BRIEFS October 31, 2014 Attention: There will be no News Brief on Monday, November 3, 2014 in observation of FSM Independence Day. Happy Halloween! A Glimpse Into Yaps Economic Environment COLONIA, Yap (Yap Chamber of Commerce – Release, Oct. 29, 2014) — People of Yap were known explorers of wealth and fortune. Then: the economy was robust and trade systems were highly advanced in the region. In 1882, British naturalist Jan S. Kubary reported seeing 400 Yapese men producing stone money on the island of Palau for transport back to Yap. Stone money is one of the many forms of currency that was part of an economic system of trade and exchange in Yap. Stone money, although not used as often as before, is still being transacted in the traditional form of trade and exchange today. In the early 1960s, the United States began a program of developing a political and physical infrastructure to move Yap and the Micronesian region towards self-sufficiency in the international community. By 1986, the Federated States of Micronesia and its four States were conceived, and development in infrastructure projects such as roads, schools, runways, hospitals, communications, air/sea ports were heavily invested in by the public sector—which created an emerging economy firmly based on the public sector, the government. As a rule, a conventional economic model is based on the private sector, feeding the public sector; thus, creating economic growth. Sadly to say, the FSM—including the State of Yap—still follows the original model of a public sector led economy. This model is heavily dependent on foreign aid to work, and as Compact of Free Association funding decreases it creates a negative domino effect throughout the economy of the Nation and the four States of the FSM. Yaps economic performance according to the 2011 Yap Statistical Yearbook, the Yap State Government (Public Sector) and the Subsistence Sector are the two most dominant industries contributing the most to Yaps Gross Domestic Product (GDP). Subsistence economy, including market-oriented activities, contributes to 22% of Yap’s GDP while the Government contributes to 19% of Yap’s GDP. Fisheries and the wholesale/retail sectors contribute to 13% to GDP each, while the tourism industry (hotels and restaurants) lags behind with a contribution of 3% to GDP. Looking at the two major contributors to Yap States GDP, concerns and problems are eminent. The decrease in foreign aid or Compact sector grants into the public sector means decrease of expenditures and contribution to the GDP—a negative effect to the overall economic growth of the State. Comparing economic performance in the 1990s with that of the 2000s, a presentation done by the 2023 Planning Committee said the FSM averaged an economic growth rate of 1.8% during the 1990s. In the next decade, from 2000-2012, the FSM’s growth rate was nearly flat at 0.3%. In the 1990s, Yap’s average growth rate was higher than all the other FSM states and higher than the national average at 2.6%. Sadly in the following decade, in the 2000s Yap’s economy showed almost zero growth, averaging a rate of 0.1%. According to the Asian Development Bank (ADB), the economic growth in the FSM is expected to remain sluggish in fiscal year 2014. Lack of major public infrastructure projects, weak private investment, unfavorable business environment in the FSM and over $140 million un-utilized funds for infrastructure projects are just some of the indicators impacting economic growth in the FSM. On a recent World Bank report, Palau, Solomon Islands, Timor-Leste, and Vanuatu are the Pacific economies that have implemented reforms to encourage business growth over the past year, by measuring the ease of doing business in 189 economies across the globe. “It is also very encouraging to see Palau and Vanuatu continuing to introduce new measures that improve the business environment and attract investment,” said Jonathon Kirkby, senior operations officer at the International Finance Corporation. A preliminary report put out by the Graduate School USA in 2012, states that weak economic performance during the Amended Compact is reflected in stagnated employment experience in the 2000s. Yap’s employment growth between FY03-FY12 has averaged a rate of nearly -2.5%. In the past ten years, there has been no job creation overall in the State of Yap. Pohnpei is the only State in this period to realize positive employment growth, at a rate of nearly 1% as stated in the Fiscal Year 2012 Economic Review. With this said, the outlook on Yaps growth rate as a State is next to zero—meaning Yap is stagnant and idle as far as economic growth is concerned. Employment growth is at -2.5%, meaning Yap is losing jobs statewide; 59% of those that are working earn less than $4,000 per year, and; the lack of economic opportunities have given way to a high rate of outmigration, spike in theft crimes, and inflated cost of goods. Yaps trade balance is in the negative, of a ratio of 3:1, meaning the value of imports is three times greater than the value of exports. Both the National and State Governments have attempted counteractions or mitigation of the negative economic impacts through tax reform, land registrations, foreign investment laws and regulations. However, such actions have not amount to anything, as political disagreements and deadlock circumstances have seized a way forward. While other governments are improving their business environment, the FSMs remain in stagnancy . These are a few glimpses into Yaps economic health. But it is important to not forget that although the odds are stacked against Yap, as a State, as a community, and as individuals, there is the ability to make positive change. It is as simple as picking up a coconut frond laying on the path in the way, changing inefficient and unproductive attitudes in the work place, and changing laws, regulations, and policies that inhibit our progress forward. Unite, and conquer Yaps own demise. Women’s Leadership Workshop Conducted In Palau KOROR, Palau (Island Times, Oct. 31, 2014) – A two-day workshop that seeks to make women in Palau become better leaders in the government and community concluded yesterday. The workshop entitled, Effective Governance: Beijing +20 in Action Transformational Leadership Workshop, was held at the Ngarachamayong Cultural Center from October 28 to 29, 2014. Tonni Brodber, Technical Adviser of the Advancing Gender Justice in the Pacific (AGJP) helped conduct the workshop. The workshop was collaboration between Center for Women’s Empowerment Belau (C-WEB), AGJP, and UN Women. Attendees to the two-day gathering, which include many women in top elected and government positions in Palau, include Umerang A. Imetengel, Surech Hideyos, Emilia Katosang, Terry Ngiraingas, Lilian N. Marcil, Elvira Franz, Bernice Ngirkelau, Ann L. Pedro, Elin Kloulechad Rebluud, Janet Ebil Orrukem, Florah Tewid, J. Risong Tarkong, Bisayang Ush Luii, Delilah Llecholch, Latii S. Palacios, Mary Yangilmau, Marina Udui, Isebong P. Saito, Carol Ngiraidis, Tiare Holm, Tarita Holm, Roxanne Siual Blesam, Grace Kabino, Lorenza Olkeriil, Maile Andreas, Kazuyo Sungino, Charlene Mersai, Sandra S. Pierantozzi, Faustina K. Rehuher- Marugg, and Pia Morei Remengesau. C-Web is a women’s organization in Palau whose vision is to promote gender equality in the democratically elected government of the Republic of Palau, thus encouraging and fostering equal representation of women and their families through the election of women to national and state public offices, and to develop mainstreaming of gender sensitivity so that women can fully participate in the processes of legislative debate, decision making, policy development and implementation that fully encapsulate the social, environmental, health and economic impact in the lives of all people of Palau.. UN Women is a United Nations entity working for the empowerment of women, while AGJP is a program of the UN Women that mainly works to identify and break down country-specific barriers to women’s political participation. Senator J. Uduch Sengebau-Senior, one of the organizers of the activity and a champion of women’s rights in this island nation, said in an interview that the activity is meant for women to be the best they can. This is aimed to strengthen women and give them confidence in what position they are- ministerial, sectoral, private sector, the Senator stressed. Senior then lauded the participation of former Vice President Sandra Pierantozzi in the event. She is a trailblazer and she made us know how it is to be a woman in politics, the Senator stressed. Aside from being Vice President of Palau from 2001 to 2005, Pierantozzi, a successful businesswoman, also had stints as Minister of Health, Minister of State, and Minister of Finance. The first day’s activities include the following sessions: Session 1: gender and Transformational Leadership: The Basics Why Women, Why You, Why Now?; Session 2: transformational Leadership and the Beijing Platform for Action; and Session 3: The Leaders’ Challenge-Finding and Using Your Voice. The second’s activities include the following sessions: Session 5: Women’s Role in the Political Economy of Small Island Developing States; Session 6: Gender and Climate Change; and Session 7: Group Activity- Gender Responsive Governance in Action. The activity also included an exercise in public speaking. It will help women to become better at speaking up and speaking out on many issues, senior stressed. Minister Baklai Temengil of the Ministry of Community and Cultural Affairs (MCCA), in a separate interview, said the activity provides capacity-building for women in government, non-government organizations (NGOs), and in leadership positions, either in the state and national governments. The attendees said that the two-day gathering helped them a lot. We shared leadership experiences and learned a lot from the discussions. It will help us become better leaders in the government and community and allow us to make a difference, said Ngaremlengui State legislator Elvira Franz. With Elections Next Week, Sparks Fly At Guam Debate HAGÅTÑA, Guam (Pacific Daily News/PIR, Oct. 31, 2014) — With less than a week before Election Day, accusations from both gubernatorial candidate teams continued to fly during last nights Great Debate at the University of Guam Calvo Field House. Incumbent Gov. Eddie Calvo started off the final debate by telling the crowd that former Gov. Carl Gutierrez has been spreading lies to damage his integrity. During Gutierrezs opening statement, his running mate, attorney Gary Gumataotao, chimed in, calling Calvo a corrupt leader for giving a $3.6 million tax break to a Calvo family business—an accusation that has been repeated publicly over the last month by the Gutierrez camp. The two candidates answered questions posed by a panel of university students that covered issues including education and the economy. Calvo said through his administrations efforts, education on the island has improved as a result of stabilizing an unstable economy, which his opponent left behind. Gutierrez served as governor from 1995 to 2003. Calvo is seeking his second term in office. Calvo said he has also worked with the Department of Education to increase teacher accountability and renovate the schools on the island, which is a very distinct difference between me and my opponent. Gutierrez fired back by accusing Calvo of discrimination for hiring people only with a high school diploma. He added that while he was in office, Guam had a AAA credit rating. Guam law states employees must have at least a high school diploma to qualify for a government of Guam job. When the former governor addressed a question about homelessness on the island, he blamed the problem on a lack of hope. I believe the homelessness is caused by hopelessness, Gutierrez said. I believe in the last four years, people have lost hope, ... this government has no compassion. Under Calvos administration, more homeless shelters and low-income housing facilities have been built, Calvo responded. Gutierrezs running mate, Gumataotao, showed much energy on stage during the lieutenant governor candidate portion of the debate. He accused Lt. Gov. Ray Tenorio and Calvo of not using federal money that Guam receives to preserve the islands environment. Every time we get federal money they dont use, they send it back, Gumataotao said. Tenorio said increases in the size of Guams police force have made streets safer. He added the fire department has also been able to grow by getting more personnel and fire engines. Tenorio also pointed out that prior to his political career, he was a police officer for 15 years where he worked on the street. My opponent said, I work the law, you just work the streets ... well these officers, they work the streets every day, Tenorio said. I just worked along the streets with them for 15 years and Im proud of that. Gumataotao told Tenorio he hasnt done anything while in office. Youve done nothing, Ray, were down 300 officers, Gumataotao said. How often do you drive around and you dont see a policeman? Its because we dont have enough officers. Election Day is Tuesday. Polls open at 7 a.m. and close at 8 p.m. Polling site locations can be found at gec.guam.gov. For more information about the candidates, go to guampdn/election. Academic Says Forum Needs Australia And NZ FIJI, Oceania (Radio New Zealand International, Oct. 31, 2014) — A Fijian academic says Australia and New Zealand should remain in the Pacific Islands Forum despite what she calls Fijis bullying tactics. Fiji has been invited to rejoin the Forum after carrying out elections last month but says it wont until New Zealand and Australias role in the Forum is reassessed. Alumita Durutalo of Otago University says Fiji is flexing its muscles and it needs to learn to negotiate. Dr. Durutalo says New Zealand and Australia have a valid role to play in the Forum. We need some strong people within the organization or some strong powers to say that coups are wrong. If not, it will be just like the MSG, the Melanesian Spearhead Group, they really cant stand up to Fiji I think. Alumita Durutalo says New Zealand and Australia are both part of the Pacific. -END- COMMUNITY MESSAGE: This may not quite true in the private sector, but you hardly see hard working folks in the public sector. We could say it is hardly working in the public sector—little to zip in dedication or passion for public responsibilities. It may be the inability to overcome the nature of the work or separate personal stuff from public stuff. And so the obvious for a long time now—cannot discuss and resolve community issues together, mismanagement of little there is in funds and property, shrinking local revenues with no end in sight, politics with national funding assistance, lack of maintenance of public roads and other important infrastructures, costly off-island travels, improper use of vehicles and property, and the list goes on. It is quite possible that it is the appropriate list for public responsibilities. Hardly working is good investment.
Posted on: Fri, 31 Oct 2014 08:21:34 +0000