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AMERICAN SAMOA – FORGING A PATH TOWARDS A 

RESILIENT ECONOMIC FUTURE

Comprehensive Economic Development Strategy 2018-2022 Prepared by: 

American Samoa Government Department of Commerce 

TABLE OF CONTENTS 

ACRONYMS USED IN THIS DOCUMENT                                                                                              2 

INTRODUCTION                                                                                                                                          5 

Development of CEDS-AS 2018-2022                                                                                                          5 

SUMMARY BACKGROUND                                                                                                                      7 

Economic History                                                                                                                                           7 

Economic Forecast                                                                                                                                       10 

Business Confidence Index                                                                                                                          12 

SWOT ANALYSIS                                                                                                                                       15 

Strengths                                                                                                                                                       16 

Weaknesses                                                                                                                                                   18 

Opportunities                                                                                                                                                20 

Threats                                                                                                                                                          22 

STRATEGIC DIRECTION & ACTION PLANS                                                                                     24 

GOAL 1: BUILD A ROBUST BUSINESS ENVIRONMENT AND BUSINESS ECOSYSTEM        25 

GOAL 2: STRENGTHEN CURRENT INDUSTRIES AND DEVELOP NEW INDUSTRIES           28 

GOAL 3:  STRENGTHEN SECONDARY ECONOMIC DEVELOPMENT SUPPORT SYSTEMS33 

EVALUATION FRAMEWORK                                                                                                                35 

RESILIENCE                                                                                                                                               36 

APPENDICES                                                                                                                                              37 

ACRONYMS USED IN THIS DOCUMENT 

INTRODUCTION 

The Comprehensive Economic Development Strategy of American Samoa (CEDS-AS) provides the territory with a plan to strategically manage its resources and prioritize development in key industries. These efforts are aimed at creating an environment in which economic diversification and resilience can flourish. 

The CEDS program is also one of the cornerstone programs of the U.S. Economic Development Administration (EDA) and regions are required to update their CEDS every five years to qualify for assistance under the EDA Public Works and Economic Adjustment Assistance Programs in accordance with EDA’s regulations at 13 CFR part 303.7.  The CEDS-AS 2018-2022 is a continuation of the CEDS 2013-2017. 

It is important to note that the renewal of the CEDS-AS is occurring at a critically important time in our territory’s history.  At play presently are several strong and imposing forces that may impact the decisions we are making today and in the near future.  The territory is facing unsustainable pressures on the local tuna canning industry; our competitive advantage continues to erode as our minimum wage continues to increase as required by federal law; our population is decreasing; recovery efforts as a result of Cyclone Gita which resulted in a Presidential Disaster Declaration^[1]are coming to a close; rural communities across the U.S. continue to see a relentless economic decline; and an uncertainty surrounding the long-term impacts of the ongoing trade negotiations between the U.S. and its trade partners. 

The harsh reality of our future is quite clear. Should our last remaining tuna cannery close, the territory will likely experience a catastrophic economic disaster and fall into a deep recession from which we may never recover.  This holds great implications for our people and the continuity of our culture and way of life.  It is with this in mind that the CEDS-AS will aim to focus on economic diversification with long-term resilience as the ultimate goal. 

Development of CEDS-AS 2018-2022 

As required by the EDA, there are five main elements that make up the CEDS-AS 2018-2022: 

1. Summary Background – This section provides an overview of the territory’s economic situation, touching on both recent economic history as well as an economic forecast. 
2. SWOT Analysis – This section assesses the state of the territory’s economy by determining the strengths, weaknesses, opportunities and threats posed by internal and external forces.   
3. Strategies & Actions – This section includes the vision, goals, objectives, strategies, and actions that the territory will take to guide economic development activities through 2022. 
4. Evaluation Framework – This section establishes criteria and performance measures that will be used to evaluate the effectiveness of CEDS-AS implementation. 
5. Resilience – This section outlines the territory’s approach towards building economic resilience such that our economy can better recover, withstand or avoid major disruptions to our economy. 

The process utilized to develop the CEDS-AS was driven by the American Samoa Government Department of Commerce (ASG DOC) under the leadership of Director Keniseli Lafaele, who assembled a CEDS-AS workgroup to draft the strategy^[2]. The CEDS-AS workgroup conducted a broad stakeholder engagement initiative, which sought to gain input from community members, government leaders, business owners, entrepreneurs, and others.  Surveys were conducted as were one-on-one interviews.  This information was then analyzed along with information from American Samoa’s previous CEDS, regional trends and reports, and other local planning initiatives.  As a result of these combined effort, a CEDS-AS visionwas developed, goalswere established, objectiveswere created, and actionswere identified and incorporated accordingly.   

SUMMARY BACKGROUND 

American Samoa is one of five inhabited U.S. Territories and is located in the middle of the vast Pacific Ocean, approximately 7,000 miles from Washington D.C., 4,800 miles from California, and 2,500 miles from Hawaii.  Due to its very small size and remote location, American Samoa faces many challenges including but not limited to a shrinking population, extremely high poverty rates, and a fragile insular economy. American Samoa’s economy and its long-term economic stability is solely dependent upon federal government funds and the continued operations of the one remaining tuna cannery.   There were approximately 15,750 workers in the territory in 2017, with as many as 3,850 unemployed, driving the unemployment rate to 19.6%.  In 2017, the American Samoa gross domestic product (GDP) was $634.0 million, which represents a 2.9% decrease from the 2016 GDP.  Adjusted for inflation, real GDP was $598.0 million, or a year-over-year decrease of 5.3%. 

Figure 1. Location of American Samoa

Economic History 

As a small, insular economy, American Samoa has long been prone to economic shocks from internal and external forces. Little data has been archived from before World War Two, and only sparse economic data can be found from the years before 2002. Available resources indicate an economy that quickly transformed from primarily agricultural, in the early 20^thcentury, to booming by the 1940’s, when US Department of Defense project funds flooded the island. Immediately following the end of World War Two, the flow of federal dollars slowed to a trickle and the local economy fell into a death spiral that would last almost ten years. 

In 1949, a cannery was built on the main island of Tutuila to process and export locallyharvested tuna. It was unprofitable, and subsequently closed until a 1953 rule-change allowed the unloading of fish from non-US flag vessels in the territory. The Van Camp re-established the cannery and enticed a Japanese fleet of longliners to make Pago Pago their main off-loading port. After a decade of Van Camp’s success in American Samoa, StarKist Foods opened a second cannery and saw the fleet of Asian longliners continue to grow, along with a new fleet of US purse seine vessels. Eventually, other canneries transferred some operations to American Samoa, including Chicken of the Sea and Tri-Union.^[3]

While the canneries helped to lift the local economy, local government revenues were still insufficient to maintain the infrastructure that had sprung up when the US military occupied much of the territory in the 1940’s. An article in the July 1961 Readers Digest, titled “Samoa: America’s Shame in the South Seas”, told of the dilapidated government buildings, unrepaired roads, and other infrastructure in disrepair around Pago Pago. The article sparked a new wave of federal funds into the territory, improving roads, government buildings, healthcare facilities, and tourism infrastructure. 

Figure 2. Pago Pago Harbor 

The surge in federal dollars was a welcomed lifeline, but also opened the islands up to an unprecedented level of regulatory oversight. Over the next four decades the territory was hit with increasingly burdensome federal regulations, which often yielded greater negative externalities than the benefits that the associated funds provided to the people of American Samoa. The private sector struggled to remain profitable, and economic growth slowed in many years. The first sign of problems occurred in 1997, when Van Camp filed for bankruptcy. Not long after American Samoa was included in the 2007 Fair Minimum Wage Act, Chicken of the Sea ceased operations in Pago Pago, costing the territory at least 2,000 full-time-equivalent jobs. 

This may have been the beginning of another economic death spiral, if not for the dual impact of FEMA disaster relief funds, following a deadly tsunami that struck the territory in 2009, and a short-term spike in federal grant funds from the American Recovery and Reinvestment Act of 2009. The surge in federal government spending cauterized the gash left in the economy after the Chicken of the Sea closure, although the relief ultimately proved to be temporary. Total population has decreased in all but one year since the tsunami and cannery closure, from 71,100 in 2009 to 60,300 in 2017. Additionally, employment and wages have been stagnant, growing at an anemic average annual rate of 1.2%, which consumer prices have grown at an annualized clip of 2.7%. Finally, real GDP has fallen by $80 million over this same period. 

The economy of American Samoa went through a series of wild fluctuations, between the damage from the tsunami, the cannery closure, and the flood of grant funds that washed through the territory in 2010 and 2012. Conditions began to stabilize in 2014, when real GDP increased by 1.0%, followed by another 1.3% in 2015. The new growth was spurred, in part, by a large capital investment by Tri Marine International on the purchase and construction of land and facilities for the purpose of processing and packaging locally harvested tuna. The facility opened early in 2016, under the name Samoa Tuna Processors (STP). Competition from Asian-based canneries immediately put the company in a precarious position and processing operations permanently halted in late-2016. Gross Domestic Product (GDP) in American Samoa fell by 0.2% in that same year, though the contraction was closer to 2.5%, when adjusted for inflation. 

STP laid off as many as 600 employees, which led to hundreds of additional job losses in related and support industries in 2016 and 2017. StarKist, the final remaining tuna processor in the territory, also faced setbacks in 2017. Availability of landed fish, along with a number of federally-mandated equipment upgrades, forced the company to temporarily halt operations for five weeks in the fourth quarter of 2017. The shutdown left thousands of employees without salaries to cover basic expenses and cost the local government more than half-a-million dollars in income tax revenues. 

The combined impact of the cannery closures contributed to a spike in the unemployment rate in the territory, rising from 10.5% in 2016 to 14.3% in 2017, and led to stagnant spending in both the private and public sectors. As a result, the economy contracted by 2.9% in 2017. 

Transportation costs rose modestly that year, as well, causing real GDP to have contracted by a clip of 5.9%. 

The recession might have extended into the following year, if not for a devastating cyclone that impacted much of American Samoa in February of 2018. By some estimates, Cyclone Gita caused as much as $186 million in direct and indirect damages across the territory. At least 50% of all citizens were faced with some level of loss to real and/or personal property during the cyclone. Food, water, and other basic necessities were in high demand throughout the days and weeks that followed. During that time, automated teller machines were persistently low on cash supplies as the people of the territory scrambled to draw enough to cover immediate repair and replacement costs. Additionally, international relief agencies distributed pre-loaded gift cards to families and individuals that were most affected by the storm. This is expected to have led to a spike in personal expenditures immediately following the cyclone, especially on nondurable goods, such as food, water, cooking fuel, and clothing. 

Simultaneously, local and federal government spending surged as emergency supplies were procured, relief staff were brought in, and as debris removal efforts ramped up. Damage to private and public property was evaluated over the following months, and more than $20 million was distributed to individuals and families through the US Federal Emergency Management Administration’s (FEMA) Individual Assistance programs. At least $12 million more is expected to be approved to assist in rebuilding and repairing public property and infrastructure through FEMA’s Public Assistance programs. Additionally, approximately $40 million more in federal assistance came in from US Small Business Administration loans, intergovernmental service agreements, disaster-related grants, other federal programs, and private insurance. 

Economic Forecast^[4]

Combined territorial and federal government spending in American Samoa is expected to have grown by 11.0% in 2018 and is projected to decrease by 2.8% in 2019 as the impact of project grants and disaster relief funds begin to dissipate. Government spending is then expected to increase by 0.8% in 2020, when hundreds of additional workers are hired for the decennial census. Following the completion of the survey, temporary Census employees will fall off of public payrolls and government spending will contract by an estimated 2.1% and 1.3% in 2021 and 2022, respectively. 

The accelerated growth in government spending in the early years of this forecast, along with the swell in relief funds to individuals and families, is anticipated to have created as many as 500 jobs in the government and private sectors in 2018, lifting personal income by approximately $10.4 million that year. Personal consumption expenditures are forecast to grow by 1.3% in 2018, 1.4% in 2019, and 0.4% in 2020 before contracting by 1.9% in 2019.  

Business investments in American Samoa are forecast to decrease by 14.5% in 2018, although the deceleration in private business spending has little to do with the cyclone. Rather, it represents the end of the STP investment. The steepest decrease doesn’t come until 2019, though, when business investment in the territory contracts by an estimated 25.6% as the last of the Samoa Tuna Processors equipment and construction material imports are counted. Business spending is projected to decrease for a third year in a row, contracting by an additional 5.0% in 2020, as the private fixed investments return to a level that is more consistent with its long-term trend. Then business spending is forecast to grow by 0.4% in 2021 and 10.2% in 2022. 

Net exports are anticipated to grow modestly in 2018 as growth in consumer and government spending is offset by higher exports. Specifically, net exports are forecast to rise by 0.9% in 2018 before decreasing by 1.5% in 2019, 2.5% in 2020, and 1.3% in 2021. The steeper growth in imports towards the end of the forecast period is primarily driven by rising fuel and transportation costs. 

Total GDP is expected to be $658.5 million in 2018, which is 3.9% higher than the previous year. Output is then anticipated to contract by 3.0% in 2019 (to $639.0 million), before growing by 1.1% in 2020 (to $646.2 million), declining by 1.1% in 2021 (to $639.3 million), and rising by 0.3% in 2022 (to $641.1 million). Adjusted for inflation, RGDP is forecast to increase by 0.7% in 2018, and then contract by 3.5% in 2019, 1.0% in 2020, 2.3% in 2021, and 2.0% in 2022. Additional details can be found in the following tables. 

Figure 3. American Samoa Gross Domestic Product 

Table 1. American Samoa Economic Forecast 

Business Confidence Index 

In the absence of a local Business Confidence Index or similar metric, business and community leaders were surveyed to obtain their opinions on the state of the economy and the likelihood of future business investment and developments.  Despite the economic contraction expected in the business investments GDP category through 2019 and 2020, which is largely due to the end of the STP investment and buildout, 75% of those surveyed responded that they were confident in reinvesting into the growth or expansion of their own business (figure 4).  In addition, 30.6% of those surveyed describe the current state of the economy as improving (figure 5), and 52.7% see the economy improving over the next 5 years (figure 6).  

Figure 4. Business confidence survey question 1 

Figure 5. Business confidence survey question 2

 Figure 6. Business confidence survey question 3 

Any investments made by small businesses over the next five years will likely temper the slope of the drop-off we will experience but will not have any significant impact on the directionality of the economic forecast.  

SWOT ANALYSIS 

The CEDS-AS workgroup conducted an analysis into the various strengths, weaknesses, opportunities, and threats (SWOT) facing the territory of American Samoa.  The SWOT analysis’ framework is particularly useful in identifying the territory’s competitive standing, in terms of both internal and external factors, and the potential for future development.  

The CEDS-AS workgroup’s analysis included a comprehensive review of various resources on the territorial and regional economy, identifying numerous strengths, weaknesses, opportunities, and threats facing the territory.  These were then categorized and narrowed down to a more specific list, which was used to develop an online survey aimed at soliciting input from the community. Over 50 different stakeholders from the public and private sector were invited to take part in the online survey. Information regarding the CEDS-AS, its purpose, and goals was also sent to the survey participants. Follow up calls and emails were then conducted to ensure we received the most survey responses possible. 

As the survey responses were collected, the CEDS-AS workgroup also met individually with public and private sector leaders to gain further insights into existing organizational priorities, projects, and business strategies. The interviews allowed each individual business owner and organizational leader to speak to the unique issues that impact their organizations and industry.  

Strengths 

Figure 7. SWOT Survey responses for Strengths

Access to ocean resources  

As the primary export in American Samoa, the tuna is our most precious ocean resource. As a remote, insular territory, healthy oceans are essential for economic growth and food production. Of those surveyed, 55.6%agreed that access to ocean resourcesis one of American Samoa’s main strengths. Other related opportunities include aquaculture, scientific research, and exporting other varieities of seafood.     

 “Made in the USA” label  

As a U.S territory, goods produced in American Samoa are eligible for the “Made in USA” label– a designation that is synonymous with high quality products that comply with environmental and health standards. Of those surveyed, 47.2%agreed that having the “Made in the USA” label is a strength and could be better leveraged to support the economic growth of American Samoa. Private and public investment in the production of these goods directly contributes to income growth, job creation, and the preservation of existing manufacturing jobs in the U.S. and its territories. 

Federal Grant Programs  

Federal grant programs and expenditures are a main contributor to our territorial economy, directly accounting for more than 20% of American Samoa’s gross domestic product in 2017.  Of those surveyed, 47.2%agreed that federal grant programshave a vast impact on the economy of American Samoa, especially programs and services geared towards supporting a largely low-income community.  

Military relationship with the USA 

American Samoa is noted for having the highest rate of military enlistment per capita of any U.S. state or territory. The high enlistment rate is primarily due to limited job or career opportunities on island.  Of those surveyed, 44.4%agreed that one of American Samoa’s greatest strengths is its military relationship with the United States. With an existing Army recruiting office, as well as the newly established Marine recruiting station located on island, residents are more aware of the many opportunities available through military service. There are also U.S. Army Reserve facilities in the territory and high numbers of secondary and tertirary students enrolled in JROTC programs, which support the enlistment rates.  This high enlistment rate has resulted in a growing veteran community, with an estimated 3,000+ former service members who have returned and currently reside in the territory. These veterans are valuable consumers, and many are active business and, community, and public service leaders.   

Low labor costs  

Relatively low labor costs provide businesses and corporations in American Samoa a comparative advantage over mainland-U.S. competitors, while the “Made in America” label preserves a competitive advantage over countries with even lower wages. Of those surveyed,  38.9% agreed that low labor costs are a strength and benefit to the local economy. The minimum wage in American Samoa is still lower than the federal minimum wage, and much lower, relative to U.S. states and muncipalities that have adopted minimum wage rates that exceed the federal base wage. Current minimum wage details can be found in Appendix B. 

Figure 8. "Made in the USA" branding recognized as a Strength

Weaknesses 

Figure 9. SWOT Survey responses for Weaknesses

Air Transportation (Frequency & Cost) 

Hawaiian Airlines remains the only domestic air carrier currently servicing the territory, with two weekly flights to Hawai’i throughout the year and an additional flight each week during peak travel seasons. Of those surveyed, 80.6%identified air transportationas a major weakness in American Samoa’s economy. This has also been cited as a challenge to the tourism industry and may hinder the territory’s ability to attract other industries in the future, as many business managers and investors prefer easy and convenient access to their business locations. 

Banking and Financial Services 

After more than 40 years of service, American Samoa’s longest existing commercial bank, the Bank of Hawaii (BOH), announced in 2013 their eventual withdrawal from the territory. Of those surveyed, 72.2% identified banking and financial servicesas another predominant economic weakness in the territory.  When BOH ultimately exits, the territory will be left with only two commercial lending banks – ANZ Bank and the newly established Territorial Bank of American Samoa (TBAS).  Restrictive commercial lending policies, higher bank fees, longer turnaround times, limited services, and overly crowded banks are common complaints among respondents and interviewees. 

Inefficiencies in Government 

Many factors can contribute to government inefficiency.  Causes can include poor coordination, outdated processes or technology, or a simple lack of resources.  Of those surveyed, 50.0%identified inefficiencies in government as a major weakness to the territory’s economic development.  Delays in the issuance of permits, licenses, or payments to vendors were common complaints among respondents and interviewees. 

Non-diversified economy 

For decades, American Samoa’s economy has relied disproportionately on federal expenditures and local tuna canneries for economic growth.  Of those surveyed, 36.1%identified a nondiversified economyas an added weakness to economic development.  Should StarKist decide to depart the territory or should the Government face significant budget cuts or shutdowns, the local economy risks severe short and long-term consequences as a result of its limited economic diversity and tax base. 

Quality of Health Care 

The Lyndon B. Johnson Tropical Medical Center (LBJ) is the sole hospital in the territory. As a result, patients frequently experience long delays when seeking medical care.  Of those surveyed, 33.3% identified quality of health care a weakness.  There are only a small number of private health care practices located in the territory, mainly due to an inability of patients to afford the high cost of unsubsidized health care services. The Department of Health (ASG DOH) does operate five other Public Health Centers, which has helped to alleviate some of the strain on LBJ.  The territory has also long struggled with securing and retaining high quality health care practitioners.  This is due, in part, to the territory’s remote location, the relatively heavy workload, inadequate funding, and uncompetitive wages.   

Opportunities 

Figure 10. SWOT Survey responses for Opportunities

Information Communication Technology Industry 

Recent advancements in American Samoa’s telecommunications infrastructure have resulted in increased optimism with regards to developing a new telecommunications industry.  The $90+ million-dollar BLAST (Broadband Linking the American Samoa Territory) Project funded the creation of one of the regions only true fiber-to-the-premise networks in the territory.  The more recent investment by ASG into the Hawaiki submarine fiberoptic cable affords businesses and other users in the territory the opportunity to truly leverage the BLAST network infrastructure.  Of those surveyed, 63.9%identified the Information Communication Technology (ICT)as one of the most promising opportunities for the territory.    

Attracting investors for capital investment projects 

The infusion of federal dollars, either through the Capital Improvement Program (CIP) or other funding initiatives, has long been the only real source of funding for capital development projects.  Of those surveyed, 58.3% identified attracting investors for capital investment projectsas the second most chosen opportunity in American Samoa. Attracting new investors could provide the necessary capital to develop new industries and foster additional growth in existing and emerging industries. 

Ecotourism 

The lack of urban development, skyscrapers, and other features common among urban cities across the United States and other developed nations could make American Samoa an ideal destination for eco-tourists.  The territory appears to be well-suited for such an industry, with its lush mountains, tropical rainforests, a National Park, thriving reefs, and an authentic, hospitable Samoan culture.  Of those surveyed, 47.2%identified Ecotourismas a potential economic opportunity.   

General Tourism 

The South Pacific continues to be a popular destination for visitors seeking sun and adventure. As such, the tourism industry has grown tremendously throughout most of the region in recent years.  Of those surveyed, 47.2%identified general tourismas an opportunity to pursue over the next 5 years.  While cruise ships visitations have increased over the past few years, air transportation is the means to a more consistent inflow of tourists. It is generally viewed that regulatory restrictions, such as the restrictive cabotage laws, are the main barriers to seeing significant improvements in this industry. 

Federal Programs  

Government expenditures are one of the two major drivers of the territory’s economy. However, there are many grant programs and funding opportunities that have not been accessed due to a lack of information, expertise, or a clear understanding of certain federal grant programs. Of those surveyed, 47.2%identified Federal Programsas a major opportunity for the Territorial economy. New political administrations with new priorities, both at the federal and state levels, often open the door to new funding opportunities and programs.   

Figure 11. The late ASTCA CEO Puleleiite Tufele Jr. at the Hawaiki submarine cable landing in April 2018

Threats 

Figure 12. SWOT Survey responses for Threats

Departure of U.S. Banking Institution 

The departure of the Bank of Hawaii has highlighted the significance of this threat.  Without access to reliable banking services, any community would face significant struggles, with regards to economic and business development.  Of those surveyed, 66.7% agreed that the departure of U.S. Banking institutionsas a threat to the economy.  

Political Administration Transitions 

Changes in executive government administrations are often accompanied by shifts in governmental priorities. This may impact the implementation or continuation of current strategies and may have a direct impact the underlying economy. This is especially true with a small, insular economy, like that of American Samoa.  Of those surveyed, 63.9% agreed that political administration transitionspose a potential threat to the economy.  

Budgetary Constraints 

The territory’s budget is heavily influenced by funding from the Department of Interior, which has remained unchanged for several years.  In addition, the lack of a diversified and strong tax base puts limitations on programs that are funded through local revenue collections.  Of those surveyed, 61.1% agreed that budgetary constraints (local & federal)are a major threat to the Territorial economy. 

StarKist Departure 

The possible departure of our last remaining cannery, StarKist, has long been a concern for local leaders and businesses.  Of those surveyed, 55.6% agreed that the departure of StarKistis a major threat to the economy. The direct and indirect impact of such a departure could result in a major recession in American Samoa, severely crippling the local economy. 

Drug Epidemic 

As is the case across the U.S., the territory is facing a drug problem as well.  Of those surveyed, 41.7 % agreed that the drug epidemicis a threat to the economy.  A continued drug problem, particularly the increase in drug usage by residents, can result in several outcomes that may impact the economy, such as creating a strain on local resources, a decrease in workforce productivity, and increasing health care costs. 

Figure 13. StarKist is the last remaining tuna cannery in American Samoa

STRATEGIC DIRECTION & ACTION PLANS 

The following section is the direct outcome of an analysis of the territory’s development potential as identified through the SWOT analysis.  This section aims to answer the question “how do we get there?” by beginning with a clearly defined vision statement regarding the territory’s economic development strategy.  The vision statement inspired the creation of three (3) comprehensive goals, which in turn have resulted in establishing multiple key objectives required to achieve goals.  Additional background information is also presented with each objective below to provide context around each issue.  Finally, specific strategies and actions have also been established to help achieve each objective, however these strategies and actions will be located in Appendix C for ease of reference. 

The CEDS-AS has adopted the following structure to guide our development efforts: 

VISION →  GOALS →OBJECTIVES →STRATEGIES →ACTIONS 

Vision Statement

Improving the territory’s prosperity through supporting growth of our economic & entrepreneurial ecosystems, focusing on industry diversification, and building resilience.

Goal 1: Build a robust Goal 2: Strengthen Goal 3: Strengthen business environment current industries and secondary economic and business ecosystem. develop new industries. development support 

systems. 

Figure 14. CEDS-AS Structure 

The term “business environment” typically refers to widely-applied tax policies, laws, and government regulations, which are usually outside of an individual business owner’s control, yet can significantly help, or hinder, a business owner’s ability to operate profitably in their political jurisdiction. While these external factors are typically prescribed dispassionately to businesses in an effort to increase fairness, safety, and to fund public goods and services, some policies are yield unintended consequences in the form of negative externalities to certain businesses and industries. Because businesses do not operate in a vacuum, a one-size-fits-all approach does not always function as originally intended. As such, business owners, managers, and policy makers must always take business environment factors into consideration. There are a number of business environment elements that must be considered, including, but are not limited to: political, legal, social, economic, global, competitive, and technological forces. These forces may also include natural disasters, as American Samoa experienced following Cyclone Gita, which devastated the territory in February 2018.  For a business to succeed and remain sustainable, and for an economy to stabilize or grow, a robust business environment and business ecosystem must exist. 

American Samoa’s business environment continues to evolve, adjusting to changes at a pace that is in line with the development of our community in general.  Improvements have been seen in many areas, however additional work is required.  As reported by the Small Business 

Administration (SBA) in 2017, approximately 50% of new businesses survive the first 5 years^[5].  While local data on new business survival rates is not collected, it is assumed that poor economic conditions contribute to even lower business survival rates in the territory.  The following objectives have been established to continue to optimize the business environment in American Samoa.   

Please note that each objective has specific strategies and actions designed to help achieve the stated objectives.  These strategies and actions are outlined in Appendix C.  

Objective 1:  Address the Fair Minimum Wage Act of 2007 and its negative impacts on American Samoa. 

The Fair Minimum Wage Act of 2007 (FMWA) was created to improve the standard of living and alleviate poverty in U.S. communities. While the American Samoa Government has a similar mandate, empirical evidence suggests that the minimum wage rate schedule, as prescribed in FMWA, fails to account for the ability of the local economy to absorb base wage rate increases before they occur. Since the passing of FMWA, American Samoa has seen 5 minimum wage increases that have led to significant erosion to the local workforce and the underlying economy.  These increases have contributed to the closure of two tuna canneries in less than ten years, displacing over 3,000 direct workers, plus thousands of additional workers in support industries.  

American Samoa’s competitive advantage is centered around the territory’s low labor costs. Any effort to improve the territory’s economy through the export of goods and services is explicitly related to appropriate increases to those labor costs. 

Objective 2:  Improve efficiency and ease of securing business licenses and other businessrelated permits. 

Business owners face many challenges when it comes to taking a business plan from an idea to implementation.  Developing an efficient process to secure the proper licenses, permits, or other requirements plays a key role in creating a business environment that encourages new business development.  Examples of local requirements include, but are not limited to, business licenses, land use permits, building permits, certificate of incorporation, foreign permits to operate, special licensures, board approvals (i.e. ABC board), etc. 

Objective 3:  Explore options to expand Business Financing and improve access to capital. One of the most common reasons for business failure is under capitalization.  Many business owners who start new businesses do so without sufficient capital and, as such, find themselves struggling to stay solvent beyond the first year.  At present, American Samoa is experiencing a severe lack of access to business capital for start-ups and/or business expansion.  Bank of Hawaiiis planning to cease operations in the territory and is no longer providing lending to local individuals or businesses.  ANZ Bank does offer commercial loans, but has decelerated business 

lending in recent years in order to mitigate the risks associated with the current state of the local economy.  The Development Bank of American Samoa (DBAS) continues to make small business loans available, however capital resources are prohibitively limited.  The newly established Territorial Bank of American Samoa (TBAS) only recently began to accept commercial loan applications. 

Objective 4:  Pursue improvements to business services.  

A business service is defined as “any customer, partner or user-facing group of applications, middleware, security, storage, networks and other supporting infrastructure that comes together to enable a comprehensive, end-to-end business process, transaction or exchange of information.”  In today’s global business environment, reliable business services are a requirement for a firm’s long-term success.  Unfortunately, American Samoa has not kept pace with the development or deployment of modern business services and, as a result, some businesses have fallen behind the technological curve. 

As an example, a business owner who would like to use a mobile point of sale system (POS) to transact business in the field (e.g. at a farmer’s market or at the cruise ship terminal) will struggle to find a service provider whose services are available in American Samoa.  The leading mobile POS companies, like Square or Intuit, do not offer these services in American Samoa, nor do the local banks.  Other examples of deficiencies in available business services include a lack of telecommunications network support, cyber security services, data center support, business analytics, search engine optimization (SEO) services, and other information technology (IT) services.  The growth and evolution of the local economy will require continuous improvements with business services to compete in the global economy. 

Objective 5:  Formalize the Territorial Investment Guide program. 

An investment guide is a critical tool used to communicate business investment opportunities in American Samoa to potential investors or businesses.  Such a guide should be easily accessible and describe the advantages of doing business in American Samoa in clear terms.  The territory’s stated advantages should include, but are not be limited to, low labor costs, an American/English speaking workforce, “Made in the U.S.A” product designation, great quality of life, and economic/tax incentives.   

Objective 6:  Support innovators and entrepreneurs. 

Generally speaking, innovators have new ideas and entrepreneurs help these ideas become a reality.  In a stagnant or shrinking economy, innovation is usually either scarce or suppressed and the entrepreneurial spirit is tempered.  Until recently, American Samoa’s remote location and lack of certain resources made the territory a difficult location for budding innovation and entrepreneurship.  This is no longer the case.  The era of information technology in American Samoa was vastly improved after the American Samoa Government invested nearly $30 million in the Hawaiki submarine fiber optic cable, paving the way for the creation of a new, knowledgebased industry. Combined with current STEM (science, technology, engineering, mathematics) initiatives, this new and affordable resource helps lay a foundation for technological innovation and opportunities for entrepreneurs. 

Objective 7:  Capture data more effectively. 

Investors, business owners, business managers, and policy makers all require sound and up-todate data to make informed decisions.  This becomes increasingly important in an environment where business opportunities are considered risky, margins are tighter, and resources are limited. Our ability to collect and report data in an efficient manner has long been a struggle due to a lack of resources, expertise, or other challenges.  To compete in a global economy requires that data and information be real-time, reliable and readily available. 

Objective 8:  Eliminate outdated laws or regulations that negatively impact business. Unnecessary regulations can negatively suppress investment, increase start-up costs, delay progress, or temper the much-needed enthusiasm of a new business owner.  Regulations exist in large part to protect consumers, the environment, or to address other concerns, however it is important that non-essential regulations be reviewed regularly to determine continued relevance.   

Objective 9:  Continue to assess government-owned properties to ensure adequate space is available to support business growth. 

The territory is a mere 72 square miles. As such, availability of land to establish new businesses or to allow current businesses to expand is limited.  Land resources are a premium and, as such, the territory should manage this resource as efficiently as possible.   

Objective 10:  Incentivize local business investment to create jobs and strengthen industry.  The formalizing of the Territorial Investment Guide program (Goal 1, Objective 6) is primarily focused on encouraging external investment in the territory, or to incentivize foreign and U.S. businesses to relocate to American Samoa.  However, similar incentives are needed to encourage local business owners to invest in the ongoing development of new and existing businesses that create jobs and access new revenue streams for the territory.   

Objective 11:  Pursue opportunities that will support efforts to lower costs of doing business. 

The cost of doing business refers to all of the operations and input costs incurred by businesses. These expenses are directly tied to a business’s ability to remain competitive and to continue to contribute to the broader economy. Expenses, such as the cost of goods, freight, overhead, utilities, fees, taxes and payroll, all impact the profitability of a business.  Efforts by local government to decrease costs to businesses would likely yield economic dividends. 

Objective 12:  Address cyber security risks to territory. 

In a global economy with a perpetual progression towards digitization of data and processes, technology utilization and data infrastructure in the territory is also evolving and improving. This evolution has opened up new opportunities to the people, businesses, and the government of 

American Samoa, but new opportunities are frequently accompanied by new dangers. The cyber security landscape continues to change as new threats and solutions emerge.  Even the latest and greatest cyber security measures are prone to rapid obsolescence.  It is necessary for businesses, government agencies, and other organizations to adopt effective cyber security technologies to minimize or prevent digital threats or breaches, and to help maintain a strong, unified, digital business ecosystem in American Samoa.

The tuna canning industry has long been the cornerstone of American Samoa’s private goodsproducing economy.  In addition to being the largest private sector employer in the territory, the canneries have been integral to the growth and development of other small businesses that either support the cannery supply chain or provide goods and services to their employees. Over the past 60 years, the tuna canning industry has employed generations of Samoans and supported the operation of the local government through direct and indirect tax contributions.  However, an eroding competitive advantage and burdensome restrictions on ocean resources has put the future of the tuna canning industry in American Samoa at risk.  As noted previously, under Goal 1, Objective 1, the 2007 Fair Minimum Wage Act has had a devastating impact on private businesses in the territory, including the canneries, which are struggling to remain competitive in the global canned tuna market.  Furthermore, reduced access to traditional fishing grounds by way of the federal expansion of ocean monuments and international restrictions on allotted days of fishing in certain parts of the ocean adds to the cost of production as fishing vessels must travel greater distances to catch fish.  A number of federal government oversight issues have put additional pressure on the tuna canning industry through onerous regulations and fines imposed by the U.S. Environmental Protection Agency (EPA) and the U.S. Coast Guard. Uncertainty around the future of the tuna canning industry has led to increased efforts to diversify American Samoa’s economy.   

One of the positive side effects of the tuna canning industry is a fully-developed ocean freight infrastructure with relatively favorable shipping rates. The high volume of material imports and product exported by American Samoa’s last remaining tuna cannery, StarKist, creates economies of scale that essentially freight and fuel costs for other businesses and residents of the territory. This presents an opportunity to more affordably develop new export industries, such as light manufacturing, agribusiness and aquabusiness.  

The newly installed Hawaiki submarine fiberoptic cable and recently completed, $90+ million local fiberoptic network (BLAST project) have bred a renewed optimism around the possibility of developing an Information Communication Technology (ICT) industry or a Business Process Outsourcing (BPO) industry. The territory’s upgraded telecommunications infrastructure also provides the opportunity to explore other knowledge-based initiatives, such as telemedicine and E-learning.  American Samoa is well positioned to build out its telecommunications industry as the territory has an English (American) speaking workforce with the lowest labor costs in the U.S., even after the recent, federally mandated minimum wage increases. Additionally,

American Samoa qualifies as an ‘onshoring’ location (in the U.S.), along with many other miscellaneous qualities that benefit call-centers and other BPO operators. Furthermore, telecommuting has grown 115% over the past ten years^[6], driving job creation in internet-related industries, such as customer service, data entry, and sales.  Many of these new opportunities are high skilled jobs with more attractive salaries that tend to be accompanied by relatively high economic multipliers.   

Reports also show the rise of a movement that has emerged as a result of the rapid expansion of globally-available, high-speed, broadband internet, which has been coined “the gig-economy”. This movement is predominantly characterized by shift from traditional occupational arrangements towards a preference for short-term, independent contractor work.  These “gigs” typically do not require the contractor to be on location and allow for greater workforce mobility. 

It is estimated that, by 2020, as many as 40% of all American workers will be independent contractors^[7].  American Samoa offers remote workers the ability to live on and operate from a U.S. territory with a pleasant, tropical climate, a relatively favorable cost of living, and the ability to continue to collect a stateside salary. This presents the territory an unprecedented opportunity to create a valuable, new niche industry. 

Tourism has long been an industry that is prime for development in American Samoa, as many neighboring island nations are already experiencing robust growth in their respective tourism sectors. As reported by the South Pacific Tourism Organization (SPTO), tourist arrivals to the region grew by 3.1% between 2016 and 2017. Over that same period, visitor arrivals to American Samoa decreased by 0.3%.^[8]  There are a number of drivers behind American Samoa’s struggles to gain traction in tourism development, including a lack of available development financing for infrastructure improvements, stakeholder coordination, challenges with air transportation (both international and domestic), and a general lack of consensus on prioritization.  The 2010 Tourism Masterplan is the primary, relevant planning document for tourism, and continues to serve as the definitive guide for development in the industry. 

Please note that each objective listed below has specific strategies and actions designed to help achieve the stated objectives.  These strategies and actions are outlined in Appendix C.  

Objective 1:  Strengthen fishing & tuna canning industry; aim to diversify where possible. 

Tuna canning, and now tuna pouching, continues to be the territory’s primary export, accounting for more than 80% of all goods exports.  Collaborative efforts between the remaining cannery, StarKist, local government, and American Samoa’s Congressional representative have culminated in a unified front that actively advocates for policies that allow the territory’s tuna industry to remain globally competitive, ensuring that the cannery continues to operate in the territory for the foreseeable future. The importance of these ongoing efforts cannot be overstated. Additionally, other opportunities to increase the productivity of our ocean resources must be explored.  The fresh fish market remains a viable option and continued work to further develop the market will expand the efficient uses of these ocean resources.  Efforts should also continue to support and improve the industry’s local infrastructure, such as improvements to cold storage facilities, modernize the shipyard facility, and upgrade the local fishing fleet. 

Objective 2:  Explore and develop new industries, leveraging the BLAST fiberoptic network, Hawaiki submarine cable, and other Information and Communication Technology (ICT) resources. 

Perhaps the single largest development in the modern history of the territory has taken place over the past 4 years.  First, the American Recovery and Reinvestment Act funded the BLAST (Broadband Linking American Samoa Territory) project, which financed the installation of a local fiber optic network, with the objective of connecting every home and business in the territory to the internet. Soon after the multi-year, $90+ million project was completed in 2015, the American Samoa Government invested approximately $30 million in the acquisition of a new fiberoptic submarine cable, connecting the territory to the mainland U.S. through the top-of-theline Hawaiki trans-pacific submarine cable.  This new connection increased the territory’s bandwidth from 1 Gbps (via the old American Samoa-Hawaii or ASH cable) to 200+ Gbps.  Together, these two developments have effectively set the stage for the potential creation of new industries.  

Objective 3:  Continue the development of the Tourism industry. 

The 2010 Tourism Masterplan is the primary, relevant planning document for tourism, and continues to serve as the definitive guide for development in the industry.  Efforts should be focused on the continued development of tourism infrastructure, programs, and services, with greater effort placed on stakeholder coordination, community involvement, and collaboration. Additionally, the scope of the tourism industry has been rather broad and may benefit from a more focused approach. Tourism includes, but is not limited to, heritage, eco-tourism, food and beverage, adventure, sports, religious, medical, events & conferences, environmental research tourism and more. Development efforts would also benefit from the prioritization of tourism sectors to assist with more effective allocation of available resources. 

Objective 4:  Continue the development of the Agribusiness industry.

Agriculture has always been a part of the Samoan way of life. Historically, agricultural activity has been largely limited to small-scale farms and subsistence farming. Efforts to improve the territory’s agricultural production capacity on a commercial scale have been ongoing since the early 1960’s when the first agricultural programs were introduced by Governor H. Rex Lee.  The territory has made significant headway in developing technologies and farming processes, such as hydroponics.  Locally grown produce is now being packaged and sold in supermarkets, supporting import substitution efforts.  Diversification of locally-grown crops has also improved over the decades. In addition to the traditional crops of taro, bananas, and breadfruit many farms in American Samoa now also grow eggplant, beans, squash, green onions, bok choy, lettuce, and tomatoes -- many of which are commonly available at most roadside farm stands.  Continued efforts to improve efficiency and productivity in these and similar agribusiness activities should be supported.  In addition, efforts to produce value-added products (i.e. breadfruit flour, chocolate or cacao-based products) should continue to be explored and pursued.  These efforts should also include the cultivation of medicinal herbs and plants. The global herbal medicine market continues to expand as the popularity of the herbal products market has increased in many advanced economies. The global market for herbal products is expected to grow at a compound annual rate of nearly 6% through 2023.^[9]

Objective 5:  Continue the development of the Aquabusiness industry. 

Aquaculture is defined as the controlled cultivation and harvest of aquatic plants and animals. By extension, aquabusiness can be defined as the utilization of aquaculture-related activities to support business development.  The Samoan culture has thrived for thousands of years as a result of effective use of ocean resources.  Thus far, this long-standing tradition has not translated into successful commercial development of these resources, with the exception of the tuna canneries. Recent advancements in aquaculture technologies and practices, such as open ocean fish farming, have reemphasized the value of the territory’s proximity to ocean environments where these aquaculture techniques could be effectively employed.   

Objective 6:  Continue the development of the Creative industry. 

The Creative industry, which is also commonly referred to as the “Cultural industry”, is the range of economic activities that generally stems from the generation and/or exploitation of knowledge or information.  In American Samoa, this has traditionally referred to the creation and sale of cultural goods and services, such as local handicrafts or the presentation of music, dance, or theater for entertainment (siva & pese, luau, etc.). Today, the Creative industry has expanded to cover intellectual property products, including fashion design, advertising, music, film, software development, gaming, TV, radio, music, animation, and so on.  Content being developed at home on a personal computer or on a mobile phone can be instantly uploaded to the internet and monetized.  An improved understanding of the prevailing trends in this industry is key in identifying new opportunities for income generation. 

Objective 7:  Improve the territory’s capacity to identify, pursue, and secure additional federal support through grant and other federal programs. 

Federal program funds and grants provided to the American Samoa Government accounts for more than 20% of the territory’s nominal GDP, making those funds critical to the ongoing health of the local economy.  The territorial government receives roughly $23 million, annually, along with the many other non- discretionary grants.  Additionally, the federal government offers several other discretionary or competitive grants, plus funding for other projects and programs that can add to the federal stream of dollars fueling the local economy. Improving the local capacity to better monitor, pursue, and compete for these grant funds can add to the federal contribution to our local economy. 

Objective 8:  Pursue opportunities to promote light manufacturing opportunities where feasible. 

Previous success in manufacturing goods in the territory for export to the U.S. market have been due, in part, to American Samoa’s low labor costs and duty-free entry into the U.S.^[10]  The textile industry is one example that has already seen some success.  Other ongoing efforts to develop this industry are gaining increased interest and should remain a part of the overall economic development strategy. 

Objective 9:  Pursue opportunities to transition specific health care services to the private sector where feasible.   

By some accounts, the largest breakthrough in the health care industry will be found through the full deployment and utilization of telehealth and telemedicine, especially for remote communities like American Samoa.  Opportunities to leverage the territory’s new internet connectivity through public-private partnerships to improve delivery and quality of health care services should be assessed and incorporated into the territory’s overall economic development strategy. 

In addition to improving our business environment, strengthening our primary industries, and improving economic diversification, there are a number of secondary support systems in the territory that require additional support.  While the following objectives refer to secondary systems or initiatives, many of the underlying components can be just as important as those in the primary initiatives.   

Please note that each objective listed below has specific strategies and actions designed to help achieve the stated objectives.  These strategies and actions are outlined in Appendix C.  

Objective 1:  Improve Workforce Development initiatives to better prepare workforce. A critical element of our economic development strategy is the continued effort to develop human resources to meet the growing needs of the economy. Cultivating a highly-trained workforce enhances the territory’s socio-economic stability and primes the economy for growth.  Typically, workforce development duties and responsibilities fall under state government agencies. However, in a small, insular economy, efforts to build a strong workforce are often more efficient when ownership of such development is shared by both the public and private sectors.  In addition, for the past several years, efforts to educate and prepare the youth of American Samoa for postsecondary progression has primarily leaned towards traditional 4-year university degrees, and has largely ignored training opportunities in trade professions.  A redesigned approach must incorporate work-based learning strategies that align with the territory’s economic development plans.  Key areas of focus include STEM, business, hospitality, and customer service programs. 

Objective 2:  Improve Financial Literacy of community to improve our capacity to plan and manage our overall financial well-being. 

The financial literacy, or financial knowledge, of a developing state or territory can play a key role in the long-term growth and resilience of the underlying economy. Understanding the benefits of budgeting, saving, investing, financial planning, and moving away from a cash-based society can strengthen the territory’s fiscal foundation and build financial management capacity.  American Samoa’s local banking institutions play a key role in promoting this initiative, however local government, NGOs (Non-Governmental Organizations), and other stakeholders are equally important stakeholders in this initiative. 

Objective 3:  Create synergy through improved coordination, communication, and cooperation between Federal & Local governments. 

Issues that are discussed or actions that take place at the national level can, at times, have unintended results in communities like American Samoa.  As an example, Goal 1 Objective 1 speaks to the decisions regarding a federal minimum wage mandate that has had a tremendously negative impact on the territory’s economy.  This is just one of many instances in which federal policies have yielded similar negative externalities.  The State Small Business Credit Initiative (SSBCI), which came about as a result of the Jobs Act of 2010, was initially a great idea, but was implemented without fully considering the challenges that exist is smaller, insular communities. Rigid federal policy applied to jurisdictions with unique, local economic conditions has resulted in missed opportunities for jurisdictions like American Samoa.  Another program that could have had a positive impact on economic development efforts in the territory is the EB5 Program, which was specifically designed to encourage foreign investment and to create jobs in underserved communities like American Samoa.  Unfortunately, ambiguities in the EB5 statute prevents the territory from participating in the program.  A similar language issue is also seen in the Community Development Financial Institution (CDFI) Natives program where language in the statue excludes American Samoans. The U.S. cabotage laws are another example of dispassionate federal regulations that were intended to protect U.S. businesses and workers, but have had unintentional, negative impacts on many small, U.S. jurisdictions.  

Objective 4:  Mobilize and encourage non-governmental organizations (NGOs) to participate in economic development strategies. 

NGOs can play a key role in the implementation of this economic development strategy. As such, the importance of fostering and advancing private-public partnerships cannot be overstated.  The territory has a wealth of largely untapped resources available in many of these organizations.  

These groups include, but are not limited to, the American Samoa Chamber of Commerce (ASCOC), various industry associations, military veterans, faith-based groups, ethnic groups, and other non-profit organizations.  The efficacy of this economic development strategy fundamentally depends on the effective utilization of all available resource. Additionally, the ability to successfully adopt a more collective approach to economic development is paramount, especially in a small, community-based, island territory. 

Objective 6:  Support collaborative efforts to address socioeconomic and/or environmental issues that have an adverse impact on our ability so support economic development objectives. 

The overall physical, socioeconomic, and environmental well-being of a community is necessary for the sustainable development of a productive local economy that provides ample education and work opportunities for its citizenry.  At present, American Samoa is facing an obesity and drug epidemic, both of which have significant implications for the future of the territory.  In addition, climate change is a growing risk, leading to the erosion of shorelines and a gradual loss of other natural resources.  Efforts to address these issues should be integrated into all development plans. 

EVALUATION FRAMEWORK 

The CEDS-AS evaluation framework will serve as a mechanism to gauge the progress of successful execution and implementation of our strategies.  Periodic reports on progress will be developed to ensure that the CEDS-AS remains a relevant and effective tool for improving the economy of the territory.  Both qualitative and quantitative measures will be tracked, with an emphasis on metrics that are measurable and time-specific.  

To establish a baseline, the CEDS-AS workgroup will utilize datasets contained within the 2017 American Samoa Statistical Yearbook as benchmarks.  Key indicators that will be measured and tracked include, but are not limited to: 

1. Gross Domestic Product (GDP) 
2. Unemployment Rate 
3. Population changes 
4. Private Nonfarm Employment, by industry 
5. Local and Federal Government Employment 
6. Average income per capita 
7. Secondary education completion rates 
8. Tertiary education completion rates 

Other metrics may be established and benchmarked after CEDS-AS strategy implementation begins. As an example, ASG DOC plans to develop an annual business survey to gather employment and business utilization data, which is a useful leading indicator of many business cycle fluctuations. Quarterly and annual reporting will also be conducted by ASG DOC to capture the overall performance of the economy. 

RESILIENCE 

A key component to successfully developing the territorial economy is integrating long-term resiliency as a primary goal.  Resiliency planning mitigates many risks associated with unanticipated global, regional, and territorial events that could undermine progress in even the most irrepressible economies. Planning with resiliency in mind is a critical element of a sustainable economic development strategy. As such, the CEDS-AS implementation phase will encourage stakeholders to seek solutions that build resilience into our economic systems.   

As previously noted, American Samoa was struck by Cyclone Gita on February 9, 2018.  As the territory worked to rebuild and recover from the devastation, a FEMA-led project was introduced that seeks to change the territory’s view or approach to disaster recovery.  The aim of the program is to ensure that the territory is better positioned to withstand and recover from the impacts of a natural disaster by focusing on building a more resilient territory.  This effort has resulted in the development of the American Samoa Resiliency Strategy Development Plan (ASRSDP). 

At the time of publishing the CEDS-AS, an interagency territorial workgroup has been tasked with drafting the ASRSDP and has developed a comprehensive strategy to strengthen and build additional resilience into key infrastructure systems, including: 

1. Power 
2. Water 
3. Telecommunication 
4. Health 
5. Transportation 
6. Food 
7. Housing 
8. Financial 
9. Education 
10. Cultural & Historic  

The initiative is being led by the Governor’s Office and the Department of Commerce, with key contributions coming from Department of Homeland Security (DHS), American Samoa Power Authority (ASPA), American Samoa Telecommunications Authority (ASTCA), Department of 

Public Works (DPW), Department of Education (DOE), Department of Health and Social Services (DHSS), Department of Health (DOH), LJB Tropical Medical Center, and other key agencies.  Once complete, the CEDS-AS workgroup will utilize key strategies developed in the ASRSDP that support improved economic resilience. 

APPENDICES 

APPENDIX A 

Baseline and Alternative Forecasts for 2018 – 2022 

FRBSF Article: Nonmanufacturing as an Engine of Growth by Huiyu Li 

                           Lolo Matalasi Moliga, Governor                Keniseli Lafaele, Director 

                             American Samoa Government         American Samoa Department of Commerce 

The 2019 American Samoa Economic Forecast can be read in its entirety at the following link: 

http://doc.as.gov/american-samoa-economic-forecast-2019-2/

APPENDIX B 

APPENDIX C 

APPENDIX D 

Outreach initiative: Roster of Interviewees 

The CEDS-AS development team would like to acknowledge and thank the following people for participating in the development of this document.  

APPENDIX E 

CEDS-AS Outreach Activities 

            The American Samoa Government Department of Commerce (DOC) Comprehensive Economic Development Strategy (CEDS) team conducted its stakeholder outreach over the course of 6 months through a survey that was made available online. Letters were delivered to over 50 public and private stakeholders outlining the purpose of the CEDS and providing instructions on how to complete the survey as well as a URL link to the google form survey. Responses were received by approximately 75% of stakeholders that were informed of the survey. 

Survey

Industry 

What industry best describes the function of your business or organization? 

Basic Info 

How long has your business or organization existed? 

How many employees does your business/organization employ? 

American Samoa Economy 

How would you best describe the current state of the American Samoa economy? 

Where do you see the American Samoa economy in the future (5 years)? 

How confident are you with the prospect of re-investing into the expansion or growth of your business/organization? 

SWOT Analysis 

Business Organizational needs. 

As a business owner or leader, what do you need to expand or take your business to the next level? 

Interviews

Following the dissemination of the survey letters, staff conducted email/phone follow-ups to ensure continued survey responses. As survey responses continued to be completed, staff began scheduling interviews with government, business, and non-government leaders for a better sense of the various organizational insight and feedback with regard to the Territorial economy. While most of the interviews were open-ended, some pointed questions were asked in terms of: 

• Large scale infrastructure projects, expansions, and organizational outlook over the next 3-5 years 
• Perceptions and challenges in the current state of economy 
• Potential policies or program that are either beneficial or harmful to their organization, business, and the overall economy 

Utilizing the data received from the preliminary surveys, relevant existing plans, and in-depth interviews, the CEDS-AS work group was able to incorporate both historical and data analysis in order to devise objectives, strategies, and actions across various economic areas in moving forward. The list of interviewees who participated in the outreach initiative are listed in Appendix D. 

APPENDIX F 

American Samoa Government Department of Commerce CEDS-AS Workgroup