A reflection in political economy: A perspective in a US Commonwealth democracy

The Marianas Business Journal this month asked Juan S. Torres and I for comments on the local economy and the public policy which requires certain essential skill sets, senior executive and job-related experiences that candidates must bring to the table, in order to make informed decisions and effectively navigate the Commonwealth out of the economic wreck that has been brought upon the people of the CNMI.

Juan S. Torres and I understand the import of a robust and thriving economy: it is front and center in our action agenda, just as the pocketbook pinch is certainly in the minds of most. Juan and I were asked pointed questions. We responded to the questions premised on our collective vision of hope and optimism for the prosperity and success of this great Commonwealth.

In this commentary, we briefly talked about our reflective tours in building and sustaining an economy; made reference to the pitfalls in the saying “I didn’t plan to fail, I only fail to plan”; talked about a military economy in the crown jewel of the Marianas; reflected on property rights in Article 12; and concluded by underscoring the gravity of the present economic malaise, which demands comparative skill set, knowledge base and senior executive advantage offered by all measures only by the Babauta-Torres choice of leadership—the only team of choice that does not require on-the-job training, a factor attributable to the causes of the present multitude of problems inundating the current government and the homeland.

Listening tours and reflective vision research

Quite frankly, taking a pause over the years and spending quality time listening to our people from all walks of life, both in local communities and communities abroad, and then reflecting on what event, act of man, or act of God, that could be imagined in bringing the homeland to the present social-economic and financial debacle and wreckage en masse, can only be ascertained through a referendum this election on the present government and the fleeting moments of performance outcome brought upon the Commonwealth by the power that be.

Our whirlwind listening tour has been sobering, hearing people from all walks of life lose hope in leaders that continue the Commonwealth in the present path of rampant suffering—from not knowing when their retirement check will come, the spiraling health care costs and outrageous utility costs, to the lack of air and ocean services to Guam, Rota and Gani Islands. Not having regular and direct air link to Asia, Pacific Rim countries, and the U.S. mainland bring little comfort to a litany of many everyday problems inundating the people, both residents, non-residents, tourists and visitors alike.

People obviously expect the quality of leadership and leaders that do not first ask you to make a change, but for the kind of leaders and leadership that lead the government to change, that is, for the government to change its approach to problem-solving by building consensus among all stakeholders. This change mantra will place the islands in the proper trajectory that bring home the hope, optimism, prosperity, and success for all!

Caring about our CNMI—our place of birth; our home of choice; and our home by association, involve thinking logically and deeply about the future of this great U.S. Commonwealth. This commitment requires us to be problem-solvers now, and not to delay or yield problem-solving to others tomorrow. This real time commitment requires that we define how we envision ourselves and our lives today and that of our children and their children in five, 10, or even 15-20 years and beyond that apply strategic and forward thinking in informing what we do today in building tomorrow.

Building and sustaining an economy

On the query, “If, as governor, you could only take up one issue to encourage businesses to actively support the health of CNMI’s economy, what would it be?”

The Babauta-Torres Team will immediately restore investor, business, and consumer confidence upon taking the oath of office. Recognized experts in the field of economics and finance, such as noted economist Arthur Laffer, will be tasked to perform benchmark macro-economic and micro-economic analyses of the CNMI’s current economic landscape. These benchmarks will serve as guideposts in formulating robust policy recommendations aligning revenue generation with government spending policy. The analysis will also help to identify existing predatory, regulatory and trade policies that act as disincentives to innovation and expansion of existing businesses and discourage new investment.

Using a well-developed plan of macro- and micro-economic policy intervention, this new focus-driven, business-friendly environment should provide comfort in restoring investor confidence, which in turn will give the business community the needed rationale to re-invest a portion of their earned income and tax rebates in innovative business expansions, investment in technology (i.e., increased productivity) and socially beneficial projects, such as affordable housing, village-based day-care and elderly-care, learning centers, public transit busing, targeted higher education scholarships, cultural exchange programs, etc. The people of the CNMI should expect and demand the implementation of all programs to be planned-driven, maximizing economy of scale.

Specific actions in restoring investor, business and consumer confidence in the CNMI should incorporate the following components but not be limited to: (1) periodic executive-legislative business outreach and consultation; (2) periodic executive-legislative industry-site listening tours; (3) the pursuit of new investments in complementing industries to existing businesses as well as regionally-complementing industries; (4) the pursuit of targeted private-public partnership, results-driven trade missions to Asia, America, and Europe; (5) identification and removal of hostile and predatory regulatory and permitting requirements ; (6) building throughout the executive agencies and autonomous agencies quality assurances and accountability mechanisms to ensure customer-friendly government; and (7) integrating silo-based geographic information system (GIS) into a uniform and comprehensive web-enabled economic development GIS technology. Most importantly, we must all demand that the entire government bureaucracy exists to serve its constituency! Government services must be customer-focused and customer-friendly. The people are the masters of government, not the other way around.

To be continued.