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.

Source 

Chinese Investments in The Bahamas

Optimism About Chinese Investments in The Bahamas and Their Significant Impact on Jobs For Bahamians

Chinese Investments Pour In to The Bahamas

By Candia Dames

candiadames@hotmail.com

19/08/2004

Bahamians will feel the benefits of Prime Minister Perry Christie’s visit to The People’s Republic of China for decades to come, according to Minister of Financial Services and Investments Allyson Maynard Gibson.

Minister Gibson also told the Bahama Journal Tuesday night that Chinese President Hu Jintao has accepted an invitation from Prime Minister Christie to make a state visit to The Bahamas, although she did not indicate when.

She said the benefits that will result from Mr. Christie’s visit to China will extend well beyond the $30 million stadium Chinese officials have committed to funding in The Bahamas.

Minister Gibson added that the COSCO Shipping Company, which intends to be the largest shipping company in the world by 2010, has recently registered three of its ships under the Bahamian flag.

The company’s president has also proposed the expansion of the dry dock ship repair facility in Freeport, which would enable that operation to accommodate the largest cruise ships in the world, the Minister reported.

This would create a significant number of jobs for Bahamians, she said.

“We have every confidence that with Hutchison Whampoa, COSCO and CITIC in The Bahamas, more Chinese companies and investments will follow because of the confidence indicated by those companies in the government and people of the Bahamas,” Minister Gibson said.

The Bahamas is also expected to benefit in the area of tourism from stronger relations with the Chinese government.

Both the president and premier have committed to encouraging more Chinese companies to invest in The Bahamas and establish joint ventures with Bahamians, according to Minister Gibson.

She also said that the Chinese premier intends to designate The Bahamas a preferred travel destination for Chinese people.

As a result, Prime Minister Perry Christie is reportedly encouraging direct flights between China and The Bahamas.

Efforts are also being made to form a partnership with the Chinese so that more souvenirs can be produced in The Bahamas, said Minister Gibson, who added that the intention is to ensure that at least 50 cents of each dollar earned from tourism remains in the country.

“We already have four million visitors from the United States and Europe to support a significant souvenir and handicraft industry originated by Bahamians,” she pointed out.

“But now add to that the potential growth in the tourism sector from the Chinese market which we know will be coming on stream.  Imagine what that would mean, not only in jobs, directly in the tourism industry, but also growth in entrepreneurship and jobs created from that as well.”

She said a Chinese firm, known as NUTEC, is also working with the government to provide equipment that would be used in the scanning of containers.  Minister Gibson said this equipment would improve revenue collection.

She added that it would also help in the fight against illegal drugs and weapons as well as other banned goods.

In addition, Minister Gibson reported that government officials are in discussion with the Chinese to form partnerships between them and the College of The Bahamas in the areas of math, science and technology.