APPENDIX C of the Marianas Economic Roadmap is about a proposed CNMI Industrial Solicitation Program whose goal is to bring in new investors to the islands. No need for a new government entity. The Commonwealth Economic Development Authority is already “ideally positioned to lead this process” and has the mandate to “allocate and expend funds” to promote the CNMI as “a location for private investment.” The Roadmap also recommends appointing a special assistant on economic policy, but again, this could simply mean renaming one of the current special assistants at the governor’s office.
According to the Roadmap, “the CNMI must approach economic development from the perspective of the investor.” While this may sound obvious, listening to various officials and politicians can give the impression that new investments will materialize simply by wishing for them. But the CNMI is just one among many other countries or jurisdictions competing for new investments, and investors look for locations with distinct advantages that boost the chances of success and profitability. Moreover, encouraging investment in the CNMI “requires not only marketing of its strength, but reducing friction and uncertainty in the investment process.” In other words, legitimate investors must have a clear and hassle-free path to doing business in the CNMI.
The Industrial Solicitation Program begins with the creation of an economic development policy, which outlines long-term development priorities and targets. Government agencies and institutions must be aligned with these goals. They need to be rowing in the same direction.
The program has five key objectives:
1) Position and market the CNMI as an investment destination.
The Roadmap noted that while the CNMI has experience in international destination marketing through MVA, the Commonwealth hasn’t developed effective ways to draw private investors. For instance, while there seems to be “plenty of money” to maintain a huge government apparatus that employs thousands of voters, there is “limited dedicated marketing material or budgetary support for promoting the CNMI’s economic potential.”
Here’s what the CNMI should do instead: “[B]uild and promote a compelling investment brand that highlights the islands’ geographic location, regulatory alignment with the U.S. and strategic advantages in the Indo-Pacific region.” The CNMI must participate in international trade shows, investment forums and targeted outreach to generate awareness and interest. This includes redesigning CEDA’s website, which should promote the CNMI as an attractive investment destination.
2) Promotion and packaging of CNMI assets.
This involves identifying the CNMI’s economic assets — suitable site locations, infrastructure capacity, workforce potential and financial incentives — into clear and investor-friendly materials. The CNMI, moreover, must provide rapid response to inquiries and match potential investor needs with CNMI capabilities. All this is possible through a dedicated online platform complemented by digital advertising and presence in industry publications and social media. Perhaps there are federal grants that can be tapped for these efforts.
3) Engagement and due diligence on potential investors.
“Actively engage with interested businesses and investment groups though proactive meeting scheduling, prepared briefings and coordinated discussions…. Outreach efforts [that] include relationship-building with regional trade organizations, participation in investment forums, and hosting events that elevate the CNMI’s visibility as a destination for high-potential investment.”
4) Facilitation of business establishment and expansion.
Cut the red tape and create a one-stop shop for prospective investors—both of which, come to think of it, have been the avowed goals of previous and current CNMI administrations.
5) Data and research support.
This involves the creation and management of a centralized database of economic indicators, workforce statistics, available commercial sites, periodic business climate surveys and feedback loops that assess investor sentiment and identify areas for process improvement.
The Roadmap also recommends the hiring of experienced and independent contractors — i.e., folks who know what they’re doing — to “provide immediate capacity to execute key program functions….”
I must admit. Reading about the Industrial Solicitation Program reminded me of the following quote from the 1984 “Ghostbusters” movie:
“You don’t know what it’s out there. I’ve worked in the private sector. They expect results.”
In the case of the Industrial Solicitation Program, can we expect the government to have the necessary focus and persistence that will allow it to produce the desired results?
There are no quick political gains in the effort to secure a credible investor. It often takes considerable time.
As the Roadmap itself noted, the CNMI has a long history of creating thoughtful and detailed economic plans. However, “[p]lans do not create economic growth — people do.” And when those people involve politicians, there is, in the CNMI’s case, a persistent “critical disconnect or lack of follow-through between…economic planning…and actual economic development….”
The Roadmap makes the case that Guam “successfully implemented a similar economic development strategy.” This is true, but Guam enjoys several advantages that the CNMI does not. Guam has a larger population and a permanent, significant U.S. military presence. It serves as the region’s transportation hub and, unlike the CNMI, is a single island — not multiple islands requiring separate infrastructure, airports, seaports, utility systems, public services, and governments.
The CNMI faces many challenges, but Teddy Roosevelt’s oft-attributed advice may offer a clear way forward: “Do what you can, with what you have, where you are.”
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