Denying bankruptcy

The NMI is bankrupt! Understandably, the issue is shielded in evasion or obfuscation or both for political reasons. The spin-doctors are fearfully employing diversionary tactics to hide the truth that runs contrary to the now empty mantra of “solutions driven leadership” of a year ago.

It looks clever and perhaps their suspect financial literacy embraces superficial understanding of the implications of bankruptcy. It places sinking the standard of living to below abject poverty NMI-wide, lack of funds for the court-adjudicated retirement pension, healthcare and education.

You could do the math to get to the simple truth: CUC owes CDA $50 million; agencies owed CUC $30 million while the NMI owes the NMI Retirement Fund some $789 million in unfunded liability. Is this why it is now eyeing raid of MPLT funds?

Now, if you’re an employee is there a guarantee you’d get your check six months or a year from now? Take it up with your bosses for real time answers!

The attitude of inconsequence in the treatment of this issue is the perfect recipe for real time fiscal crisis shortly. It would spread and adversely affect every household Marianas-wide. Ignoring it isn’t going to last given that the dirt floor of bankruptcy has started crumbling.

Is it hard admitting that this government is flat broke or bankrupt? There’s no doubt that villagers everywhere sense it in the thick salty air of poverty at home. Or do you clandestinely blame it on self-created poverty?

The scarcity of local funds must not be muted in self-denial. It’s better to admit it now followed by due diligence to spur growth that would in turn increase revenue generation.

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Critical Review: Throughout the holiday season we should spend quiet time to critically review how issues have taken on a vicious twist sending the archipelago into an irreversible bankruptcy. The longer it is ignored the wider and deeper our fiscal hole would be.

It isn’t the sturdy pile of bankruptcy that I find perplexing and pathetic as much as the reaction of the powers that treat it as inconsequence. Appalling the loose attitude. We shall see the slam of fiscal mega tsunami shortly. Quiz: what would they do?

Sure, we could blame everyone else for the deepening mess at home. But leave a larger room for admission by less than honest politicians that you did it to your people!

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Investment Exodus: Understandably, a major contributing factor to the fiscal crisis is the decision by major Japanese investors to take an exodus in recent past. It instantly translated into a $5-7 billion hole in the repatriation of money that used to be recycled locally. I find this decision condescending in that it never took into account the impact or the human side to it like villagers who suffer from it all ignorant of the politics of the decision.

Moreover, this decision is a denigration of our dignity and fate that doesn’t seem to matter to Nippon investors who left. Their apparent departure must have been triggered by an issue hailing from within the NMI I can’t place for now.

Was it the decision to rein-in Chinese investors started by impeached and former governor Benigno R. Fitial that slammed the floodgates open? If this query has truth to it, please understand our ignorance in terms of world history. Moreover, the Chamorros have yet to even resolve where exactly did it come from. And you expect us to know and understand your political history?

At any rate, it’s easy to cripple the NMI by simply pulling the rug of investments from under our feet. Amidst the impositions how do we rebuild to pre-exodus level? I know that the NMI has had a history of policy instability that seems to have mushroomed in recent past. But Nippon investors should have shoved aside polite niceties by simply stating their case.

Internally, it’s a huge concern most of the elected elite hasn’t come to grasp with. No wonder we haven’t even come to terms with our cultural identity.

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Investors probe landscape: In simple terms, an investor looks at the entire system of government here or basic infrastructure to size up its planned investment. It probes education, the legal system, and policy formulation to ensure stability. Policy stability is uppermost on its list to gauge future return of investments.

For instance, if a firm in technology wishes to move into the NMI it would research how many technology and computer science students graduate from NMC, annually. Otherwise, it would be foolhardy establishing a firm that is handicapped by the lack of competent employees. Do you see why I’m advocating defining our educational goals?

The investor also has his own intelligence people who probe the depth of issues the elected elite takes up and whether we know our materials before enacting them into law. If not, then it’s another point against instilling policy stability. In brief, investors are usually equipped with fully poised experts to review the posture of the NMI versus their plans. Could we say the same of ourselves?

Unless we resolutely resolve to instill stability in the policies of the NMI nothing much would happen to lure new batch of investments capable of establishing jobs for our people. The concept is known as “wealth and jobs creation.” Our ability to shift boat in midstream is well known beyond our shores. It hasn’t sit well with investors. This has got to change forthwith!

I’m not sure where do we begin rebuilding policy stability. It’s an issue though that we can’t sleepwalk given the persistent reduction of revenues even before the Soudelor disaster.

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Exclusionary Policy: We’ve watched in quietude the loss of participation in the tourism industry. Things were fine up until 1977 when we were completely alienated and emasculated. We’re now at a juncture when this difficult issue must be addressed forthwith. Can’t afford another 40 years as cogs in an industry that cleverly did everything to our exclusion!