Low local taxes. OPIC is particularly important in that it provides political risk insurance, finance, direct loans, and loan guarantees. The FSM Government welcomes and supports foreign investment as part of its overall economic development strategy. A tropical paradise with year-round warm climate in a myriad of islands, the FSM has a clean and unspoiled environment and rich natural beauty. The Federated States of Micronesia welcomes foreign investments, aware that foreign capital, management, and technology are critical to the country's development.
Preference is given to investments that are constructive and healthy.
Within the National and State Development Plans, the FSM is committed to the acceleration of industrial development. It seeks to encourage capital inflow from abroad, and to ensure that both the foreign and domestic investors and the country profit through the processes of growth and expansion. The development plan for the FSM places high emphasis on the role of the private sector in the development of the country. This emphasis is reinforced by the objective set forth in the plan for manufacturing and industrial sectors. The major tax is called gross receipt tax.