Real investors, to be sure, will proceed with due diligence and ask a lot of questions before plunking down any money for, say, a casino venture on Tinian.
So why is the economy not improving? The islands are geographically close to huge economic centers, Japan, China and South Korea, and should benefit from this proximity. The islands are still environmentally attractive. On Saipan, this will remain so if Marpi can be rescued from ongoing plans to permanently mar an important historic and scenic site. Early tree-plantings, landscaping efforts, some tourist signage, bicycle trails, the museum at American Memorial Park and the Garapan beautification plans improved tourism prospects, but growth continues to be stymied by a fundamental inability to evaluate problems correctly and then take appropriate action.
Consider the Legislature’s habit of tinkering with legislation, over and over again, signaling to the world that CNMI lawmakers are unable to maintain any course of action for very long. To fix the budget hole created by its extravagance, the Legislature moves with lightning speed to scrap the education tax credit program, unmindful of the consequences to education and the economy. The immediate impact will outweigh the hundreds of thousands of dollars collected by schools and other educational institutions each year. Lawmakers want these funds handed to the central government so it can use them for payroll and other mounting obligations. Stripping schools of supplemental income, however, will also affect the government’s tax collections as consumer spending is cut back even further.
Recently, lawmakers passed the bill to repeal the net fishing ban, against the advice of experts from Fish and Wildlife. The ban was in place to protect fish stocks and coral which had been depleted by poor water quality, illegal fishing practices and a host of other threats. But a few well-placed whispers from constituents were enough to lift the ban. Indeed, there is no public policy worth preserving in the eyes of lawmakers who fear unemployment. Credit should go to the representatives who resisted the stampede to satisfy a constituency of voters.
Lawmakers also approved a bill to water down the mandatory driver education law they passed five years ago. Public school officials have testified against accepting additional responsibility for driver education, especially since there is no additional funding for it. The governor, too, recognized that with a reduction of revenue the Bureau of Motor Vehicles cannot afford the cost of implementing the course which lawmakers, not too long ago, said would “protect the public and reduce the number of traffic accidents involving first time inexperienced driver.” Now since the private sector is already providing this service why should the broke and bumbling government take over?
The governor, to his credit, vetoed the measure but we cannot underestimate the survival instinct of these lawmakers. They will attempt an override. It is likely that they will succeed.
Instead of identifying key areas to cut that will result in greater productivity, savings or more revenue (by improving infrastructure, for example), this Legislature is repealing good laws and passing more bad laws — in the name of political expediency.
Suffer the people
THE economy suffers when infrastructure is inadequate or too costly. The CNMI is in desperate need of infrastructure, but it must be productive, generate revenue and limit cost. Building a $10 million highway that circumnavigates the northern part of the island is a poor use of scarce infrastructure funds. That money should have been applied to renovating the hospital, paying for badly needed and expensive diagnostic equipment and other life-saving supplies. The island’s thoroughfares are also in need of upgrades.
Each time the government builds a road to somewhere, people will follow, and when they do, water must be provided, wastewater systems must be planned and power must be supplied. All this adds a burden to a government that can no longer provide full and affordable service to just about anyone in the community who is not politically well-connected.
