December 1, 2020

Kevin Dayton, Civil Beat, 11/30/20

Lawmakers and Gov. David Ige are planning initiatives to “restructure” government to cut costs to cope with the state budget crisis. The Ige administration is setting a goal of cutting a whopping $600 million from next year’s operating budget.

House Finance Chair Sylvia Luke, meanwhile, is predicting the state can save $130 million or more per year by freezing positions as state workers retire.

Luke, one of the most powerful members of the Legislature, indicated she is inclined to shield the University of Hawaii and the public education systems from the brunt of those cuts, saying it does not make sense to reduce the ranks of public school teachers or university professors right now.

Cuts on that scale would certainly have an impact on services to the public, but neither Ige nor lawmakers are saying yet which government departments may have to absorb the largest reductions.

The Ige administration has instructed state departments to make plans for budget cuts of 10%, 15% or 20% from their spending, depending on the department, and informed the public worker unions the target is to cut $600 million from next year’s operating budget.

Haidee Eugenio Gilbert, The Guam Daily Post, 11/21/20

Guam, known for its tourism and U.S. military bases, also has the potential to become Asia's next data or financial hub because it has the connectivity technology, legal and political stability, and relatively low cost of doing business, according a webinar hosted by innovation and finance experts on Wednesday.

Although there are mixed views on whether it should be the government or the private sector leading economic diversification efforts, there's overall optimism on what Guam can become, beyond the COVID-19 pandemic.

Guam's economic diversification was front and center of Wednesday's two-hour webinar sponsored by Docomo Pacific.

"Diversify Now: Growing our Economy in 2021" brought together experts, leaders, decision-makers and businesses.

Experts noted how new technologies, such as Docomo Pacific's 5G service, can be the catalyst for the creation of new and sustainable industries on Guam and other islands.

"I don't think a lot of people realize how much undersea fiber there is just within our region," said Sharon Cassidy, Docomo Pacific director of carrier wholesale. "And with this, it just allows us, Guam, so much more capacity and capabilities from an innovative perspective and being able to do things from our little location, which felt so remote but now really we are truly connected on end."

Another good thing about Guam, she said, is that there are multiple technology players, not just Docomo Pacific.

For full story, please click here.

On November 19, the East-West Center in Washington facilitated a panel discussion entitled “The United States’ Enhanced & Enduring Commitment to the Pacific Islands Region.”

Introductory remarks by and panelists included: The Honorable John Barsa, Acting Deputy Administrator, U.S. Agency for International Development (USAID); U.S. Representative Michael T. McCaul (TX-10), Ranking Member of the House Committee on Foreign Affairs; Admiral Philip S. Davidson, Commander, U.S. Indo-Pacific Command (INDOPACOM), U.S. Representative Ed Case (HI-1),  Pacific Islands Caucus Co-Chair; The Honorable David R. Stilwell, Assistant Secretary of State, East Asian and Pacific Affairs, U.S. Department of State; Ms. Gloria D. Steele, Deputy Assistant Administrator, Bureau for Asia, USAID. The event was moderated by Satu P. Limaye, PhD, Vice President, East-West Center & Director, East-West Center in Washington. To access full remarks and panel discussion please click here.

Saipan Tribune, 11/10/20

The Governor’s Council of Economic Advisers sees the disaster and relief grants for the CNMI as key in achieving the islands’ goal of having a stronger and more diversified economy.

“The recovery funding we have worked hard to secure is a prime opportunity for us to diversify our economy with new industries and businesses beyond our tourism. Lt. Gov. Arnold I. Palacios and I are committing our administration to streamlining the permitting process for new investments to come in and to fast-track recovery-related construction projects to stimulate our local businesses. We look forward to this collaborative work with our council and our community partners,” said Gov. Ralph DLG Torres, who co-chairs the GCEA with Jerry Tan.

Matt Deleon Guerrero, who chairs the GCEA’s Fiscal Economic Diversification Committee, said that with the tourism industry—the backbone of the Commonwealth’s economy—experiencing its worst period of contraction due to the COVID-19 pandemic, the increase in federal funds that the CNMI is and will be receiving is incredibly influential in continuing to provide the circulation of resources necessary to keep incomes flowing and the economy moving.

These relief funds include Nutrition Assistance Program benefits and Small Business Administration resources that increased consumer expenditures and business operations. The CNMI has been awarded $23,566,886 in NAP grants (for Super Typhoon Yutu) by the U.S. Department of Agriculture and $1,865,563 for Food and Nutrition Services (COVID-19 related aid) courtesy of the Coronavirus Aid, Relief, and Economic Security Act, while the CNMI SBA will receive $88,000, also from the CARES Act.

There are also grants for construction and redevelopment of facilities, which Deleon Guerrero said will provide benefits beyond the construction industry, stimulating activity throughout businesses as incomes from direct compensation and indirect purchases flows into stores, consumer services, and housing.

“Overall, in the pursuit of a diversified set of industries outside of tourism, certain prerequisites need to be supported that permit expansion of alternative industries. Things like increased resources for health care and childcare have been supported through these funds, but more broadly the continuity of demand for restaurants and amenities also play a role in making the CNMI an enticing location for investment,” he said.

Nearly $4 million grants are being provided by the U.S. Department of Health & Human Services through the CARES Act, with $3,253,447 going to the CNMI’s child care program. As for health care, there’s the $4,042,585 grant from the U.S. Department of the Interior.

“The direct support of the CNMI’s community resources and the indirect benefits that stimulate demand garnered for the islands are critical in weathering this crisis and supporting a framework for a stronger and more diversified economy going forward,” Deleon Guerrero said.

Jess Bidgood, Boston Globe Staff, Nov. 24, 2020

WASHINGTON — John Kerry, the former Massachusetts senator who served as secretary of state in the Obama administration, has been tapped by President-elect Joe Biden to be the nation’s international climate czar, becoming the first person with a role fully dedicated to the issue to serve on the National Security Council.

The new position was announced Monday as Biden unveiled his top diplomatic and homeland security appointments, signaling that he views climate change as a threat to the country’s security and is serious about shoring up the US commitment to the international climate efforts that President Trump clearly disdained.

“America will soon have a government that treats the climate crisis as the urgent national security threat it is,” Kerry said in a tweet after the announcement. “I’m proud to partner with the President-elect, our allies, and the young leaders of the climate movement to take on this crisis.”

Kerry, 76, negotiated the Paris Climate Accord and made addressing climate change a pillar of his tenure as secretary of state from 2013-17, only to watch as Trump pulled the United States out of the international agreement to slow global warming and rolled back numerous environmental and energy regulations aimed at stopping climate change.

The appointment does not need Senate confirmation. It drew praise from veteran climate policy officials and from youth-led climate groups including the Sunrise Movement, which has added new urgency to the nation’s slow reckoning with the climate crisis, even as they called on Biden to do even more. 

For full story please click here.

Guam Governor Lou Leon Guerrero welcomed the report. “Climate change is one of the greatest issues this generation is facing, and how we adapt as an island should be based on the best available information and sound science,” she said. “We are pleased to have this resource to better inform policy and decision-making, so that we may safeguard our critical infrastructure, protect our economy, improve food security, and prepare for increased droughts and wildfires. That is why I have created a Climate Change and Resiliency Commission to provide a strategy for Guam to address the impacts of climate change to our island.”

Encourage people to keep up on our Facebook site where you will get daily news articles on economic development issues about Guam, American Samoa, the CNMI, Hawaii, and the region.