In her bi-weekly column, “State of the Territory,” former Sen. Janelle K. Sarauw delves deeper into issues of concern for V.I. residents.
In today’s world, data drives policy. Without credible, up-to-date data, any meaningful progress in the public sphere remains elusive, leaving communities flying blind, disconnected from reality and sound decision-making. For the U.S. Virgin Islands, the absence of robust data systems has left a gap so wide that federal agencies have paused critical economic reporting, putting the territory’s progress in further jeopardy.
The recent announcement from the U.S. Bureau of Economic Analysis (BEA) that it will discontinue producing GDP statistics for the U.S. Virgin Islands due to “severe data issues” and “untimely unaudited financial statements” is a wake-up call for all who care about the Virgin Islands’ future. For a territory facing negative economic growth, shrinking private investment, a declining population, and a cost of living second only to Hawaii, accurate data is not just a convenience—it’s a necessity. Without it, the government and the people are left in the dark, unable to make informed decisions or attract the investment that is critical for sustainable growth.
Reliable data collection and transparent reporting are pillars of governance. In most U.S. jurisdictions, the BEA, Bureau of Labor Statistics (BLS), and other agencies provide timely, precise data that local governments depend on for economic planning and policy-making. However, the Virgin Islands lacks an equivalent infrastructure, which has real consequences. It’s no coincidence that federal monitors remain in the Virgin Islands: their presence is a direct result of the territory’s inability to provide the data needed to ensure accountability.
Consider the absence of financial statements from the Water and Power Authority (WAPA) over the last three years. This lack of transparency doesn’t just undermine confidence in public institutions—it creates real barriers to investment. Who would invest in a region where the economic landscape is a black box, where accountability is an afterthought, and where even basic financial data is out of reach? It’s telling that, over the last 20 years, the territory’s real economic growth rate has averaged a dismal -0.8%, with little to no growth in private investment.
Currently, the only credible data sources in the territory are from departments funded directly by federal dollars. But these represent only a fraction of the broader economic picture. The local government’s own economic reporting, through VIBER, often paints an unrealistically optimistic view, disconnected from the stark reality of dwindling private investment, a shrinking population, and economic stagnation. In contrast, the United Nations’ population projections suggest a decline to 84,000 residents by 2024, signaling deeper structural issues that can’t be addressed without acknowledging them fully through unbiased data.
Data’s Vital Role in Policy and Economic Health
In the U.S. Virgin Islands, the lack of credible data has left policymakers and citizens grasping at straws, unable to assess the territory’s real needs or make strategic decisions. Without accurate information on economic growth, employment, or investment trends, the government cannot responsibly allocate resources, attract businesses, or plan for future demands. Simply put, data is the language of modern governance. Without it, a government cannot fully understand its people, its economy, or the challenges it faces.
The BEA’s decision to halt GDP calculations is a stark indictment of the Virgin Islands’ data crisis. These GDP figures are not just numbers; they are indicators of economic health, offering a baseline to measure success or failure. Without them, the Virgin Islands loses its ability to benchmark against other territories or the mainland, and the people lose a key measure of accountability for their government. It is almost as if we are driving a car without a dashboard—no speedometer, no fuel gauge, no indicators to tell us if the car will make it to its destination or break down along the way.
Why Federal Monitors Remain
The continued presence of federal monitors in the territory underscores just how critical data issues have become. With financial reporting gaps and unaudited statements, federal agencies cannot trust local authorities to manage funding responsibly. This distrust has a price: federal oversight restricts the territory’s autonomy and limits its ability to control its own resources. If the Virgin Islands could reliably generate its own data and demonstrate transparency, it could reduce the need for external intervention, reclaiming a greater degree of control over its governance.
Moreover, federal agencies are unlikely to withdraw until the territory can show an improved track record in data collection, reporting, and financial accountability. Programs in health, education, and disaster recovery depend on accurate information to assess needs, allocate funding, and evaluate impact. Each year that goes by without solid data further erodes the territory’s reputation, making it harder to secure funding and partnerships for essential services.
A Call to Action: Building a Culture of Transparency
Addressing the Virgin Islands’ data deficit requires a shift in mindset and a commitment to transparency. Government agencies must prioritize data collection and auditing practices, developing protocols that ensure consistency, accuracy, and accessibility. This effort must be led by independent bodies that can operate without fear of political pressure or interference. If economic data is skewed or withheld to maintain a certain narrative, the Virgin Islands will continue to lose credibility in the eyes of both investors and federal partners.
Local leaders must embrace a data-driven approach to governance, recognizing that policy decisions are only as strong as the information on which they’re based. This means not only collecting data but also publishing it openly, allowing citizens to see, understand, and trust the government’s actions. Building data literacy among the public would further support this shift, encouraging a more engaged, informed community capable of holding leaders accountable.
Moving from Data Deficit to Data Leadership
Imagine a future where the Virgin Islands is not only a reliable source of local data but also a model of best practices for other territories. This vision is within reach, but it requires immediate, coordinated action. By investing in data infrastructure and cultivating a culture of accountability, the Virgin Islands could lead the way, showing how even small jurisdictions can uphold standards of transparency and integrity.
Ultimately, data is not just about numbers; it’s about trust. Reliable statistics allow citizens to trust their leaders, investors to trust their projects, and federal partners to trust their local counterparts. For the Virgin Islands to thrive, this trust is indispensable.
Editor’s Note: Opinion articles do not represent the views of the Virgin Islands Source newsroom and are the sole expressed opinion of the writer. Submissions can be made to visource@gmail.com.
