Against the backdrop of a gubernatorial push away from reliance on Chinese investment in the CNMI, Arnold Palacios’ nominees to the Commonwealth Economic Development Agency board of directors plan a variety of ways to bring investment back into the Commonwealth.
They all agree, however, it will be a long and difficult road.
“I feel for our governor,” nominee Michael Sablan said. “We need to figure out a way to get us out of this financial situation. We can’t go out and promote and investors come here and public services might be compromised.”
Mr. Sablan, along with Francisco Rabauliman and Tania Peters David appeared before the Senate Executive Appointments and Government Investigations committee for their joint confirmation hearing.
“It’s just not a good time to invest in the CNMI, to be honest. It’s not like back in the day,” Ms. David, a Bank of Guam executive said.
The nominees pointed to both the financial and economic downfall of the Commonwealth that began before the pandemic, during the Torres regime.
“The bright light is the military activities in Tinian. That is generating momentum and will grow. If we can piggyback on that development and turn that into jobs, we can bring things back,” Mr. Sablan said.
His comments fall in line with the governor’s major pivot away from the Chinese markets and toward military buildup investment.
Getting rid of duplications
“Do you have any ideas for how the Legislature can assist CEDA in stirring up economic development?” Celina Babauta, the committee chairwoman asked Mr. Rabauliman.
Rabauliman said he questions why so many agencies have overlapping functions, which is an impediment to efficiency and to the implementation of a vision. “Perhaps we have to look at the whole picture and see whether we can do away with these duplication, and empower the agency that has these mandates,” he said.
Finding the comparative advantage over Guam
Mr. Sablan agreed, adding the CNMI has never had “a consolidated, coordinated” economic development plan. While CEDA has its comprehensive economic development strategy (CEDS), what is in that plan may not necessarily be matching what the Marianas Visitors Authority intends to do over a period of time, he said.
Part of that plan, Mr. Sablan said, has to be vision for the creation of new industry. And he believes that “new” industry will instead be a new angle into tourism.
“I think it can be improved in terms of new industry,” Mr. Sablan said. “For decades we’ve just come to tourism. Our biggest competitive disadvantage is Guam. We need to find a comparative advantage over Guam. What is it? I think we’re gonna come back to tourism.”
Ms. Babauta said one comparative advantage the CNMI can exploit is its Covenant with the United States, which provides the CNMI something Guam will never have: a waiver from the protectionist Jones Act that has greatly inhibited Guam’s economy and makes it vulnerable to the CNMI yanking industrial opportunity from the southern island.
“That is something I want to push as an initiative,” Ms. Babauta said. “As you know, economic development is either through air or water because we’re so remote. By turning the CNMI into the shipping hub of the region, I think we can help our tourism industry. We can diversify in that respect.”
The CNMI’s onerous business licensing and regulatory environment
Donald Manglona, senator from Rota, said something must be done to streamline the CNMI’s business licensing and regulations processes, which are both convoluted and not equally applied, he said.
The senator compared businesses that were licensed within days of application for BOOST funding to a business he’s aware of that has been going through the licensing process for three months now.
“How is that fair,” he asked rhetorically.
“When you go out and promote investment, it’s establishing a business in the CNMI that people are having difficulty with,” Mr. Manglona said.
The nominees agreed with the senator.
2 Comments
Russ Mason
09/12/2023 at 11:49 PM
I am not fond of the US military sticking its talons into the CNMI economy because there’s an unknown price to be paid, eventually. Anything military says, “keep clear!”
Which is the most successful resort on Saipan? PIC.
The reason is disarmingly simple: it is family-friendly. The water park is great for kids and adults too. PIC is inviting in every respect. Even the buffet is a good one (not enough American food, and kids love hot dogs, burgers, and fries). The free beverages and ice cream is a bonus also.
Saipan needs more activities for kids. When I lived in upstate New York (Webster) the local fire department held a “Kiddies Parade.” Local children wore costumes and paraded through our streets. Every kid got a dollar, even me, when I was ten years old. The firemen also had a carnival every year with games of chance, a rented ferris wheel, and cotton candy. Just walking around the fairgrounds was exciting. We could use that kind of thing here – focus on families, the tourists and the locals, especially. Let’s have fun together!
Joe
09/13/2023 at 9:53 AM
I hope this is just not talked!