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Crisis forces CNMI to change its ways
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Posted on Jan 05 1999
Although the economic crisis has wrought havoc on Northern Marianas’ economy, it has taught islanders one invaluable lesson: how to become prudent on their finances.
According to Commonwealth Development Authority Board Chairman Juan S. Tenorio, the crisis has since compelled people to do away with waste, be it on time or spending habits.
“It’s a good lesson for us. It teaches us not to rely only on tourism. We are more careful now in what we’re doing. During the last 15 years, we were on the bubble economy…everyone is flying. We always assume that the government will overcome,” he said.
The CDA chief said islanders were overwhelmed over the NMI’s so-called economic miracle during the early ’90s that they’ve become accustomed on lavish spending.
Job opportunities were plenty. Tourist-arrivals were at all time high. Business was very good, thus, monetary resources were abundant.
That all changed when the unexpected currency crisis in Asia hit the NMI during the latter part of 1997. But the worst came about last year when tourist-arrivals dipped to the bottom.
Thousands of business establishments closed shop. Hundreds of foreign contract workers lost jobs. The local government suddenly finds itself cash-strapped with millions of deficit.
Tenorio said the good thing about the situation was that it compelled people to learn how to become more self-reliant instead of being dependent on government.
“But now the people should be helping the government. For the longest time since the inception of the Commonwealth, the government has been helping the people, now it should be the other way around. It has to be both ways, partnership,” he said.
