bombers did some damage in return. The Japanese garrison comprised 4,423 Imperial Japanese Army men under the command of Colonel Daihachi Itoh and 1,494 Imperial Japanese Navy men. A significant portion of the Japanese fleet was based in Truk Lagoon. In February 1944, Operation Hailstone, one of the most important naval battles of the war, took place at Truk, in which many Japanese support vessels and aircraft were destroyed. World War II brought an abrupt end to the relative prosperity experienced during Japanese civil administration. ==Trusteeship==
Trusteeship
, used in the FSM from 1965 to 1978 The United Nations created the Trust Territory of the Pacific Islands (TTPI) in 1947. Pohnpei (then including Kusaie), Truk, Yap, Palau, the Marshall Islands and the Northern Mariana Islands, together constituted the TTPI. The United States accepted the role of Trustee of this, the only United Nations Trusteeship to be designated as a "Security Trusteeship", whose ultimate disposition was to be determined by the UN Security Council. As Trustee the US was to "promote the economic advancement and self-sufficiency of the inhabitants." ==Independence==
Independence
, first president of the Federated States of Micronesia On May 10, 1979, four of the Trust Territory districts ratified the Constitution of the Federated States of Micronesia. The neighboring trust districts of Palau, the Marshall Islands, and the Northern Mariana Islands chose not to participate. Tosiwo Nakayama, the former President of the Congress of Micronesia, became the first President of the FSM and formed his Cabinet. The FSM signed a Compact of Free Association with the U.S., which entered into force on November 3, 1986, marking Micronesia's emergence from trusteeship to independence. Under the Compact, the U.S. has full authority and responsibility for the defense of the FSM. This security relationship can be changed or terminated by mutual agreement. The Compact provides U.S. grant funds and federal program assistance to the FSM. Amended financial assistance provisions came on-line in FY 2004. The basic relationship of free association continues indefinitely. Trusteeship of the islands ended under United Nations Security Council Resolution 683, passed on December 22, 1990. The Compact was renewed in 2004. Chuukese separatism emerged as a major political issue in Micronesia in the 2010s, following on from earlier separatism in the Faichuk Islands. The Chuuk Political Status Commission was created in 2012 to investigate options for greater autonomy or independence. An independence referendum was initially scheduled to be held in 2015, but was subsequently postponed on several occasions. ==See also==
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