Workshop helps Marshall Islands dev’t. on track By Craig DeSilva For Saipan Tribune

HONOLULU, Hawai’i (PDP/CPIS) — Government leaders from the Marshall Islands vow to work with private investors to create a healthy business environment in the region.

This was the mantra given by participants in the East-West Center’s conference on “Eco-Business Opportunities in Micronesia” held in Waikiki last month.

One of the speakers at the two-day conference was Marshall Islands Resource Development Minister John Silk, who made a pitch to private U.S. investors regarding the Marshall’s economic opportunities.

Among the country’s business advantages, Silk noted, are:

• a transparent and friendly environmental business climate for
foreign investors;

• a new democratic-elected government committed to boosting the
economy; and

• a business community free from political interference.

The Marshall Islands, made up of almost 30 atolls and more than 1,200 smaller islands, is economically driven by fishing, copra and a budding tourism sector.

Despite recent downsizing and layoffs from the government, the public sector remains the Marshall’s biggest employer.

But government officials understand economic growth will ultimately come from the private sector.

It’s in the government’s best interest for the welfare of the entire country to boost private development, Silk said.

“Our economy is faced with many challenges, such as sustainable economic development,” he said.

The Marshall Islands is also concentrating on developing its agriculture, aquaculture, alternative energy and waste management industries.

“The government is committed to promoting trade and investment,” he said. “Our vision is economic development and growth that will be characterized by private sector participation.”

About 90 people from Hawai’i, the U.S. mainland and throughout Micronesia participated in the workshop, which was organized by the Joint Commercial Commission (JCC).

Scott Kroeker, JCC project officer, said the workshop especially helps the small businesspeople who rely heavily on personal contact with potential partners in order to conduct business.

“These are the type of people we’re trying to reach and encourage to become involved in the islands,” he said. “They were able to make some good contacts in Micronesia, learn more about the opportunities that are out there, and hear about practical steps involved with doing business in the region.”

Although the results of the workshop in dollar terms won’t be felt immediately, the conference helps to build long-term growth in the region, Kroeker added.

“Private-sector development is not going to happen overnight,” he said. “It is the smaller scale industry and businesspeople like the ones we targeted for this workshop that slowly bring about true diversified, distributive and just economic and social development.”

Although growth has been slow coming in the Marshalls, longtime residents noted how far the economy has come since the post-World War II era.

Kirtley Pinho, a former Hawai’i resident, is president of the Marshall Islands Chamber of Commerce. He said the Marshall Islands’ economy has improved dramatically since he arrived there 38 years ago.

He noted that just two decades ago, the Marshall’s had inadequate roads and piers; the water supply was poor; all ships servicing neighbor islands were government owned; communication was insufficient; and 90 percent of construction materials were sold to the private sector by the government.

“The business community has grown quickly,” Pinho said. “We are working together to bring the necessary progress.”

He said the Marshall’s sewage system has since improved and the electrical system has doubled from 12 megawatts to 24 megawatts; a 30-million gallon water catchment supplies a 37-mile range water system; transportation has improved thanks to new paved roads funded by the Japanese and Taiwanese governments; docking facilities can now accommodate two large cargo vessels simultaneously; and 90 percent of construction materials are now provided by the private sector.

In the area of tourism, the airport has an 8,000-foot runway capable of handling DC-10s. New hotels are being planned for neighbor islands to assist growth of the budding tourism industry, including one on Likiep Atoll, 340 miles north of Majuro.

Future airport improvement plans call for a new hangar facility and terminal building to better accommodate Continental Micronesia and Aloha Airlines, which together provide eight international flights a week.

“With the special attention given to the environment, tourism in the Marshall Islands will be based on the outer islands where natural resources are untouched,” said Suzanne Murphy, assistant manager of the Marshall Islands Visitor Association.

“We support a focus on small-scale resort development on outer islands rather than mass market hotels with golf courses,” she said.
“This, of course, doesn’t mean we will discourage larger scale resort developments.”

The JCC will be planning another economic workshop focusing on a particular key sector and region still to be determined.

Kroeker said the next conference will most likely focus on transportation in Melanesian countries.