Bravo for business
By SIMON COOPER
Res Socius
THE news of the positive assessment by the IMF of the Bahamas economy in The Tribune on August 8, came as a breeze of fresh air in the fug created by recently depressing world economic events. I for one must admit to being decidedly unimpressed by the American President's snide remarks directed towards Standard and Poor who had been warning him for months.
From where I sit, Barack Obama almost sounded like a Republican himself. He appeared disinterested in the fact that at least some Americans are questioning their country's credit worthiness, and unconcerned with the way the markets went into free-fall when it turned out that America the Free no longer has an open-ended budget.
All feedback works the same way in terms of what might be done with it. One can learn from it, reject it, or put it into one's metaphorical pocket to think about it later. Perhaps the President of the World's richest nation will think again about the "poor" assessment his country just received? Perhaps he won't? Time will tell, as it invariably does.
I personally think America woke up to a whole new world this week. It no longer has an unlimited credit card, and its Asian creditors are no doubt seeing it in a whole new light too. Given that Republicans in power are unlikely to tax the companies more that contribute to campaign funds, they will remain more inclined to cut back on expenses. Obama has blocked meaningful domestic cuts. To my way of thinking, this leaves the option of cutting back on America's paternalistic role beyond its borders, no doubt to the delight of some.
Fortunately for the Bahamas we are reasonably well-insulated from the current mess, and for this we have to thank Hubert Ingraham for his foresight (for the record I am a political atheist). Our plans to jump-start our island economy are funded by improving fiscal revenues, as opposed to American handouts with proverbial stings often in their tails.
But America may also cease receiving the free lunches that the western world has been serving it. We have perhaps been too long prepared to follow its lead wherever it would go, and to jump as high as it required. This is good news in the sense that for long-lasting world stability, no single nation should be too powerful. Think of the chaos when the USSR imploded. If the American economy is on the wane, it needs to be let down gingerly.
I wrote this controversial column not to knock America or Americans for whom I have the greatest respect. I wrote it to point out that our island nation's glass is at least half full, and I guestimate far more than that. We are on the right track as the IMF has said. As a businessman I say bravo for the business opportunities that must follow.
Res Socius was founded by Simon Cooper in 2009, and is a Business Brokerage authorised by the Bahamas Investment Authority. He has extensive private and public SME experience, and was formerly chief executive of a publicly traded investment company.
He was awarded an MBA with distinction by Liverpool University in 2005.
Contact him on 636-8831 or write to simon.cooper@ressocius.com
August 12, 2011
tribune242
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.
Showing posts with label IMF Bahamas. Show all posts
Showing posts with label IMF Bahamas. Show all posts
Sunday, August 14, 2011
Friday, December 24, 2010
All Hands on Deck
The Bahama Journal Editorial
Certain high-ranking International Monetary Fund officials are today convinced that, “Although the outlook [for the Bahamas] is fraught with uncertainties and risks, the mission is confident that the resolute adherence to fiscal consolidation and an enabling investment climate will foster a stable macroeconomic environment and support sustained economic growth.”
We concur.
But even as we express our overall agreement with the IMF’s analysis; we are constrained to note that, we should – as a matter of both principle and policy – do all we can as to further empower our people; and to see to it that, growth and development is powered from both the inside and outside.
Such an addition of an endogenous dimension of development to the current policy mix would go a long way to helping Bahamians help each other.
Such a double-barreled approach to national development would – of necessity- push leadership in the direction of seeing to it that our most precious resources- here namely our youth are put to the most productive use possible.
Here our churches, unions, businesses, other civil society agencies – and the government are called to pull together in the interest not only of their membership; but in the interest of all to put the Bahamas on a path to sustainability.
And so, whether the reference made is to tourism, banking or the industrial sector, each and every one of these clearly has a stake in a vibrant, healthy, development-oriented Bahamas.
But just as clearly, we must break with business as usual.
Were we to do so, we would wake to find that, while things are tough; and for sure, while moving forward, things might get even tougher; we are ever optimistic.
We are buoyant not only because we know that, this period of austerity is one where those who stick it out will reap their fair share of rewards; but also because it is precisely in times like these –that is to say, days of creative destruction – when you either sink or swim.
For our part, then, while these are days of tremendous struggle, we are convinced that, the worst is over; and that, in the fullness of time – better days will come.
But even as we note that these so-called better days are ahead; we know it for a fact that, we must –like others in the mix- do our level-best to help make some of these things happen.
And for sure, we are also absolutely convinced that, the time is nigh for all of this nation’s right-thinking Bahamian sons and daughters to cease from their time-tested habit of sweating the small stuff; that is to say, their socially pernicious habit of making too much of the already too-little that divides them.
Happily, while this habit does persist – and might yet continue – we are happy to report that, this country that is ours continues to get kudos for the conservative manner given by all who govern to the economic affairs of this land that is ours.
Some of these kudos routinely come from world agencies such as the International Monetary Fund. In this regard, we now note some of what the IMF has had to say about the management of things in this period when austerity is the word that apparently matters most.
The team met with senior government officials and representatives of the private sector. At the end of the visit, Mr. Gene Leon, head of the IMF mission to the Bahamas, issued the following statement: “The global crisis of 2008-09 had a profound impact on the Bahamian economy. Tourist arrivals declined by 10 percent and foreign direct investment fell by over 30 percent, leading to a sharp contraction in domestic activity and a large rise in unemployment.
“However, lower import prices helped narrow the external current account deficit to about 12.5 percent of GDP; this together with external borrowing and the one-off allocation of Special Drawing Rights helped raise gross international reserves to about 2.5 months of imports, boosting support for the exchange rate peg…”
There was even more. Here we are led to believe that, “… Gross international reserves are projected to increase despite the higher oil prices owing to strong private capital inflows, including from Foreign Direct Investment…”
While this is not to be ranked at the optimal level, we do have some modest reason to be happy that ventures like Baha Mar are on stream.
And as Gene Leon aptly notes, “…Going forward, the authorities have indicated a commitment to maintain prudent macroeconomic policies, including fiscal measures to reduce the rising debt-to-GDP ratio and a monetary policy geared to supporting price stability and the US dollar peg… They also plan to continue with reforms to improve tax administration, increase fiscal responsibility, and transparency.”
Evidently, then, even if things were to turn out as suggested by the IMF; there would still be work [at the endogenous level] that could and should be done by Bahamians.
December 23, 2010
The Bahama Journal Editorial
Certain high-ranking International Monetary Fund officials are today convinced that, “Although the outlook [for the Bahamas] is fraught with uncertainties and risks, the mission is confident that the resolute adherence to fiscal consolidation and an enabling investment climate will foster a stable macroeconomic environment and support sustained economic growth.”
We concur.
But even as we express our overall agreement with the IMF’s analysis; we are constrained to note that, we should – as a matter of both principle and policy – do all we can as to further empower our people; and to see to it that, growth and development is powered from both the inside and outside.
Such an addition of an endogenous dimension of development to the current policy mix would go a long way to helping Bahamians help each other.
Such a double-barreled approach to national development would – of necessity- push leadership in the direction of seeing to it that our most precious resources- here namely our youth are put to the most productive use possible.
Here our churches, unions, businesses, other civil society agencies – and the government are called to pull together in the interest not only of their membership; but in the interest of all to put the Bahamas on a path to sustainability.
And so, whether the reference made is to tourism, banking or the industrial sector, each and every one of these clearly has a stake in a vibrant, healthy, development-oriented Bahamas.
But just as clearly, we must break with business as usual.
Were we to do so, we would wake to find that, while things are tough; and for sure, while moving forward, things might get even tougher; we are ever optimistic.
We are buoyant not only because we know that, this period of austerity is one where those who stick it out will reap their fair share of rewards; but also because it is precisely in times like these –that is to say, days of creative destruction – when you either sink or swim.
For our part, then, while these are days of tremendous struggle, we are convinced that, the worst is over; and that, in the fullness of time – better days will come.
But even as we note that these so-called better days are ahead; we know it for a fact that, we must –like others in the mix- do our level-best to help make some of these things happen.
And for sure, we are also absolutely convinced that, the time is nigh for all of this nation’s right-thinking Bahamian sons and daughters to cease from their time-tested habit of sweating the small stuff; that is to say, their socially pernicious habit of making too much of the already too-little that divides them.
Happily, while this habit does persist – and might yet continue – we are happy to report that, this country that is ours continues to get kudos for the conservative manner given by all who govern to the economic affairs of this land that is ours.
Some of these kudos routinely come from world agencies such as the International Monetary Fund. In this regard, we now note some of what the IMF has had to say about the management of things in this period when austerity is the word that apparently matters most.
The team met with senior government officials and representatives of the private sector. At the end of the visit, Mr. Gene Leon, head of the IMF mission to the Bahamas, issued the following statement: “The global crisis of 2008-09 had a profound impact on the Bahamian economy. Tourist arrivals declined by 10 percent and foreign direct investment fell by over 30 percent, leading to a sharp contraction in domestic activity and a large rise in unemployment.
“However, lower import prices helped narrow the external current account deficit to about 12.5 percent of GDP; this together with external borrowing and the one-off allocation of Special Drawing Rights helped raise gross international reserves to about 2.5 months of imports, boosting support for the exchange rate peg…”
There was even more. Here we are led to believe that, “… Gross international reserves are projected to increase despite the higher oil prices owing to strong private capital inflows, including from Foreign Direct Investment…”
While this is not to be ranked at the optimal level, we do have some modest reason to be happy that ventures like Baha Mar are on stream.
And as Gene Leon aptly notes, “…Going forward, the authorities have indicated a commitment to maintain prudent macroeconomic policies, including fiscal measures to reduce the rising debt-to-GDP ratio and a monetary policy geared to supporting price stability and the US dollar peg… They also plan to continue with reforms to improve tax administration, increase fiscal responsibility, and transparency.”
Evidently, then, even if things were to turn out as suggested by the IMF; there would still be work [at the endogenous level] that could and should be done by Bahamians.
December 23, 2010
The Bahama Journal Editorial
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