‘Saipan could be an industrial depot for Asian markets’

For the CNMI to recover from the effects of the global crisis, an economic expert is advising the creation of an industrial zone near the Saipan International Airport and the seaport.

Joseph P. Bradley, senior vice president and economic market statistics officer for Bank of Guam, says this plan is still viable for the CNMI.

He said the big empty spaces near the airport and seaport is ideal for an industrial complex or zone.

Bradley said products being shipped from the U.S. to Asia could be stored in the industrial zone instead of spending three weeks in transshipment.

“It [shipment] will take a matter of few days and I think that instant gratification is worth it for the buyers,” he said.

Also, Bradley said the empty lots and buildings that used to be occupied by garment factories could be converted into small scale manufacturing or processing centers.

“You’ve got an enormous telecommunications capacity or fiber optic, and I think that the CNMI could engage in telemarketing with the U.S., Canada and Asia,” Bradley added.

Bradley made the presentation on the topic “Islands in the Storm: The urgency to Recruit and Train for the Military Build-up” before participants of the Second Annual Mayors’ Conference last Friday at the Fiesta Resort and Spa.

He said small islands like Guam and the CNMI in some ways will actually benefit from the global recession such us the reduction in fuel or energy prices. Bradley says that this would mitigate the cost of shipping into the CNMI.

“This has already affected airfares. This should ease some of the downward pressures on tourism,” he said.

Still the business industry would be very tight not only for the CNMI but for the rest of the global economy as long as recession is ongoing because people want to stay home and keep their money there, he said.

Bradley believes federalization would help reduce some of the pressures due to the smaller number of immigrant workers.

He said fewer jobs and the reduced number of immigrant workers will stabilize the economy.

“Albeit a much lower level of activity in the CNMI compared to the last 20 years. It does not mean that the CNMI is going to return to its affluent situation when the garment factory are still alive but I think it will force a reduction in the size of the government,” he said.

“The CNMI economy would be very different in 10 years,” he added.