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AMERICAN SAMOA Forging a Path Towards a Resilient Economic Future

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AMERICAN SAMOA Forging a Path Towards a Resilient Economic Future AMERICAN SAMOA Forging a Path Towards a Resilient Economic Future COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY (CEDS) 2018-2022 Contents 2 Acronyms 5 Introduction 6 Development of CEDS-AS 2018-2022 9 Summary Background 9 Economic History 12 Economic Forecast 14 Business Confidence Index 17 Swot Analysis 18 Strengths 20 Weaknesses 22 Opportunities 14 Threats 27 Strategic Direction & Action Plans 28 Goal 1: Build A Robust Business Environment And Business Ecosystem 32 Goal 2: Strengthen Current Industries And Develop New Industries ASTCA telecommunications network operations center. 37 Goal 3: Strengthen Secondary Economic Development Support Systems 41 Evaluation Framework 43 Resilience 44 Appendices Photo left: The Flower Pot Rock, also know as Fatu of the famed Fatu ma Futi legend. 2 American Samoa - Forging a Path Towards a Resilient Economic Future American Samoa - Forging a Path Towards a Resilient Economic Future 1 Acronyms ANZ Australia and New Zealand Banking Group Limited Comprehensive Economic Development Strategy of ISP Internet Service Providers SSBCI Small State Business Credit Initiative CEDS-AS ASCA American Samoa Code Annotated American Samoa ITT Information Technology Technical STEM Science, Technology, Engineering, Mathematics ASCC American Samoa Community College CIP Capital Improvement Program JROTC Junior Reserve Officer Training Corps STP Samoa Tuna Processors ASCOC American Samoa Chamber of Commerce CRA Community Reinvestment Act LA ASG Department of Legal Affairs Strengths, Weaknesses, Opportunities, Threats SWOT American Samoa Economic DBAS Development Bank of American Samoa LBJ Lyndon B. Johnson Tropical Medical Center Analysis ASEDC Development Credit DEL American Samoa Delegate to Congress MED American Samoa State Medicaid Agency TBAS Territorial Bank of American Samoa ASG American Samoa Government DHS ASG Department of Homeland Security MIS Management Information System TBS Territorial Broadband Strategy ASH American Samoa Hawai‘i Cable Company DOA ASG Department of Agriculture NGO Non-government Organization TIG Territorial Investment Guide ASHPO American Samoa Historic Preservation Office DOC ASG Department of Commerce NPS AS National Park of American Samoa TREAS ASG Department of Treasury ASOI American Samoa Office of Innovation DOE ASG Department of Education OB ASG Office of Budget URL Uniform Resource Locator (web address) ASPA American Samoa Power Authority DOH ASG Department of Health ASG Office of Disaster Assistance and Petroleum USAR United States Army Reserve ODAPM American Samoa Resiliency Strategy Development DOI OIA Department of Interior Office of Insular Affairs Management Western Pacific Regional Fishery ASRSDP WPRFMC Plan DPA ASG Department of Port Administration OP ASG Office of Procurement Management Council ASSSA American Samoa Shipyard Services Agency DPS ASG Department of Public Safety OSA ASG Office of Samoan Affairs American Samoa ASTCA DPW ASG Department of Public Works POS Point of Sale Telecommunications Authority EDA Economic Development Administration PPA Power Purchase Agreement ASVB American Samoa Visitors Bureau FEMA Federal Emergency Management Administration RGDP Real Gross Domestic Product Broadband Linking the BLAST FDIC Federal Deposit Insurance Corporation RLF Revolving Loan Fund American Samoa Territory FMWA Federal Minimum Wage Act ROV Remotely Operated Vehicle BOH Bank of Hawai‘i GDP Gross Domestic Product SBA Small Business Administration BPO Business Process Outsourcing GIS Geographic Information System SBDC Small Business Development Center Community Development CDFI Financial Institutions GO ASG Office of the Governor SEO Search Engine Optimization Comprehensive Economic HR ASG Department of Human Resources SLP School Lunch Program CEDS Development Strategy ICT Information and Communication Technology SPTO South Pacific Tourism Organization 2 American Samoa - Forging a Path Towards a Resilient Economic Future American Samoa - Forging a Path Towards a Resilient Economic Future 3 Introduction The Comprehensive Economic Development CFR part 303.7. The CEDS-AS 2018-2022 is a Unfortunately, the current trajectory of Strategy of American Samoa (CEDS- continuation of the CEDS-AS 2013-2017. American Samoa’s economy is fraught AS) provides the territory with a plan to with peril. Should the last remaining strategically manage its resources and It is important to note that the renewal tuna cannery close, the territory will likely prioritize development in key industries. of the CEDS-AS is occurring at a critically experience a catastrophic economic disaster These efforts are aimed at creating important time in the territory’s history. and fall into a deep, systemic recession that an environment in which economic At play presently are several strong and could take decades from which to recover. diversification and resilience can flourish. imposing forces that may impact the This holds great implications for the people decisions we are making today and in the of these islands and for their cultural way The CEDS program is also one of the near future. Specifically, the tuna canning of life. As such, the CEDS-AS will focus cornerstone programs of the U.S. Economic industry is facing unsustainable pressures, predominantly on economic diversification Development Administration (EDA) and the territory’s competitive advantage with long-term resilience as the ultimate regions are required to update their CEDS has eroded as the federally-mandated goal. every five years to qualify for assistance minimum wage has continued to increase, under the EDA Public Works and Economic the population has declined at an average Adjustment Assistance Programs in annual rate of -2.2% since 2009, and critical accordance with EDA’s regulations at 13 disaster funding is diminishing. 1https://www.fema.gov/disaster/4357 FA’AALIAO (trochus shell) Q The fa’aaliao is a motif used in three of our main Samoan art forms: tatau, siapo, and woodcarving. Traditionally, aliao are collected for eating of the alili mollusk inside. They are relatively abundant and can be collected during low tide. The shell is represented as a triangle and can be conveyed as a diamond or in repetitious formations. The shell is also useful and has been used for an array of things including fish hooks. Today, these shells provide a means to generate income by crafting bracelets, earrings and necklaces for sale. Photo left: Hiking trail on Aunu'u island. 4 American Samoa - Forging a Path Towards a Resilient Economic Future American Samoa - Forging a Path Towards a Resilient Economic Future 5 Development of CEDS-AS 2018-2022 As required by the EDA, there are five main elements that make up the CEDS-AS 2018-2022: 1. Summary Background – This section provides an overview of the territory’s economic situation, touching on both recent economic history as well as an economic forecast. 2. SWOT Analysis – This section assesses the state of the territory’s economy by determining the strengths, weaknesses, opportunities and threats posed by internal and external forces. ASG DOC CEDS-AS workgroup. 3. Strategies & Actions – This section includes the vision, goals, objectives, strategies, and actions that the The production and development of the as were one-on-one interviews. This territory will take to guide economic CEDS-AS was driven by the American Samoa information was then analyzed along development activities through 2022. Government’s Department of Commerce with information from American Samoa’s (ASG DOC) under the leadership of Director previous CEDS, regional trends and reports, 4. Evaluation Framework – This section Keniseli Lafaele, who assembled a CEDS- and other local planning initiatives. As a establishes criteria and performance AS workgroup to draft the strategy.2 The result of these combined effort, a CEDS- measures that will be used to CEDS-AS workgroup conducted a broad AS vision was developed, goals were evaluate the effectiveness of CEDS-AS stakeholder engagement initiative, which established, objectives were created, and implementation. sought to gain input from community actions were identified and incorporated members, government leaders, business accordingly. 5. Resilience – This section outlines the owners, entrepreneurs, and other territory’s approach towards building stakeholders. Surveys were conducted economic resilience such that the territory can better avoid major disruptions and more effectively recover from periodic downturns in the local and regional economies. 2 2Refer to Appendix F for names, titles, and roles of ASG DOC CEDS-AS workgroup.7 Refer to Appendix F for names, titles, and roles of ASG DOC CEDS-AS workgroup. Fogama’a Crater, Vaitogi village. Vaitogi village coastline. 6 American Samoa - Forging a Path Towards a Resilient Economic Future American Samoa - Forging a Path Towards a Resilient Economic Future 7 Summary Background American Samoa is one of five inhabited 2.9% decrease from the 2016 GDP. Adjusted economy fell into a contractionary spiral that U.S. Territories and is located in the middle for inflation, real GDP was $598.0 million, or a would last almost ten years. of the vast Pacific Ocean, approximately year-over-year decrease of 5.3%. 7,000 miles from Washington D.C., 4,800 In 1949, a cannery was built on the main miles from California, and 2,500 miles from Economic History island of Tutuila to process and export Hawai‘i. Due to its relatively small size and locally-harvested tuna. It was unprofitable, remote location, American Samoa faces As a small, insular economy, American
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