A political blog about Bahamian politics in The Bahamas, Bahamian Politicans - and the entire Bahamas political lot. Bahamian Blogger Dennis Dames keeps you updated on the political news and views throughout the islands of The Bahamas without fear or favor. Bahamian Politicians and the Bahamian Political Arena: Updates one Post at a time on Bahamas Politics and Bahamas Politicans; and their local, regional and international policies and perspectives.
Wednesday, November 27, 2024
The Political Implications of The United States District Court - Southern District of New York Indictment Against Bahamian Nationals, High-ranking Law Enforcement Officers and Bahamas Government Officials
Friday, October 4, 2024
Sustainable Development and Prosperity for All Bahamians and The Posterity in The Bahamas
The Bahamas - A Nation in Crisis: A Roadmap for Economic Recovery, Debt Reduction, and National Development in The Bahamas
Nassau, The Bahamas
The Bahamas, once a leading economic force in the Caribbean, is now at a critical juncture. The national debt has ballooned, competitiveness has waned, and global competitors, like Bermuda, have overtaken The Bahamas in key sectors such as captive insurance and financial services. This situation poses serious risks for the nation's future stability, especially considering the lack of financial buffers to withstand natural or economic disasters.
The time for comprehensive reform is now. The Bahamas must act decisively to address issues in immigration, inland revenue, financial regulation, and urban development, while leveraging examples from countries like Singapore, India, and Jamaica that have successfully implemented similar reforms. Through bold and innovative measures, The Bahamas can reduce its debt, foster economic growth, and build a resilient future for all Bahamians.
1. Commendation for Inland Revenue and Insurance Sectors
The Inland Revenue Department and insurance sectors are integral to the financial stability of The Bahamas. Their recent progress in collecting taxes and generating revenue has been commendable, but more must be done to ensure efficiency and sustainability. The reliance on contract workers, many of whom lack adequate training, has been a challenge. By transitioning these workers to permanent roles and providing formal training that includes a minimum C grade in Math and English, the government can create a stable and efficient workforce capable of driving tax collection efforts (Bahamas Ministry of Education, 2021).
This initiative must be paired with an increase in the minimum wage to ensure that workers are fairly compensated, thereby boosting morale and increasing consumer spending. Such measures will help alleviate economic challenges while promoting greater stability in the workforce.
2. Addressing National Debt and Economic Competitiveness
The Bahamas faces a crippling national debt, which as of 2020, had exceeded 103% of GDP (Central Bank of The Bahamas, 2021). If not addressed, this debt will hinder the country’s ability to invest in critical sectors like infrastructure, education, and healthcare. Countries like Norway and the UAE have successfully mitigated such risks by creating sovereign wealth funds, which serve as financial buffers during times of crisis. Establishing a similar fund in The Bahamas could provide a safety net in the event of natural disasters or economic downturns.
Additionally, The Bahamas must reform its financial services regulations to remain competitive on the global stage. Bermuda’s rise as a global leader in captive insurance is a direct result of its business-friendly regulatory environment. The Bermuda Monetary Authority has created a balanced regulatory framework that encourages innovation while maintaining compliance, thus attracting international businesses (Bermuda Monetary Authority, 2020). The Bahamas must take similar steps to regain its competitive edge.
3. Leveraging Customs Instruments and Targeted Taxation for Revenue
To boost national revenue, The Bahamas can implement a sugar tax or similar levies on unhealthy products such as sugary drinks and fast food. This model has been successful in New York City, where taxing sugary beverages and junk food has raised revenue and improved public health outcomes (New York City Department of Health, 2019). Such taxes in The Bahamas would target large multinational companies, such as McDonald’s, and provide funds that can be reinvested into critical areas like healthcare, education, and sports development.
Revenue from these taxes should also be allocated toward developing youth programs, supporting social services, and funding national initiatives that promote health and well-being across the country.
4. Reforming Immigration Policies for Nation Building and Economic Development
The Bahamas’ current immigration policies are too restrictive and limit the country’s ability to attract skilled professionals, entrepreneurs, and digital nomads. Countries like Canada and Singapore have implemented practical immigration policies that bring in skilled workers who contribute to their economies (Canadian Immigration and Citizenship, 2020). The Bahamas should follow this model, easing immigration restrictions to attract multinational companies (MNCs) and skilled workers who can drive economic growth.
Additionally, undocumented immigrants who are currently part of a parallel economy should be brought into the formal system. Legalizing their status would allow them to contribute to tax revenues and reduce the strain on public services, while also enhancing national security. Immigrants are a crucial part of nation-building, and The Bahamas must capitalize on their potential to stimulate economic growth.
5. Implementing a Regulated National Lottery for Systematic Revenue Generation
A regulated national lottery could provide a valuable source of revenue for The Bahamas, funding essential sectors like sports, education, and social services. Countries such as Barbados and the United Kingdom have used national lotteries to generate significant revenue for national development initiatives (Barbados National Lottery Report, 2020). Implementing a similar system in The Bahamas would reduce the national debt and provide consistent funding for key public services.
By regulating the lottery, The Bahamas can ensure that funds are allocated systematically, with a focus on youth development, national sports programs, and education. This will not only alleviate debt but also foster national pride and engagement.
6. Revamping Banking Regulations for Entrepreneurs and Business Development
The Bahamas' banking regulations are currently too restrictive, making it difficult for entrepreneurs and small businesses to access capital. To support entrepreneurship and stimulate economic growth, the government must implement banking legislation that simplifies access to loans and financing for startups and small businesses.
Countries like India have successfully implemented banking reforms that support small and medium-sized enterprises (SMEs), which are vital to their economy. By adopting similar reforms, The Bahamas can foster a business-friendly environment that encourages innovation and investment (Government of India, 2020). Additionally, exchange control policies should be modernized to attract foreign direct investment (FDI), as investors are more likely to bring capital into a country where financial regulations are transparent and flexible (IMF, 2021).
7. Revitalizing Downtown Nassau and Developing Special Economic Zones (SEZs)
Downtown Nassau is in dire need of revitalization. The area’s colonial architecture is deteriorating, and the lack of modern infrastructure has made it difficult to attract multinational corporations (MNCs) and tourists. By redeveloping Bay Street into a modern economic hub, The Bahamas can attract global businesses and create jobs for local residents. This redevelopment should focus on creating a dynamic space for local businesses and international companies, driving economic activity and tourism.
Additionally, The Bahamas should establish Special Economic Zones (SEZs), similar to those in Dubai and Singapore, offering tax incentives and regulatory relief to attract foreign companies and investors. SEZs can serve as innovation hubs for technology, finance, and entrepreneurship, positioning The Bahamas as a competitive player in the global economy (Government of Singapore, 2020).
8. Strengthening the National Accreditation and Equivalency Council of The Bahamas (NACoB)
The National Accreditation and Equivalency Council of The Bahamas (NACoB) is responsible for ensuring that the country's educational institutions meet international standards. However, NACoB requires reform to ensure that it is staffed by individuals with the necessary academic and professional qualifications to maintain ISO quality standards.
Countries like Jamaica have successfully implemented educational reforms by appointing qualified professionals to lead their accreditation bodies, ensuring that institutions are held to high standards (Government of Jamaica, 2019). The Bahamas should adopt a similar approach to strengthen NACoB and ensure that the country's educational institutions are globally competitive.
9. Establishing Planning Commissions for Sustainable Development
The Bahamas must establish Planning Commissions modeled after those in India and Singapore to ensure long-term sustainability and development. India’s NITI Aayog, for example, serves as a central policy think tank that drives economic growth and development (Government of India, 2020). Similarly, Singapore’s Economic Development Board plays a crucial role in shaping the country’s economic policies, ensuring that Singapore remains competitive globally (Government of Singapore, 2020).
The Bahamas should establish independent planning commissions tasked with setting national growth targets, managing resource allocation, and evaluating the performance of government departments. These commissions must be free from political interference and staffed by professionals who understand global best practices in policy development.
10. Conclusion: A Call for Introspection, Reform, and Nation Building
The Bahamas stands at a pivotal moment in its history. Faced with mounting national debt, declining competitiveness, and an outdated regulatory framework, the country must undertake comprehensive reforms to secure its future. The examples set by Singapore, India, Bermuda, and Jamaica show that transformation is possible with visionary leadership, practical policies, and a commitment to nation-building.
By reforming immigration policies, modernizing banking regulations, strengthening inland revenue, and implementing a regulated national lottery, The Bahamas can create a more competitive business environment, reduce national debt, and foster long-term economic growth. Moreover, the revitalization of downtown Nassau and the establishment of Special Economic Zones (SEZs) will attract international businesses and generate jobs, while reforms to NACoB will ensure that the country’s educational institutions meet global standards.
This is not just about economic reform; it is about building a better future for our children, grandchildren, and generations to come. We must look inward, evaluate our strengths and weaknesses, and implement policies that ensure sustainable development and prosperity for all Bahamians. Through visionary leadership, investment in human capital, and a commitment to global best practices, The Bahamas can emerge stronger, more resilient, and ready to take on the challenges of the 21st century.
The journey will not be easy, but it is necessary if we are to leave behind a Bahamas that is prosperous, peaceful, and prepared for the future. We owe it to future generations to act now—together, we can build a nation that not only thrives economically but also serves as a beacon of hope and progress for the world.
References
Barbados National Lottery. (2020). Annual Report. Retrieved from https://www.barbadoslottery.com/
Bermuda Monetary Authority. (2020). Annual Report. Retrieved from https://www.bma.bm/
Canadian Immigration and Citizenship. (2020). Annual Report. Retrieved from https://www.canada.ca/en/immigration-refugees-citizenship/corporate/publications-manuals/annual-report.html
Central Bank of The Bahamas. (2021). Annual Economic Review 2020. Retrieved from https://www.centralbankbahamas.com/research-publications
Government of India. (2020). About NITI Aayog. Retrieved from https://niti.gov.in/
Government of Jamaica. (2019). Education System Transformation Programme. Retrieved from https://www.moey.gov.jm/
Government of Singapore. (2020). Singapore Economic Development Board. Retrieved from https://www.edb.gov.sg/
IMF. (2021). Bahamas Staff Report. Retrieved from https://www.imf.org/external/pubs/ft/scr/2021/cr21248.pdf
New York City Department of Health. (2019). Sugary Drinks Taxation and Health. Retrieved from https://www1.nyc.gov/
Friday, June 14, 2024
The Bahamas Prime Minister on a New Energy Era for The Bahamas
Transforming our country’s energy sector has been a priority for us from the start, says Bahamian Prime Minister, The Hon. Philip Brave Davis, KC., MP.,
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On the one hand, we have been compelled by the urgency of change – the need to relieve Bahamian families and businesses from the burden of high prices and unreliable electricity supply.
Relief is an important-enough goal – especially during a global inflation crisis.
But we are also motivated by our profound conviction that our economy can be more competitive, more prosperous, more dynamic, and more inclusive — with more paths to security and success for more Bahamians.
We have very big ambitions for our country and for the Bahamian people.
However – you can’t build a 21st century economy with 20thcentury infrastructure.
In every conversation I have with entrepreneurs, business owners, and investors – from the very smallest to the very largest – the high cost of electricity, and the costs and uncertainties associated with unreliable supply, inevitably come up.
For most Bahamians, the only bill bigger is their rent or mortgage payment. Major bills are a major burden – which means less disposable income, which means less spending and investment in our local economy.
And, of course, high bills for businesses means high operating costs, affecting our competitiveness and our ability to diversify, and creating obstacles to growth and development – impacting investments, business expansions, and job creation.
Now – even with all of those problems, we’re a special-enough country that we’ve come roaring back after the dark days of, Hurricane Dorian, pandemic curfews and lockdowns, breaking big records, with substantial new investments and job growth.
Just imagine what we could accomplish if we had affordable, reliable, clean energy!
That’s where we’re finally headed.
But right before we get to the hopeful part of today’s launch – the solutions! – I want to make sure you all have an understanding of the scale of the challenge.
Important parts of our electricity infrastructure, including some transformers and substations, are more than 50 years old – they date back to before independence!
It’s hard to describe the experience of listening to engineers emphasize that critical parts of our grid are on the verge of collapse – with no chance of revival, once they go down.
And then there are the generation engines – 60% of BPL’s plant in New Providence, and 80% in the Family Islands, need replacement within the next five years.
So we have an aging, vulnerable, deteriorating, expensive system, dependent on heavy and diesel fuels, that cannot meet current needs – let alone the growing energy needs of a digital economy, or the increased demand we have to anticipate as temperatures rise in this new climate era.
If you’re wondering how much it costs to rescue and modernize our grid – I have an answer for you: about half a billion dollars.
Of course, BPL is carrying a legacy debt of the same amount — more than $500 million, not to mention an unfunded pension liability of $100 million.
I could go on – about the grid’s vulnerability to storm damage, the inability of our current system to integrate renewable energy, the tens of millions in rental costs annually which contribute to high prices – but I can see you’re ready to move from problems to solutions.
As were we. We understood that as urgent as change was, the quick short-term fixes that have been the historical pattern have not served our country well.
We knew we needed comprehensive, innovative reform.
Today, we’re excited to share these policies with you, which include:
- A foundational update to transmission and distribution in New Providence, so we can have a more stronger, more resilient, more modern, more efficient power grid – critical to gaining both lower prices and increased reliability;
- For the first time, utility-scale solar power in New Providence – 70 MW of solar power, and 35 MW of Battery Energy Storage Systems will be integrated into the grid;
- Solar power throughout our Family Islands – where new hybrid microgrids will incorporate solar power and natural gas, allowing us to eliminate expensive BPL rentals, replace aging generation units, and establish battery storage systems;
- Natural gas as a partner fuel to solar, to create important savings that can be passed on to the consumer;
- Energy Efficiency Upgrades, including energy audits and efficiency upgrades for government buildings, educational outreach to consumers, LED street lighting, and rooftop solar at schools; and:
- New electricity legislation (Electricity Act 2024), which allows for stronger consumer protections, and – very importantly, as you’ll hear momentarily – allows adjustment to the tariff rates to support consumers who most urgently need relief from high prices.
I’d like to pause here to say that when I asked Minister Coleby-Davis last September to become the country’s Minister of Energy, we discussed our shared priorities for energy reform, which included:
- Immediate relief for Bahamian families
- Reforms that lead to lower prices, and fair prices, over the medium and long term
- Increased reliability
- Increased grid resilience during storms
- Cleaner energy, with a lower carbon footprint…
- An ironclad commitment to union workers, including job and pension security
- New entrepreneurial, employment, and investment opportunities for Bahamians…and:
- Strengthening the financial position of BPL, to ensure legacy debts are addressed.
To the Minister’s credit, she jumped right in and never looked back.
Which is why this morning, she has the honour of sharing more of the details of these big new policies.
And as I turn things over to her, I will close by reminding everyone – we didn’t come here to defend the status quo, we came here to change it.
We are determined to close the gap between our national potential and our national reality – and with this very big and ambitious agenda of reform and investment, we believe we are well on the way to ensuring that a new energy era will lead also to a new economic era – a new era of opportunity for all.
Energy Minister JoBeth Coleby-Davis on a new energy era in The Bahamas>>>
Wednesday, February 7, 2024
Latrae Rahming on Safety For American Tourists in The Bahamas
What About The Safety of Bahamians in The Bahamas, Mr. Latrae Rahming?
OPM DID NOT SEND CBS NEWS TEAM TO COVER MURDER SCENE
Coalition of Independents (COI) Respond to The Communications Director at The Office of the Prime Minister, Latrae Rahming On Safe Areas for Tourists in The Bahamas
"Director Latrae Rahming, your statement is not only a slap in the face to every Bahamian but also a clear indication of where the government's priorities lie. The audacity to publicize areas safe for tourists while leaving your own citizens to navigate through violence and fear is beyond appalling.
Coalition of Independents
Thursday, May 4, 2023
Does The Bahamas Government understands the prudence of a national sovereign wealth fund?
It would be wise of The Bahamas govenment to implement a sovereign wealth fund
“One People United In Sovereign Wealth!"
By Dr. Kevin Turnquest-Alcena
Thursday, February 23, 2023
The failings of the National Insurance Board (NIB) are based primarily on political interference
We need a radical change to the way the National Insurance Board (NIB) is run
A Response to Lindon Nairn's NIB proposal
By Norman Trabulsy Jr
Firstly, yes, the failings of NIB are based primarily on “political interference”, as he states. Now, I would ask what is included in Mr. Nairn's idea of political interference? Is it outright misappropriation of funds? Is it by using NIB as a slush fund? Is it by failing to look at the actuarial trends and responding accordingly? Is it by political appointments of upper management who are wholly unqualified for these positions? Is it by political interference in the collection and distribution of benefits? Is it by political interference of the laws governing NIB, and the oversight required? Is it by deliberate lack of accountability, and the pace of technological innovation?
I am not convinced that every public service should be outsourced to the private sector. Private profits, as well documented in health care for instance, is what is driving the rapidly rising cost of health care.
The U.S. is a perfect example of this. U.S. government Medicare administrative costs are 1% - 2% of revenues. Private health insurance companies, such as our Colina, have 15%-20% administrative costs.
It is a fact that most bankruptcies in the U.S. are because of health care costs. Would God approve?
What some people call reckless inefficiency in government is simply called reasonable corporate profiteering by others. Seems most of us have drank the private sector Kool Aid.
Mr. Nairn says, “ Until recently, any private citizen could simply put money into fixed deposit accounts at any financial institution and generate multiple times NIB's net earnings.”
Judging by the statistics available to all of us, what percentage of our private, average Bahamian citizens can put any money into a bank at all? As to my knowledge, the majority of Bahamians are living pay check to pay check - unable to cover a $400.00 emergency.
Some things in this world, especially health care, should not be left to the “free market”. Granted, here in The Bahamas we have little visionary and educational exposure to models different from our guiding light rent seekers to the north.
Not exactly a good example of Christianity in action, is it?
In my lifetime, I would be hard pressed to give examples where the private sector really did out perform previously government run services, in an educated and free society.
Instead of our government hiring the same professionals who have successfully run other similar institutions, we chose to place political hacks who have neither the intelligence, education or integrity required to lead, and then we wonder why that institution has failed.
Is this not our history in a nutshell?
You want a well functioning enterprise? Then hire a qualified person to lead it. Just like the private sector does. Pay them well. Let them hire and fire as they see fit, and leave them alone. We will then get acceptable results. Just like the private sector does. Is this such a hard concept to understand?
The “heavy lifting” Mr. Nairn speaks of is not in privatizing NIB, rather it is in recognizing our own shortcomings and failings, and fixing them. Isn't this always the heavy lifting we require?
In my estimation, not every human good or government service requires private profit to succeed.
Batelco was sold so that we would ostensibly get more efficiency and better service. Can anyone tell me that selling BTC was not a deal made behind closed doors that enriched a handful of greedy politicians and their private sector friends?
Has service improved? Does The Bahamas benefit from the sale of BTC in any way?
In fact, I would argue that a truly Christian perspective would see NIB, health care, life saving drugs, minimum food allowances, as God given rights that should not be touched by the money changers.
The very idea that a “company” should profit from health care should be offensive to a true, right thinking Christian.
Let the private sector gamble to their hearts delight. But, when they cross over into essential human services, we need to let them sit small.
I agree with Mr. Nairn that we need a radical change to the way NIB is run. That much is clear. However, I fear that NIB, like BTC, will simply become a revenue stream for a handful of millionaire and billionaire corporate executives who have little concern for our people, and every concern for their private profits.
Mangrove Cay, Andros
Monday, November 7, 2022
Haitians Need to Stop Sewing Seeds of Discord in The Bahamas and Focus on Assimilaton Into The Bahamian Society
STOP XENOPHOBIA IN BAHAMA LAND!
You Haitians need to stop sewing seeds of discord for yourself. You need to focus on ASSIMILATION into Bahamian culture, or just leave The Bahamas and go to Haiti and be happy.
Thursday, September 22, 2022
The Bahamas is one of the most difficult places for its own citizens to do business or become entrepreneurs!
An Open Note To The Bahamas Prime Minister, The Hon. Philip Davis
As The Bahamas prepares to celebrate fifty (50) years as an “independent” country, one is left to ponder if we have truly made any real strides towards economic prosperity
As this is our country Mr. Prime Minister, then we the people should have more of a stake in it. As Voltaire said, “A multitude of laws in a country is like is a great number of physicians, a sign of weakness and malady.”
"The Way Forward"
Wednesday, July 14, 2021
The losers of the next general election in The Bahamas
Who’s going to lose the next general election in our country – The Bahamas? We, the Bahamian people, as usual.
The PLP and FNM have demonstrated over and over again in government – that they are simply executive taxers, borrowers and spenders. They only want to get control of the cookie jar once more, so that they can continue their regular lovers, family and friends feast – while many more of us join the unemployed and underemployed band, the hunger line, the default payment society, and the – may God help us prayer.
FNM and PLP leaders have shown us their wicked colours a long time ago, but we still look forward with great enthusiasm – to screwing ourselves all over again at the next polls. It’s like stupidity on steroids. We love punishment and the shit end of the stick; and the politicians are always delighted to swing us again – one more time.
I have noticed the misguided passions of the yobbish PLP and FNM fans – and cheerleaders on social media. We are stupidly blind and politically careless about our future. We don’t know Brave Davis yet, or Fred Mitchell, Glenys Hanna Martin, Obie Wilchcombe, Dr Hubert Minnis, Carl Bethel, Dion Foulkes, et al?
What could those political dead weights do for The Bahamas and Bahamian people at this juncture of our existence as a free nation and people? They grew up in the corrupt PLP and FNM. They have already executively served in the various corrupt PLP and FNM regimes over the past few decades, and all we got from their respective governments are more public debt, more crime, more unemployment, more hunger and suffering, a broken education system, a failing health care infrastructure, and an absolutely corrupt status quo.
So, who will lose the next general election in The Bahamas again? We, the Bahamian people will – if we don’t collectively resolve to hold the next Bahamian government’s feet to the fire – for the benefit of a truly better, prosperous and more competitive Bahamas and Bahamian people in the 21st century.
Saturday, June 24, 2017
Bahamians want to know more about the Aragonite resources in The Bahamas
Ministers: A significant number of Bahamians believe the following:
1. A small group of persons have been awarded rights to mine Aragonite in The Bahamas.
2. It is not widely known who those persons are.
3. The Bahamas government receives minimal taxes from their operations.
4. The private company enjoys significant revenues.
5. No other individual or company may enter the business at this time.
6. The government should exploit this resource directly for the benefit of Bahamians.
7. The uses of this resource are well known.
8. The uses of this raw material to make other products could take place in The Bahamas.
Additionally, they believe:
1. As much as 5 billion tons of sand are produced every year in The Bahamas valued at one hundred billion dollars.
2. The said sand is lost to the floor of the ocean due to oceanic waves and current movement.
3. A senior Cabinet Minister is now exploiting or is seeking to exploit this resource.
4. These issues are well known, but have not been addressed because past and present government officials are benefiting from the sale of this resource.
5. Even if the conspiracies are untrue, the government should consider how these resources might be exploited for the benefit of all Bahamians.
Frankly, I don’t know whether much of this is true, but given the loud calls by Bahamians for action and the value that is being speculated, I believe the government is obliged to address this issue as a priority. I hope you will agree with me in that regard.
Lynden R. Nairn - Facebook
Thursday, February 19, 2015
Bahamians of Haitian descent in The Bahamas political arena
Smith: No Problem With Idea Of Haitian-Bahamian Political Party
By KHRISNA VIRGIL
HUMAN rights activist Fred Smith, QC, said he sees no problem with Bahamians of Haitian descent organising to form political parties, insisting that the country is on its way to this group of society emerging as parliamentary leaders.