Pacific Magazine > Magazine > January 1, 2007

Region

Island Leaders Hard Sell

Good Representation At DOI Investment Conference

By Richard Fa’aeainasamoa Coleman, HONOLULU

The desire for sustainable development in their island nations continues to weigh heavily on the minds of  the seven leaders of the U.S. territories and freely-associated states as they led their delegations in search for deals at the 2006 Conference on Business Opportunities In The Islands, hosted by the U.S. Secretary of the Interior Dirk Kempthorne in Honolulu, Hawaii. They came in search of what Marshall Islands President Kessai Note called “foreseeable tangible results” in a conversation with Secretary Kempthorne.

 

American Samoa, Commonwealth of the Northern Mariana Islands, Federated States of Micronesia, Guam, Republic of the Marshall Islands, Republic of Palau, and the U.S. Virgin Islands in the Caribbean all participated.

 

“Palau’s future lies in sustainable development of its plentiful natural resources,” declared Palau President Tommy E. Remengesau, Jr. during his presentation at the conference. “But we are not just all talk about sustainably managing our resources. Palau has committed itself to preserving 20% of its near-shore marine resources and 20% of its forest resources under effective conservation by 2020. We call this the Micronesian Challenge, and we are actively engaged in seeking financing for a trust fund to make this goal financially feasible. Palau’s infrastructure will support sustainable economic growth compatible with the environment.”

 

“We in the Federated States of Micronesia believe in the almost limitless potential of the private sector, sustainable supported and consistently guided as the main provider of economic development and nation building,” reflected FSM President Joseph J. Urusemal during his presentation speech at the conference. “This is the policy direction that has been collectively decided by our leadership in the FSM. The high level of our participation in this conference, with every strata of our government represented, from national to state to the municipal level, clearly shows the high priority that we attach to the objective of exploring and promoting business opportunities in the Federated States of Micronesia. We believe that our development process must be participatory in a significant way. The private sector must work side by side with the public sector. We believe in an appropriate and sustained partnership between the government and the business community. However, we cannot deny the fact about the need to improve the business environment of our country. The question today is not whether or not we should develop our private sector; the question is in what manner and at what pace should we proceed.”

 

With the number of construction projects sharply escalating due to the pending transfer of 8,000 marines from Okinawa, Guam is being viewed as the beacon of economic strength among the six island groups present at the conference, which could work well to everyone’s advantage in drawing outside investors to the North Pacific Region. “Guam is expected to continue its recovery and expansion of economic activities in FY 2006 and 2007 as it has for each fiscal year since 2002,” said Guam Governor Felix Camacho in a statement read at the conference by his official spokesman Andreas (“Andy”) Jordanou, acting administrator of the Guam Economic Development and Commerce Authority. “Given the number of private, federal defense and GovGuam construction projects already planned, permitted and contracted, it is very likely that the pace of our economic expansion will continue to accelerate.”

 

“You have to consider each territory and freely-associated state on its own terms, one at a time,” American Samoa Governor Togiola Tulafono advised the conference assembly. “With all its diversity and uniqueness, conditions vary from one territory or state to another. American Samoa has put out its ‘welcome mat’ for business investors.  We are Americans on American soil. This is important for American investors to know, especially with respect to due process of law. We offer extraordinary measures of flexibility. So, if you are looking for business opportunities in the Pacific Islands, you will find American Samoa ascending to the top of your business location analysis.”

 

“There is no doubt about it, the Commonwealth of the Northern Mariana Islands is on the road to full economic recovery,” declared CNMI’s Lieutenant Governor Timothy Villagomez. He blamed the decline of the country’s two major industries, the garment industry and tourism, on ‘factors beyond our control—Japan’s recession, a change in World Trade Organizations, and the severe rise in fuel costs.” However, he continued, “we’re determined to face these new challenges with the same energy and commitment that led to our economic prosperity in the 1980s and the 1990s. To face these challenges, we have developed new investment tools in addition to those listed in our Covenant with the United States. We have a range of business opportunities that cannot be matched by any of the other insular areas because of the variety offered by our many different islands.”

 

Villagomez further pointed out that the CNMI’s Approved Destination Status designation from the People’s Republic of China will certainly do much to revive the country’s faltering tourism industry. “We have had a 13% increase in arrivals over last year because of the Chinese tourists,” he said.

 

“The Republic of the Marshall Islands has taken a different approach to the development over the course of the past several years,” reflected RMI President Kessai Note to the conference assembly. “Instead of attempting to be an active partner in business development, the RMI government has created a legal and economic framework to encourage private sector development and self-reliance. We have also recognized the importance of access to land for investors, both foreign and domestic. Legislation has been enacted to provide for the registration of land grants to allow investors in the RMI to enter into the lawful use of land without the constant threat of destructive litigation and other problems that could imperil our investors access to land.”