On the evening of Wednesday, April 23rd last, The Civil Society Sub-Committee of The Bahamas Trade Commission sponsored a teach-in at Loyola Hall, Gladstone Road. The object of the teach-in was to help educate the public about the various international trade agreements and those presently being proposed by world organizations such as the World Trade Organization (WTO); the North American Free Trade Agreement (NAFTA); the Lome Agreements for the Asian, Caribbean and Pacific small states and the Caribbean Single Market Economy (CSME).
Presenters for the evening were His Excellency A. Leonard Archer, (Ambassador to the Caribbean), Mrs. Wendy Rolle, Deputy Governor of the Central Bank, and Mr. John Role, Director of Customs.
The information shared by the three panelists was indeed important for Bahamians in trying to get us prepared for some of the socio-economic and political adjustments our country will more than likely have to make, if we hope to survive in the new regional and global worlds of tomorrow. Unfortunately the news media failed to cover the event, which attracted an audience of a mere 23 persons. This could have been due to the absence of high-ranking political figures or not enough publicity. Whatever the reason, it is most important that the information shared in layman’s language at that forum get out to the general public on a constant basis.
As one listened to the various speakers, one couldn’t help but ask the question: Why does our government appear so indifferent to the major adjustments that we more than likely have to make in our revenue collection system, free flow of trade information to enhance trade along with the removal of other barriers to free trade?
It would appear that our country would like to enjoy full benefits of membership in regional and global organizations, without paying the necessary dues; and according to the speakers, the longer we remain fence-sitting, the steeper will the dues become. We have indicated that we would like to become a member of WTO, CSME and possibly NAFTA, but we seem unable to meet deadlines for the submission of data needed prior to consideration for membership. One such deadline was February 15th past, with no indication as to when the information will get to the WTO.
In the areas of taxation, it appears that changes will have to be made if customs duty is perceived to be a barrier to trade and a hindrance to the promotion of a high level of integrity, honesty and transparency, so that terrorism and illegal trafficking of any kind could be minimized. Yet there seems to be some reluctance on the part of government to educate its citizens into the various tax possibilities in the event that it is forced to abandon our present lazy and regressive form of taxation.
According to Mr. Rolle, we will encounter some problems in accounting as WTO and NAFTA press on for economic systems to open and display more transparency and incorruptibility. This would probably mean converting all customs systems to interface with those states operating under common agreements and access codes.
A very important point to remember, the audience was told, is that America in particular, would like to enter agreements with small Caribbean states as a group rather than individually. At the same time the voice of individual states would be more likely heard if emanated from the collective whole. It is simply more cost effective to negotiate as a group than doing so individually.
All of the presenters spoke to the competitive nature of tomorrow’s societies, which will require speed of information, movement of goods and services, and greater productivity, efficiency and cost-effectiveness on our part. Protectionism will be a thing of the past; and so our school system will have to reform so that the level of dysfunction by our people be decreased appreciably. We will have to produce workers for the world, not just for the Bahamas.
During the question and answer period, the question was asked if there was any study being done to see if our present form of custom taxation was more just than other forms, such as income and value added taxes. Even though it was basically agreed that our present system was regressive and tend to favour the rich, it will probably remain for some time to come, unless it can be demonstrated conclusively that other forms would significantly afford greater revenue for government to improve services and balance of payments.
Change is hardly likely, according to a questioner from the floor because our legislators have historically also been controllers of politics and the economy, and have never wanted their true financial worth to be known by those they govern, nor do they want the kind of involvement and accountability in governance that income taxation would entail. Change will only come, it appears, if forced from the outside, which could mean disaster – possibly like that being experienced in Haiti.
Viewpoints, The Bahama Journal
