As the Hawaiian economy resurfaces after the COVID-19 shutdown, let’s take a moment to reflect on what we’ve learned about ourselves: When tough decisions were necessary for the good of the collective, we banded together. We have made the necessary short-term sacrifices to reap the long-term benefits. Our ability to act with courage and conviction towards a clear goal has successfully flattened the curve.
As we plan our recovery and long-term resilience, let’s not lose sight of the fact that our economy was in crisis long before COVID-19. Many in our churches are barely able to make ends meet. In fact, we are so used to the ill effects of our ailing economy that we no longer wonder why our families, friends, and our best and brightest young people need to leave Hawaii to find better opportunities.
This is where our business-as-usual system has led us and it has no plan or no solutions because, according to Albert Einstein, “no problem can be solved with the same awareness that created it”.
COVID-19 has painfully exposed the flaws in our economy and forced us to step back from normal business. This is the moment for us to rethink our new economy, one that will better serve our people and protect us from future economic shocks and crises that we will inevitably face. We will either stand up to live up to this moment or fall further back as we face greater risk and disruption across the board.
A system shift of this magnitude is being driven by visionaries with innovative solutions that require investment. Funding these solutions will be challenging in the months and years to come, with budgets tightening and the CARES Act resources primarily being devoted to alleviating immediate economic problems. Hawaii’s politicians and business leaders will face choices whether to invest in short-term solutions or long-term change.
Given the scale and complexity of our problems, there are no easy or straightforward decisions, but there are two things that can improve our chances of success.
First, we need to recognize that finding solutions requires a long-term systemic, not sectoral, view of our economy. Our economy needs an overhaul, not an optimization.
Second, we need a shared vision and clear goals that we can all stand behind. Just like us to flatten the curve.
Combined, this will enable business, government, philanthropy, and community leaders to work together more effectively and help us make short-term sacrifices for our long-term benefits.
Michael Shuman’s “Theory of Comparative Resilience” offers a motivating premise: “Communities that can best withstand future crises – be it pandemics, climate change or financial crises – will thrive economically. They will be the best places for investors to park their money. “
Its 8 Principles for Post-Covid Reconstruction provide an overview and priorities for our economic recovery and reconstruction:
Local ownership: A higher proportion of local companies contributes to our independence and self-determination and is the basis of a strong economy. Local business-to-business and business-to-consumer transactions add value here in Hawaii.
Local investment: We have invested millions of dollars and decades over the decades promoting the image of Hawaii, in order to attract visitors and their dollars. Now let’s invest millions of dollars and decades over decades in empowering Kamaaina businesses and native talent to provide investors with reasons to put their money into our thriving local industries and innovation.
Economic diversity: Boost, fill in the gaps and expand the economic diversity we already have – culturally and environmentally minded companies offering products and services in local food systems, sustainable energy, clean water and financial products. The right basics create more independence and mean fewer disruptions in times of crisis.
Regeneration: A healthy and resilient island economy depends on our ability to realign our economic activities to harness and honor the sustainability of our islands and their ability to regenerate resources. A case and framework for “greening our economic recovery” has been proposed by the Conservation and Resource Sectors.
Innovation: The innovative business models and practices required to reshape our economy are already emerging. Our work at Hawaii Investment Ready directly supports these brilliant and passionate innovators who create Hawaiian solutions to Hawaiian problems.
Now is the time to transform our economy to better serve all people and our Aina.
Social justice: Hawaii is uniquely positioned to address social, environmental and economic inequalities – our diversity, our collective values and our aloha for one another and the aina – these are fundamental strengths and building blocks for collective wellbeing. The Aina Aloha Economic Futures initiative is ready to leverage these strengths through an inclusive community process and vision for the Hawaiian economy.
Connectivity: When we are our authentic selves, we are strongest and strengthened by our relational nature with one another and with the rest of the world. We value the quality of our relationships over the value of every transaction. This type of networking and reciprocity is attractive and strengthens our relationships at home and abroad.
Corporate social performance: If we all use the above principles for decision making and as a way to measure what is important, we will all benefit. When government measures reward local productivity, we strengthen the local economy. When families prioritize and support local businesses, we all thrive. When fellowship and philanthropy work with governments and corporations, we build the economic fabric on which we all depend.
Shuman’s theory concludes that “every community has a different history, culture, location, demographics, market and political philosophy and should adopt these eight principles in its own creative way.”
These guiding principles can already be seen in Hawaii. Island companies and non-profit organizations that follow these principles actively support recreation. Some actually scale and demonstrate the case for long-term value creation.
We don’t have to look elsewhere to attract top industries or world-class talent to provide Hawaii with the next wave of opportunity. This model has not and will not produce Hawaiian solutions to Hawaii’s problems. We have the innovations that we need right here. We just have to recognize it and invest in ourselves.
The framework “Theory of Comparative Resilience” outlines a common vision for a new future with more diversity, justice and stability – the creation of a resilient, fair and investable economy for all.
The journey ahead will no doubt be difficult, but we must not let the scale of the challenge paralyze us.
ʻAʻohe hana nui ke alu ʻia – No task is too big if it is done together by everyone.
Now is the time to transform our economy to better serve all people and our Aina. Much is at stake and the tough question we must ask ourselves is: will we have the courage to continue to band together to bring ourselves out of crisis and into resilience?
