The educational system of the Federated States of Micronesia (FSM) is reviewed with a focus on efficiency, accessibility, and effectiveness. Methodology is based on individual and group interviews and informal discussions with approximately 1,500 respondents from all sectors of the educational community, and on observation of over 75 elementary and secondary school facilities. and 5 postsecondary campuses. Five key issues for reform are examined: infrastructure; personnel; curriculum; governance/policy; and finance. Recommendations are made for improvement at the national and state levels. An assessment based on interviews and observation of the nation's postsecondary system is also presented. Lists of contributors and participants and sample questionnaire are included. (LMI)