The dire state of the economy calls for impeccable leadership

By The Editorial Board 16 April 2023, 6:00AM

It has been a struggle for many families in Samoa over the last three years, with the COVID-19 pandemic wracking havoc with the economy, leading to massive job losses in the country’s private sector.

The tourism industry bore the brunt of the economic storm brought on by the pandemic, leading to the closure of beach fales, guest houses, hotels, and resorts on both Upolu and Savai’i. According to a recently published Asian Development Bank (ADB) report, Asian Development Outlook–April 2023, tourism receipts for Samoa prior to the pandemic represented 24.2 per cent of GDP in FY2019.

Details from the ADB report, which were published in an article in last Friday’s edition of the Samoa Observer, stated that the effects of the pandemic led to the shrinking of the country’s economy for a third year in FY2022 by 6 per cent. The report picked out the shutting of Samoa’s international borders and the community transmission of COVID-19 as the key factors behind the economy’s negative growth, as it led to the decline and loss of tourism receipts.

However, the report authored by the regional development bank has forecast that the country’s GDP "may rebound in FY2023 from a low base, but medium-term prospects are mixed". Pointing to the mobilisation of public investment projects, the report said it could start from a "low base and the initial return of visitor arrivals will likely support GDP growth of 4.8 per cent in FY2023."

"However, difficulties in rebuilding tourism services and fierce international competition may limit the ability to sustain visitor growth currently supported by visiting friends and relatives, back after lengthy separations."

"These factors are forecast to limit growth to 2.5 per cent in FY2024."

This is a vote of confidence in the Samoan economy, despite the numerous hurdles the country is currently facing and will face in the medium to long term, as the Government attempts to rebuild the economy post-COVID-19.

However, to ensure the rebuilding of the national economy becomes the sole focus and objective of the Government through the relevant State-owned entities (SOEs), we need the right people at the helm of each organisation leading the way.

The country needs leaders at these organisations who will think outside the box and abandon the boardroom mindset while being innovative; leaders who will recognise the benefits of in-country production of basic items including food and stay “local” to encourage homegrown industries; leaders who following the pandemic recognise the need for more investment in Samoa’s healthcare sector to ensure we cut the overtop reliance on overseas medical expertise; and the list goes on.

It is for the above reasons we look with interest at the recent announcement of vacancies in Board Director positions by the Government’s Independent Selection Committee, who upon their appointments to the various Boards will oversee Samoa’s 15 SOEs.

Due to the critical time that the country now finds itself in, the appointments of the new 24 Board Directors for the country’s SOEs should be merit-based and free from political bias or influence. We say this being cognisant of the fact that one or two appointments to key positions within the Samoan bureaucracy over the last 12 months by the Fa’atuatua i le Atua Samoa ua Tasi (FAST) Government have reeked of political bias.

At this juncture of the country’s development and the challenges it faces, appointments to key Government positions should not be about their political association, but rather having the best man or woman for the job, so their interventions at the policy level will be more people and country-focused rather than politics or party-interests.

The country needs Board Directors who can stand up to their Board Chair or Cabinet Minister and disagree with a decision because it is not representative of the people’s interest. The country needs Board Directors who can stand up to their Board Chair or Cabinet Minister and say that he or she disagrees with a decision because it is in breach of Samoan law. And the country needs Board Directors who can stand up to their Board Chair or Cabinet Minister and say that he or she is resigning their position because he or she believes that the Board’s decision goes against the interests of the people and will result in dire consequences.

Ultimately, Samoa needs credible people with impeccable reputations, and a love for the nation and its people sitting as Board Directors for the various SOEs, to help the Government steer it away from ruin and to begin laying the foundations for economic growth and prosperity. Nothing more nothing less.

By The Editorial Board 16 April 2023, 6:00AM
Samoa Observer

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