Potential: Nothing more, nothing less.

Most of the CNMI’s economic problems are rooted squarely on our soil. Asia’s economic problems aren’t a valid excuse any more. That’s old news–the real news is how we dealt with those challenges, and the verdict isn’t very charitable. And, in the mean time, any investors crazy enough to be eyeing our shores will be looking over the deals of the CUC 80-megawatt mega-scandal, and wondering if this place is a clean place to do business.

And as far as the investors who pulled out of here go, a lot of folks here are scratching their heads asking where those businesses went. I’ll tell you where: somewhere else. That’s where they went.

And why not? Most of the industrial world–though Japan would be a notable exception–is enjoying an economic boom that has no apparent end it sight. (Of course, economic booms never have an APPARENT end to them).

So why would you invest here when you could invest in Taiwan, or Singapore, or Hong Kong, or Korea, or the United States? Which economies have more fundamental economic productivity to offer?

And which economies are easier to invest in? (Hint: how hard is it to pick up a phone and call your broker and put your funds into these industrial economies? Not hard at all.)

So what fundamental advantage does the CNMI have to offer to investors? Do we have a more productive labor pool? A better educated workforce? Stable and consistent laws and policies? A clean and open regulatory environment?

Ask yourself those questions, because those are the questions the world’s investors are asking.

The CNMI does have some advantages, of course. We’re a Yankee dollar based economy, which is a major advantage–perhaps our biggest. Our immigration laws used to be comparatively accommodating to foreign entrepreneurs, but this advantage has been largely removed. Most of our banks are FDIC insured, which is a definite plus.
Tariff free export status to Uncle Sam’s markets is a major advantage, which is why the garment industry has been our economic lifesaver over the past couple of years.

But when I hear increasingly desperate and zany talk about “doing something” to rope in more investment here, I have to admit I see some humor in it. There’s more to international finance than patting ourselves on the backs and reminding ourselves how beautiful the coral lagoon is.

In terms of sheerly theoretical potential, I think the CNMI could actually be richer on a per- person basis than the United States is. Our location is synonymous with “strategic,” be it economic or military. Our dollar based economy and economic and military ties to Uncle Sam are valuable. With all these beautiful islands and all those Asian tourists longing fo

R&R, we could easily become a major (and I mean major) tourism market. And this is surely a great place to live and there are a lot of friendly folks.

But in the final analysis economic potential is merely that–potential. Unless things change–and why would they?–the smart money will be placing its bets elsewhere.