Fast-track identification of alternate industries

The Commonwealth Development Authority is pressing the Tenorio Administration to immediately come up with concrete actions on the proposed economic diversification in fresh efforts to protect the CNMI against future recessions.

This, since the CNMI government is still unable to decide which business activities will be pursued more than a year since economic experts from throughout Micronesia and the mainland United States gathered to identify potential new industries for the Northern Marianas.

Development Authority Executive Director Marylou S. Ada said it is important for the CNMI to decide on which industries to pursue to expand the Commonwealth’s economic base and provide it with a shield against external factors.

In March 1999, the U.S. interior department’s Office of Insular Affairs sponsored an economic summit aimed at identifying probable alternate industries for the Northern Marianas, aside from tourism and the apparel manufacturing sectors.

Some industries that were explored which provide the brightest potentials include financial services, captive insurance, telecommunications, data processing, software production, pharmaceuticals, scientific research, specialized advanced education, retirement villages, airline support training, transshipment and telemarketing.

These industries will take longer time to establish and develop. Ironically, the CNMI government has yet to take concrete steps in as far as deciding which sectors will be established on the islands although it has never stopped talking about diversification.

However, Ms. Ada mentioned that the government has started looking at the possibility of providing tax exemptions to new businesses through the Free Trade Zone and the Qualifying Tax Certificate Programs in order to encourage potential foreign investors to the CNMI.
She also cited efforts to revitalize the tourism industry via the Garapan
Revitalization Project, which was aimed at improving the district’s landscaping, parking, traffic flow and lighting, and the American Memorial Park Improvement Project.

The Garapan Revitalization Project’s design and construction cost is estimated to reach over $21 million. Initial funding of $2 million has been set aside for the program under the Capital Improvement Project Plan.

At the same time, the American Memorial Park Improvement Project has already received funding support through legislation which authorizes CDA to borrow up to $2 million for improvements to the park.