Coming to terms with economic reality

The Issue: The much maligned apparel industry has proven the sturdiest source of economic cushion for the NMI.

Our View: The NMI must resolutely defend an economic sector that has provided the means to sustain solvency.

The last major investment that descended in these isles was 1983–the establishment of the apparel industry–which became the largest employer of both locals and guest workers. It is responsible for more than 3,000 direct and indirect jobs in both sectors.

When the tourism industry went south as a result of the Asian Crisis, the apparel industry provided a sturdy flow of some $32 million in direct taxes annually into the local coffers. Despite attempts from without and within to derail its role, it consistently provided revenues and jobs for the local people in non-garment areas.
It gave the local government some breathing room when nothing else works. Today, it is a $1.2 billion industry.

It has spurred the establishment of a shipping line that brings in raw materials from nearby Asian countries. In return trips, shipping lines carry finished products from the NMI to global markets. The combined industry (apparel and shipping) have created both private and public sector jobs. Most importantly, it allows the Commonwealth Ports Authority to meet its debt service in bond money it floated to improve the commercial port facility in Tanapag.

The apparel industry has also given the airlines business by employing cargo planes to ship finished apparel products from the island in order that it gets to global markets on time. Thus, on either side of the ports operations, the role of the apparel industry embraces a good portion of the local population in terms of wealth and jobs creation. It has spurred the establishment of other residual or support businesses from insurance to trucking, among others.

However a much maligned industry, it has proven its sturdy contribution to the local coffers and jobs where our people are given the opportunity to meet family needs or bring home the bacon, so to speak. Our detractors are long on rhetoric but awfully short on presenting realistic industry substitutes to guard against bankruptcy or insolvency.

What detractors have never come to terms with is the economic meltdown they would have inflicted against hundreds of locals who are gainfully employed today in our apparel industry’s non-apparel sectors. It brings into focus the very agenda too of human rights activists who wish to inflict unemployment and hopelessness among our people. It’s illogical, inhuman, and pure injustice all the way around.

Local leadership, therefore, must come to terms with reality that the apparel industry here works both in terms of wealth and jobs creation. The point is: It works for the NMI. Therefore, it is our responsibility to protect it from the immoral and unjust agenda of our detractors who have used the guise of reform to please special interest groups. It’s very American to fight for our economic freedom and must work the clock to deter permanent economic ruination. Si Yuus Maase`!