Saipan then and now

[B][I]Last of a four-part series[/I][/B] [B]Building a 21st century future[/B]

The islands have had to overcome some tremendous obstacles in their quest for economic growth. They had a small indigenous population and thus a small domestic market fragmented over three inhabited islands. There were no known readily exploitable natural resources in the traditional sense other than those of the sea. The islands were, and still are, located far from major sources of supply and foreign markets. Both raw materials and exported products (of which there were none) were subject to high freight rates. Jet aircraft was not that frequent a visitor and thus had not become a major contributing factor in disjointing one’s concept of time and space in the vastness of the Pacific cosmos. In those days the air was filled with invisible waves transmitting teletype, telex, and radio signals from every corner of the world but the messages they carried were largely unheard by many. Walter Cronkite’s CBS News was 10 days late in reaching Saipan and when received was aired in black and white originating from WSZE TV, the small television station on Navy Hill that glowed to life about 6pm and went off the air around midnight or earlier to the sound of the National Anthem. Mail from the U.S. East Coast took 10 or 12 days. Some things never change.

It’s unfortunate the politicos have gotten themselves into the current situation since the islands have so much potential but fall so far short of achieving that potential. I do not know of any other government in the world that would permit so many nonresident aliens to invest in such a small economy at the expense of depriving its own citizens the opportunity to enter businesses that should have, at least in my opinion, been reserved for local implementation.

I have a friend who lives on the eastern side of Saipan on a little plot of land he refers to as a ranch. His house is a small structure with a tin roof, he has a pickup, a few chickens, pigs, and a goat and grows a few vegetables. He’s happy and really doesn’t need anything and is quite satisfied with his lifestyle. Like some other local people on the islands, he is not—and has never been—a direct participant in the island’s tourism-based economy. He probably couldn’t care less that the garment industry died or whether the tourism sector rises or falls; it makes little difference to him.

That in my mind is a basic issue: Too many local people were left out of the private sector for too long. Even to the extent of permitting non-U.S. citizens and others to take over the mom-and-pop neighborhood stores, gift shops and other small entry-type businesses. Hindsight being what it is, in my judgment this should never have been allowed to the extent—and to the degree—which occurred. In my judgment many such businesses (not all) should have been reserved for the time when a local person stepped forward to implement the activity.

Geographic isolation and cost has served to limit cultural and economic exposure of many residents. Too many local people have been confined to the islands without the benefit of travel to other tourist destinations. Result: Many have nothing to compare Saipan with another successful tourist destinations such as Bermuda, Bahamas, the Greek Islands, etc. They simply don’t know and have no vision as to what an island tourist destination could be and the satisfaction and benefits by participating more directly in the economy.

In any case, no one ever said it’s a perfect world. If some of the constraints to additional investment are to be overcome, or mitigated, at least the starting point should be that they be recognized. In the final analysis it’s their island—the bones of their ancestors are buried here—they will make of it what suits them.

Today the Marianas archipelago, situated in a universe of water, are the farthest stars out in the American galaxy, a political affiliation few could have foreseen several decades ago. I’m beginning to suspect—truth be known—that the U.S. Congress is not all that familiar with the nation’s newest affiliated political entity and doesn’t quite know what its long-term policy should be toward the islands.

I personally believe the NMI will overcome its present economic difficulties and with the wise counsel of Greg Sablan, the NMI delegate to the U.S. Congress and others, the United States will continue to assist the people to develop the islands to their full economic potential.

The islands have certain advantages provided by their geographic proximity to the vast markets of Asia, including the one great advantage of economic stability provided by American law which is the absolute bedrock of stability upon which confidence rests and which creates the investment atmosphere permitting individuals and businesses to prosper and grow.

[I]Editor’s Note: Bill Stewart is a former senior economist for the NMI and has privately authored several books including Saipan In Flames, a World War II account; the Business Reference and Investment Guide to the CNMI and several hundred thousand tourist and historical maps of Saipan, Tinian and Rota distributed free by MVA and island businesses. His other investment promotional materials published by the government include Introducing the Northern Mariana Islands: An American Doorstep to Asia and Tourism Investment Opportunities in the NMI.[/I]