By Zaldy Dandan – Variety Editor
Deal with the present before chasing the future
SINCE its establishment in January 1979, the CNMI government has always sought “new investments,” including those involving agriculture and fisheries. Tourism, however, has remained the Commonwealth’s economic mainstay simply because these are tropical islands — they are tourist attractions already. As the Nathan Report pointed out in 1966, the islands have “many assets which may be utilized in building a viable tourism and travel industry. Not only does the development of a tourism and travel industry…appear to be feasible and desirable in its own right, tourist industry development is highly desirable as a means to create an environment in which other kinds of economic development can more rapidly occur.”
Of course, this doesn’t mean that we are “putting all our eggs in one basket.” The CNMI doesn’t have a lot of “eggs” to begin with, and what it has is not much of a “basket” either. The first time it successfully diversified its economy was in 1983, with the opening of the islands’ first apparel factory. But the garment industry eventually disappeared because of international trade rules over which the CNMI had no say.
As for casino gaming, which aimed to diversify the tourism market, it died an excruciating death on Tinian and Saipan, largely because of events beyond the CNMI’s control — the Asian currency crisis in the case of Tinian, and Covid-19 travel restrictions in the case of Saipan. It also did not help that management in both cases was appallingly feckless.
Cannabis legalization is the latest attempt to create a new industry, but it may take more time — if it does at all — to become a significant contributor to the local economy.
The CNMI must, of course, continue seeking new industries and fresh investment, but that doesn’t mean allowing the tourism industry to further stagnate. It should not be “either/or,” but “all of the above.”
Meanwhile, the CNMI government must meet its most pressing obligations now. That is its biggest problem. Fixating on a future economy while neglecting the current crisis triggered by a precipitous drop in tourism arrivals is not leadership but daydreaming.
Small means small
NOW, if you believe that economic growth is overrated and should not be a priority, then we should start discussing the massive spending cuts the government must undertake to cope with a significantly reduced amount of revenue. As should be clear to everyone by now, a small and shrinking economy cannot pay for the government’s many obligations, including those to its employees and retirees.
You want a small economy, then you must do with a small government. This is not “heartless” ideology — it is basic math.
Lawmakers, in particular, should heed the sound advice of the Finance secretary. Instead of pandering to retirees (and other voters), it’s time to be honest. “We are already in austerity,” she said, “with current government employees at 70 hours and the Public School System at 64 hours.”
You don’t have enough money for everything. You must prioritize. You have to choose. Voters are not babies. Tell them the truth.
Zaldy Dandan is the recipient of the NMI Society of Professional Journalists’ Best in Editorial Writing Award and the NMI Humanities Award for Outstanding Contributions to Journalism. His four books are available on amazon.com/.
