[INSIDE HAWAII INC.]
Seiji Naya is a Distinguished Visiting Senior Fellow at the East-West Center and is researching Asian free-trade agreements for the federal government. The economics expert is also a former two-time NCAA boxing champion.
Naya works on U.S.-Asia trade
What are the highlights of your career?
Seiji Naya
Positions: Professor emeritus of the University of Hawaii at Manoa Economics Department; Distinguished Visiting Senior Fellow at the East-West Center
Age: 71
Retirement dinner and scholarship fund-raiser: May 21 at the Mauna Kea Ballroom, Hawaii Prince Hotel, 6 p.m. no-host reception; 7 p.m., dinner and program. Cost: Table (10-seat) sponsorships range from $1,500 to $3,000; individual tickets, $100; student tickets, $50. Net proceeds go to the Seiji Naya Fund and benefit the UH-Manoa Economics Department. For more information, call Eduardo Hernandez at 956-7296 or visit www.economics.hawaii.edu.
Past positions: 1970s -- Director of Asian studies at UH-Manoa and established institutional ties with Thammasat University in Bangkok; 1980s -- Chief economist for the Asian Development Bank and later vice president for strategic planning and director of the Resource Systems Institute at the East-West Center; 1990s -- Chairman of the UH-Manoa Economics Department; 1995-2002 -- Director of the state Department of Business, Economic Development & Tourism
One I'm very proud of is the fact that I coordinated a study for ASEAN (Association of Southeast Asian Nations) countries. It was a joint study of ASEAN officials and scholars, and I was one of the few outsiders. But they made me a chair, and we produced a report on the ASEAN free-trade area, and a year later they adopted the ASEAN free-trade area.
I also have led a U.S. team of scholars working with an ASEAN team of scholars to improve economic relations between the United States and ASEAN called ASEAN-U.S. Initiative. In 1989 we prepared this report for the U.S. State Department and ASEAN secretariat. I led the U.S. team, and we proposed the United States and ASEAN should eventually perform a free-trade area, and it was ahead of time to some extent. The U.S. was not willing to form a free-trade area. However, a few years ago, President Bush announced the enterprise for ASEAN initiative and basically proposed a free-trade area between the United States and ASEAN countries. In fact, the U.S. trade representative office, called the USTR, has been encouraging me to initiate a study on the U.S. and ASEAN. So I am doing that study as an East-West Center project.
How would you describe the free-trade area?
It's like NAFTA (the North American Free Trade Agreement). The United States is proposing a free-trade arrangement with ASEAN countries. In fact, the U.S. and Singapore signed a free-trade area agreement a year ago. The U.S. is planning to negotiate with other ASEAN countries. So, to some extent, I am pioneering in this area.
What type of trade are you talking about?
Exports of U.S. goods and imports from ASEAN countries, and trade in services, banking and environmental technology. The United States has a strong advantage in the banking area and certain engineering technology areas. These are servicing areas. It's just not trade in merchandise, but trade in services. We want to make it as free as possible so American firms can export more.
There are many firms in Hawaii that are quite strong in engineering, architectural design, hotel design. Sometimes they face difficulties because things are not as free as we would like them. So if we have an agreement, U.S. firms can compete with other firms as if we are part of that country.
What has been preventing that?
Tariffs or other barriers. Various regulations will hamper American firms wanting to do business in Asia. So I'm sort of spearheading for the United States. Eventually, the officials will have to sit down and negotiate. I am providing the technical input.
I also served as the Cabinet member in charge of Business, Economic Development & Tourism for eight years in the previous Hawaii administration. I pushed very hard for structural adjustment initiatives, namely lowering (general excise taxes). I pushed hard for reducing pyramiding. That's when taxes pile up on taxes. For example, if you buy some item and pay a 4 percent general exercise tax, and that item is used by the next manufacturer, who also has to pay a 4 percent tax. The de-pyramiding is needed to make the tax as low as possible. I was a strong proponent of trying to make Hawaii an easier place to do business. Of course, it was a very tough time, not like today. We suffered because of that.
What is the purpose of this fund-raising dinner?
When I left (DBEDT in December 2002), I didn't want to have any retirement party, but many of my colleagues at the University of Hawaii want to have the reception to raise scholarship money for students.
How did you end up in Hawaii from Japan?
Earl Finch was a great person, and he befriended the 442nd people from Hawaii when they went to Mississippi for training during the war. After the war he was invited to Hawaii from Mississippi and he decided to stay.
One day, I was 18 years old and came here with the Japanese boxing team. He told me to come live with him and he would send me to school. That's when I fought for the University of Hawaii and I was a national champion for UH and MVP of the NCAA tournament. I wanted to turn pro because when you're young and winning fights and everyone thinks you're the best of the tournament, that gives you a lot of ego. But he told me I shouldn't. So I decided not to turn pro and instead went to the University of Wisconsin for graduate school after getting my B.A. from Hawaii.
What do you think Hawaii needs to do to bolster its economy?
It's doing quite well and I'm very pleased. Hawaii is in the middle of the Pacific Ocean between the U.S. and Asia, and we tend to forget that linking is very important. Hawaii is very small, but we can be large if we can link U.S. goods to Asia. We can be the middleman. You not only have to know America, you have to know Asia, and I feel that although we are in the middle of the Pacific Ocean, we tend to be somewhat inward-looking in the sense that we only look at ourselves in Hawaii rather than the whole world. This is a very globalized economy, and Hawaii is very much a part of it. I know in Hawaii we don't produce too many things, but we can link what the U.S. produces to Asia. In some professional service areas, ocean resources and city planning, we are very good, and we can sell our expertise.
How would you characterize your time with DBEDT?
They were eight very tough years with the previous government. Hawaii has been very good to me, and I could have easily continued what I was doing with my professional work on ASEAN development. But I felt working for Hawaii was good. We had to work very, very hard. Hawaii is my home, and I'd like to see Hawaii prosper. So I have no regrets. I hope the work I'm doing now will benefit Hawaii if we can have better relations between the U.S. and Southeast Asia.
What will you do in retirement?
A few years ago, the students from the Ehime Maru ship sunk in Hawaii. Since then, I have been working very hard, working closely with the Ehime people (in Japan) to go beyond that sad, unfortunate incident to become much closer between Hawaii and Ehime. One way is to start with some kind of sports activity. We have the Ehime-Hawaii youth baseball exchange, and two years ago we went to Ehime to play baseball with our kids and last year they came to Hawaii. Since then many Ehime people have come here to expand relations.
"Inside Hawaii Inc." is a conversation with a member of the Hawaii business community who has changed jobs, been elected to a board or been recognized for accomplishments. Send questions and comments to business@starbulletin.com.
