Going beyond institutional investments

At Issue: NMI’s struggle to revive a traditional economic sector that has steadily deteriorated since 1997.

Our View: A good effort but the NMI must look beyond institutional investments to weather each storm.

We hope that politicians and bureaucrats have learned a lesson or two about all that could go wrong in a fragile economy such as the NMI so easily derailed by external influences.

For instance, the Asian Flu landed on our shores in ripples of tiny waves, one too many waves that eventually brought local tourism to its knees. The key to unraveling the drop in the number of tourist arrivals is the regional carrier, Continental Airlines. The drop in load factor forced Continental to drop direct flights to Saipan.

Indeed, such a decision has adversely affected our traditionally most positive industry as to force the closure of about 2,500 tourist-related businesses. We weren’t prepared for this assault and not when we don’t have a set of alternative plans to deal with the devastating effects of this sector going south. For Continental Airlines, its decision is premised on non-profitability as the load factor out of Japan took a nose dive. The NMI wants to resolve this matter from the usual dish of politically correct. Nothing seems to work in our favor.

In the midst of all these, we should praise forward looking leadership at all levels for their vision: Despite the setback, nothing was going to stop them from finding another alternative–other airlines to fill-in the void. Progress may be slow, but sure! There’s the possibility of chartered flights originating from Haneda this summer in time for the Golden 2000 vacation plans. There’s the proposal of Mandarin Airlines in the works. It may be a slow process, but a sure undertaking that would gradually revive our ailing tourism industry.

The triad of the Asian Flu, capricious agenda on federalization and the approval in recent years of protectionist laws have all contributed to exacerbating both tourism and major drop in investments. These experiences tell us that we can’t rely on institutional investments. We need to take it beyond the realm of what we’re used in order to explore the benefits of the “new economy” born by Information Technology now driving the economic engines of countries the world over.

The reform measures before the legislature is a good place to start such undertaking. And it takes real leadership to push through such measures that promise to reap greater returns over the long term. Si Yuus Maase`!