The shots sent across the bow of the new Bahamas Government’s ship by Moody’s Corporation, and the U.S. State Department’s 2012 Crime and Safety Report are the first formal signs of the struggles which the new administration will have in preventing the ultimate sinking of the Bahamian economy. From within the Country, there have been reactionary criticisms of Moody’s “Negative Outlook” Statements warning the new administration that they essentially do not have the money or fortitudes to implement an expensive “Residential Mortgage Rescue” campaign promise. The U.S. State Department’s 2012 Crime and Safety Report ranked the crime situation in New Providence as “Critical”, its most ominous ranking.
These warning shots should be taken seriously by the Government and people of the Bahamas. Research conducted and published by the Council For Concerned Bahamians Abroad (CBA) at www.ourbahamas.org reveals that the concerns expressed by Moody’s and the U.S. State Department may be well founded. CBA research has previously reported that the view from outside the Bahamas, and that of powerful and influential international observers is critical to the future of the Country, and must not be taken lightly. Ironically, the current warnings could also provide the Government with a basis for responsibly advising its citizens of the need to hold back on some Election promises until it attempts to right the sinking economic ship. It is important for CBAs and domiciled Bahamians to recognize the perilous waters the Country sits in, accept the facts as they fall, and be grateful to Moody’s and other international organizations that hold similar views and influence, for firing a warning shot.
The new administration, on the other hand, must be careful not to create unreasonable expectations within the populace, and should use these warnings to their advantage.
Some of the disconcerting facts which CBA research has illuminated, and which Moody’s and other international financial organizations see when they evaluate the Bahamas include the following:
a.. The GDP and GNP of the Bahamas has underperformed for years and is not representative of a competitive Country in the modern global economy.
b.. Bahamians do not own any of the major implements of the Country’s Economy.
c.. The Economy is not Capital Market Driven.
d.. The Bahamian currency is not an internationally recognized or tradable currency, and as an artificially pegged and supported currency is an anachronism in modern global financial practice.
e.. There are no effective plans in place to implement any foreign revenue production other than a failing Tourism industry, and a failed and unrealistic Financial Services industry.
f.. An economy too highly dependent on Single Owner Foreign Direct Investment to bring monies and jobs into the Country.
g.. The age old conversation about the need to diversify the economy has been bandied about for decades without any progress.
h.. Crime has skyrocketed as the economy has declined. When viewing this conundrum, what would responsible viewers expect to hear from any objective analyst whose vision is not blinded with the bias of nationalism?
Concerned Bahamians must fight the battle with facts and truth, and give the new administration the chance to see the light and work on building the economy as the primary prerequisite to true growth and prosperity. It may take some time, but if the Administration can shine the light down the right path where objective observers and analysts can see where we are being led, then it should be alright to follow.
CBA Analytical Reports are published by The Council For Concerned Bahamians Abroad (CBA). They are distributed by the CBA News Service on www.ourbahamas.org the Council’s Internet Hub, and to various news organizations around the world. The reports are primarily researched and reported for the benefit of the estimated 60,000 Bahamian-Americans, and other Concerned Bahamians (CBAs) domiciled abroad in Canada, The Caribbean, Great Britain, Europe and the many other Countries in which expatriate Bahamians and Friends of the Bahamas reside.
