November 16th, 2010

Keynote Address By Mr. Nikolao Pula, Director,
Office Of Insular Affairs Pacific Public Management Executive
Seminar American Samoa
(November 16, 2010)

Talofa and Good Morning.

It is indeed a great pleasure to be here in one of the most beautiful spots in all of United States of America, its most southern Territory, and the place I call home.  I am especially honored to be here with you, the leaders and managers of the government and  business community because much of what happens and will happen in the Territory depends on your leadership.

Before I begin, I would like to take this opportunity to express my gratitude to Governor Togiola for his  vision, and dedication to improving the quality of public managers.  And to Director of Human Resources Evelyn Langford, for her continued commitment to training the American Samoa Government workforce.  I would also like to thank Mr. Falema'o Phil Pili of the private sector for his foresight in working with local leaders in both government and private sector to bring this seminar to fruition. 

In reviewing the program, I took particular note of a few interesting topics by the presenters:  The Challenges of Leadership, Making Teams Work/Group Decision Making, The Role of the Professional Manager: Strategic Planning and Resource, Leadership:  Choice and Accountability, and others.  Strong governance and good policies need both leadership and skills.  Leadership can be taught in capacity building programs – but the skill needed to run modern states, and a sustained long-term approach to national capacity building, is one of the most import things that we as partners can synergy to help the Territory.  I look forward with enthusiasm to hearing the presentations and feedback from you.

It is indeed a great honor to be invited to speak in this "Pacific Public Management Executive Seminar.  I was asked to speak on "Managing Through Tough Times & Surviving Through Synergy."

"Managing Through Tough Times" to some extent is not something new to many of you.  I think it is fair to say that living in a small isolated island in the middle of the vast Pacific Ocean, having the tyranny of distance, coupled by low economic density (a challenge in economy of scale) and vulnerable to various natural disasters could qualify this place as a hardship location; thus, perhaps on a small scale makes everyday living – a management in crisis; yet, through tough times despite those challenges, written on license plates are the words, "Motu O Fiafiaaga" – Island or Place of Happiness.  

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Now one could deduce from that scenario that the people of American Samoa are accustomed to tough times, but they continue to persevere.  For that you are all to be commended.  One could argue that these are people who do not fear challenges and can thrive in times of chaos.  One could also simply say, that these people are a bunch of crazy happy campers.

Light humor aside, I would like to say that I am truly appreciative of who you are, your role – whether in government or private sector – for your service and contribution to the community.  My subject matter begs the question – are we in tough times?  As a US Territory? - As a Nation?  And as part of the Pacific Region? 

The Territory is still recovering from the tsunami disaster from last year, the Nation just went through an election cycle which changed the political landscape of the US Congress, and President Obama recently traveled to East Asia to discuss trade and economic growth for these countries and our Nation.  Yes, we are in tough times and that is why this seminar is timely so that you as leaders can ponder the question and find ways to synergize the solutions.

According to the American Heritage dictionary, synergy is defined as "the action of two or more substances or organism to achieve an effect of which each is individually incapable;" another definition   is "the working together of two or more people, organizations, or things, especially when the result is greater than the sum of their individual effects or capabilities."   

We must understand where synergy can be identified and taken advantage of.  By synergy, I mean working with others (internally, regionally, and nationally) and, in the process, increasing everyone's chances of doing better.  Working together and learning from each other, especially in the islands, is an important element of synergy if we want to succeed.  

The synergy between large economies and Pacific Islands is very critical and we need to keep that advantage at the center of our efforts.  However, the state of large economies greatly impact the world and in particular the Pacific region. 

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• US GDP COMPARISONS
   
• WHAT IS A TRILLION DOLLARS?
  

  THINKING OF COUNTING TO A TRILLION?  ONE SECOND PER DOLLAR? BETTER GET -STARTED! IT WILL  TAKE 31,688 YEARS.

  OR A TRILLION DOLLARS WOULD BE A STACK OF $1,000 BILLS, 67 MILES HIGH.

  THE WHOLE SUM COULD BE TAKEN CARE OF IF EVERY AMERICAN, ALL 305 MILLION, FORKED OUT $4,500 EACH TO PAY FOR THE DEFICIT.

Large Economies:

The United States is still the world's largest and most dynamic economy.  With only 4.4 percent of the world's population (305 million out of 6.9 billion) the United States produces one quarter of the world's output.  Of the 12 largest economies of the world, the United States produce one-third of their total output. 

The three largest economies of the world, the United States, China and Japan are Pacific Powers rather than Atlantic powers and proximity to them is an advantage.  The small economies of the Pacific that are affiliated with the United States have particular advantage.  They can sell their finished products in the US without import fees.  American Samoa has sold canned fish in the US since the 1950's.  The CNMI sold garments for more than 20 years.  If things work out for AS to restore a second cannery (and let's hope that it does,), the territory will have large market for it canned tuna in the mainland.

As you know, China only recently surpassed Japan as the world's second largest economy.  It is quite possible that China will grow at high rates of 8-10 percent in the next several years, as it has during most of the past 30 years.  However, China is a long way from challenging the United States as the world's largest economy.  There are several fundamental reasons for this: political and social structure, technological foundation, and diversity.  I will not expound on these reasons in the interest of time.

The affiliation with the United States is therefore a big plus, especially if there is a way to take advantage of it commercially.

Pacific Region:

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In the world bank, they refer to an analysis called the Pacific Paradox.  The Pacific islands are uniquely remotely, far more so than the Carribean; yet, unusually influenced by external political and economic forces.  Many Pacific island nations are cut off from world markets by distance (and thus transport cost) and by their small size (and scarcity of skills and local capital).  At the same time, they are open to every economic infection that flies around the globe.  As a direct result of low economic density and geographic isolation, the economies of most of the Pacific countries are heavily reliant on natural resources and on remittances from citizens working in other economies.  This narrow base leaves them highly vulnerable to shocks. 

The challenge of smallness and geographic isolation are accentuated by growing population pressure, as well as vulnerability to natural disaster – subject to hurricanes, volcanoes, tsunamis, and climate change.   In addition, physical isolation is broken down by modern day information flow which brings both benefits as well as encouraging rising expectations.   The problem that Pacific leaders and economic managers face is that many of the drivers of economic growth are either beyond their direct control or are very hard to manage in their favor.  

Nurturing the bond between the peoples of the Pacific Islands and the large economies around them is a critical element of synergy that improves the well being of peoples of both worlds.  Take the bond a step further suggests that as more people from the islands and the large economies interact, they open more doors for both. 

The small places in the Pacific may be isolated and small, but they are not alone.  With a few exceptions, most of the small economies of the Pacific are affiliated with large ones.  Six of these, American Samoa, Guam, the Northern Mariana Islands, Marshall Islands, Palau and Federated States of Micronesia are affiliated with the United States.  Three of them, French Polynesia, New Caledonia and Wallis and Futuna are affiliated with France.  Although not officially affiliated like those with the United States or France, quite a few have close ties to Australia and New Zealand. 

The point about affiliation is that the link between the small places in the Pacific and the large economies around them is a critical two-way bridge that facilitate links between the two sides which, in turn, improve synergy that, in the end, benefit both sides.  People in the small places in the Pacific need access to large economies for many reasons.   People in the large economies need access to naturally beautiful and appealing places because they enrich the experience of life.

The small economies of the Pacific Ocean may not have the mass of large ones, but those in the big ocean, including Australia and New Zealand, can maximize their advantage by working in concert with each other as a team.  Example of this team work are the Forum and Secretariat of the Pacific Community (SPC).  Working with the Forum and SPC, with the cooperation of Australia, New Zealand and the United States would make it possible to come up with common fronts for common issues such as alternative energy, distance education, tourism and its associated recreational possibilities.  Improving tourist facilities, for example, may involve copying the better models from each other.  If, for example, tourists show a higher level of satisfaction from visiting one destination, the others may be able to learn from that and adopt its method to its own situation.  Working together and learning from each other, especially in islands, is an important element of synergy.

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PIF - Last year I was fortunate to be part of the US delegation to the 40th Pacific Island Forum Post Dialogue meetings in Cairns, Australia. Three of the many issues raised were the economic crisis, climate change, and donor coordination. While listening to the distinguished leaders at the Forum and Post Dialogue, it became apparent that one objective was very clear; the desire and willingness to work together as a region to ensure that the peoples of the Pacific have the resources to face these global challenges and improve their livelihood. Not only should the islands collaborate in their efforts, but donor nations should also coordinate funding assistance to leverage their investment and create the most impact in the region. Not to mention, this type of coordination will promote greater accountability and transparency in government operations.  This is an example of synergy of a regional organization working in concert with larger countries/economies.

PPA – In August of last year, I had the privilege to attend the Pacific Power Association conference in American Samoa.   The PPA was established in 1992 and has a Secretariat Office located in Suva, Fiji. Currently it has a membership of 25 electricity utilities operating in 22 Pacific Island Countries and 54 Allied Members.  Its mission is "to improve the quality, minimize the cost and expand the use of electricity in the Pacific Islands Region".

Territory of American Samoa:

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I would like to mention a few projects that are examples of synergy between the public and private sectors.

Fiber Optic Cable – to promote economic development, the synergy utilizing local and federal funds to construct the marine fiber optic cable helped to improve public infrastructure, and telecommunications for educational and local capacity building in human resource. 

Tsunami Recovery Efforts – in response to the tsunami disaster, the synergy among local and federal government, businesses, charitable and non-profit organizations helped in recovery efforts and respond to community needs.  In addition, the entities continue to assist to rebuild public infrastructure and private residences.

ARRA – in response to the global and financial and economic crises, the American Recovery and Reinvestment Act provided financial assistance to states and territories to revitalize their economies and create employment through public and private sectors.  This is another example of synergy.  
 
COS - September 30, 2009, Chicken of the Sea closed its operations and left approximately 2,200 people without jobs.   The Governor realizing the economic impact of the closure began looking for alternatives or options.   He sought assistance from the federal government, private sector and legislature.   Within a year, he was able to successfully negotiate an agreement with a new company. 

Energy Initiative – last week, the Assistant Secretary of OIA and the Governor launched the Renewable Energy Initiative for the Territory to develop a Strategic Renewable Energy Plan to assess the potential opportunities for renewable and alternative energy to lessen the dependence on fossil fuels.

The success of these initiatives is dependent on the commitment of stakeholders to synergize effectively and with a common purpose and unified front.  

CONCLUDING STATEMENTS:

To quote Governor Togiola in a recent workshop with Student Body officers of the public and private high schools and the American Samoa Community College.  He stated that leaders cannot lead alone, they cannot do it by themselves.  They need the assistance of others working together as one, moving in the same direction, at the same time.  There is a Samoan proverb, "I'a ta'i falua," referring to the school of fish that moves through the waters all at the same time in the same direction.  Individually, the fish will be on its own, but as soon as the waters are disturbed or it senses danger, the fish come together in a school and swim together as one in whatever direction that is best for the school, away from danger and towards safety.  

It is my hope that what I have shared with you today will help you understand and appreciate the importance of working together through tough times and surviving through synergy.  To effect change and be successful, leaders must synergize, maximizing their resources local and abroad. 

Again, it has been a pleasure to be here, and should you have any questions regarding my office…

Soifua ma ia manuia!