Most of the Islands in the South Pacific survive on subsistence farming and tourism. Saipan has found an opportunity to improve its lot by taking advantage of its relationship with the US government and introducing manufacturing jobs to a part of the world where they are quite rare. However, they have to remain competitive with the rest of the Pacific Rim, and that is no easy task. This leaves them walking a tightrope between producing manufactured goods that are competitive in the market and paying decent wages. It is only by virtue of the lack of tariffs on the goods they produce that they can pay $3/hr and remain competitive with goods produced at a fraction of that amount.
While the good-hearted efforts of some in Congress may result in pay raises if effective, they will most likely result in a loss of market for the products produced, and thus a loss of many of the jobs the measures were meant to improve.
As in other developing nations, it is only through strong economic performance that conditions can begin to improve. Saipan is attempting to improve its financial situation through manufacturing. As the tiny island's GDP improves, it will be able to combat the problems that plague it. I am afraid that efforts to help the workers who are preyed upon by unscrupulous recruiters will backfire, causing market loss, job loss, and a slip backwards in real income growth in Saipan.
V/R
Shapley
