Doing business

the island way

By David North

FOR those who have never worked or visited small Pacific islands, doing business in Micronesia could come as a challenging surprise, with equal parts of adventure, frustration, and exhilaration.

It will require large doses of curiosity, patience, and pioneering persistence.

The cultural infrastructure of the islands reflects Micronesia’s 20th Cen tury history. There are three business cultures in the islands “the local way of doing things” in each island group, a post-war American business culture, and a residual-resurgent Japanese approach.

The local ways, whether Chamorro in the Marianas, Palauan or Ponapean, are characterised by use of the local language among indigenous islanders, family and clan connections, a more “laid-back” timeframe, and a strong voice and power base in the local government. The American business culture can be seen most readily in the use of dollar currency, government legal systems, banking and financial institutions and practices.

There is also a Japanese business

culture, which started before World War II and which has blossomed recently in tourism, construction, fishing and other Japanese businesses. The islands’ official languages are English and the local language, Japanese, is spoken by the oldest generation of Micronesians (ex cept for the Chamorros of Guam) as well as the youngest, many of whom are apprenticed to Japanese firms.

This has created a mixed business culture. Many Palauan businessmen, for example, have at least three first names - Palauan, English, and Japanese and different business cards. They will switch between these, depending on who they are conducting business with.

There also is a traditional versus modern power dynamic in all but Guam and the Northern Marianas. Many island busi ness and government leaders are “self made” types who haven risen through education and experience (many worked for the former Trust Territory adminis tration); and a powerful class of tra ditional leaders, based on family and clan position in the island-wide system.

Large-scale developments involving tra ditional land or marine areas must factor this dynamic into their planning, or face project delays because of misunderstand ings or conflict between the two groups often expressed as development versus cultural preservation.

Family, clan and village connections still form the basis of Micronesian societies, with extensive and intricate exchange and redistribution systems for goods, money and wealth.

“Island Time” the practice of being up to an hour late functions in Micronesia. It is based on a value system that sees fundamentals of human re lationships showing up as more important than accidents punctuality.

Many leaders actually end appointment conversations by establishing whether the next meeting will go off on “Island Time” or “Stateside Time”.

The “Three Yeses” is another culture concept. “Yes” can mean “yes”, but not always, because usually “yes” simply means a polite and non-committal “maybe”. And sometimes “yes” defi nitely means “no”.

One story illustrates the subtle uses of “yes”. An island businessman who was invited by an American to the latter’s birthday party said he would be there, but never intended to attend and did not.

When the nonplussed American later questioned him, the islander gently explained that he didn’t want to disap point the man twice once when he said no and again when he didn’t come.

“This way I only disappointed you once, when I didn’t come,” the local entre preneur politely said. □