Tough times ahead in paradise

The CNMI is viciously sandwiched in a no-win situation: Congress poised to cut federal deficit now at $15 trillion over the next decade while our economy contracts beyond our wildest imaginings. If you will, any government who wishes to move its plans forward must have the benefits of a healthy private industry. We don’t have one now.

Revenue degenerated by as much as $136 million in recent past. The departure of major businesses sucked out anywhere between $3 billion to $5 billion in money that used to be recycled locally. This phenomenon contributed to the degeneration of revenues. Big time, too!

Now, if nothing else works, would Uncle Sam assist the CNMI meet its bloated payroll and an overly generous retirement program? Or would it insist that we too save ourselves from ourselves? Would politicians work up the resolve to cut spending down to a skeletal level? If reduction in force isn’t the answer, what then do you propose ought to be done?

We’re still spending scarce funds with “business as usual” in very, very unusual times. Yet the IOUs pile up by the millions of dollars annually. Why the dismissive attitude toward strong fiscal policy? Meanwhile, the boat keeps sinking deeper by the day. That the captain has jumped ship isn’t helping any at all; I mean jumping out of the kettle right into a red-hot frying pan isn’t very smart either, is it?

Now, a task force has been established to find ways to salvage the Retirement Fund. Well, how do you salvage a ship that is more than halfway below water? Would using the same set of tools help any? In short, would juggling the same figures change the result for the better? Einstein defines this as insanity! It’s nauseating how the stewardship of taxpayers’ money to ensure timely payment of employer’s contribution did nothing to prevent it from insolvency.

It’s time that key players try to explore privatized retirement programs such as the system that is in place in Singapore. Briefly, there’s the 20-percent mandatory deduction from all members where the goal is to infuse some $100K into the fund in order to qualify to draw from it. If at age 55 you haven’t met the threshold, then you are required to pledge half the value of your land to meet the requirement in order to qualify to draw benefits.

It is so designed so that it stays solvent through the years where money comes in regularly as retirees draw from their contributions. It’s something to explore to see its success over our system of perpetual failure. It may be a different and difficult system, but conventional approach isn’t the answer either.

Meanwhile, are there prospects for major investments in the near term? How much are talking about? How soon could they commence by way of real time infusion of wealth and jobs creation? Or is this a highly suspect venture often muffled in intermittent announcements of possible investments up north? A bit protracted as revenue streams disappear daily, right?

****

As Uncle Sam swings his shiny machete before our eyes, governments at all levels throughout the country must cut spending without choice. Bankrupt governments including the NMI ought to review how the governor of Puerto Rico reduced a $3-billion deficit that is now paid off by as much as 80 percent. It had an interesting attrition program—reduction in the number of public sector employees—that looks feasible for all levels of government. The days of wine and roses have finally come to a bitter end. We can no longer bluff it!

****

Working up traditional strength

The seeming inability of our farmers and fishermen to venture beyond conventional wisdom renders traditional mode of production stuck in the mud of redundancy. If I may illustrate a point: The CNMI is geographically situated in the typhoon belt. Isn’t it about time that we explore “vertical farming”?

It’s a farming concept where you build a huge warehouse-like facility to grow both veggies, raise fowl, pigs, ducks, pigeons, and goats. Overall, you eliminate concerns about the weather since your plants are protected in a building. Furthermore, you eliminate insects from infesting your garden. And it guarantees a consistent production of veggies and other produce all-year-round.

You the farmer/supplier would be happy, restaurants and groceries would be happy too, including your consumers who can now rely on a steady flow of veggies produced locally. This farming method would eventually morph into cottage industries like pickling for farmers who wish to take it a notch further. You turn excess produce into money!

Some beneficial link should be established between the farmers’ group, CREES, and universities in the vicinity to improve production of vegetables, staple food, and others. Both the Universities of Hawaii and Philippines should be able to contribute. Both could definitely improve local produce from sweet potatoes, taro, and veggies.

Now, if we don’t move forward beyond conventional wisdom, then we’d return time and again to the usual myopic discussion on marketing of local produce (if the weather cooperates, no storm throughout the year). Vertical farming can be done and it’s all up to the farmers and fishermen with resiliency and enthusiasm to claim their trophy.

****

Buddy Magoo said that the CNMI has seen nothing but dollar bills during the peak of the local economy. “Today, we only see dollar signs (not dollar bills) on posters pasted at grocery stores,” he pointed out. “When do we see more dollar bills rather dollar signs beats me, partner.” It’s a tough issue given the litter of empty office spaces, record foreclosure of homes, surcharge that deflates family pocketbooks, salaries that remain flat or cut by austerity—all trophies of a failed leadership.

****
[I] Delrosario is a regular contributor to the[/I] Saipan Tribune’[I]s Opinion Section[/I]