- Economy of the Northern Mariana Islands
The economy of the
Northern Mariana Islands benefits substantially from financial assistance from theUnited States . The rate of funding has declined as locally generated government revenues have grown. An agreement for the years1986 to1992 entitled the islands to $228 million for capital development, government operations, and special programs. Since 1992, funding has been extended one year at a time. The Commonwealth received funding of $11 million will be provided forinfrastructure , for FY96/97 through FY02/03, with an equal local match.A rapidly growing chief source of income is the tourist industry, which now employs about half the work force. Japanese & Korean tourists predominate. The agricultural sector is of minor importance and is made up of
cattle ranches and small farms producingcoconut s,breadfruit ,tomato es, andmelon s.Garment production had until recently been the fastest growingindustry with employment of 12,000 mostly Chinese workers and shipments of $1 billion to the United States in1998 under duty and quota exemptions. This production is extremely controversial because goods produced in the North Marianas can be labelled "Made in the U.S.A.", although not all American labor laws apply to the commonwealth leading to what critics charge as "sweatshop conditions" for imported, mostly Asian, workers. [http://www.hartford-hwp.com/archives/24/017.html] Among other companies, the teen clothing storeAbercrombie & Fitch produces some of their clothing in the Northern Marianas and then sells them for high prices.The garment industry is changing, though, and many of the garment factories are closing due to the lifting of WTO trade restrictions on Chinese imports. The industry was initially established in the Commonwealth because some U.S. labor and immigration laws do not apply within the CNMI — for example, the CNMI's
minimum wage rate of $3.05 per hour (for most employment positions) is lower than the federal rate, which applies to most other areas of the United States. Additionally, the CNMI retains local control overcustoms andimmigration enforcement unlike inGuam In 2004 — and in response to a long and expensive class action lawsuit brought by garment workers against various clothing manufacturers — a [http://www.sgma-saipan.org/wws/wws04_02_21.html Garment Oversight Board] , aimed at protecting workers' rights, was created. These actions have reportedly resulted in improved conditions since the turn of the century.
"GDP:"'purchasing power parity - $524 million (1996 est.)
"note:"GDP numbers reflect US spendingGDP - real growth rate:NA%
GDP - per capita:purchasing power parity - $9,300 (1996 est.)
GDP - composition by sector:
"agriculture:"NA%
"industry:"NA%
"services:"NA%Population below poverty line:NA%
Household income or consumption by percentage share:
"lowest 10%:"NA%
"highest 10%:"NA%Inflation rate (consumer prices):6.5% (1994 est.)
Labor force:6,006 total indigenous labor force; 2,699 unemployed; 28,717 foreign workers (1995)
Labor force - by occupation:managerial 20.5%, technical, sales 16.4%, services 19.3%, farming 3.1%, precision production 13.8%, operators, fabricators 26.9%
Unemployment rate:14% (residents)
Budget:
"revenues:"$221 million
"expenditures:"$213 million, including capital expenditures of $17.7 million (1996)Industries:tourism, construction, garments, handicrafts
Industrial production growth rate:NA%
Electricity - production:NA kWh
Electricity - production by source:
"fossil fuel:"100%
"hydro:"0%
"nuclear:"0%
"other:"0%Electricity - consumption:NA kWh
Electricity - exports:NA kWh
Electricity - imports:NA kWh
Agriculture - products:coconuts, fruits, vegetables, cattle
Exports:$1 billion (1998)
Exports - commodities:garments
Exports - partners:US
Imports:$NA
Imports - commodities:food, construction equipment and materials, petroleum products
Imports - partners:US, Japan
Debt - external:$NA
Economic aid - recipient:$21.1 million (1995)
Currency:1 United States dollar (US$) = 100 cents
Exchange rates:US currency is used
Fiscal year:
1 October -30 September External links
* [http://www.webcitation.org/5N0LgYboo "Dire Times: Saipan is on The Verge of a Collapse"]
* [http://www.webcitation.org/5N0LNrPkR "Retirement Fund:For too long too little paid by govt" by William H. Stewart]
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