Saipan flirts with Third-World status

In his book, and The End of Poverty: Economic Possibilities for Our Time, economist Jeffrey Sachs points out that “when the preconditions of basic infrastructure (roads, power, and ports) and human capital (health and education) are in place, markets are powerful engines of development. Without those preconditions, markets can cruelly bypass large parts of the world, leaving them impoverished and suffering without respite.”

He is discussing issues related to poverty, but in this dense statement he points out the pre-requisites for economic success. They are really quite simple: a combination of human capital and of infrastructure. Human capital is made up of two parts according to Sachs: health and education. It makes sense. If a people want to develop economically, they need some basic level of health, and they need education. Basic infrastructure on the other hand consists of three things: roads, ports and power. Roads are needed for internal movement of goods and people, ports are needed to bring materials, goods and people into and out of the area, and power is needed to provide the energy for all of this to work (and for all forms of distance communication).

Here in the CNMI, we have a decent level of health care services. In fact, given our isolation and our small population, I would say that it’s outstanding. Education also is doing well. We have a high literacy rate, children have access to free education, and private education is also available. Opportunities for higher education are limited here, as are vocational schools. If we were to improve a facet of our human capital, it would be in educating our population in ways to unlock their potential more completely. It’s an area for possibilities.

On the infrastructure side of the equation, we have a good system of roads, and a well-developed seaport and airport. The major weakness in our infrastructure is our power. Power is unreliable and expensive. According to Sach’s formula, lack of reliable power it is not simply an inconvenience. Power is one of the key elements required for economic development.

On the global scale, we’re doing pretty well. We can improve our education, and we must address our power situation, but we have the other elements—health, roads and ports. I don’t really think that we’re on our way to becoming a Third-World jurisdiction, but with enough neglect, it could happen. Unless we address the basic components of the formula, we are doing more than inconveniencing ourselves. We are missing opportunities, and slipping into the company of undeveloped nations.

[I]David Khorram, MD is a board certified ophthalmologist and director of Marianas Eye Institute and the author of the book World Peace, a Blind Wife, and Gecko Tails. Comments and questions are welcome. Call 235-9090 or email him through www.MarianasEye.com, or leave comments at www.MarianasEye.blogspot.com. Copyright © 2008 David Khorram[/I]