Fifty years ago the small developing island states throughout Oceania entertained dreams of achieving economic self-sufficiency and social development. These island states are now beginning to realize the magnitude of their natural resource and environmental management problems and today these dreams seem further from realization than they were at the start. There are many explanations for this, however the causes are not verifiable with scientific methods. Most of these island states have small, fragmented populations leading to dis-economies of scale; and the resources they must management are, for the most part, wide ranging and diverse and beyond the power of any small political entity to control. the state of Yap in the Federation States of Micronesia is used as an example to explore these problems and some of the mechanisms that are being considered to rectify them. The population of Yap is small but growing; its oceanic waters are still relatively pristine; there is some indication of pollution in Colonia Harbour (surrounding the main shipping port and fisheries complex); education levels of the community are poor and little effort is being made to educate future leaders capable of managing the environment and the marine resources. The chain of responsibility and decision-making within government is hampered by a top-heavy legislative and executive government underlain by a constitutionally enshrined power of veto vested in councils of traditional chiefs. This system lacks the flexibility and education resources needed to respond to the rapidly changing demands now being placed on both the society and the environment Concern is being expressed in Yap as future sources of foreign aid become less secure. Nevertheless, some efforts are being made to adapt and improve the economic base with emphasis on exploitation of the country's offshore fisheries potential, as well as hopes for aquaculture and small-sale fisheries projects, and the development of agriculture and tourism. The government recently commissioned a marine resources and coastal management plan which has now been completed. This plan discusses the significant environmental and resource management issues underlying Yap's development objectives, identifies appropriate Government agencies to take responsibility, indicates manpower and training needs and outlines certain legislative changes that may be required. One can, with hindsight, question the application of much foreign aid in the past, as foreign aid without appropriate implementation is wasteful of resources which are in short supply. The need and desirability for continuing foreign aid is without doubt, but responsibility transfer must also accompany technology transfer if it is to truly meet the objectives of aiding the developing nations in the Third World. .
