Bahama Pundit

What's in Store for the Turks & Caicos Islands?

by Larry Smith

For those who were shocked at the recent Budget, be thankful for what we have. The Turks & Caicos Islands, which share the same archipelago with us, are politically and financially destitute, and no-one knows when or how they will be able to climb out of the hole.

The British suspended the TCI's constitution last year to clean up systemic corruption and political malfeasance. And now matters have worsened to the point where the TCI cannot meet its basic financial commitments, even though civil service pay was cut by 10 per cent in April.

Under the premiership of Michael Misick, public finances in the TCI were an absolute mess. Spending was consistently over budget and without prior legal authorisation, according to the 2008-2009 commission of inquiry. Public money was being used to support extravagant ministerial lifestyles, Crown land was being sold off to generate revenue, and public debt was skyrocketing.

Now the British are being forced to bail out TCI. "Without immediate UK support, TCI would fall further into economic crisis," Development Minister Andrew Mitchell said recently in London. "Our aim is to restore and firmly embed the principles of sound financial management, sustainable development and good governance."

Location, Location, Location!

by Simon

One of the Bahamian versions of the folk song This Land Is Your Land includes this verse:  “This land is your land, this land is my land, / From Grand Bahama down to Inagua. / From the Berry Islands, down to Mayaguana. / This Land is made for you and me.”

From Grand Bahama in the north to Inagua in the south, and from the Berry Islands in the west to Mayaguana in the east, The Bahamas has a fair amount of land, vast ocean resources, and valuable airspace.

But it’s not simply the volume of “undeveloped” land and the expanse of basically virgin oceans.  It’s also about a basic rule of thumb when it comes to the value of land: “Location, location, location.”   We are strategically located in terms of the world’s largest superpower as well as in relation to various shipping and air lanes.

Setting a Clear Path to a Low-Carbon Economy

by Larry Smith

Thirty years ago a mechanical failure at a nuclear power plant in Pennsylvania released radioactive gases into the atmosphere, forcing the evacuation of 140,000 people from the surrounding area. It was a significant turning point in the development of nuclear power.

As Canadian commentator Jeff Rubin recently pointed out, “The real legacy of Three Mile Island wasn’t what happened back in 1979, but rather what happened - or more precisely didn’t happen - over the course of the next 30 years in the US."

He was referring to the fact that the near-meltdown of the Three Mile Island reactor changed public acceptance of nuclear power plants, and none has been built in the US since. Could the catastrophic explosion at the BP drilling rig in the Gulf of Mexico have the same effect on the oil industry today?

Ethics and the Numbers Business – Again

by Simon

Much of the commentary in the series of Front Porch columns on the numbers business has focused on moral arguments offered by various denominations.

The views of religious leaders are important.  Still, they do not have a monopoly on moral wisdom or an automatic veto on public policy.  In a pluralistic democracy they do not take de facto precedence in the formation of public policy.

The Preamble to the Constitution highlights our Christian heritage in a poetic flourish which introduces the prose that enshrines certain constitutional guarantees and the rule of law. 

The Preamble does not enjoy the force of law.  It is ironic that many of the religious leaders who invoke the Preamble often fail to take account of the rest of the Constitution on a range of issues. 

Middle-Aged, Middle Class Humanitarians Gather in Montreal

by Larry Smith

MONTREAL, Canada - This week I attended one of the world's greatest gatherings of downright decent, mostly middle-aged, and thoroughly middle class folks.

It was a tough call for an old cynic like me. To borrow a quote, I usually lump organized religion, organized labour, and service clubs together. But Rotarians do get points for having the most entertaining meetings.

More than 18,000 of them from around the world clogged the streets of Montreal for their annual international conference this week. Everywhere you turned there were earnest Africans, Asians, Latinos, North Americans and Europeans flashing their logo shirts, badges, pins, flags and business cards.

Forward Never, Backward Ever

by Simon

Last October’s lopsided result in the race for PLP Leader was another defeat for the progressive and reformist elements in the party.  Dr. Bernard Nottage, trounced by Perry Christie, fared significantly worse than many of his supporters predicted.

The party dumped Glenys Hanna Martin as Chair. Fred Mitchell was blacklisted from speaking at the convention.  Now, Alfred Sears, their fellow progressive, is reportedly considering an exit, stage left, from frontline politics.

In addition to being some of the more progressive and reformist members of the PLP, the aforementioned are also among the deepest thinkers in its parliamentary caucus, particularly the House of Assembly.

Electoral Implications of the Budget

by Larry Smith

The opposition PLP thinks bad times have handed them the next election on a platter. Passing the most realistic budget in recent history will do nothing to help the FNM, they say. In fact, they are confident that most Bahamians will blame the government for their economic woes.

The statistics are dismal indeed - a 6 per cent contraction of the economy over the last two years, a 20 per cent fall-off in stopover tourists, a 19 per cent drop in new mortgages, loan arrears of 18 per cent, and a 22 per cent decline in foreign investment - all adding up to well over 14 per cent unemployment.

Perry Christie says the prime minister is "singing a sad story, but without any ideas and without accepting any responsibility for the state we are in. The poor will suffer more with increased taxation and the resultant depressed effect there will be on spending."

Christie says the government's policies are unfairly painful to that legendary "small man" of Bahamian politics. Of course, out of power it's much easier to talk from both sides of your mouth - a skill known as "negative ambiguity". But the PLP's lack of coherence on the budget can be easily demonstrated by looking at recent comments from their top economic advisors.

Ethics and the Numbers Business

by Simon

Those Bahamians, including people of faith, who support the regulation and taxation of the “numbers business” have a compelling case in terms of ethics and economics, practicality and public policy. 

Proponents of ending the prohibition on lotteries may find that they have a largely receptive audience among a majority of Bahamians, including a majority of Christians.

Many, if not most Bahamians, appear to have arrived at a nuanced and reasonable consensus on a variety of issues related to gambling.  By dint of personal experience and collective wisdom, the mass of Bahamians of goodwill and faith are way ahead of their religious leaders in these matters.

It seems that most people support limiting casino gambling to non-residents while allowing Bahamian residents to participate in Bahamian-based lotteries.  Indeed, most Bahamians seem to appreciate the practical, ethical and economic distinctions between these forms of gambling. 

A Perspective on the Bahamas Budget

by Larry Smith

"If fiscal deficits are not brought to an end, the resources required to service the increasing debt will eventually bankrupt national programmes. Increasing the share of GDP taken in taxation above 20 per cent... would adversely impact the competitiveness of the economy and eventually...destroy jobs." -- Sir William Allen, 2001

With this year's budget debate now raging in Parliament against a backdrop of the worst financial crisis in over 60 years, we thought it would be useful to look at how our economic circumstances have evolved over the past decade.

May 2001
When the first Ingraham administration tabled its final budget, the talk was all about reforming financial services. That sector had come under heavy pressure from rich countries concerned about tax evasion and money laundering.

Finance Minister Sir William Allen also focused on globalisation issues, ruling out Bahamian entry into the Caribbean Single Market, for example. And there was the usual blather about containing the demands of money-wasting state corporations like Bahamasair and ZNS - something which no government has ever had the stomach to achieve.

Time Travel and Victoria Pond on Exuma

by Larry Smith

GEORGE TOWN, EXUMA - Basil Minns was time-travelling again when I met him last week.

He always does when he visits the Peace and Plenty Hotel here. It's where he was born 81 years ago, and where he spent his childhood helping to run the family's general store on the ridge overlooking Elizabeth Harbour.

This historic waterfront inn was a sponge market before the Minns family took it over in the late 1800s. The cut limestone walls of the main building enclose the hotel's lobby and office today, and what was once the outdoor kitchen is now an atmospheric bar.

A number of prominent American loyalists received land grants on Exuma after the War of Independence, and developed large cotton plantations that eventually failed. The island was a backwater from the end of slavery until the Second World War, when the US Navy built a base and airstrip near George Town.