Study: NMI suffers from same conditions as LDCs

Although the CNMI is not at the same economic level as some of the least developed countries, it suffers from many of the same conditions that small island states endure around the world, according to a recently released economic report.

“U.S. territories are generally higher in per capita income than LDCs (least developed countries) but substantially lower than the U.S. and other developed countries,” according to the report, Economic Impact of Federal Laws on the Commonwealth of the Northern Mariana Islands.

The report, commissioned by the Officer of the Governor with a grant from the Office of Insular Affairs, says the United Nations has gone far in developing programs and policies to aid least developed countries (LDCs). LDCs are defined as low income; low gross national income per capita (under $750); human resource weakness; and economic vulnerability. According to the report, the CNMI’s income per capita was $12,839 in 2000.

The United Nations, according to the report, has created special programs for LDCs, including financing from bilateral, regional and multilateral donors and financial institutions; including grants and loans at very favorable terms; benefits in the multilateral trading system in the form of special concessions under several agreements in the World Trade Organization and preferential market access by several trading partners; and technical assistances.

“While the CNMI would not be considered to be at the economic level of an LDC, it suffers from many of the same conditions that smaller island states endure across the globe,” the report states. “Furthermore, many LDCs could be regarded as being in protracted states of economic depression. Therefore, UN experience and that of other international development organizations could be very valuable to the U.S. in dealing with its own territories.”

The UN also has developed the small island developing states (SIDS), which recognizes specific problems for developing states.

These programs, the report notes, show there is precedent for special consideration, programs or policies for the development of small island states.

“In fact the U.S. Government Accountability Office has advocated stronger and more coordinated federal programs for U.S. territories for many years,” the report states.