Hawai'i's economic and social landscape changed dramatically in the first 50 years after statehood. Hawai'i today is vastly different from what it was 50 years ago. A sedate way of life in the Islands was nourished by steady sugar and pineapple production for export. The sudden economic transformation was a turbulent one, driven by the explosive growth of tourism and massive influx of new residents. Most people in Hawai'i at that time felt that change was coming too quickly. The balance of converging directions facing our state during most of our first 50 years of statehood was how best to cope with the challenging side-effects of growth without missing out on the benefits and opportunities of rising prosperity. In the next 50 years, Hawai'i faces different and perhaps more difficult economic challenges.

This Friday, the Hawai'i Economic Association, University of Hawai'i Economic Research Organization, the University Hawai'i-Manoa Department of Economics and the 50th Anniversary of Statehood Commission will gather at the New Horizons for the Next 50 Years commemoration conference to discuss these components of our future economic transformation. Bringing together experts in various fields to share their views on the major issues facing the state in the next 50 years, conference delegates will interact with these experts and, where possible, suggest directions for policy and strategy changes that will shape economic solutions for our future.

This is an opportune time to discuss the major events that shaped Hawai'i's political and socio-economic history over the past five decades. At the same time, we need to examine the changes taking place in the Asia-Pacific region and how they will affect our geographically isolated island state, as well as important demographic trends that have significant implications for Hawai'i, including a slowing population growth and an aging population.

Of chief concern as we evaluate Hawai'i's economic future is the discussion of land use, how agricultural land use and land ownership in Hawai'i have changed over the past 50 years as well as the current global and local forces driving land use changes and shaping the future use and management of land in Hawai'i. In our beautiful state, it is imperative that we balance economic growth with protecting our natural resources. We have a mixed record of managing the balance over the past 50 years and must develop a plan for the future that takes into account the interaction between the environment and the economy in Hawai'i.

As we develop our plan for Hawai'i's economic future, we must also consider how natural disasters affect our economy by discussing and studying past experiences including Kaua'i's economy after Hurricane Iniki. Clearly, we must explore ways to reduce our economic vulnerability in future disasters.

As Hawai'i finds its niche and role in the 21st century global economy, we must reconcile the balance of our transformation to an innovation and high-tech economy and supporting our firm grounding as a leading tourism destination for the world. The digital and Internet revolutions have dramatically reduced the cost of communicating and collaborating with people and businesses outside of Hawai'i, raising the possibility that Hawai'i will be able to attract high-technology businesses to supplement an already mature visitor industry. This transition is significant and necessary because of the turbulent tides that can dramatically affect the "bread and butter" of our tourism economy. As oil prices rise and the world grapples with the global economic downturn, now is the time to strategize on how to rejuvenate this vital industry, while simultaneously increasing the economic benefit of tourism to Hawai'i's residents.

Other economists believe we should eliminate the state income tax in favor of raising the general excise tax, which many argue would shift a larger share of the state's tax burden to tourists and the visitor industry. Scholars argue this move would also negatively impact lower-income households in Hawai'i, unless steps are taken to address the regressive impact of the tax change.

During the statehood conference, the Hawai'i Economic Association Forecast Panel will offer its annual predictions on the near-term prospects for Hawai'i, the U.S. and the global economy, as well as insights on when we might emerge from the current economic recession.

The question of what Hawai'i's economic future holds is not one that can be easily answered. These in-depth discussions require input from Hawai'i residents and business leaders. The dialogue should be all-inclusive because the outcomes affect us all.

We encourage everyone to join the discussion by attending the New Horizons for the Next 50 Years commemoration conference.