The Bahamas: From Majority Rule to a Minority Mentality

From Majority Rule to a Minority State of Mind

The Bahamas, a nation born from the triumph of Majority Rule, is now being quietly governed by minority participation.  The very principle that defined our national identity—rule by the many—has weakened into a habit of rule by the few.

By Rick Fox
Nassau, N.P., The Bahamas

In the days following the Golden Isles by-election, Parliamentary Commissioner Harrison Thompson admitted officials were “baffled” by what they witnessed.  More than 4,000 registered voters stayed home—four thousand Bahamian voices absent from the democratic table.

This isn’t normal.  This isn’t healthy.  And this certainly isn’t The Bahamas our parents and grandparents fought to build.

It is a warning.

The Bahamas, a nation born from the triumph of Majority Rule, is now being quietly governed by minority participation.  The very principle that defined our national identity—rule by the many—has weakened into a habit of rule by the few.

We once fought to break away from minority governance.  Now, by apathy, we are drifting right back into it.

The Grandfathers of the Nation 

Honored, Respected, But Wrong About Today

Few leaders have shaped modern Bahamian democracy more than Prime Minister Philip “Brave” Davis—affectionately known as “Daddy”—and former Prime Minister Hubert Alexander Ingraham, the nation’s “Papa.”  They governed in a time when Bahamians turned out in large numbers, when the civic spirit was alive, when Majority Rule felt like an inheritance that could never be lost.

Their leadership deserves respect.  But respectfully, they are applying yesterday’s confidence to today’s crisis.

Papa Ingraham recently said, “You can’t steal an election in The Bahamas.”  Daddy Davis has projected similar assurance, confident that all is steady; that all is well.

But the numbers tell a different story.

With 4,000 voters staying home and only 25% of the electorate determining a parliamentary seat, it is clear that everything is not fine.  Elections today are not being stolen by corruption, they are being stolen by apathy.

The people are not being silenced.  The people are silencing themselves.  That is a threat unlike anything our national fathers ever had to confront.

The 25% Problem and The Quiet Collapse of Majority Rule

In Golden Isles, a candidate did not need half the votes to win.  They only needed a quarter.

Imagine four people sitting at a table, and only one person deciding whether the other three get to eat.  That is not democracy.  That is Minority Rule by default, disguised in the shell of a Majority Rule system.

Apathy made the decision.  Apathy filled the seat.  Apathy now shapes our future more than the electorate does.

If nothing changes, apathy will steal the 2026 General Election—boldly, openly, and without resistance.

The Biblical Consequence of Not Showing Up

Exodus 20:12 instructs us: “Honor your father and your mother, that your days may be long in the land the Lord your God gives you.”

This is more than a household command.  It is a national one.

Our mothers and fathers, the generation who delivered Majority Rule paid a price so that the many could decide.  But when thousands stay home and a minority chooses for the majority, we dishonor that sacrifice.  We weaken the foundation they built.  We shorten the lifespan of the society they secured.  Not by curse, but by consequence.

No nation survives when its people stop showing up for it.

The Bahamas Calls Itself a Christian Nation.  But Where Is Our Discipline?

Every Bahamian child knows this line: “Get ready—you're going to church.”  Church was not optional.  It was discipline, Duty and Expectation.  That same discipline is now needed in our democracy.

Voting must become cultural again.  Voting must become expected.  Voting must become a mandate of service, rooted in the same values that shaped us in church.

A democracy cannot stand on 25%, and a nation cannot survive on silence.

A Call to the Pastors of the Nation

When nations face danger, their spiritual leaders must speak, not to endorse parties, but to awaken responsibility.  Isaiah 58:1 says: “Cry aloud, spare not.”

This is such a moment.  Pastors must call on Daddy, Papa, and all political leaders to stand together, not in competition, but in unity before an election date is set, and address this crisis at its root.

This is not politics.  This is stewardship.

The Path Forward: Restore Majority Rule in Practice, Not Just in Memory

If we want the Bahamas to remain a nation governed by the many, not the few, we must modernize and reinforce our democratic practices.

1. Stream the Vote

Let every Bahamian watch the process in real time.  Transparency builds trust.  Trust builds turnout.  Turnout restores Majority Rule.

2. National Civic Duty Day

A once-every-five-year paid holiday for voting.  A day dedicated to civic responsibility, just as Sundays were dedicated to church.  A day that transforms voting from an inconvenience into an expectation.

Make voting a habit. Make voting a duty.  Make voting Bahamian.

The Grandchildren Must Grow Up, and show Up

Here is the truth: We are the grandchildren of Majority Rule.  We didn’t march for it.  We didn’t fight for it.  But we inherited it.

And now it is slipping, not because someone took it, but because we have stopped showing up to protect it.

If we want a Bahamas worthy of the next generation, and if we want a future we can proudly claim there is only one path forward:

We must grow up.  We must stand up.  We must show up now.

Our vote is not merely a right - it is our inheritance.  It is the last piece of power placed directly into our hands by the generation that fought before us.

Every time we stay home, we hand that inheritance away.

Our grandparents carried this country.  Daddy and Papa fought their battles.  Now it’s our turn.

No more waiting.  No more watching.  No more wishing someone older would fix what is now ours to repair.

Grow up, stand up, and show up.  This is our generation’s responsibility - our generation’s Majority Rule moment.

Final Call: 

Reject the Minority Mindset and restore the Bahamian Majority.

Apathy is winning.  Apathy is shrinking our democracy.  Apathy is reversing what our ancestors built.

But we can stop this.  We have the duty, we have the power, and we have the moment - for our fathers, mothers, children; and for the future of The Bahamas.

The Bahamas will belong to all Bahamians, but only if all Bahamians show up.

Source / Comment

CircleVision Financial Planning (CFAL) on the Progressive Liberal Party's (PLP’s) plan to tackle the mortgage ‘crisis’ in The Bahamas

On the PLP’s plan to tackle the mortgage ‘crisis’

CFAL Economic view

At the center of the 2008 global crisis was the mortgage debacle. The U.S. government funded mortgage agencies that provided funding for residential mortgages, which in most cases, the mortgagee was not able to afford. The end results were foreclosures and a depressed housing market — now headed into its fifth year.

As we all know, in the absence of a holistic economic plan The Bahamas continues to depend on the success — or lack thereof — of the U.S. economy.  The Bahamas is now experiencing what the U.S. experienced back in 2008 in the mortgage market as a result of lenient lending practices. To fix the core of this problem we need policies that are realistic, achievable and measurable.

After reading the article “PLP to tackle mortgage ‘crisis’” in Monday’s Nassau Guardian, we felt compelled to provide some thoughtful analysis on the matter.  We hold no political brief for any party, but as a financial research and investment company we have a professional and civic duty to opine on ideas which may impact our clients in particular or, as in this case, ideas which we think could adversely impact the Bahamian economy in the short and long term.

While the idea of providing relief for peoples having a difficult time meeting their mortgage obligations is arguably a good one, and one which we support, we have serious questions on some of the specifics outlined in the Progressive Liberal Party’s (PLP) proposal as reported in The Guardian.

In order to place our argument in context, you may recall that our company argued against the loose monetary policy back in 2005-2006, when financial institutions and developers were very lax in their lending policies. We saw double digit credit growth and warned this would come back to haunt us in a very negative way. The loans default crisis (including mortgages) of which we spoke has arrived.

As regards the solution to the ‘crisis’ proposed by the PLP, there are several points that we support: the idea of extending “first time homeowners” stamp duty exemption to people who have lost their homes to foreclosure and are trying to purchase a new home; the argument for some form of review of finance charges and related fees; the regulation of “unregulated lenders”; and the proposal to, “bring under stricter control and supervision the system of salary deduction”. We agree with the PLP that this is being abused by some lending institutions.

Concerns about the plan

Our greater concerns are related to the other recommendations in the proposal.

In a democracy it is not prudent for the government to mandate any financial institution to do anything. The shareholders, directors and management decide what course of action should be taken.

Governments and financial services regulators (central banks) sometimes resort to “moral suasion” in a credit crisis in order to try and persuade financial institutions to provide relief to mortgage payers. Alternatively, monetary policy initiatives by the Central Bank in the form of interest rate deductions are applied to solve the issue of mortgage delinquency.

That course of action, particularly with respect to our current predicament, is likely to be ineffective in and of itself.  It is our view that a holistic plan is needed.  A plan that will examine the likely outcomes and impact on all stakeholders in order to avoid unintended consequences.

By way of example, the recent reduction in prime rate caused serious issues for pensioners, insurance liabilities and National Insurance in terms of matching long term liability obligations.

While the government’s debt obligations may have benefitted from the reductions, the real intended beneficiaries — those who are already in significant arrears — did not and will not benefit from the initiative. The unintended was the increase liability obligations by National Insurance, insurance companies and defined benefit pension plans.

What people need are jobs. Merely dropping interest rates or guaranteeing interest payments will not cause lenders to extend credit, especially since the creditworthiness of many borrowers was and still is slipping.  In the case of new or revised loans at the lower rate, the average monthly benefit will not make much of a difference to the borrower.

The suggestion that a financial institution would simply write off 100 percent of the provisions is impractical at best.

Financial institutions are in business to return a profit to its shareholders. Further, the fact that these amounts are written off today does not preclude the financial institution from attempting to collect on the amounts written off sometime in the future when the circumstances of the borrower might have changed more favorably.

Provisioning for bad debts is an accounting requirement — nothing more, nothing less. As regards the suggestion that the government would take a lien over the property, we do not see how this is possible given that the financial institution already has a lien over the property.

As for the government paying the interest of the delinquent mortgages, while this is a noble idea it is also not practicable and could encourage irresponsible future behavior.

Why would anyone who is current on their mortgage continue to pay if the government would step in and pay the interest for five years? This could have far-reaching consequences unless, of course, we have misunderstood this suggestion.

We are concerned about whether anyone attempted to do the math and cost-out the proposal to see if we, an already debt-laden country, could afford this ambitious proposal.

Has anyone given consideration to the moral hazard?

The cost

Let’s see how much this will cost the people of The Bahamas.

Total Bahamas domestic credit was approximately $7.103 billion at the end of February. Loans or mortgages with maturity over 10 years stood at $4.639 billion. Mortgages outstanding was $3.090 billion with total private sector loans in arrears of $1.159 billion. Total mortgage arrears stood at $619.6 million.

Assuming the estimated proposed interest rate of 5.75 percent (again we do not know how the government proposed to do this in a capitalistic society, but accepting the proposal as is) this would translate into an additional annual commitment by the government of $35.63 million or $178.14 million over five years.

With what is essentially “free money” until 2017, those who are current on their mortgages would elect to stop paying since the government would be obliged to pay their interest until 2017.  They would receive two benefits: a reduction from the average rates of 7.77 percent to 5.75 percent (an immediate savings of over two percent); and to have the government pay the interest until 2017.

It would be logical and indeed quite smart for everyone to stop paying their mortgages for the next five years and have the government pay on their behalf. This would translate into an annual cost of over $266.7 million per year in interest payments (more than the government’s current debt service commitments) or $1.335 billion over five years.

All of this would further increase our debt to GDP ratio, which everyone is concerned about. What happens after 2017 if the economy does not turn around and continues to muddle through? We submit that given the current economic climate as well as the projected growth trajectory, it is highly unlikely that The Bahamas could afford this expenditure, unless we are able to grow the economy (provide more jobs) in the order of 10 percent per annum.

With reference to the suggestion that financial institutions extend maturity on the existing mortgages, as far as our research suggests, this is presently being done. With respect to using pension assets, again for the most part, this is being done already.

The reality however, is that less than 30 percent of companies in The Bahamas have a pension plan, so again, while a noble idea in the absence of pension legislation this will not result in any immediate assistance to the people it is intended for. Perhaps the idea of some form of mandatory pension may be considered to reduce the reliance on National Insurance in the future.

We again state, for the record, that this commentary is not politically motivated. We are simply interested in good economic policies which will further enhance the well-being of all citizens and permanent residents of The Bahamas. What we do not wish to see is capital being inadvertently driven away because of some ill-advised economic policy.

The Bahamas has any number of financial institutions which are ready, willing and able to provide advice on economic matters of national importance. This being one such matter, we felt compelled to present our views and to encourage political parties to consider stress testing some of their ideas that have been proposed so that we can navigate the future from an informed position.

CFAL is a sister company of The Nassau Guardian under the AF Holdings Ltd. umbrella.  CFAL provides investment management, research, brokerage and pension services.  For comments, please contact CFAL at: column@cfal.com

Apr 04, 2012

thenassauguardian

Caribbean Blog International

The murder rate for a country the size of The Bahamas has reached a crisis point... It is unacceptable

Are we doing enough to fight crime?

thenassauguardian editorial



Last Saturday’s triple homicide off Carmichael Road has shocked many Bahamians and residents of New Providence already reeling from a rising murder count that is certain to far outpace last year’s record of 94.

In what marked the 83rd, 84th and 85th murders for the year, two women, one of whom was pregnant, and a man were gunned down in an apartment on Montgomery Avenue early Saturday morning.

Police are investigating the possibility that the murders are connected to a double homicide that took place several weeks ago, not far from the site of the triple murder.

Police believe that many of the recent murders are connected and that generally speaking random killings are rare. This is the line that has often been used by senior officials trying to calm the fears of New Providence residents.

The murder rate for a country the size of The Bahamas has reached a crisis point. It is unacceptable.

By the end of July last year the murder count was at 54. This year that number had jumped by 31 by the end of July. Last month a recorded-breaking 20 murders were recorded.

Our average so far for the year is 12 murders per month. On that pace we could surpass the 94 mark before this month is up. It could also mean that we could record more than 140 murders this year.

We know that this point is not lost on police and government officials who have invested efforts and resources in the crime fight. And who obviously want to see crime brought under control.

The Gun Court has been an important step in the right direction and has so far been productive in helping to deal with our significant case backlog. There has also been a significant investment to increase resources for our police officers. And steps have been taken to improve the physical infrastructure of the judiciary.

But have those efforts and resources been enough? Obviously not.

More needs to be done to bring down crime in the country.

We acknowledge that the onus is not just on the government or police to come up with solutions, the community must also do its part.

However, the commissioner of police and minister of national security have been given as a part of their mandate the management and prevention of crime to the highest extent possible.

It is a difficult task, but we must do better than we are doing now.

The crime phenomenon is not unique to The Bahamas, the Caribbean or anywhere else.

We need to look at how other developed countries are approaching their fight against the scourge of crime and violence.

Jamaica, which has had one of the highest murder rates in the world, has seen a significant drop in its murder count this year after a gang crackdown, according to officials.

Based on what is often said by our local police and government officials, it would seem that a similar approach could prove successful here.

It may also be time to look at how existing youth, community and rehabilitation programs can be improved.

Perhaps it is time to consider — as some cities in the U.S. have done — the appointment of a crime prevention coordinator who works closely with the commissioner of police and Ministry of National Security to help implement crime prevention programs, among other things.

We do not have the answers, nor do we pretend to have them.

But we must do something more, and quickly.

Aug 05, 2011

thenassauguardian editorial

Caribbean Blog International

The Bahamian people can and should – with the help of appropriate labour – produce more of the food its people consume

Price Inflation and Food Shock

The Bahama Journal Editorial



Today some of what passes for new information has to do with the fact that the price for practically everything with the possible exception of labour is set to move upward.

This is what the economists mean when they talk about inflation; that situation where things fetch more and more while – on occasion – income marches in an opposite direction.

On occasion, situations arise when some people are hard-pressed to find money sufficient to pay for basics like food, shelter, heath and protection.

Sadly, this is becoming a reality for more and more Bahamians, particularly those who are ill, home-bound, indigent or otherwise marooned on Death’s door-step.

We now have another looming crisis on our hand. This time around is a situation where the government and people of the Bahamas must respond.

While we are quite certain that Social Welfare and charities galore in Civil Society can and will do what they must, we are also certain that these actions will only suffice to delay the coming of that day when some of those who are in distress might be pushed to take desperate action – with some of what they do bordering on the criminal.

But while this might yet become a reality in this already blighted and blasted place, we are sufficiently hopeful in our advocacy for the development of policies and strategies that could be of some great help, moving forward.

Bahamians can and should so gear themselves that they can produce more of the food they consume; and for that matter, more of the foodstuffs consumed by visitors.

The time is precisely now for our leaders and their Caribbean counterparts to come together with a view towards harnessing regional capacity.

This process could have the salutary effect of making the entire region less dependent on the rest of the world.

Information reaching us suggests that even if – by some magic- things were to return to some semblance of normalcy, food prices, fuel prices and the prices attached to technology and other commodities would continue to rise.

This analysis has evident implications and ramifications for countries such as the Bahamas that just happen to be ultra-dependent on the export and sale of services to sustain the life-styles to which they have become accustomed.

Put simply, all currently available indicators suggest that the Bahamian people should – as of now – brace themselves for the onset of any number of wrenching changes.

One such change involves this nation’s and our region’s speedier access to food that is inexpensive, nutritious, available and accessible, all at once.

Acceptance of such a formula immediately brings with it a slew of implications for labor law, immigration policy and relations with our neighbors in the region.

We deem this matter one that should be given priority attention: this because, the Bahamas unlike some of its sister nations in the Caribbean – inclusive of Jamaica, Cuba and Barbados, among others – is a net food importer.

This fact of life now underscores the grave importance of news coming in to the effect that, "... Rising international food prices could trigger an acceleration of inflation in several countries in Latin America and the Caribbean this year…"

The Inter-American Development Bank indicates that this now underscores what it describes as "…the need for policies to protect the urban poor…"

There are thousands of Bahamians who are today suffering from a double-barreled food whammy.

This two-pronged disaster derives not only from the fact that tens of thousands of them are obliged to eat food that is not only expensive, but also massively devoid of nutrients. Very many of them now have next to nothing with which to buy food.

These people are sometimes reduced to begging.

This situation is one that will be with us for the long haul; precisely because of the parlous situation in a United States that is itself battling with unemployment, a fractious political system and forces over which it has little control.

This suggests that even when recovery does come, tens of millions of Americans will work harder, save more and therefore spend less on luxuries such as a vacation-visit to the Bahamas.

While some of our fellow Bahamians wait for things to return to normal, there are some other Bahamians who have sought to suggest to a skeptical public that no such return is in the offing.

These people routinely call on the authorities to do what they have to do so as to help our people as they do their level-best to get through these hard times.

The Bahamian people can and should – with the help of appropriate labour – produce more of the food its people consume.

May 5th, 2011

The Bahama Journal Editorial

Bahamas Blog International

Leslie Miller - former cabinet minister and crime victim backs call for capital punishment to resume in The Bahamas in the face of a "severe crisis"

Former MP Strongly Backs Capital Punishment
By Macushla N. Pinder:



A former cabinet minister and victim of crime is strongly backing the call for capital punishment to resume in The Bahamas in the face of a "severe crisis" in the country.

According to businessman and former Blue Hills MP, Leslie Miller, Bahamians are being terrorised in their own country and something has to be done about it.

"The police do a fabulous job, so the problem isn’t the police, it’s the court system and those persons who are unafraid of the law…We must implement capital punishment and the cat o’nine tail and whatever other action is necessary to stem the flow of crime" Mr. Miller suggested when he appeared as a guest on Love 97’s daily talk show "Issues of the Day" with host Algernon Allen.

"…. It bothers me that we can allow 12 men to sit in London and decide the fate of people who are grappling with situations beyond the realm of what they face. A government is elected for and on behalf the people. So, if you cannot or are not prepared to do your job, you should resign as a Member of Parliament. I don’t see the Members of Parliament on both sides speaking out against crime or calling a special session of parliament to say we are going to deal with this once and for all."

Mr. Miller’s son Mario was found dead in a bushy area near Super Value Food Store in the Winton area on June 2002.

According to reports, he was stabbed 18 times about the body.

Evidence coming out of the case revealed that the official cause of death was a stab wound to the lungs and a chop to the neck, resulting in acute blood loss.

The Crown alleged that brothers Ricardo Miller, 30, also known as Tamar Lee, and his younger brother Ryan, 24, intentionally caused Miller’s death.

However, the first and second trials ended in a retrial.

Yet another retrial has been ordered.

So far this year, the country has recorded 55 homicides. The last two occurred over the holiday weekend.

On Friday, Slyvannus Williams, 45, was reportedly in an altercation with a woman believed to be his wife when she allegedly stabbed him in the parking lot of Green Parrot Restaurant and Bar on East Bay Street.

Just over 24 hours later, Exuma resident Cely Smith was killed.

According to police, four dreadlocked gunmen shot the 45-year-old Stuart Manor resident around 7:30 a.m. Sunday.

It is crimes like these that have made the call for the death penalty almost deafening at times.

"He who feels it, knows it. When you have to go to the hospital to identify your loved one or see them in the street murdered, then have someone talk foolishness around your head about hanging or any lethal injection, what about that person who would never take another breath? You would never see them get married. They would never have a grandson or granddaughter," he said.

"God gave us life and he is the one who is supposed to take us home. Anyone who interferes must be prepared to give their own [life]….This foolishness of going up to Fox Hill [Her Majesty’s Prison] and getting fat at the expense of the state is utter garbage."

But not everyone believes the death penalty is the solution. In fact, many argue that executing a convicted murderer would not cause crime to decrease.

But, Mr. Miller said the offender who kills would not kill again.

The country’s unabated crime wave has also driven up the cost of doing business.

In fact, Bahamas Chamber of Commerce President Khaalis Rolle recently told a local daily "many companies are scared to do business after dark."

Mr. Miller agreed.

"We have 10 police officers (at Mario’s Bowling and Entertainment Palace) on the weekends because we saw situations arising," he said.

"…This costs us between $8,000 and $10,000 per month….This is one of the drawbacks of operating in a society where crime is so prevalent... The criminals are getting bolder."

Earlier this year, Mr. Miller was robbed at gunpoint in broad daylight.

Two men reportedly exited a gold Chevy Impala, put two guns to his head and told him to hand over the money or he would be killed.

The two men reportedly got away with nearly $30,000.

"When a man has a gun pointed at you, you are not in charge. Don’t act as if you are in charge. You can make the money back. Think about your life, your loved ones, those who depend on you," he said.

"You can’t be the hero. In every movie, the hero normally dies at the end. I’m not trying to be the hero."

August 4th, 2010

jonesbahamas

Bahamas Blog International