Ka Wai Ola - Office of Hawaiian Affairs, Volume 14, Number 6, 1 Iune 1997 — OHA can lead State's way to a substantial economy [ARTICLE+ILLUSTRATION]

OHA can lead State's way to a substantial economy

Aloha kākou! Recently, the Advertiser and Star-Bul-letin have quoted OHA leadership regarding OHA's eeonomie role. The folIowing is a summary edited by beneficiary Kehaulani Lum of testimonv

she made before the BOT on May 6, 1997, and serves as my fourth

article in a series of 46. "After months of effort by Trustees, beneficiaries, legislators, staff, and advisors, the Hawaiian people emerged triumphant from the legislature with the approval of House Bill 2207. In this same spirit of collaboration, Trustees shouId now prepare for the endeavor outlined in HB 2207, CD1 . While mueh is being said about the eeonomie future of this agency and the outcome to be determined by upcoming settlements, I have heard no reference to the involvement of the Hawaiian people toward that end. Characterizations of eeonomie sovereignty, with OHA as the producing giant and Hawaiians as insatiable consumers do not inherentl) imply a model of self-sufficiency for our people. Rather, they are euphemisms for a need-depen-dent, welfare-state, in whieh wealth is redistributed from one governing entity to another. In Chairman Hee's scenario, eeonom ie power and decision-making would rest with OHA, Hawaiians would go from being wards of the State to wards of OHA. This kind of eeonomie sovereignty wouId not support poliūeal sovereignty; it would dictate it and, reinforce a wide social and eeonomie schism wherein the people remain relegat ed to a separate status; not upliftec from the dependencies of government subsidies. In OHA's eeonomie vision, Hawaiians must be seen as partners, owners, ineome beneficiaries; not simply as eonsumers. HB 2207 is a valuable catalyst for diversification. However, to engender true eeonomie reform, decisions must not be made in a vacuum. Since a settlement might satisfy future obligations, and diminish the benefits of the trust, the Board's fiduciary duty mandates that the role of the Hawaiian people be active, not reactive. Witl all due respect, the Board lacks the depth of experience to ensure max imum management utility and productivity of any asset base whieh may eventually be valued ii excess of $1 billion dollars. OHA acknowledges this by the passive assignment of portfolio manage-

ment to outside advisors. Similarly, preparing for future land exchanges, the Board should eonvene an Eeonomie Development Council comprised of beneficiaries from a variety of backgrounds to assess the land use needs of Hawaiians and to assist the agency in developing a master plan. Ideas of a Trustee have been articulated, (Diamond Head,

Molokini, etc.) but they are overrehant on tourism, a volatile sector

of Hawaii's economy. A land base is powerful, in the sense of grounding our culture and ancestry, but it does not in and of itself serve as an eeonomie engine. Particularly, if it simply embraces current use, some of whieh are culturally exploitative. An acceptable approach is through a beneficiarydriven Eeonomie Development Council funded by OHA, for suffi-

cient staff support and independent to eliminate any conflict on behalf of the Board. Trustees would then be empowering and equalizing the beneficiaries so that we are elevated simultaneously, without holding the bag down the road. Presently, OHA has a Native Hawaiian Historic Preservation Council advising on cultural 1 preservation; a Native Hawaiian Education Council advising on education; and several non-benefi-ciary money managers advising on investments. Why, then, at this pivotal time, would we not invest money and resources in an eeonomie development body to assist in formulating a master business plan? In this way, when land exchange discussions occur, the Board will have the information it needs to select priority sites, and we will have a community ready, willing and able to carry out the vision. We have a golden oppor1 tunity to lead the State in developing a balanced, sustainable eeonomy that is less subject to the fluctuations of tourism, less dependent on artificial growth, more sensitive t to our environment, and culturally grounded. Let us, as a people, work together to achieve that goal."

Wc a 9fp0ftuh<ty t9 tAc Gt*te <h 4ei/et9p<Hf A Mah ce4, *U*tA<HA(tle ee9H9t»y , , ,

^AUHAHi #poll9HA Trustee, At-Large