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American Samoa's Economic Future and the Cannery Industry

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American Samoa's Economic Future and the Cannery Industry American Samoa’s Economic Future And The Cannery Industry American Samoa’s Economic Future And The Cannery Industry Prepared for: Department of Commerce American Samoa Government Pago Pago, American Samoa 96799 Telephone: (684) 633-5155 Consultants: Malcolm D. McPhee & Associates with Dick Conway and Lewis Wolman 921 South 3rd Avenue, Ste. 42 Sequim WA 98382 Telephone: (360) 582-9976 February 2008 This Report was Prepared under a Grant Award from the US Department of Interior, Office of Insular Affairs. Contents Page Message from Governor Togiola T.A. Tulafono...........................................................................v Introduction............................................................................................................................... vii Summary of Conclusions and Recommendations ......................................................................ix Chapter 1 Economic Impacts of a Decline in Cannery Operations.............................................. 1 American Samoa Input-Output Table...................................................................................... 1 American Samoa Economy, 1977........................................................................................... 2 Economic Growth, 1975-2005 ................................................................................................ 5 American Samoa Economy, 2002......................................................................................... 10 Impact of Fish Processing and the Federal Government....................................................... 13 Prospects for the American Samoa Economy....................................................................... 16 Chapter 2 American Samoa’s History, Culture, and Economy.................................................. 21 Samoan History.................................................................................................................... 21 Samoan Culture ................................................................................................................... 22 American Samoa and the United States ............................................................................... 23 Critique of American Samoan Aspirations for the Future....................................................... 24 American Samoan Attitudes toward Economic Development................................................ 25 Chapter 3 Short Term Response to Precipitous Cannery Industry Decline............................... 31 American Samoa’s Dependence on Federal Expenditures ................................................... 31 US Welfare Programs in American Samoa ........................................................................... 34 Supplemental Security Income ............................................................................................. 36 Nutrition Assistance Block Grant for American Samoa ......................................................... 37 Public Assistance Programs................................................................................................. 37 Chapter 4 Long Term Response to Cannery Industry Decline.................................................. 39 American Samoa’s Position in the US Economic System ..................................................... 39 Approaches to Economic Growth and Development............................................................. 41 The Evolution of American Samoa’s Private Sector.............................................................. 43 Chapter 5 Private Sector Role in American Samoa’s Future Development............................... 45 The Private Sector Survey.................................................................................................... 45 Cannery Industry Views on its Future ................................................................................... 46 Private Sector Views on the Cannery Industry...................................................................... 46 Private Sector Views of Cannery Industry Future.................................................................. 48 Private Sector Views on Cannery Closure Impacts............................................................... 50 i Private Sector Perspectives on Future Economic Development Directions........................... 52 Private Sector Economic Development Constraints.............................................................. 53 Private Sector Economic Development Opportunities........................................................... 55 New Economic Foundations for American Samoa ................................................................ 57 Specific Economic Development Opportunities .................................................................... 59 Chapter 6 American Samoa Government Role in Economic Development............................... 61 Private Sector Views on the American Samoa Government ................................................. 62 Collaboration Key to American Samoa’s Development Potential .......................................... 63 Chapter 7 Federal Role in American Samoa’s Economic Development.................................... 67 Federal Economic Development Programs and Policies....................................................... 67 Federal Role in Territorial Development ............................................................................... 68 References .............................................................................................................................. 75 Appendix A –Input-Output Model Technical Report/ American Samoa Input-Output Table.......... 1 Introduction ............................................................................................................................ 1 Definitions and Conventions................................................................................................... 1 Construction of the Input-Output Table ................................................................................... 4 American Samoa Input-Output Table...................................................................................... 5 Fish Processing Output and Employment Impact ................................................................. 10 References........................................................................................................................... 12 Appendix B –Private Sector Survey Background....................................................................... 23 ii Tables Page Table 1 American Samoa Gross Domestic Product, 1977.......................................................... 2 Table 2 American Samoa Employment and Labor Income, 1977 ............................................... 3 Table 3 American Samoa Employment, 1977 ............................................................................ 4 Table 4 Impact of Fish Processing and Federal Grants and Expenditures on American Samoa Employment, 1977 ..................................................................................................................... 5 Table 5 American Samoa Employment, 1975-2005 ................................................................... 6 Table 6 American Samoa Employment, and Population, 1975-2005.......................................... 9 Table 7 American Samoa Gross Domestic Product, 2002........................................................ 11 Table 8 American Samoa Employment and Labor Income, 2002 ............................................. 12 Table 9 Fish Processing Impact on American Samoa Economy, 2002..................................... 14 Table 10 Federal Government Impact on American Samoa Economy, 2002............................ 15 Table 11 American Samoa Employment and Labor Income by Source, 2002 .......................... 17 Table 12 Economic Projections for the American Samoa Economy, 2000-2015....................... 18 Table 13 Economic Growth Rates for the American Samoa Economy, 2000-2015................... 19 Table 14 Birthplace of American Samoa’s Population, 2000 .................................................... 26 Table 15 American Samoa Business Ownership Birthplace and Operations Including the Canneries, 2002....................................................................................................................... 27 Table 16 American Samoa Business Ownership Birthplace and Operations Excluding the Canneries, 2002....................................................................................................................... 28 Table 17 Issues with which American Samoa Public Disagrees............................................... 29 Table 18 Issues with which American Samoa Public Agrees.................................................... 29 Table 19 Per Capita Federal Expenditures in the US and American Samoa, 2005................... 32 Table 20 Per Capita Federal Expenditures in the US and American Samoa, 2002................... 33 Table 21 Total Federal Grants and Selected Federal Agency Grants 2002-2005 ..................... 33 Table 22 Per Capita Federal Expenditures in American Samoa, 2000-2004 ............................ 34 Table 23 Total Federal Expenditures in American Samoa, 2000-2005 ..................................... 34 Table 24 Federal Funding for Selected Major Social Welfare Programs in American Samoa, 2002........................................................................................................................................
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