in October 1982, the United States signed a Free Association
Agreement with the island states of Marshall, Northern
Mariana Islands and Micronesia, after which they were given
control over their domestic policies, while the United
States continued to take care of defense and security. In
1983, the treaty was ratified in both countries, and in
October 1986, US President Reagan officially declared the
administration of the superpower of Micronesia. However, the
superpower retains responsibility for defense and foreign
At the United Nations 46th General Assembly on September
17, 1990, Micronesia and six other states were included in
the World Organization, whose membership rose to 166.
At the end of the year, Hurricane "Owen" destroyed the
homes of 4,500 people and destroyed 90% of the crops.
At the March 1991 parliamentary elections, incumbent
President John Haglelgam lost his party, thereby preventing
him from running for the next presidential election. In May,
Bailey Olter was elected new president.
In April 1992, the government declared a state of
emergency to address the consequences of a severe drought.
The following year, the country joined the IMF, which,
according to President Olter, was part of a strategy to
solve the problems created by the drought.