THE ROLE OF BUSINESS ASSOCIATIONS
IN PACIFIC ISLAND ECONOMIC GROWTH

November 9-12, 1999
Wailea, Maui, Hawaii




Conference Summary

Gerard Finin, Research Fellow
East-West Center, Hawaii


INTRODUCTION

In thinking about how to begin this part of the afternoon discussion I recalled several jokes, but I must admit I'm not the world's best joke teller. Then I thought of Paul Rehob. Like Paul I too have aspirations of becoming a singer. But what would be an appropriate song? Born to be wild? I watched some MTV – nothing fit. Then a bolt of lightening struck. We're on Maui where two of Hawaii's most talented musicians are from, Willie K. and Keali'i Reichel.

Fortunately, in the final analysis, I decided I don't have Paul's talent or courage, and it would be more humane to save all my songs for the shower.

On a more serious note, I would like to thank Diane and all the hard-working people here at the Maui Pacific Center for all the work that has gone into making this conference a success.

As we all know, the subject of Pacific island economic growth is not new. We could go back to the last century and talk about the sandalwood trade, or examine colonial policies, or discuss the trust territory days in Micronesia. But I would trace this conference's roots back to a Saturday in 1990 when President George Bush met the island leaders at the East-West Center to discuss the future of U.S. relations with the Pacific island region.

The leaders at that meeting devoted a significant portion of the summit to issues focusing on trade and investment. And one of the tangible outcomes of this first-ever U.S.-Pacific islands summit was the discussion to establish the Joint Commercial Commission.

As Harlan mentioned on Tuesday, the JCC got off to a slow start. Some thought it was a new pipeline for U.S. AID on bilateral assistance. Others thought all of the quarantine measures and restrictions on imports into the U.S. would immediately disappear.

However, in reality, the JCC was intended to facilitate private sector trade and investment. So the JCC has not become another government aid program in disguise. Rather it has promoted, through the Internet, information about business opportunities and face-to-face business meetings, as well as assisted with government quarantine issues.


CONFERENCE HIGHLIGHTS

This conference has been of great importance inasmuch as it has shown how business associations can serve as a valuable catalyst in promoting increased trade and investment. Yet, I think most of us would agree that what this conference has brought to the fore is the fact that island business associations do far more than they are given credit for in contributing to the vibrancy and social fabric of island societies. Each of the presentations highlighted the ways chambers and other trade associations contribute to the overall welfare of island communities.

I was struck by the range of organizational models – from statutory chambers with mandatory memberships to strictly voluntary organizations, with a number of hybrids in between. I was also struck by the broad range of activities in which chambers are engaged – from Christmas parades to involvement with scholarship boards to managing international airports.

It is clear that business associations have invested in youth-related activities ranging from mentoring programs to internships to attendance at monthly meetings. All of these investments in training future entrepreneurs would seem to add to the dynamism and future growth of business associations in particular and private sectors more generally.

Another message that was brought home by a number of speakers was the fact that the informal sectors and subsistence sectors of island economies are substantial in size, and must not be forgotten. Indeed, even if not highly visible, these sectors merit attention by chambers.

It would appear that some of the strongest business associations are those that broadly representative in terms of gender, ethnicity, firm size, and sector so that all have a voice, and the voice of the business association is seen to be one that is fully inclusive of the private sector.

It is interesting to note that the size of the population or economy in a given island society does not appear to correlate closely with the strength of the chamber of commerce. What that seems to rather clearly suggest is that a population of one million is not required to have a vibrant chamber, which is in many respects a model for best practices.

Another observation is just how valuable this exchange of ideas and experiences has been. Whether it's Washington D.C., Noumea, or Apia there are lessons to be learned about building professional organizations, sectoral councils, industry councils, and chambers. Common challenges and opportunities in terms of membership, leadership, and administration are of value to all of us.


THE FUTURE

Beyond the inherent value of a conference such as this one is the question – Where do we go from here?

The proposal regarding a best practices center is clearly an important and tangible outcome from our deliberations. Similarly, I believe Diane has some excellent ideas in mind regarding future activities related to training that she will say more about in just a few minutes. I think there is a consensus among most of us in this room that at this time we do not need another regional organization, especially given funding constraints.

Yet, given all that is happening in our respective islands, there may be important benefits to be gained from some kind of web-based clearinghouse that would provide an up-to-date picture of the what various business associations are doing. So this may be an area of activity for consideration. Identifying existing training opportunities and future needs is another potential area that may be worthy of exploration. I think Diane has some thoughts on this subject.


CLOSING

In closing, I would simply wish to say that I am more convinced than ever that business associations have a vital role to play in promoting island economic growth. To the degree the capacities of business associations are enhanced, all of us will see improvements in the quality of life.



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