Saturday, November 19, 2016

An economic and social review of The Bahamas

by Dr Kevin Alcena

As citizens of a democracy, we are often called upon to make on complex public issues. We express our decision indirectly by for leader who represent or support certain policies. Sometimes, Though less frequently, we express our directly by participating in two public referendum.

Historically, in a democracy the people choose the policies that govern them, or at least the representatives who formulate these policies. When this choice is absent, democracy dose not exist. A despotism, however benevolent, is not democracy.

Public finance, even more than any other branch of the Bahamas economic; suggests the idea of a purposive conduct of economic affairs. In public finance in the Bahamas it is particularly tempting to postulate a single subject and a coherent and objective set of values which guide economic activity.

Moreover, Public finance represents economic 'planning ',I. e. positive intervention, and not just an automatic mechanism as in the abstract economic in the Bahamas of harmony. Therefore the contradictions inherent in fiction of a single collective of and demand for taxation occasionally, regressive taxation we need in the Bahamas 'tax benefit. '

Reduce debt principal and hence interest payments; Provide an extended and flexible reschedule of interest payments; Provide new credit to finance department with precedence over existing loans.

Any one of these would modify the annual flows of real resources from debtors to creditors, flows that are too large and too inflexible. A solution to the debt issues in the must be reduce.we be forced to increase our reserves against the US dollars loans.

There is one important assumption of the principal of ability which is the key to an understanding of later developments.

Like the principal of interest it presupposes a correct distribution of income and property upon which the correct tax system for the Bahamas is imposed. Whether one arrive at recommendation of proportional or of progressive taxation, the tax determined in relation to VAT and property, which are accepted as given.

The general attitude which VAT is not good to increase it be big mistake.

In short, it is estimated that the government collected a substantial amount of money from VAT, while the Bahamian public is actually waiting on a report on the expenditure. We must be cognizant of the fact that we all have a contract with the government, and we have to ask ourselves the question, have they delivered on the contract.

Transparency and accountability is an inherited expectation that we are entitled to in the contract. The Bahamian people have zero tolerance for any form of unfettered power that is displayed without impunity.

Nevertheless, we must safeguard our sovereignty, and embrace solidarity in the global arena with one common goal in mind. Realizing that the Trump administration can possibly derail the true spirit of economic growth in the economic community. Realizing the neocon racist agenda that can effectively impact the Caribbean region.

We must be mindful of the fact that Obama made a comment that he is skeptically optimistic of Trump administration, so we should be equally suspicious of the process in this volatile global community.

We Bahamians, PLP, FNM and DNA must all come together in these uncertain times to protect our fragile industry from the new neocon global economic agenda.

From Dr. Kevin Alcena