Dr Mark McGillivary, AUSAID Chief Economist at the launching of the 2008 economic survey of the region.
Regional Economic Survey Report Shows Samoa is doing fine, with mobile phone use and PolyBlue among the standout highlights in developments.
Cheaper mobile phones and the PolyBlue joint venture are among the main reasons why the Samoan economy is doing not too bad, in a regional survey.
The findings of the Pacific Economic Survey 2008 report shows this up.
The survey by Australia’s Assistance program, AUSAID, updates Pacific regional economic growth, looks at ways to reduce poverty and promote development.
The findings cast a strong positive light into the development of communications, deemed essential to overcoming the problem of isolation in the region.
“Nearly half the population of Samoa has a mobile phone and the calls are amongst the cheapest in the region,” says Dr Mark McGillivary, AUSAID Chief Economist.
“This is important because research shows that an increase of 10 mobile phones per 100 people can lift economic growth by 0.6 percentage points.”
Competition between service providers is credit highly as a working policy for Samoa.
SamoaTEL is determined the cheapest of the two mobile phone service providers in Samoa.
“ The SamoaTEL service is ranked the 5th cheapest in the region with Digicel at 7th place,” Dr. McGillivary discovered from the survey.
Samoa’s competition policy is credited for the growth in 2002 from 2 out of a 100 people who subscribe to mobile phones to just under 50 subscribers out of a 100 last year in 2007.
There is a strong suggestion that the Samoan competition policy to be replicated in the region for other members countries to benefit.
Tourism is a key development in the region it is ‘ driving growth in a number of Pacific Island countries’ with Samoa as one of the countries featured prominently in the industry’s growth.
The boost in tourism for Samoa has recorded a 17 per cent increases in passengers on the popular return route to New Zealand. This is due largely to a 50 per drop in travel costs since the PolyBlue joint venture started.
New travel routes opening up direct flights to Australian destinations and Hawaii are expected to boost more travel to Samoa.
PolyBlue is today expected to make an official announcement today in Apia of new flight routes to be added to the network already serviced by the airline carrier.
Another telling area of regional growth from the report is remittances.
Remittances for the region are a growing source of foreign exchange earnings that the survey believed is going to outgrow aid assistances.
In 2005 total remittances went up 36 per cent to $US$425 million and at the recent rate of growth it is expected to overtake aid by 2009.
The full survey report was launched at the Manumea Hotel yesterday and continues a series of presentations by the AUSAID team who put it together.
The report is also being lined up for presentation in other member countries of the region including a special presentation planned for United States capital Washington DC.
“Economic growth is not going to solve every problem but it will make it possible for the region to analyse the economic changes,” Dr. Mc Gillivary summed up.
Deputy Prime Minister and Minister of Trade and Economics, Misa Telefoni, spoke to officially launch the report.
This report is absurd folks. How can we indicate the standard of an economic growth in terms of boosting mobile phones communication? Come on folks, this report is not going to help the Samoan villagers who are struggling to cope with the changes of the times. The rise in the number of mobile phones owners is an indication of the Samoan people forced by globalisation to be part of the global technological communication system. This is not a bad thing at all. But to use it as an indication of economic growth in Samoa is just not real. The perpetrators of this report should think again, and the Samoans are not to be fooled by these types of optimistic but irrational hypotheses.
Have a nice day folks
Economic growth written by Osamaoan,
August 30, 2008
The growth of and the continuing profitability of PolyBlue is an important indicator of strong growth in the tourism industry. Tourism is extremely important for the growth of jobs and for self-employment opportunities for small-scale fale-owners in the villages.
The growth in mobile phone usage facilitates economic growth because investors need the necessary infrastructure in place so that there is certainty in any investment opportunities.
The real problem I have is that the report indicates that remittances are rising. In fact, surging. This is not sustainable. The government has done some great work in opening up competition in the economy, but now it must fully concentrate on developing new export industries. Export earnings still lag far behind imports.
Cell phone use and economic growth? written by Sinuki Saili,
September 02, 2008
Cell phone use is not a great indicator of economic growth it is another measure of how people will be spending money. If spending money on cell phones which profits stay within the country then yes "economic growth" If profits are being sent over seas then it should be avoided as the money doesn't stay in the Samoan economy, thats when Samoa loses and it should be seen for what it is another way to get you to spend money that will never stay in Samoa. What I would like to see is a change in the way energy is supplied and an increase in infrastructure to increase energy generation and jobs to help give the tourism industry a boost in lower costs of energy to increase spending rather than money leaving the shores to pay for diesel. Money spent on phone calls or money spent on electricity, where will your money go? Will it stay here or go overseas?
We are a doormat written by Veta try again,
September 02, 2008
This is the type of dumbdown donors like AUSAID thrive on presenting to little island communities like ours as fact. I have said this b4. We need TRADE incentives that will redress a huge in balance in favor of Aus/NZ economies. Our policy makers need to look for avenues to get our agricultural goods to overseas markets. Any overseas markets. Tourism is an excellent idea. But turning Samoa into a cross between a brothel and the Brigham Young type Cultural Centre is not. Our hohum govt. basically sits around waitng for money to come in. They call remittances GDP. They call customary land lease investment markets. They call Australia and New Zealand MASTA. They call RHD sound economic policy. Please someone shoot me.
any wage increase in all this? written by salamasina,
September 18, 2008
as usual the poor gets fooled and the riches gets kool...mobile phones, my beautiful paradise, we are not even in the rising of the sun so to shine and here we are more false gods to draw our pure thoughts and to mislead the innocent ways of our Samoa Island. Ausaid, if there are people of Samoa amongst your network please do not brainwash them anymore as we now can see the light, and we also can see our ways and already our Island is going down hill due to the greed of our high profile men (I will not say women), if only the mobile phones will increase the wages in samoa here usay
But, wait Veta. Depends on what kind of doormat--- written by But Veta,
September 19, 2008
Enter a house at the very least you must have something to wipe the feet. And a doormat is more than suited for the occasion.
Your mind is working constantly---- Here is a case of knowing of what thou speakth of...
You have to manufacture or create something of value and enable the sponsors of the money making scheme to retain the value of the manufactured item in the country.
The tryst of these are:
Retain--- Build--- and Re-Create
Take the Tourism Trade. If the opportunity is seized correctly. The value of the industry can exceed all expectation. It has to be retained value-- likely, why does the tourist return. Keep asking yourself, how can we get them back.
It has to be buillt with non-excessive expectation. Imagine the poor tourist in the island with neon signs to show them to the hotel room.(not, no thanks). Build Value into the resort/hotel.
It has to be Re-Created. The experience has to be engaged continously.
Samoa has to create wealth, not give it off to someone to repatriate to foreign slave owners.
Their may be a future Project coming up that may solve that one problem of repats of profits. It may mean sacrafice, but what are you going to do with 200 million middle calls Chinese heading to and fro.
Samoa might as well be the net out in the ocean to capture their fair share, you think?
Calling Beijing, Calling Beijing-- Send them over-- 10-4 over and out.
Sole, the line at the Buffet is so long, OMG. And all the MP's of the nations are happy.
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