The BTC Dinosaur
by Simon
The unmistakeable symptom which demonstrated that BTC was becoming a dinosaur with diminished capacity surfaced as the bottom fell out of its long distance market almost overnight. On the way to losing its outdated status as a state monopoly, the company started exhibiting the classic stages of grief.
First, BTC stuck its head in the sand, attempting to use legal tactics and lame arguments as to why it should maintain a laughing-all-the-way-to-the-bank monopoly with outrageously high rates.
Those rates continued to suck endless millions from businesses and homes despite long distance charges plummeting around the world, thanks to innovations from the internet to fibre optic cable and mobile phones. In addition to rapidly changing technologies, the economics of telecommunications was upended globally even as BTC remained in the first stages of grief: denial and anger.
BTC did attempt the next stage, bargaining. With fanfare it announced its introduction of Voice Over Internet Protocol (VOIP) to The Bahamas. The announcement of ViBe was curious as the company tried to convince customers that this was a revolution in long distance service. Too little. Way too late.
STRANGLEHOLD
The revolution had already occurred as Bahamians in droves turned to various VOIP options to circumvent BTC’s stranglehold on long distance. As the revolution, which BTC came too late, quickened, the Vonage boxes were stacked high at various mail courier services which Bahamians were also turning to in avoidance of a postal system which had given a new meaning to snail mail.
Still, BTC lagged behind, late in introducing various services, with all manner of excuses. But it wasn’t simply the new services of which BTC was not yet proficient that annoyed customers. As frustrating were the things it still had not mastered after many decades in operation.
For too many, getting a new landline was the equivalent of root canal with the latter perhaps less painless and quicker. While jurisdictions around the world enjoyed landline voice mail for some time, BTC, despite supposedly having the technology, was once again late in introducing such a relatively simple feature.
It took some time for BTC to respond to the BlackBerry, despite our position as a world financial centre with many travelling here to conduct high-end business. And, despite the millions of tourists we host annually.
BTC’s time problem was at times also comical. A friend recalls dialling 917 to get the time and listening to a time off by several minutes. If you call 917 today, the long pause is a fitting example of the company’s woes. Of course, many people no longer call the time. Instead many consult portable devices especially cell phones now more ubiquitous than watches.
So, starved of overpriced long distance revenues, BTC turned to cellular services to gouge customers to fund its operations and fuel its growth. Today, The Bahamas has some of the highest cell phone rates in the world. It was not too long ago that we stopped paying for making and receiving a call on our cells.
BTC will tell us that they charge what they do in order to invest in new technology, serve a far-flung archipelago, pay decent salaries to valuable employees, while maintaining a certain level of service to customers.
TOO SMALL
And, this is precisely the Catch-22. As a stand-alone entity the company is too small and does not have the economies of scale necessary to compete with other telecoms while providing Bahamians with less expensive and improved service.
BTC is too small to provide, in a more cost-effective manner, the capital expenditure and investments needed to keep pace with advancements in areas from mobile data to broadband. Moreover, as a part of a larger network, BTC will be able to diversify its revenue streams in order to provide cheaper and better service.
One argument making the rounds is that BTC and The Bahamas can mirror Brazil, Singapore, South Korea and Australia in terms of the ability of the governments of those countries to invest in their respective telecommunications sectors. The sheer size of those countries, whether geographically or economically, makes such comparisons unconvincing.
In 2009 terms the gross domestic product of The Bahamas was around $7 billion dollars. Singapore’s was approximately $182 billion, South Korea’s was $832 billion, Australia’s was $924 billion and Brazil’s was a near $1 trillion dollars. In terms of market size and the ability of these governments to invest in telecommunications as opposed to The Bahamas, it is a matter of comparing a single apple and an orange grove.
The case for privatization is clear if The Bahamas is to prevent the lumbering dinosaur of BTC from turning into a fossilized giant. Cable and Wireless is the sort of international partner that may breathe new life into BTC, which, as a stand-alone may only survive through Bahamians endlessly paying exorbitant rates.
The heated rhetoric flowing from the proposed arrangement between BTC and Cable and Wireless has obscured many facts, some out of fear and some out of political manipulation in service of certain interests.
OVERSIGHT
The Bahamas will maintain a 49 percent stake in BTC. This will ensure critical influence in the new BTC. Further, the Government will have significant regulatory and oversight power, to help check and balance Cable and Wireless.
Moreover, Bahamians from every walk of life will be able to purchase shares in BTC as the Government eventually makes 25 percent of its shares available to individuals and groups such as union pension funds. And, within three years, Cable and Wireless will face new competitors, including any consortium of Bahamians interested in the telecoms sector.
So, in relatively short order, Bahamians will enjoy cheaper rates, better service, more communications options and broader economic empowerment through access to shares in a telecom.
Yet, those realities are being drowned out by a dying dinosaur still in denial, still angry and still bargaining, grieving for a past that is gone and a future that is unsustainable as it charges its customers outrageous prices for what others in the region and around the world pay pennies.
Over the many years, BTC has had many dedicated employees who have rendered valuable service to the company and The Bahamas. But collectively, the current company, like the dinosaurs of old, has been hit by life-altering realities in a new global telecommunications landscape forever transformed by the internet.
To provide its customers with less expensive and more reliable service, BTC must act less as an employment bureau for featherbedding cronies and constituents.
For some, the new reality is a depressing, the penultimate step in the stages of grief. Still, it appears that despite all the shouting and screaming and cries of Armageddon, most Bahamians long ago accepted the need for change. While they may be somewhat nostalgic about the old Batelco, this is less an expression of the last stage of grief, and more a celebration of a new chapter in telecommunications.
Of course, for some, acceptance will only come reluctantly and painfully. Yet even for these individuals, indeed for all Bahamians, BTC is one dinosaur from whom the country can still gain significant, though declining benefits, before it slides into possible irrelevance and a weakened state if left in its present form. If that happened we really would have something to mourn.
bahamapundit
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.
Sunday, January 9, 2011
Saturday, January 8, 2011
Dr Duane Sands intends to make Ryan Pinder the shortest sitting Member of Parliament in the history of The Bahamas when he defeats him in the 2012 general election
Sands has Pinder in his election sights
By PAUL G TURNQUEST
Tribune Staff Reporter
pturnquest@tribunemedia.net
FORMER FNM candidate for the Elizabeth constituency, Dr Duane Sands, said he intends to make Ryan Pinder the shortest sitting Member of Parliament in the history of the Bahamas when he defeats him in the upcoming general election.
Criticizing the PLP's youngest and most recent addition to the House of Assembly for his "national campaigning," Dr Sands claims Mr Pinder has failed to provide any proper representation for the people of Elizabeth.
"If he is unwilling or unprepared to do that task, I would imagine that the people of Elizabeth will put him aside. It is my goal that he will set a record for the shortest tenure in the House of Assembly," Dr Sands said yesterday.
In response to Dr Sands, Mr Pinder told The Tribune yesterday he has been representing the people of Elizabeth fully and has provided a number of opportunities for them in his short time in office.
"I have defeated Dr Sands in the by-election when all the odds were against me, and I will certainly defeat him again when the general election is called," he said.
Having lost the by-election by a razor-thin margin of only three votes, Dr Sands said he has taken full responsibility for the loss. However, he assured the public he has learned from this exercise and is working tirelessly to counteract any of the perceived or learned challenges that they had.
"Ultimately, I think the message I have gotten from many people is that they want to know you care, that you are concerned, and that you will do what you can do to intercede on their behalf. So I have been doing that.
"I can tell you that today alone, I have spoken to at least five or six young people that reside separately in Elizabeth in an effort to help them access the job market. I had the good fortune of being able to congratulate a young lady who was able to secure a job, and I think that is what it is all about. It's effort directed at people," he said.
Currently, Mr Pinder is perceived by many within the PLP as having the largest new-found public appeal in the party, and as such, has shot up through the ranks of the organisation. He can often be seen at various social or political events with the "top brass" of the party in tow.
Noting this manoeuvre, Dr Sands said he thought that politics in the Bahamas had moved beyond this type of showmanship.
"There is probably a bit of a role for that, but what is your primary function? Your primary function is representation of the people that put you in the House of Assembly. If you lose sight of that prize, the people will remind you in very short order that you have taken your eye off the ball.
"I certainly believe he has taken his eye off the ball. And while that has provided me with a strategic advantage I am disappointed, because the people in Elizabeth were really counting on a different kind of politics, a different kind of representation, and I think they have been short changed once again," he said.
To his criticisms of "showmanship" Mr Pinder said politicians today must realise that not every voter will visit an MP's office and as such they should venture out to the people to meet and greet them wherever they may be.
January 08, 2011
tribune242
By PAUL G TURNQUEST
Tribune Staff Reporter
pturnquest@tribunemedia.net
FORMER FNM candidate for the Elizabeth constituency, Dr Duane Sands, said he intends to make Ryan Pinder the shortest sitting Member of Parliament in the history of the Bahamas when he defeats him in the upcoming general election.
Criticizing the PLP's youngest and most recent addition to the House of Assembly for his "national campaigning," Dr Sands claims Mr Pinder has failed to provide any proper representation for the people of Elizabeth.
"If he is unwilling or unprepared to do that task, I would imagine that the people of Elizabeth will put him aside. It is my goal that he will set a record for the shortest tenure in the House of Assembly," Dr Sands said yesterday.
In response to Dr Sands, Mr Pinder told The Tribune yesterday he has been representing the people of Elizabeth fully and has provided a number of opportunities for them in his short time in office.
"I have defeated Dr Sands in the by-election when all the odds were against me, and I will certainly defeat him again when the general election is called," he said.
Having lost the by-election by a razor-thin margin of only three votes, Dr Sands said he has taken full responsibility for the loss. However, he assured the public he has learned from this exercise and is working tirelessly to counteract any of the perceived or learned challenges that they had.
"Ultimately, I think the message I have gotten from many people is that they want to know you care, that you are concerned, and that you will do what you can do to intercede on their behalf. So I have been doing that.
"I can tell you that today alone, I have spoken to at least five or six young people that reside separately in Elizabeth in an effort to help them access the job market. I had the good fortune of being able to congratulate a young lady who was able to secure a job, and I think that is what it is all about. It's effort directed at people," he said.
Currently, Mr Pinder is perceived by many within the PLP as having the largest new-found public appeal in the party, and as such, has shot up through the ranks of the organisation. He can often be seen at various social or political events with the "top brass" of the party in tow.
Noting this manoeuvre, Dr Sands said he thought that politics in the Bahamas had moved beyond this type of showmanship.
"There is probably a bit of a role for that, but what is your primary function? Your primary function is representation of the people that put you in the House of Assembly. If you lose sight of that prize, the people will remind you in very short order that you have taken your eye off the ball.
"I certainly believe he has taken his eye off the ball. And while that has provided me with a strategic advantage I am disappointed, because the people in Elizabeth were really counting on a different kind of politics, a different kind of representation, and I think they have been short changed once again," he said.
To his criticisms of "showmanship" Mr Pinder said politicians today must realise that not every voter will visit an MP's office and as such they should venture out to the people to meet and greet them wherever they may be.
January 08, 2011
tribune242
Friday, January 7, 2011
Another Food Crisis Looms?
The Bahama Journal Editorial
Sadly, this so-called ‘great little nation’ of ours is utterly dependent on outsiders for most of the goods it consumes, with the one saving grace that for more than half a century, it has been able – thanks to an extremely vibrant foreign sector – to find the foreign exchange needed to pay for the goods it consumes.
Those days are coming to an end.
And as they do, there is today some dawning appreciation of the fact that, change must come and that, Bahamians must – as a matter of the most urgent priority – produce more of the food they consume.
Here we can also note that, the current administration is on record with a suggestion that, they have what it takes to get the agriculture question right in a Bahamas that now is so utterly dependent on others; and in a Bahamas where the cost of living by the day increases.
Here take note that, "BAIC Executive chairman Edison Key said the government has given the green light to make agriculture a success in The Bahamas."
Key’s proclamation is to the effect that he and the administration he happens to serve has a plan. As he puts it, "We want to turn that land over to persons who are serious about farming and food production. Our aim is to turn Andros into the breadbasket of The Bahamas."
What a wonderful dream!
But for sure, and as we have previously opined, a persistent call continues to be made to the effect that, more Bahamians should step forward and take possession of farm land that could be made available to them.
Evidently, as far as calls are concerned, this one is as good as any; and clearly, this is all well and good. Regrettably, however, if call is not matched by commensurate response – the call is left unrequited.
In addition, we note and reiterate our view that, this dream of a vibrant agricultural industry in The Bahamas cannot ever be translated into reality if commensurate public policy effort is not designed to find and attract suitably qualified farm labor to The Bahamas.
This we should resolve to do as soon as possible; and surely, therefore, those who command authority at the state level should take the lead in both educating themselves and the public at large concerning the clear benefits such a move could bring to this nation and to the wider region.
Information reaching us suggests that a food crisis reminiscent of one that took place in 2008 might well be in the offing; with implications and ramifications for countries such as the Bahamas that import most of the food, fuel and technology they consume.
The information we are getting comes our way from the United Nations. And in this regard, we can also report that we are relying on an analysis that has been written by William Neuman who reports for the New York Times.
In a recent [January 5, 2011] report, Neuman - writing for The New York Times – indicates that, “…World food prices continued to rise sharply in December, bringing them close to the crisis levels that provoked shortages and riots in poor countries three years ago, according to newly released United Nations data…”
Neuman continues by noting that, “Prices are expected to remain high this year, prompting concern that the world may be approaching another crisis, although economists cautioned that many factors, like adequate stockpiles of key grains, could prevent a serious problem…”
Here the resemblance to times past is unmistakable.
Yet again, as Neuman reminds us: “…At that time, high petroleum prices, growing world demand for food and poor harvests in some areas combined to sharply push up food prices in poorer importing countries. That led to shortages and sometimes deadly riots in several countries, including Egypt, Haiti, Somalia and Cameroon…”
A similar dynamic is also at work in the United States where food prices are also on the rise; with clear implications for the Bahamas and the wider region.
As Neuman explains: “…Joseph Glauber, the Agriculture Department’s chief economist, said that rising world commodity prices could be expected to have their greatest impact in this country on meat and dairy prices because they can push up the price of livestock feed.
“As feed prices go up, farmers often cut the size of herds, meaning less meat ultimately reaches the market. Beef, pork and dairy prices rose faster last year than overall food prices and are expected to continue that trend this year…”
The implications for us are therefore as clear as day: we must be up and doing in our efforts to produce more food and in the longer term; we must be up and doing as regards reforming the law so that the Bahamas can become more receptive and more appreciative of the role that labor can play in helping build a more self-reliant Bahamas.
January 7, 2011
The Bahama Journal Editorial
Sadly, this so-called ‘great little nation’ of ours is utterly dependent on outsiders for most of the goods it consumes, with the one saving grace that for more than half a century, it has been able – thanks to an extremely vibrant foreign sector – to find the foreign exchange needed to pay for the goods it consumes.
Those days are coming to an end.
And as they do, there is today some dawning appreciation of the fact that, change must come and that, Bahamians must – as a matter of the most urgent priority – produce more of the food they consume.
Here we can also note that, the current administration is on record with a suggestion that, they have what it takes to get the agriculture question right in a Bahamas that now is so utterly dependent on others; and in a Bahamas where the cost of living by the day increases.
Here take note that, "BAIC Executive chairman Edison Key said the government has given the green light to make agriculture a success in The Bahamas."
Key’s proclamation is to the effect that he and the administration he happens to serve has a plan. As he puts it, "We want to turn that land over to persons who are serious about farming and food production. Our aim is to turn Andros into the breadbasket of The Bahamas."
What a wonderful dream!
But for sure, and as we have previously opined, a persistent call continues to be made to the effect that, more Bahamians should step forward and take possession of farm land that could be made available to them.
Evidently, as far as calls are concerned, this one is as good as any; and clearly, this is all well and good. Regrettably, however, if call is not matched by commensurate response – the call is left unrequited.
In addition, we note and reiterate our view that, this dream of a vibrant agricultural industry in The Bahamas cannot ever be translated into reality if commensurate public policy effort is not designed to find and attract suitably qualified farm labor to The Bahamas.
This we should resolve to do as soon as possible; and surely, therefore, those who command authority at the state level should take the lead in both educating themselves and the public at large concerning the clear benefits such a move could bring to this nation and to the wider region.
Information reaching us suggests that a food crisis reminiscent of one that took place in 2008 might well be in the offing; with implications and ramifications for countries such as the Bahamas that import most of the food, fuel and technology they consume.
The information we are getting comes our way from the United Nations. And in this regard, we can also report that we are relying on an analysis that has been written by William Neuman who reports for the New York Times.
In a recent [January 5, 2011] report, Neuman - writing for The New York Times – indicates that, “…World food prices continued to rise sharply in December, bringing them close to the crisis levels that provoked shortages and riots in poor countries three years ago, according to newly released United Nations data…”
Neuman continues by noting that, “Prices are expected to remain high this year, prompting concern that the world may be approaching another crisis, although economists cautioned that many factors, like adequate stockpiles of key grains, could prevent a serious problem…”
Here the resemblance to times past is unmistakable.
Yet again, as Neuman reminds us: “…At that time, high petroleum prices, growing world demand for food and poor harvests in some areas combined to sharply push up food prices in poorer importing countries. That led to shortages and sometimes deadly riots in several countries, including Egypt, Haiti, Somalia and Cameroon…”
A similar dynamic is also at work in the United States where food prices are also on the rise; with clear implications for the Bahamas and the wider region.
As Neuman explains: “…Joseph Glauber, the Agriculture Department’s chief economist, said that rising world commodity prices could be expected to have their greatest impact in this country on meat and dairy prices because they can push up the price of livestock feed.
“As feed prices go up, farmers often cut the size of herds, meaning less meat ultimately reaches the market. Beef, pork and dairy prices rose faster last year than overall food prices and are expected to continue that trend this year…”
The implications for us are therefore as clear as day: we must be up and doing in our efforts to produce more food and in the longer term; we must be up and doing as regards reforming the law so that the Bahamas can become more receptive and more appreciative of the role that labor can play in helping build a more self-reliant Bahamas.
January 7, 2011
The Bahama Journal Editorial
Thursday, January 6, 2011
Echoes of a General Strike
The Bahama Journal Editorial
For better or worse, there are lessons that always come with the struggle for power; whether this battle has to do with who gets to determine how money is spent in a household, in an organization anywhere civil society, in a firm or at the state level.
Even more simply, politics is about who gets what, when, where and how; in addition, it is also about the definition of that party or individual whose will must be obeyed.
In other words, then, as in our own fledgling democracy; the question today arises concerning whether the governing party should, would or could yield to demands currently being made by some of this nation’s union leadership.
Among the instruments they say they have is that one that allows them to withdraw their labor and that of their membership in the event that the governing party does not yield to their demands.
We seriously doubt that, they have this level of support.
In addition, the fact remains that, this is just not the way things are done in today’s Bahamas.
Indeed, while unions and their membership do have the right to protest any policy they see fit; and even though they do have the right to take the government to court, they do not have any real right to hold any government hostage.
And for sure, it is a fact that the governing party has a mandate to lead and that –as such – they are called upon to lead. They also have promises to be kept.
Clearly, then, no right-thinking government should ever put itself in a position where it must endlessly consult with everyone; or for that matter, anyone else other than those given a similar mandate by the people.
This comes as a direct result of the free vote and expression of the people in free and fair elections.
Thereafter, the government leads and its Loyal Opposition opposes; with one party having its sway and the other its say.
We dare say that, anything else is a clear invitation to both foolishness and anarchy.
While we do believe all of what we are saying; we hasten to add that, no government worth its salt would ever so paint itself into a corner by alienating the masses of people who identify themselves as workers.
But by the same token, union leadership must always be mindful that while they are called to lead, this call must always be tempered by what is in the very best interests of their followers.
What makes this situation so very important is the fact that workers are voters. This means that whenever they wish, they can bring a government to grief and despair. These workers who are also voters know as well as anyone else that the choices they make can determine whether one side wins or the other loses.
This means that when workers become restive enough, their approval of this or that politician matters greatly.
Compounding the matter in the Bahamian case is the fact that the Bahamian labor force is compact, well organized, knows and feels its power.
Politicians who wish to be re-elected cannot ignore these people and their demands.
No politician worth his salt would ever dare express contempt or disdain for those voters who are workers.
We make this obvious point as we try to make sense of what seems increased restiveness on the part of very many public sector workers.
On occasion, their main gripe seems to concern money. At other times, workers and their representatives seem to be preoccupied with matters germane to respect.
In addition, there are times like the ones in which we live where some union leaders seem to have reached that point where – like politicians in their guise as law-makers – they would pontificate on matters germane to policy.
Here they are embarked –as it were – on a journey without maps; and here we are reminded that, history does not repeat itself.
We make this point as we reflect on some of what is today being said about how today’s political climate is seemingly reminiscent of that era in the late 1950’s when there was both call and response to the idea of a General Strike.
That great call was made by Randol F. Fawkes, Clifford Darling and Lynden O. Pindling.
Out of this great struggle has come a modern Bahamas where the rights of workers are enshrined in the law.
This we do in free and fair elections.
All else is anathema.
In the final analysis, then, law-making and policy should be left where the Constitution places them – squarely and fully in the hands of this nation’s parliamentarians.
That is why we boast so much about the longevity of parliamentary democracy in the Bahamas.
January 06, 2011
The Bahama Journal Editorial
For better or worse, there are lessons that always come with the struggle for power; whether this battle has to do with who gets to determine how money is spent in a household, in an organization anywhere civil society, in a firm or at the state level.
Even more simply, politics is about who gets what, when, where and how; in addition, it is also about the definition of that party or individual whose will must be obeyed.
In other words, then, as in our own fledgling democracy; the question today arises concerning whether the governing party should, would or could yield to demands currently being made by some of this nation’s union leadership.
Among the instruments they say they have is that one that allows them to withdraw their labor and that of their membership in the event that the governing party does not yield to their demands.
We seriously doubt that, they have this level of support.
In addition, the fact remains that, this is just not the way things are done in today’s Bahamas.
Indeed, while unions and their membership do have the right to protest any policy they see fit; and even though they do have the right to take the government to court, they do not have any real right to hold any government hostage.
And for sure, it is a fact that the governing party has a mandate to lead and that –as such – they are called upon to lead. They also have promises to be kept.
Clearly, then, no right-thinking government should ever put itself in a position where it must endlessly consult with everyone; or for that matter, anyone else other than those given a similar mandate by the people.
This comes as a direct result of the free vote and expression of the people in free and fair elections.
Thereafter, the government leads and its Loyal Opposition opposes; with one party having its sway and the other its say.
We dare say that, anything else is a clear invitation to both foolishness and anarchy.
While we do believe all of what we are saying; we hasten to add that, no government worth its salt would ever so paint itself into a corner by alienating the masses of people who identify themselves as workers.
But by the same token, union leadership must always be mindful that while they are called to lead, this call must always be tempered by what is in the very best interests of their followers.
What makes this situation so very important is the fact that workers are voters. This means that whenever they wish, they can bring a government to grief and despair. These workers who are also voters know as well as anyone else that the choices they make can determine whether one side wins or the other loses.
This means that when workers become restive enough, their approval of this or that politician matters greatly.
Compounding the matter in the Bahamian case is the fact that the Bahamian labor force is compact, well organized, knows and feels its power.
Politicians who wish to be re-elected cannot ignore these people and their demands.
No politician worth his salt would ever dare express contempt or disdain for those voters who are workers.
We make this obvious point as we try to make sense of what seems increased restiveness on the part of very many public sector workers.
On occasion, their main gripe seems to concern money. At other times, workers and their representatives seem to be preoccupied with matters germane to respect.
In addition, there are times like the ones in which we live where some union leaders seem to have reached that point where – like politicians in their guise as law-makers – they would pontificate on matters germane to policy.
Here they are embarked –as it were – on a journey without maps; and here we are reminded that, history does not repeat itself.
We make this point as we reflect on some of what is today being said about how today’s political climate is seemingly reminiscent of that era in the late 1950’s when there was both call and response to the idea of a General Strike.
That great call was made by Randol F. Fawkes, Clifford Darling and Lynden O. Pindling.
Out of this great struggle has come a modern Bahamas where the rights of workers are enshrined in the law.
This we do in free and fair elections.
All else is anathema.
In the final analysis, then, law-making and policy should be left where the Constitution places them – squarely and fully in the hands of this nation’s parliamentarians.
That is why we boast so much about the longevity of parliamentary democracy in the Bahamas.
January 06, 2011
The Bahama Journal Editorial
The trade union leadership in The Bahamas is in shambles
By Dennis Dames
It was sometime in December 2010 that I saw the big-time union-woman Ms. Jennifer Isaacs-Dotson on television hinting with a vengeance about the possibly of a general strike or massive demonstrations as a result of the government’s decision to sell the Bahamas Telecommunications Company (BTC) to one Cable and Wireless. She ended with the words: We coming.
Then, some days later– I saw her again on the screen; but this time, she was like a ship without wind for its sails. It looked like she and her band of irresolute union leaders were not sure after all about the next course of action that they would take.
We coming had turned to: We don’t know if we are coming or going.
Big booboo Ms. Isaacs-Dotson!
You played with fire and you got burned. I think that you have presented your cards recklessly on this issue; and it is my perception that the union leadership in The Bahamas is in shambles as a consequence.
Then, I saw the BTC union leader on the news like he was crying. He threatened to sue someone who would insist on essentially telling lies on them. It was like he was timid rather than confident. It really did not reflect favorably on their cause; whatever it is that they are trying to articulate.
Then, there is Mr. Carroll – the Managers’ union man of BTC. He simply looks lost in all of this union lunacy that we must endure – hopefully for not too much longer. Every-time I see Mr. Carroll in the newspapers – he looks out-of-place or in space.
What are these people really dealing with? Fighting boredom perhaps or are they simply being misguided by political con-men who are out to springboard solidly to the 2012 general election?
Bahamas Blog International
It was sometime in December 2010 that I saw the big-time union-woman Ms. Jennifer Isaacs-Dotson on television hinting with a vengeance about the possibly of a general strike or massive demonstrations as a result of the government’s decision to sell the Bahamas Telecommunications Company (BTC) to one Cable and Wireless. She ended with the words: We coming.
Then, some days later– I saw her again on the screen; but this time, she was like a ship without wind for its sails. It looked like she and her band of irresolute union leaders were not sure after all about the next course of action that they would take.
We coming had turned to: We don’t know if we are coming or going.
Big booboo Ms. Isaacs-Dotson!
You played with fire and you got burned. I think that you have presented your cards recklessly on this issue; and it is my perception that the union leadership in The Bahamas is in shambles as a consequence.
Then, I saw the BTC union leader on the news like he was crying. He threatened to sue someone who would insist on essentially telling lies on them. It was like he was timid rather than confident. It really did not reflect favorably on their cause; whatever it is that they are trying to articulate.
Then, there is Mr. Carroll – the Managers’ union man of BTC. He simply looks lost in all of this union lunacy that we must endure – hopefully for not too much longer. Every-time I see Mr. Carroll in the newspapers – he looks out-of-place or in space.
What are these people really dealing with? Fighting boredom perhaps or are they simply being misguided by political con-men who are out to springboard solidly to the 2012 general election?
Bahamas Blog International
Wednesday, January 5, 2011
From Austerity to Prosperity
The Bahama Journal Editorial
While we have no way of precisely forecasting the future, we are fairly certain that – in the absence of a decisive break with business as usual - things are set to get even harder for a broad swath of our people.
This is so not only because we are so dependent on external forces and sources for most of the jobs that provide good incomes; but also because of the fact that in times past, we just did not produce enough and neither did we have - as a people – any real desire to do more.
Instead, we spent as if there was no tomorrow; and we borrowed as if happy days would last for as long as we might have wished.
Today, we know that these were mere illusions; in and of themselves evidence of a dependency that left us vulnerable and open to shock after shock – some of them external and others terrifyingly internal.
And so today – and therefore to the nub of today’s argument – we note that, we must – if we are to weather the storms ahead, work harder, produce more and in so many other words, we have to give value for money.
Evidently, the fact of the matter in today’s hard-pressed Bahamas is to the effect that, Bahamians are slowly but surely coming to the realization that they will be obliged to work harder, study more, get more training and otherwise become more competitive if they hope to make it.
Here we note how Prime Minister Hubert A. Ingraham some time ago framed the issue at hand. In this regard, the nation’s chief admonished, "We must never lose sight of the reality that as the world’s economy shrinks, competition increases…”
And so, we can decide to match the competition, out-distance it or fall behind. Put simply, we are in a fight that will determine whether we get out from under our troubles and woes or if we are to fail utterly.
Simply put, if we are to find our own unique road to success, we must demand far more of ourselves and a great deal more of our leaders.
This is surely the way to go if we are to negotiate our way past austerity road; that path that invariably precedes the broad vistas that come with prosperity.
Here we would posit that, the time is nigh for the Bahamian people to realize that the world in which they live, work and where they might prosper, remains one that rewards productivity and creativity.
And for sure, while foreign directed projects like Baha Mar are obviously appreciated, Bahamians must do more for themselves.
Here they are called upon to do so by working harder, remaining sober, becoming more diligent and otherwise, giving appropriate value for money received.
While much of this is easier said than done and while some others might dither and others dawdle, clearly things are currently going from bad to worse.
We need merely refer to some of the grief some small employers are obliged to experience as they try to keep their businesses afloat.
Utility costs are high; so is the price of labor.
There is little to no commensurate value coming the employer’s way – this due to the fact that labor is expensive, often incompetent and just as often, simply unavailable.
This and more information just like this serves to underscore the urgency in the moment for all hands to be put to work if things are going to be kept together.
They must become more productive.
Clearly then, it is this question of productivity that cuts to the heart of that matter which turns on whether the Bahamas has what it takes to compete in the region and in the wider world.
Sadly, the answer must be in the negative.
This neatly explains how it now arises where in certain large enterprises, workers are being routinely ‘thrown overboard’ in efforts to help staunch this or that firm’s money-hemorrhage; thus the emergence here of late of that rising ocean of unemployed and underemployed Bahamians.
And so we would respectfully suggest that –if only at this juncture - we just do not have what it takes to compete with nations that have vast numbers of disciplined workers – men and women who work well and hard – and who do have what it takes to create value.
Here discipline is the key.
When and where workers are disciplined, well-educated and properly trained they become a nation’s most valuable resource.
Contrariwise, when and where they are neglected or denied education and training, they become social parasites; this in turn, exposes them to lives of misery and want.
And so, as night follows day, we must – if we are to survive in this brave new world – work smarter, produce more value and otherwise demonstrate that we can compete in that global economy where the mantra remains, compete or perish.
December 05, 2011
The Bahama Journal Editorial
While we have no way of precisely forecasting the future, we are fairly certain that – in the absence of a decisive break with business as usual - things are set to get even harder for a broad swath of our people.
This is so not only because we are so dependent on external forces and sources for most of the jobs that provide good incomes; but also because of the fact that in times past, we just did not produce enough and neither did we have - as a people – any real desire to do more.
Instead, we spent as if there was no tomorrow; and we borrowed as if happy days would last for as long as we might have wished.
Today, we know that these were mere illusions; in and of themselves evidence of a dependency that left us vulnerable and open to shock after shock – some of them external and others terrifyingly internal.
And so today – and therefore to the nub of today’s argument – we note that, we must – if we are to weather the storms ahead, work harder, produce more and in so many other words, we have to give value for money.
Evidently, the fact of the matter in today’s hard-pressed Bahamas is to the effect that, Bahamians are slowly but surely coming to the realization that they will be obliged to work harder, study more, get more training and otherwise become more competitive if they hope to make it.
Here we note how Prime Minister Hubert A. Ingraham some time ago framed the issue at hand. In this regard, the nation’s chief admonished, "We must never lose sight of the reality that as the world’s economy shrinks, competition increases…”
And so, we can decide to match the competition, out-distance it or fall behind. Put simply, we are in a fight that will determine whether we get out from under our troubles and woes or if we are to fail utterly.
Simply put, if we are to find our own unique road to success, we must demand far more of ourselves and a great deal more of our leaders.
This is surely the way to go if we are to negotiate our way past austerity road; that path that invariably precedes the broad vistas that come with prosperity.
Here we would posit that, the time is nigh for the Bahamian people to realize that the world in which they live, work and where they might prosper, remains one that rewards productivity and creativity.
And for sure, while foreign directed projects like Baha Mar are obviously appreciated, Bahamians must do more for themselves.
Here they are called upon to do so by working harder, remaining sober, becoming more diligent and otherwise, giving appropriate value for money received.
While much of this is easier said than done and while some others might dither and others dawdle, clearly things are currently going from bad to worse.
We need merely refer to some of the grief some small employers are obliged to experience as they try to keep their businesses afloat.
Utility costs are high; so is the price of labor.
There is little to no commensurate value coming the employer’s way – this due to the fact that labor is expensive, often incompetent and just as often, simply unavailable.
This and more information just like this serves to underscore the urgency in the moment for all hands to be put to work if things are going to be kept together.
They must become more productive.
Clearly then, it is this question of productivity that cuts to the heart of that matter which turns on whether the Bahamas has what it takes to compete in the region and in the wider world.
Sadly, the answer must be in the negative.
This neatly explains how it now arises where in certain large enterprises, workers are being routinely ‘thrown overboard’ in efforts to help staunch this or that firm’s money-hemorrhage; thus the emergence here of late of that rising ocean of unemployed and underemployed Bahamians.
And so we would respectfully suggest that –if only at this juncture - we just do not have what it takes to compete with nations that have vast numbers of disciplined workers – men and women who work well and hard – and who do have what it takes to create value.
Here discipline is the key.
When and where workers are disciplined, well-educated and properly trained they become a nation’s most valuable resource.
Contrariwise, when and where they are neglected or denied education and training, they become social parasites; this in turn, exposes them to lives of misery and want.
And so, as night follows day, we must – if we are to survive in this brave new world – work smarter, produce more value and otherwise demonstrate that we can compete in that global economy where the mantra remains, compete or perish.
December 05, 2011
The Bahama Journal Editorial
Monday, January 3, 2011
The Bahamas' ever-expanding national debt: "the biggest threat" to the Bahamian economy's recovery and medium to-long-term prospects...
'Biggest threat' from $4.1bn national debt
By NEIL HARTNELL
Tribune Business Editor
The ever-expanding national debt, which hit $4.139 billion at end-September 2010 after growing by 12.5 per cent or $460.5 million over the previous 12 months, represents "the biggest threat" to the Bahamian economy's recovery and medium to-long-term prospects, a former finance minister warned yesterday.
James Smith, minister of state for finance in the former Christie government between 2002-2007, said that while the Bahamas' national finances were "nowhere near crisis" point yet, the "worrisome" aspect was the "aggressive" and "accelerated rate" at which the national debt and its ratio to gross domestic product (GDP) was increasing.
Arguing that the Bahamas urgently needed to regain its fiscal headroom to cope with further unexpected future shocks to its economy, Mr Smith said the main concern was the trajectory at which the national debt and debt-to-GDP ratio were rising, especially since the revenues to service them were still falling.
Commenting on the most recent national debt figures, published by the Central Bank in its 2010 third quarter economic review, Mr Smith said: "The increase is getting a little aggressive. Any time you have this continuing trend, and it's an upward trend, that's the concern, because it comes at a time when there is no increase in revenue, so the debt service element is growing at full steam.
"With less revenue coming in, and the cost of financing the debt going up, a greater part of Government expenditure has to be dedicated to debt servicing." As a result, the sums available for the Government to spend on essential services, such as health, education and national security, would be less.
Concern:
"There ought to be some concern about the rate of increase in the debt, because it's very difficult once you step over that slope to come back," the former finance minister added. "I don't think we're anywhere near crisis; it's the trend that's the worrisome part."
The Bahamas' national debt grew by 12.5 per cent or $460.5 million over the 12 months to September 30, 2010, and by 4.4 per cent or $173.3 million during that third quarter, aided by a $100 million domestic government bond issue.
While many small island economies had managed to withstand the global recession with higher debt-to-GDP ratios than the Bahamas, a number had been forced to head for the International Monetary Fund (IMF) to restructure their debt. And they, like the Bahamas, did not have a hard currency to back their debt, being forced to borrow in foreign currency.
The Central Bank report also highlighted another concern, namely that public sector foreign currency debt stood at $1.324 billion as at September 30, 2010, with 59.3 per cent directly attributed to the central government. And, according to Tribune Business calculations, foreign currency accounts for 32 per cent - almost one-third - of the total national debt.
"That's also worrisome," Mr Smith responded, when informed by Tribune Business about the level of foreign currency debt. "What is happening is that we're seeing a build-up in foreign currency reserves, which is good, but that has been produced by the Government's foreign currency borrowing and the IMF subvention [special drawing rights]."
The real issue for the Bahamas could come "somewhere down the road" when the Government's foreign currency bond issue matured, requiring a multi-million dollar principal repayment, likely to be in the region of $200-$300 million, to be made to the investors.
While the Government's existing foreign currency bonds all had medium and long-term maturities, if the foreign reserves were not boosted by inflows from tourism and foreign direct investment, the principal repayments would represent a substantial drawdown on these reserves - currently standing at $875 million.
Ultimately, this could result in "more and more foreign currency being used for debt reduction, as opposed to bolstering the economy" through import spending and such like, Mr Smith said, adding: "We have to be careful about the foreign currency portion of the debt.
"Right now it looks good on the monetary side because the reserves have increased, but that's not come from tourism or foreign direct investment - it's come from the proceeds of debt.
Rates:
"Again, down the road, in maybe another two or three years' time, when you look at this in a global context where interest rates have been held down by quantitative easing, the rate on our foreign currency borrowing could rise because it's tied to LIBOR.
"This debt servicing component of the Budget could rise even further still."
Describing the national debt and its growth rate as "the biggest threat" to the Bahamas' medium and long-term economic growth and stability, Mr Smith told Tribune Business: "We are rapidly using up the headroom in the event we do have problems down the road, and for us it's external events that put us out."
Pointing to the 'short, sharp shock' to the Bahamian economy caused by the travel hiatus following the September 11 terror attacks, which plunged this nation into a temporary recession, Mr Smith added that with the likes of Europe and US also carrying major debt burdens, the Bahamas would have to compete for "the same pool" of financing, something that could see it crowded out or forced to pay higher interest rates on its debt.
"We're not out of the woods yet. We need to continue to get the headroom in the event of a short-term crisis," Mr Smith said. He urged the Government to conduct a careful, proper analysis of the fiscal picture to ensure the Bahamas enjoyed a soft landing.
And the former finance minister warned that while the Government "may have it under control internally", the growing national debt and falling revenues would be interpreted as a bad sign by the international community. Indeed, the rising level of government debt saw interest payments during the first quarter of the 2010-2011 Budget year to $44 million, a growth of $12.2 million or 5.29 per cent.
The direct debt charge on the Government grew by 5.3 per cent or $181.4 million over the 2010 third quarter, and by 10.6 per cent or $342.6 million in the 12 months to September 30, 2010. Bahamian dollar obligations accounted for 78.1 per cent of this direct charge.
December 31, 2010
tribune242
By NEIL HARTNELL
Tribune Business Editor
The ever-expanding national debt, which hit $4.139 billion at end-September 2010 after growing by 12.5 per cent or $460.5 million over the previous 12 months, represents "the biggest threat" to the Bahamian economy's recovery and medium to-long-term prospects, a former finance minister warned yesterday.
James Smith, minister of state for finance in the former Christie government between 2002-2007, said that while the Bahamas' national finances were "nowhere near crisis" point yet, the "worrisome" aspect was the "aggressive" and "accelerated rate" at which the national debt and its ratio to gross domestic product (GDP) was increasing.
Arguing that the Bahamas urgently needed to regain its fiscal headroom to cope with further unexpected future shocks to its economy, Mr Smith said the main concern was the trajectory at which the national debt and debt-to-GDP ratio were rising, especially since the revenues to service them were still falling.
Commenting on the most recent national debt figures, published by the Central Bank in its 2010 third quarter economic review, Mr Smith said: "The increase is getting a little aggressive. Any time you have this continuing trend, and it's an upward trend, that's the concern, because it comes at a time when there is no increase in revenue, so the debt service element is growing at full steam.
"With less revenue coming in, and the cost of financing the debt going up, a greater part of Government expenditure has to be dedicated to debt servicing." As a result, the sums available for the Government to spend on essential services, such as health, education and national security, would be less.
Concern:
"There ought to be some concern about the rate of increase in the debt, because it's very difficult once you step over that slope to come back," the former finance minister added. "I don't think we're anywhere near crisis; it's the trend that's the worrisome part."
The Bahamas' national debt grew by 12.5 per cent or $460.5 million over the 12 months to September 30, 2010, and by 4.4 per cent or $173.3 million during that third quarter, aided by a $100 million domestic government bond issue.
While many small island economies had managed to withstand the global recession with higher debt-to-GDP ratios than the Bahamas, a number had been forced to head for the International Monetary Fund (IMF) to restructure their debt. And they, like the Bahamas, did not have a hard currency to back their debt, being forced to borrow in foreign currency.
The Central Bank report also highlighted another concern, namely that public sector foreign currency debt stood at $1.324 billion as at September 30, 2010, with 59.3 per cent directly attributed to the central government. And, according to Tribune Business calculations, foreign currency accounts for 32 per cent - almost one-third - of the total national debt.
"That's also worrisome," Mr Smith responded, when informed by Tribune Business about the level of foreign currency debt. "What is happening is that we're seeing a build-up in foreign currency reserves, which is good, but that has been produced by the Government's foreign currency borrowing and the IMF subvention [special drawing rights]."
The real issue for the Bahamas could come "somewhere down the road" when the Government's foreign currency bond issue matured, requiring a multi-million dollar principal repayment, likely to be in the region of $200-$300 million, to be made to the investors.
While the Government's existing foreign currency bonds all had medium and long-term maturities, if the foreign reserves were not boosted by inflows from tourism and foreign direct investment, the principal repayments would represent a substantial drawdown on these reserves - currently standing at $875 million.
Ultimately, this could result in "more and more foreign currency being used for debt reduction, as opposed to bolstering the economy" through import spending and such like, Mr Smith said, adding: "We have to be careful about the foreign currency portion of the debt.
"Right now it looks good on the monetary side because the reserves have increased, but that's not come from tourism or foreign direct investment - it's come from the proceeds of debt.
Rates:
"Again, down the road, in maybe another two or three years' time, when you look at this in a global context where interest rates have been held down by quantitative easing, the rate on our foreign currency borrowing could rise because it's tied to LIBOR.
"This debt servicing component of the Budget could rise even further still."
Describing the national debt and its growth rate as "the biggest threat" to the Bahamas' medium and long-term economic growth and stability, Mr Smith told Tribune Business: "We are rapidly using up the headroom in the event we do have problems down the road, and for us it's external events that put us out."
Pointing to the 'short, sharp shock' to the Bahamian economy caused by the travel hiatus following the September 11 terror attacks, which plunged this nation into a temporary recession, Mr Smith added that with the likes of Europe and US also carrying major debt burdens, the Bahamas would have to compete for "the same pool" of financing, something that could see it crowded out or forced to pay higher interest rates on its debt.
"We're not out of the woods yet. We need to continue to get the headroom in the event of a short-term crisis," Mr Smith said. He urged the Government to conduct a careful, proper analysis of the fiscal picture to ensure the Bahamas enjoyed a soft landing.
And the former finance minister warned that while the Government "may have it under control internally", the growing national debt and falling revenues would be interpreted as a bad sign by the international community. Indeed, the rising level of government debt saw interest payments during the first quarter of the 2010-2011 Budget year to $44 million, a growth of $12.2 million or 5.29 per cent.
The direct debt charge on the Government grew by 5.3 per cent or $181.4 million over the 2010 third quarter, and by 10.6 per cent or $342.6 million in the 12 months to September 30, 2010. Bahamian dollar obligations accounted for 78.1 per cent of this direct charge.
December 31, 2010
tribune242
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