Investments need stable policies

Investors look for a politically stable venues to establish their businesses in hopes that over the long haul they will be able to recoup their expenses, make appreciable return and share its wealth or profits with the host government.

From the outset, a strong partnership is forged to ensure a smooth take-off of the new economic venture. It is understood that government policy either enhances or stifles investments. A well poised host government usually takes the former (enhancement) for obvious reasons. The wealth created benefits is shared. Both come out winners in an economic venture that creates wealth, therefore, revenue.

The one single most important factor in this partnership is the ability of the host government to maintain stable policies. In recent years, the NMI is the victim of both internal and external events and policy matters that now threatens a once thriving economy into the brink of insolvency or bankruptcy. These include internal protectionists laws that strangle rather than enhance investments, not to mention the fatal assaults against the local economy by the Asian crisis.

Then there’s the shift in federal attitude against a major local economic sector, a position that is the most ruinous element in wealth creation the NMI has ever seen since the inception of its constitutional government in 1978. It seems that hardly any of the key players who have pushed for strangling internal and external policies against wealth creation are wary of the consequences of their ill-fated decisions.

As the NMI reels through these difficulties, we find it ironic that the special representative of the federal government is on island to discuss transition without the benefit of assessing the depth of the Asian crisis here (which has yet to bottom out) or come to understand the meltdown and long term consequence of a punitive federal stance that is destructive at best, the single most unstabling element against encouraging lasting investments in a resource-poor archipelago at worse. It trumpets, in no uncertain terms, that a shift in federal policy can instantly annihilate all and every investment here.

Any reasonable person can discern that such ill-conceived position would make a mockery of the NMI’s economic freedom, the consequence of which would be permanent economic ruination. The extent of the damage already inflicted against the NMI through such federal agenda definitely breeds instability that goes far beyond what the nimble minds from across the Pacific can envision. It breeds suspicion, contempt and distrust against the federal government we detrimentally rely upon for policy stability and freedom, most especially, economic freedom.

Finally, let it be known that our people too have put in their share of sacrifice to secure their well earned stripes in political and economic freedoms, specifically the freedom to create wealth for its governance. As US Citizens, we deserve nothing less in forging a strong economic foundation that President Clinton has promoted on wealth and jobs creation across the country.