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

By Dr Kevin Turnquest-Alcena
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.

Source

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/

Perceived Issues Which Stand Out as Having the Very Real Potential of Destroying The Bahamian Way of Life in The Bahamas

The Inter-American Development Bank (IDB) is going along with a scheme to put the people of The Bahamas under great financial, social, physical and psychological pain...

I am proposing that if The Bahamas and the Inter-American Development Bank (IDB) are serious about our future and the future of our children here in The Bahamas, that we begin a discussion asking the IDB and other lenders to completely forgive our existing debt...

By: Norman Trambulsy Jr 

Mangrove Cay, Andros Island, The Bahamas

There are two issues which stand out as having the very real potential of destroying our entire way of life, our standard of living and our national security in The Bahamas in the very near future.  I postulate a conservative estimate of the very near future being five-15 years time.

The two existential threats which are now upon us are as follows: Our looming debt crisis and sea level rise.

Each of these threats have the potential to totally upend life as we know it here in our beautiful country.

One of the greatest criticisms I see, of this and previous Bahamian administrations is the lack of transparency, and the lack of accountability.  One flows from the other.  Without knowing what our politicians are doing, it is not possible to contribute, nor to criticise, the actions of those who represent us.  It appears this is our history and present day attitude among those at the political top.  By their own words and actions, those in Parliament seem to believe that the Bahamian public has little right to know what they do.

This seemingly valid complaint comes from watchdog groups, the press, and the public with a usual stonewalling by those in government.

The “financial experts”, those who make their living speaking on such matters, the accountants, the bankers, the Minister of Finance, know exactly what pain will be imposed on The Bahamian people in the coming years.

They know the consequences of this odious debt our country now finds itself in.  They have seen this exact same scenario play out in countries around the world.  Whether or not they were present when the government took out these loans, they must, if they are to be called financial experts, know what is coming.

Under what are loosely called Structural Adjustment Programmes, The Bahamas will be raising taxes and cutting social spending.  Who will be impacted most heavily?

What I am claiming is that The Bahamas has a whole lot of so-called “financial experts” in government, in finance, in banking, in accounting, in consulting, in business - who are refusing to tell the Bahamian people the truth about where we are headed.  If these experts have paid attention these last few decades, and they have, they know just what to expect from the experience of other countries, even more advanced than The Bahamas.

The cuts to social services and the raising of taxes will take a very heavy toll on this country.  Who will bear most of the burden and suffer the most?  The poorest among us.  And, what effects will the cuts to social services have on our small island nation and the hardscrabble Family Islands?

Perhaps these experts have entrenched interests.  Perhaps they do not believe the Bahamian public would understand.  Perhaps they are afraid of losing clients if they tell the truth.  Perhaps they believe they may be blackballed by the political class.  Or, worse, that those who speak the truth will be voted out of office if Bahamians knew how careless these politicians have been.  Careless, as in not caring about all of our people in this island nation.

“Politics is killing this country” is something I hear from many, many people here.  They are not wrong, as far as I can see.

According to Mr Hubert Edwards, now head of the Organisation for Responsible Governance, in a recent Tribune article, says “The Bahamas finds itself at a place where it has a significant concentration of external debt, maybe more than it has ever had in the history of the country..... It has suffered over the last couple of years a number of credit downgrades which effectively put it into ‘junk’ bond status.  There are elevated external pressures on The Bahamas at this time......” “At some point in time, the Government is going to have to get their fiscal house in order.”

Now, I would like to reference an article in the Tribune, by Neil Hartnell on August 25, 2023, entitled “IDB: $856m strategy for The Bahamas ‘too ambitious’”.  This article focused on the fact that for the most part, the Inter-American Development Bank and The Bahamas have failed in far too many of the projects and programmes the IDB had lent money to The Bahamas to implement.

Not only that, the actual money spent was five times what the experts originally budgeted.  Most of the blame was as follows:

- The Inter-American Development Bank (IDB) has admitted its last country strategy for The Bahamas was “overly ambitious and unrealistic” despite approvals for over five times the originally-forecast level of financing.

- The multilateral lender, in a report by its internal watchdog, the Office of Evaluation and Oversight, found that the 2018-2022 Bahamas’ country programme made no or little contribution to seven of the 11 strategic objectives for improving areas such as fiscal consolidation, strengthening the Government’s institutional and digital capabilities and bolstering “integrity and transparency” in the public sector.

- The country programme evaluation attributed the Government’s low implementation capacity to a lack of technical experts to design and implement financed programmes, slow decision making, low co-ordination capacity, and lack of political commitment.”

So, where did that billion dollars go?  One might ask.

Of even greater concern to me is the near term financing needs that will be necessary for our country to deal with the immediate need to mitigate sea level rise impacts.  This, the IDB makes very clear they acknowledge, along with the fact that some of our debt burden is due to the impacts of 4 hurricanes in the last 10 years.

Has anyone seen the forecasts for hurricanes in the coming years?  Such as more frequent and more intense storms?  Does anyone deny, today, that sea levels are rising and the science behind these claims?

Now, let’s be real.  There are no surprises in the idea that The Bahamas government squandered money, and failed to do the things they said they would do.  Use whatever pretty words you wish to make excuses.  Our governments have a history of failure.  Is that a fair statement?

Now, with that said, let’s ask what are the Inter-American Development Bank’s responsibilities?

The IDB is a lending institution with a mandate to help improve the lives of the people in the country they are working in.  Do they have no culpability in these failures?  And what of the consequent economic burdens on the Bahamian people because of the loans taken out in their name, who got little to nothing in return?

Did any of these IDB experts, or their Bahamian liaisons, have a reduced salary because of these failures?  So, truth be told, the only ones who have to pay the bill for these failures are the poor and working people of The Bahamas.

The exact group of people who has no say in the programmes, no say on the loans, no benefits from the failed programmes.  Sounds like a recipe for utter failure and true injustice.  How can any thinking individual think this is OK?

I would suggest that after the first round failures and the consequent poor results of the IDB’s Project Implementation Units to follow, there should have been the rethinking of the due diligence, for the sake of The Bahamas increasing debt obligations, in making sure the IDB wasn’t further burdening our country with more odious debt.

I believe that the Inter-Development Bank has also failed in a major and equal way.  As much as we have failed here in The Bahamas.  Either by accident or by design, these loans were ostensibly intended to help develop The Bahamas in a financially sustainable way.  In fact, where we are now, I believe, is in a decidedly worse place than we were before the IDB stepped in.

Now, we are taking out loans, big loans, for the sole purpose of paying the interest on the loans we’ve already taken out.  And now, at higher interest rates.  This is NOT sustainable.

The IDB experts know full well what Structural Adjustment Programmes and austerity measures will be put into place in The Bahamas if The Bahamas performs in the way they have, historically speaking.

Do they believe in miracles?

They know through experience, that with either a PLP New Day or an FNM People’s Time, the results do not change.  They say as much in their report.  We know politicians lie.  Is this wrong to say?

So, the IDB is going along with a scheme to put the people of The Bahamas under great financial, social, physical and psychological pain.  The experts at the IDB know all too well that the poorest among us will be paying the highest price for the sins of those who claimed they were representing us.

Those we voted into office.  They know full well that the austerity measures they will require the government of the The Bahamas to impose on our country will cripple our economy, and our standard of living.

Bahamians will suffer for the sins of those whom we elected to look after us, and for the sins of those we invited to our shores to help us out of this mess.  The IDB is not blameless.  They know poverty will increase in The Bahamas.

Another question I have, which I believe is pertinent, is why The Bahamas has any debt, at all?  Why does a country, that all the experts say is one of the richest in the Caribbean, not have a surplus of money?

After 50 years of independence, this is where we are as a country?  We are in so much debt that it is strangling our economy, destroying any hopes for national development, dashing the dreams of our youth and sending so many Bahamians into poverty.

Is this the best we can do?

With these thoughts, I am proposing that if The Bahamas and the IDB are serious about our future and the future of our children here in The Bahamas, that we begin a discussion asking the IDB and other lenders to completely forgive our existing debt.

Let me say it again, I believe we must ask the IDB and other lenders to completely forgive our debt.

At some point, we have to put people above money.  Given the existential economic threat posed by our indebtedness, and the all too real climate events unfolding upon us, is it really unreasonable, as decent human beings, as adherents to something called Christianity, that we ask for this debt forgiveness?

Is this asking too much of those who say they wish to help us?

The Bahamas simply cannot continue to see millions of dollars leave our shores each day solely to pay the interest on loans.  There is no way, absolutely no way, that The Bahamas can prepare itself for the expenses associated with mitigating the effects of sea level rise and future hurricanes, take care of our Bahamian people, and still make the outrageous and odious interest and principal payments coming due in the next few years to these financial institutions.

I am sick and tired of watching people all over the world suffer - terribly, innocent, hard working people, all because a handful of corrupt people couldn’t keep their hands out of the cookie jar.  It is not fair to punish a whole country for the crimes of a few politicians.  It is patently unChristian, let alone an affront to human decency to allow collective punishment, as we will soon experience, for the crimes of our ruling class.

At some point, the people of the world must stand up to the rulers.  Whether they are the rulers of their own country, or the heads of the big banks and transnational corporations.  It is way past time to truly put people’s lives and human decency first and foremost.

Debt forgiveness for The Bahamas – 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

As the nation continues preparation to trod toward the road of celebrating 50 years of Independence, the need for the preservation of our country is now!

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.

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Reflections on 49 Years of Bahamas Independence

Bahamian Independence: Where is the Strategical Empowerment of the Average Bahamian?

BAHAMIANS - TO BE INDEPENDENT OR NOT INDEPENDENT, THAT IS THE QUESTION?

By Dr Kevin Joseph Turnquest Alcena

LLB (Hon-1st Cl.), LLM (Hon-1st cl.) Ph.D. in Economics/Ph.D. in Clinical Psychology/Ph.D. in Public Health/Ph.D. in Herbal and Holistic Medicine/Ph.D. in Biogenetics/M.D. Titular Professor, Lawyer July 9 9 2022

As we here in The Bahamas stand on the precipice of celebrating forty-nine (49) years as an “independent” nation, I ponder on the idea of whether we have indeed attained real freedom. What then does it mean to be independent? What have we really achieved in pursuit of liberty? What have we gained in our ambitious attempt to climb the ladder to sovereignty?

Well, according to Maria Montessori, “Independence is not a static condition; it is a continuous conquest, and in order to reach not only freedom, but also strength, and the perfecting on one’s powers, it is necessary to follow this path of unremitting toil.”

Have we understood the conditions necessary to thrive as an independent nation? Or have we deceived ourselves into thinking that we have prospered in this capacity?

If we were to be honest with ourselves, have we carried out the mandate that was left behind by our forefathers to ensure that we are ‘one people united in love and service?’ Can we look through the dispensations of time and say that we have done all that we can as Bahamians to ensure that we are leaving this nation as an inheritance for our future generations?

Proverbs 13:22 says, “A good man leaveth an inheritance to his children’s children…”

Have we done justice to that which was left behind by those that went before us, or have we carelessly squandered the resources and ignored their pleas of guaranteeing the next generation is taken care of?

Let us review what has been done over the past forty-nine (49) years.

Firstly, can we call a ten-billion debt advancement? Over the years to free ourselves from the bars of being dependent on other countries we have accumulated an astounding amount of debt that has left us I daresay, more bound than ever!

We see no improvement in terms of debt management. We have regressed as we have made ourselves slaves in our own country to China, the United States, Europe, even our neighboring Caribbean countries.

John Adams said it best, “There are two ways to conquer and enslave a country. One is by the sword. The other is by debt.”

How can we say we are truly free when we depend on everyone to feed us, keep our economy running, keep our cars on the road, our environment secured, even our borders safe? How are we uninhibited when we do not see a need to break free from the chains of our self-created bondage?

We have become so complacent in being slaves that we fight to stay enshrouded in the safety net of captivity rather than war for true liberty. We have simply traded on task master for another.

We have trained each other, like the Pavlovian Model of Consumer Behavior to answer the call of the slave masters of our nation. This conditioning has matriculated down through the ages to the detriment of our children and their children’s children.

As a result, we have constructed a society of entitled, unmotivated and unproductive people who do not even comprehend the fact that they are in subjugation to a society that they will never be released from.

Most people are only living from pay cheque to pay cheque. Therefore, so many struggle to survive when it is time to retire because of the debt that has been accumulated over time. We have been conditioned by our leaders to borrow and borrow to the inconveniency of eternal servitude that our generational line must suffer through.

So instead of inheriting lands and wealth, we inherit debt upon debt. As Proverbs 22:7 declares, “The borrower is slave to the lender.” Can we in fact say that we have succeeded in our goal of being free?

Secondly, do you think it was the objective of our predecessors on their march to freedom to create a government that spends more time warring, rather than working with each other? “Party disputes are now carried to such a length, and truth is so enveloped in mist and false representation, that is extremely difficult to know through what channel to seek it out” (George Washington).

Successive governments - one after the other, continue the trend of the very thing our progenitors tried to escape that being partisanship in our political ideology.

How can an overcrowded Civil Service be called evolvement? The Bahamas is so far behind in terms of growth and development as opposed to our counterparts in the U.S., Canada, Africa, and the Caribbean. Why?

For one thing we cannot seem to grasp the concept of promotion based on training and skill rather than seniority.

Where then, is the strategical empowerment of the average Bahamian?

There is a consistent cry that the government has no money to hire. Yet we see the same people that have recently retired back in the public eye, paid thousands of dollars to ‘work’ on contract, while everyone beneath them carries out the labor. How can we say we are independent when even in the workplace, we do not believe in succession planning or giving others the chance to excel?

There is a persistent complaint by the powers that be, about the lack of trained young people, but when they become qualified, they are told there are no opportunities for them! But we wonder why when they go off to school, they have no desire to come back home.

The solution here is simple, let those that are retired, stay home and open doors for more opportunities for those that are qualified through incentivized programs so that they can come back home.

Moreover, when persons make the bold move to try and elevate themselves, they are met with all kinds of hinderances. The idea that they would have the audacity to step out of line and out of their place, reemphasizes the oppression we have been born into.

Galatians 5:13 states, “For brethren you have been called unto liberty: only use not liberty for an occasion to the flesh, but by love serve one another.” According to our constitution, we consider ourselves to be a Christian nation. If that be the case, why do we despise our own and not as the word says, serve one another?

Why do we instead continue to choose others over our own and exploit one other to please the slave masters we have inherited? Why do not help one another excel and elevate, rather than tear each other down? Why do we continue to keep the masses down and impoverished, rather than empowered? I ask you my brothers and sisters, is this what independence really means?

Ervin Welsh said, “It is important to know we can celebrate independence, but more so to ensure we are not living in-dependence.” How powerful is it when we comprehend the fact that to be free doesn’t automatically mean freedom has been gained?

When one looks at the fact, that we are set free on paper, yet we depend on everyone for survival. This has bled into our educational system that has for years been failing our children.

Why are still using the forms of standardized testing implemented by the British to test our children? Why do we still need to get accreditation from other countries before our children’s test results are placed on par with other countries so that they can go to school abroad?

After forty-nine years of independence why is the national average still a “D”? It’s a crying shame that this is where we are presently standing.

According to a survey done by the World Bank, the Caribbean countries has an 89% literacy rate which is surprisingly higher than the U.S.! Furthermore, The Bahamas ranks 7th in The Caribbean with a literacy rate of 95.6%. This tells me then than we as a people are just as capable of doing anything as any other country around the world.

If that is so, why are we still utilizing programs and systems from other countries to steer our educational system? Would not the people most suited to write programs for our schools, be other Bahamians that are well versed in Computer Technology?

This level of dependence will continue to stunt our students’ growth and progress. This was clearly seen, three weeks ago with the disastrous crashing of the LMS System utilized by the Ministry of Education that resulted in production of school report cards being delayed by two weeks!

Consequently, when report cards were picked up this past week, parents were not able to have their queries answered as teachers had already left for summer vacation. This is a prime example of why their needs to be an overhaul of the educational system and redesigned for optimal success of our children.

Finally, if we are to genuinely be independent, we must change the modus operandi of how we do business. We can no longer depend on Tourism to merely support us.

There must be a clear partisan, paradigm shift of our economy because income taxes are not going to do it!

While we were smart enough to rectify many of our impending problems, we must be strategic in our resolve moving forward collectively as a nation.

We need land reform. Sir Lynden Oscar Pindling institutionalized this country and I have not seen any other Prime Minister after him do so. Rather they have uplifted all their friends making them richer.

We have inherited over the last forty-nine years a tribal form of government, from both sides. The latest trend is maculating themselves in ego and positioning with the aim of personal gain first, as opposed to servanthood.

The wealth of this nation no longer trickles down, the status quo is ‘you get into politics, you take care of your friends.’

There is an Attaliah Spirt that has spread throughout the various ministries in this country, from education to government.

The continual assassination of those that try to bring change has always been overtaken by the misogyny imposed upon them and their voices hushed by the powers that be.

We must find another way to eliminate this Attaliah construct. As Nelson Mandela said, “For to be free is not merely to cast of one’s chains, but to live in a way that respects and enhances the freedom of others.”

After forty-nine years, are we living in true freedom or are we living a perception of what we think is liberty? Think on these things!

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Value added tax (VAT) and Debt Collection

 

Debt Collection Expert Speaks Out Regarding VAT and Debt Collection

 

 

Rory Higgs

There has been a lot of talk throughout the Bahamas recently regarding the implementation of VAT and the collection of taxes. While for the most part the talk and views expressed are from respected individuals who are experts in their respective fields, none of the persons can claim to be experts in the field of “debt collection” in general or “debt collection in the Bahamas” in particular.

Apex Management Services has been in business for over 15 years and is the only debt collection agency in the Bahamas that is capable of handling the full spectrum of debt collection with state of the art technology and resources that are all under one roof.

While there are several debt collection options that include; In-house Collectors, Internal or External Attorneys, Internal Call Centers, External Call Centers and Offshore Call Centers, none of the options are as efficient and effective as a Local Full-Fledged Debt Collection Agency, which can handle matters from start to finish without gaps. 

Some of the inherent flaws that are associated with the various collection options that often substitute for Debt Collection Agencies are as follows:

Internal Attorneys at best would function similar to an external attorney with the difference being that they would be more accessible. At worst an Internal Attorney would also have a focus on other duties, which would diminish the attorney’s role as a specialist with 100% focus on debt collection. Although Day Court is an option, as a matter of convenience, many civil matters, which fall in the Magistrate Courts jurisdiction, are heard in evening court, which would often necessitate odd hour for an internal attorney.

External Attorneys do not operate debt collection agencies; in many instances their main focus is to obtain judgment with little if any interaction with the debtor. Prior to obtaining judgment and after judgment is obtained; attorneys do not have the capacity to provide the care and attention to each and every individual account. In most cases attorneys will bill the client after judgment is obtained and the client is still left to collect the amount of the claim.  Many matters handed to attorneys go uncollected long after the attorneys have been paid.

Onshore Call Centers are on the opposite end of the spectrum from Attorneys, in the debt collection process. While Onshore Call centers are extremely good at interacting with debtors, they have no enforcement capabilities. If a call center operator is dealing with a debtor who is not cooperating or refuses to pay, the call center has no recourse but to send the debt back to the client who will most likely send it to an attorney thus creating a time and process gap, when time is of the essence.

Furthermore Call Centers have no capabilities to locate debtors whose whereabouts are unknown (Skip Trace) even though a large percentage of bad debt matters require Skip Tracing. At best, Call Centers are only suitable for early stage debt not late stage debt.

Offshore Call Centers have the same disadvantages as Onshore Call Centers plus the following added disadvantages.

Communication and Culture - In most cases Offshore Call Centers operate in countries where there are cultural differences that are often subtle but significant. This is compounded when English is not the native language or where patois is predominant.

Geography – Psychologically if a debtor senses that there is some significant distance between the call center operator and themselves they are less likely to cooperate or pay.

Speaking from experience gained working with a major commercial bank that implemented an offshore call center option that failed miserably, Offshore call centers or Offshore Collection Agencies do not work.

The differences that a properly equipped and professional Debt Collection Agency such as Apex makes to the collection process that none of the above options can provide are as follows:

•          Principal has over 30 years of Credit and Collection Experience.

•          Principal is an accomplished Fellow and Member of the largest International Debt Collection Trade Association. ACA International, the Association of Credit and Collection Professionals.

•          Agency has been in operation for over 15 years

•          Easily accessible well-maintained and spacious offices conducive for customer service.

•          Adequate telecommunication technology and operators to handle thousands of calls daily.

•         Auto-dialers, which exponentially increase the calling and communication capacity of the call center.

•         SMS technology which exponentially increases the communication capacity of the call center.

•          State of the art Collection Management Software capable of handling unlimited number of accounts with integrated financial accounting, diary management and many additional features.

•          State of the art Legal Case Management Software

•          24/7 client web access

•          Skip Tracing Database and Skip Trace Network

•          In House Attorneys that are 100% dedicated to debt-collection-litigation.

“International financial institutions, such as the World Bank and International Monetary Fund (IMF), have propagated a conventional wisdom that revenue collection authorities are more effective when they operate autonomously from the state, as a commercialized entity at arms length from government rather than as a department within the government administration”.  (Source: Preconditions for Effective Tax Collection, By – Economic Policy Research Unit, Bergen Norway)

A growing number of U.S. states are expanding their relationships with private collection agencies to settle long-overdue taxes.

Her Majesty Revenue & Collection (HMRC) has outsourced some of its debt collection to external agents. Following a pilot, a notice entitled ‘Modernizing debt collection’ was released explaining that four debt collection agencies will be employed by HMRC to collect an outstanding £140 million of outstanding tax debt. (Source: HMRC sends in debt collectors for unpaid taxes. By-Nick Lodge, Director of debt management and banking HMRC.)

In Spain alone more than 800 companies specialize in collection of outstanding debt, handling a total of 71 billion euro and generating close to 560 million euro for their business. (Source: DBK, “Empresas de Gestion de Impagados)

With an obvious eye on an opportunity to capitalize on the existing situation, a number of over-night debt collection vendors are beginning to surface without any experience or capacity to perform at a level that would be required.

It would be a shame if we as a country succumb to the temptation to award debt collection contracts based on patronage rather than on merit, at such a time when our country’s financial wellbeing is at stake.

March 28, 2014

Media Contact: Rory Higgs  
Phone: 424-0985 (Cell)

Email: rhiggs@apexbahamas.com