territorial residents.
Notwithstanding these
efforts, most of the territories have made little progress toward becoming economically self-
reliant and remain highly dependent on federal
assistance,
Most
of
the
territories
face
constraints--such as geographic
many
indigenous
isolation from
U.S.
and- world markets,
limited natural and
Manpower resources, small land areas, limited
infrastructure
to
support
development
and
attract investment, and large public sectors-which make economic self-reliance an unlikely
prospect for the
23 to 25.)
foreseeable
future.
(See pp.
FEDERAL CONSTRAINTS RELATE TO
INCONSISTENT TREATMENT IN FORMULATING
AND EXTENDING POLICIES, LAWS, AND PROGRAMS
GAO found that there is no federal policy which
details
how the
territories
should
be
treated
in formulating and extending laws and programs.
Territory officials identified instances when
federal policies, laws, and programs have constrained
economic
and
social
development
because
they
were
inconsistently
applied,
insensitive to unique territorial circumstances
and
needs,
tions.
or
inappropriate
Examples
cited
for
included
local
condi-
the Caribbean
Basin Initiative provisions affecting the rum
industry and the tuna industry in the Virgin
Islands
and
American
Samoa,
respectively;
Department of the Treasury rulings preventing
the use of tax exempt bonds; legislation to
eliminate
important
tax
benefits
to
Puerto
Rico;
and
shipping,
tax,
immigration,
and
environmental laws which constrain development
initiatives.
Congress and the executive branch have acknowl-
edged
many
meant
to
territories
of
and
the
remedy
problems
have
many
identified
initiated
of
the
several
by
the
actions
problems.
For
example, a laws commission was established for
the Northern Mariana Islands in 1980 and the
Department of Interior began a review of fed~
eral laws affecting the territories in 1981.
Congress has enacted legislation, such as Title
V of Public Law 95-134, which authorized federal agencies to consolidate grants to the
iv
I0CG200