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Governor Togiola Tulafono receives first copy of EAC report listing
‘do-able’ projects
The Economic Advisory Council has submitted to Governor Togiola Tulafono its first report entitled “A Focused Collaborative Approach to Economic Development.”
The introduction reads: “As part of the 2002 private sector survey studied by the Council members, business leaders were asked what sort of industries or new directions they believed were good fits for American Samoa. They were specifically asked their opinion on the recommendations made in 2002 by the American Samoa Economic Advisory Commission, which identified five promising sectors: tourism, light manufacturing, information technology/call centers, agriculture and fisheries.”
The EAC focuses on many of these same industries, but the difference between the 2002 private sector survey and the Council, is focuses on action that can be taken in both the public and private sectors to produce effective, positive results for the American Samoan economy.
“American Samoa’s small size requires a focused approach instead of trying to pursue all possible avenues for economic diversification,” the report states. “In this spirit, the Council committees recommended only a few projects, but those projects were found to be ‘do-able’ in the short term, to produce long term results.”
For Agriculture and Fisheries, the EAC recommends that priority projects include: securing funding sources for larger alia boats and developing an animal feed operation (feed mill).
The work of the Agriculture and Fisheries Committee focused on developing action plans for three specific categories: Revitalizing Agriculture, Upgrading Fisheries Capacity, and Cannery Development.
In revitalizing agriculture, the report recommends revitalizing the agriculture plan with focus on making agriculture an important sector of the territory’s economy. The report outlines strategies for the successful implementation of the plan.
As for upgrading fisheries capacity, the EAC recommends improvements in the operating arena of the local fishing industry by providing adequate financing, infrastructure and on-shore support facilities and, increasing the capability to market and sell fish in off-shore markets, as well as locally to include the school lunch program.
In the long term, the Council also recommends more financing for fishing, including loan programs for bigger boats and equipment. In addition, more support is recommended for aquaculture development.
For Manufacturing, Industry, and Ship Repair, priority projects listed by EAC include: developing a shell building for manufacturing incubator, identifying joint manufacturing ventures, and developing the Malaloa area marina and upgrading marine facilities.
In the area of manufacturing, the EAC suggests attracting foreign capital, technology, management and marketing expertise for joint-venture, and supplying suitable public land and infrastructure for industrial development.
The EAC states that developing the economy in the territory means utilizing the limited resources to generate more local revenues and one way to do this is through the development of primary industries.
The EAC points out that a unique program underway in the American Samoa Government involves the development of ‘micro-industries’ which is a program that focuses on export-oriented and solely American Samoan owned and operated businesses.
Given examples of projects in pre-planning and proposal stages for ‘micro-industries’ include a slaughterhouse operation, cardboard manufacturing, watch assembly, fishhook factory, rum distillery, brewery, and a shoe manufacturing/repair shop.
(The projects are being spearheaded by the Governor’s Office and the Department of Commerce).
For Workforce, Education, and Technology, the EAC states that priority projects should include establishing a unified Institute of Trades and Technology, and re-establishing the American Samoa Board of Education.
The EAC referred to the recently released Cannery Closure Impact Study where economist Malcolm McPhee provides an excellent description of the role education and technology play in economic development:
“Education and technology have been known for a long time to have a great influence on economic growth. However, there was never a very clear idea of how it worked or how to account for or measure it. Previously, economic development was viewed in a highly physical sense as in the use of land, labor and capital and the production of goods. Typically, the process was governed by competition, comparative advantage, and diminishing returns, all of which remain important. Increasingly, however, economists are coming to realize that while these concepts apply reasonably well to the production of goods, they apply much less well to the fastest growing sectors of the economy, which are technology and knowledge-based activities.
The new technology and knowledge-based activities defied older notions of diminishing returns. It became clear that innovation could provide what appeared to be almost unlimited growth potential!”
The EAC wrote, “Knowledge makes growth possible. Without a doubt, the Territory’s greatest strength is its only resource, the human resources; education and workforce development must include the development of trades education, and knowledge based activities.”
The goal of the Workforce, Education and Technology (WET) committee action plan is to develop establish an integrated technical institution involving the Workforce Development Commission (WDC), Department of Education (DOE), American Samoa Community College (ASCC) and the private sector, focusing on developing specific knowledge of and skills in the trades, technicians, engineers and businesses.
For Environment, Tourism, Recycling, and Energy, the EAC has believes that priority projects should include developing village-based environmental management programs, supporting the new American Samoa Tourism Authority, developing policies for incentives to using ‘green technologies,’ and developing regional recycling center(s).
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