Guam Country Report
Guam is a stable, well-developed democracy administered by Governor Eddie Calvo as an unincorporated US territory. Crime is not a significant concern for foreigners, although rates of violent crime have risen during the past five years. More than 17,000 immigrants have made use of various small Pacific states' Compacts of Free Association with the US to move to Guam, which has struggled with the costs associated with their presence. Guam remains one of the most prosperous islands in the Pacific, with the economy driven by the island's role as a US naval base. However, Guam will be compelled to diversify its economy over the longer term, as it is dependent on a narrow tourism-services base and financing from the US federal government to cover fiscal shortfalls.
Guam enjoys strong links with the United States, particularly as it uses the dollar and falls under US jurisdiction. The government welcomes foreign investment, especially US and Japanese. Infrastructure is well-developed by regional standards: Apra Harbor is the largest natural deep-water port between Asia and Hawaii, and a modern highway system covers the entire length of the island. However, corruption is a problem in the public and private sectors, particularly with respect to the prioritisation of local infrastructure projects. Labour relations do not pose a significant operational risk. Occasionally, the US government imposes new labour rules over wages or visas, particularly for projects involving the military.