‘Armchair governance’

Over the past several weeks, critics of the new governor have had a field day taking him to task over several issues surrounding the island community, making any reasonable person believe they are trying to be “armchair governors.”

There are armchair quarterbacks and then there are armchair governors. The only problem with armchair quarterbacks and armchair governors is that they like to look at decisions made after the fact; if they were the ones to actually make the decisions, then the situation would be totally different.

What these critics need to understand is that, had the previous administration kept the deficit from increasing and not allowed the fiscal stability of the government to go to hell in a hand basket, then the current administration would not be in a position of trying to put out a rather large and horrendous economic fire. The actions taken by Gov. Benigno R. Fitial to solve the severe fiscal problems left by the previous administration have been, in my opinion, sensible business decisions and not knee-jerk reactions, that will only be temporary until the government returns to fiscal normalcy.

The contrast between Juan N. Babauta and Fitial in terms of handling fiscal responsibility is that the former governor spent public monies without his advisers apparently informing him that the deficit had increased substantially over a four-year span of time. On the other hand, Fitial, who inherited a projected deficit of around $150 million, has been extremely conscientious in how he handles and spends public funds.

As for suggestions that the CNMI government needs an economist—“not a textbook economist but one who understands statistics and knows how to analyze them”—one must comprehend that individuals who have careers in economics usually possess a master’s degree or a Ph.D. in economics or a closely related field. Most advanced degree programs require that statistics and research methodology be successfully taken. Those courses in statistics are taught with bona fide textbooks. To suggest that an individual who has acquired a background in economics from textbooks will not have the knowledge and/or expertise to understand and analyze statistics reflects a complete lack of understanding of the requisites for advanced degrees in technical areas like economics.

With respect to placing an economist on government payroll, it appears that Gov. Fitial did not hire an economist simply because he does not need to pay anyone a high salary to tell him that the formula to fix the current fiscal dilemma is to cease and desist with overspending, exercise prudence in terms of how funds are to be expended, and initiate careful short-, mid-, and long-term planning to place the government back on solid financial footing. Thus far, Gov. Fitial has demonstrated that he will not leave any stone unturned when it comes to paring down the deficit and bringing back the financial stability of the government.

As for arguments that an increase in the minimum wage would translate to an increase in overall income, spending, hiring, and revenues from taxes for the government, what these proponents fail to realize is that the several hundred small and medium business owners in the CNMI might not be all that ecstatic about giving their employees an increase in the minimum wage by almost two-fold, i.e., from $3.05 to around $5.75. Showing the effects of what a minimum wage increase would do to wage earners is to look at just one side of the coin. With respect to business owners, I am certain not all of them would jump on the bandwagon to support the increase of the minimum wage, with the local economy as it is.

Comparing the governor’s methods to that of a bulldozer in resolving the current economic problems is, I think, not an accurate or clear depiction of what Gov. Fitial has done since his inauguration. Rather, I would describe it as the governor taking the bull by the horns to fix and resolve the problems created by the previous administration. Although some of the measures Gov. Fitial has taken may be considered drastic by some, I believe they are necessary. Otherwise, the financial stability of the CNMI government will not become a reality anytime soon. Had the previous administration provided responsible fiscal leadership by containing a menacing deficit that skyrocketed in four years, then Gov. Fitial would not be under the gun in terms of formulating solutions to all of the serious problems besieging by the CNMI.

Some have also taken issue with what they describe as an emphasis on investors being placed on private land, as opposed to public land, with the argument that hotels do not necessarily need a beachfront to attract tourists. One must understand, though, that Gov. Fitial does not have any control of private lands. He can only try and persuade those who are in possession of that land to give investors the economic opportunity. On the other hand, public lands are something that Gov. Fitial does have some control over and it is therefore a logical consequence that he would push to have investors involved in government-owned property.

When critics complain about the governor running the risk of ignoring the voice of the community and the interests of those directly affected by his policy decisions, it begs the question: Why didn’t they mention the issue of power and ignoring the voice of the community and the interests of those directly affected when the previous administration took over CUC for several months and was in complete control of policy making, as well as the overall management and administration of the funding and the administration of the organization?

Of course, critics have First Amendment rights, including being critical of elected officials for the decisions they make. However, it is easier to criticize than to actually govern, to make important decisions and provide gubernatorial leadership for the next four years. If these critics feel very strongly about governance, then perhaps they should entertain the idea of running for the governor’s office in November 2009. And since the CNMI supports the American way, then the opportunity for these people to throw their hat into the ring will always be there.

Dr. Jesus D. Camacho
Delano, California