Bahamas News

The Bahamas is a hotspot for investment in hotels and resort development by international entrepreneurs. These investments have been responsible for some $8 billion in direct investment. A positive aspect of this foreign direct investment has been the fact that funds have been disbursed throughout this archipelago. This has been a good thing for several reasons.

Firstly, it addresses the issue of migration from the Family Islands to the urban centers of Nassau and Freeport. Secondly; these developments have created jobs in the Family Islands thereby alleviating poverty in those Family Island communities, which have long survived on traditional or pothole farming. Finally, these developments bring infrastructural improvements.

All of these projects have been negotiated through the Ministry of Financial Services and Investments. Despite the amount of investment coming into this country, there has been considerable criticism regarding the approval process, particularly the length of time it takes for final approval of a development project.

This past week, the government was roundly criticized by the US Charges d’Affairs, Dr. Brent Hardt, regarding the manner in which it has been approving projects. He singled out the LNG projects, which have been awaiting a determination for years.

The Charges d’ Affair may not fully appreciate the fact that The Bahamas is a country with very limited expertise in a range of fields; LNG is one of them. For the past half century this archipelago has grown its economy and improved its standard of living and quality of life via a unique economic development model, a model that has been emulated by virtually every island state in this region. To jeopardize our development paradigm by adding an unfamiliar element is courting an uncertainty with incalculable costs to our way of life if something goes wrong.

A major concern about these LNG projects is the possibility of serious damage to our environment. There have been LNG explosions at different installations around the world. Remember The Bahamas’ tourism thrust is centered on “sun, sand and sea”. The environment has been the carrot, which got Bahamian tourism going and was a critical ingredient in the promotion of The Bahamas on the global tourism map.

Mr. Hardt, as a diplomat, is well aware of the principle that countries act within the context of their own interests. This brings to mind a story of a fellow approaching a Minister, during the Pindling Administration, about a matter, which was very important to him. The Minister responded by saying yes the matter is important to you but not to me. The government of The Bahamas had to do its own due-diligence on the implications of introducing LNG in The Bahamas as well as bare in mind the sentiments of the Bahamian public who, in certain locales, have expressed some opposition to LNG. Only a rogue government would ignore the concerns of its citizenry.

The Bahamas is one of the US closest neighbours, only 48 miles from Bimini. Most Bahamians understand that LNG is needed for households on the eastern seaboard from the Florida Cays to Maine. In this scenario it is in the US interest to have the LNG projects approved. Like the Minister to the fellow, LNG is important to the US.

There are other instances where the approval process has been misguided. This stemmed from the fact that those individuals advising the government were not totally in command of technicalities facing the project.

One government entity had no objections as long as certain requirements were met; on the other hand, another Ministry was strong in condemnation. It is this situation, in my opinion, which creates problems for an investor, particularly a project that is introducing cutting-edge technology. This is frustrating because it clearly indicates that there is a lack of policy guidelines. If the policy were transparent, then there would be no ministerial conflict in the approval process.

For Developing Countries like The Bahamas, timelines in the project approval process is a key component in the development strategy. One of the attractions of China is the ability to obtain speedy approval for projects. This fact has had a great deal to do with the rate of China’s growth and development since the Nixon Administration initiated trade with China.

With the creation of the Ministry of Financial Services and Investments, the Christie Administration has brought focus to the project approval process. If this were not the case, then Mrs. Allyson Maynard –Gibson would not have been as effective as she was as the first Minister of this important Ministry. During her tenure, some 80 projects valuing some $11.5 billion were approved and heads of agreements signed. With introduction of the Domestic Investment Board, the approval process will now be focused on the indigenous investor, who for years has complained about this process.

All countries require investment to fuel development. The ability to manage the approval process has not been an easy task for most Third World Countries. The Bahamas is not perfect in this

regard, Mr. Hardt, but no one can deny the fact that, overall, successive Bahamian governments have done a pretty good job in bringing development to this archipelagic nation called The Bahamas.