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
Prime Minister Brave Davis must be cognizant of the fact that the country's debt is out of control, crime is high, the cost of living has increased and as such a solution to these impending issues need to be found.
Hence, while attempting to pass the mining legislation, it would be a very prudent and wise of our govenment to implement a sovereign wealth fund component for several reasons.
A sovereign wealth fund is - a state owned investment that invests globally in a variety of financial assets. Several countries utilize this strategy, including: Singapore, China, France and Norway.
Benefits of SWF include, but not limited to:
1. Protecting and stabalizing budgets and economies from excess volatility in revenues and exports.
2. Diversify from non-renewable commodity exports.
3. Diversify revenue streams.
4. Better earning potential on foreign exchange.
5. Long-term capital growth.
So, why should The Bahamas consider implementing such a strategy?
Firstly, due to the issue of global warming, entire countries are being harmed environmentally. This will surely affect the areas of South Beach and even islands like Andros to be under water. As a country, we need to be very proactive and strategic in our resolve to secure the problem.
The question to ask is, "Does the Brave Administration understand the importance of a national sovereign wealth fund?" Planning true nation building and not the subpar colonial system we continue to adhere too takes hard work, along with persistence. This is necessary as we have seen an increase in debt, crime, the educational system, over staffed public services, low performance in terms of productivity, even the idea of feeding ourselves have become obsolete.
Secondly, the SWF will be beneficial in that it is open to all Bahamians regardless of color, class or creed, no one would be exempt. It can be set up in such a way that rather than issue money, it could be invested towards nation building. This investment fund will subsidize the issues we are now facing with National Insurance and our pensions. The SWF gives you the opportunity to do this.
The Question one must ask is, "Does the "Brave" Administration have the will and the ability to implement a Sovereign Fund that will be for the greater good?"
As Proverbs 16:9 say, "A man's mind plans his way: but the Lord directs His steps and make sure.
Prime Minister Davis you are indéed a man that understands empathy and the importance of doing the greatest good for the greatest amount of people.