Paradise lost?

When Pedro P. Tenorio (Teno) was our governor back in the 1980s, the CNMI had three great things going for it. First, Asia was rising and Japan was transforming itself into a major economic superpower. Second, the United States’ economy was booming under a Reagan supply-side revolution and the old Gipper–God bless him–was content to leave our local self-government alone. Third, the CNMI’s local government was intent on trade liberalization and market friendly policies conducive toward our general prosperity.

All of these factors greatly contributed toward the unprecedented prosperity of our local people. Major hotels were constructed. Tourists came in droves. The garment industry began to thrive and profit. Real estate prices appreciated. Millionaires were made virtually overnight.

But in the mid to late 1990s (up to the present), all of this changed rather drastically. Tourism took a huge hit. Hotel occupancies faltered. The garment industry was repeatedly threatened. Crime rates went up. Our economy floundered–and continues to flounder to this day.

What happened?

The holy economic trinity–Asia, America and us–went south, so to speak. Asian economies began to crumble. The Asian financial crisis of 1997-98 took its toll. Japan, once thought to be economically invincible, began to unravel as an “Asian economic miracle.”

And America, while economically well off under the Clinton administration, began to exert enormous political pressures upon the CNMI. The Federalization danger emerged and our local self-government suddenly became quite precarious.

Investors were suddenly alarmed. The stability of our connection to the United States was no longer regarded as a distinct investment advantage.

The CNMI’s reputation came into great question, as the mainland labor unions and other special interest groups maligned us in the pages of Reader’s Digest, The Washington Post, and the New York Times. ABC’s 20/20, Inside Edition and other television muckraking also followed, aided and abetted by the U.S. Interior Department under Bruce Babbitt, Allen Stayman, Jeff Schorr, and David North.

Thus, the first and second pillars (Asian economics and American politics) came crumbling down.

But to add insult to injury, as if the other two factors were not already more than enough to keep us down, we also had to shoot ourselves in the foot. We undermined our own best interests by practicing protectionism and reversing course on market economics–the very principles and reforms which led to our prosperity in the first place.

Can we now reverse course and return to a stronger market economy and prosperity? This upcoming November election should decide.

Vote carefully.

Strictly a personal view. Charles Reyes Jr. is a regular columnist of Saipan Tribune. Mr. Reyes may be reached at charlesraves@hotmail.com