Salvation in togetherness

Trade between American and West ern Samoa can be multiplied fairly quickly provided both sides make a conscious effort to exploit opportu nities. These embrace, mainly, a variety of agricultural products, a limited range of manufactures and handicrafts, reported Dr I. J. Fair bairn, South Pacific Commission economist, in a survey.

Both Samoas are firmly commit ted to industrial development to diver sify their economies, expand employ ment opportunities and basically raise living standards. Neither coun try has given much thought to closer co-operation and integrating their industrial development, he said.

A number of inter-related econo mic considerations point to the need for closer economic co-operation: • Economic viability of certain industries—lmport substitutes would be governed by the market’s size and spending power. Thus, an industry might be economic only if it had access to the markets of both Samoas; it would not survive in one. Access to both markets would be a pre-condi tion of establishing an import sub stitute at an economic level; • Preventing capital wastage as sociated with duplicating industries— Obviously, many industries are amen able to small-scale operations, such as soft drink, ice cream, biscuits, etc., which would be of little interest for sub-regional or regional development.

Even so, the closeness of the two islands would give scope for building

up trade in those products to some extent. However, for large-scale pro jects, it is commonsense to conserve capital by avoiding duplication of investment, except for compelling reasons.

There is a need for closer economic co-operation and planning between the two Samdas, with an appro priate inter-island consultative or planning body meeting periodically to discuss matters of mutual indus trial and economic interest. If it achieved nothing else, it would pro vide a useful exchange of ideas, which could lead to a more rational allo cation of the resources of both Samoas.

Dr Fairbairn also suggested joint ventures in industries like flour mil ling, animal feed, a brewery and cloth weaving, pointing out that American Samoa had markets in the United States. Industries could be establi shed in that country with a shared partnership and using material from Western Samoa. The two countries could also co-operate in the labour market as Western Samoa had a labour surplus and American Samoa a labour shortage.

It appeared that very little atten tion had been given by leaders on both sides to economic co-operation, the report said. Both stood to gain with increased trade, employment, national income and better use of national resources if they co-oper ated.