No Referendum For Oil Drilling
Tribune242
Nassau, The Bahamas
By Arinthia S. Komolafe
The economic situation
Nationwide commentary suggests that Bahamians are concerned about both microeconomic and macroeconomic issues affecting their lives. From a microeconomic standpoint, they are concerned about the government’s inability to create permanent jobs, improve education and ensure that they are able to maintain a decent standard of living. The issue of home ownership and the deepening mortgage crisis remains of utmost concern to the middle and working classes of the electorate. It is also an understatement to emphasize that the electorate abhors the reality that in 21st century Bahamas. Widespread job opportunities are still restricted to the tourism and financial services sectors or the civil service.
On the macro-economic front, there is widespread uneasiness about the rising government debt level in the face of reduced government revenue; a U.S. economy that is slowly recovering; high food and fuel prices; and corresponding increases in the inflation and unemployment rates that are believed to have a high correlation to the high crime rate. In the past five years, unemployment has doubled to more than 15 percent; the national debt has doubled to more than $4 billion; and crime, including the heinous crime of murder, evidence a fast-paced upward trend with approximately 500 murder victims to date.
While it is true that governments across the world, including developed nations, were faced with some of the challenges outlined above, it has been reported that the Bahamian government had at its advantage several investment projects left on the table by the former Christie administration that had the potential to create additional jobs. The PLP opposition has reiterated this point and accused the government of what it termed as the “stop, review and cancel” policy which it argues expedited the recession in The Bahamas.
We will never know the true impact that these projects would have had if they had come to fruition. What is clear is that the government lacked a clear and prudent fiscal, monetary or economic policy that would have guided us through this recession with minimal casualties of unemployment, crime and home foreclosures.
The FNM, which is traditionally considered to be both politically and fiscally conservative in contrast to the PLP’s social and liberal approach to politics and fiscal management, has done very little to distinguish itself in this current term of office from the manner in which it is perceived a PLP government would govern.
The introduction of the prescription drug program and unemployment benefits, which would traditionally be seen as PLP policies, are necessary safety nets that all progressive governments should implement. However, due to the regressive tax structure in The Bahamas, low to middle income earners bore the brunt of the implementation of these initiatives through increased taxes in the midst of an already challenging economic climate.
Where are the ideas?
It is rather unfortunate that in spite of the lessons supposedly learned during the financial crisis and with the election date fast approaching, all the political parties have not provided to the Bahamian people a comprehensive action plan to address the pressing issues facing our dear nation. Rather, we seem to be headed to another election season in which silliness and petty issues are magnified. I submit that what is lacking in The Bahamas today is not intellectual capacity or a shortage of innovative ideas, but rather our leaders do not have the political will to implement policies that will move the country forward.
The Bahamian electorate has become weary of campaigns without substance which fail to expressly articulate in clear terms how the country will be put back on the right track. Political parties will do well in unequivocally committing to tax reform, economic diversification, reducing the budget deficit and national debt in the interest of future generations by producing a viable plan as documented in their respective manifestos. A commitment in this regard will ensure in the long run economic stability, growth and development.
In the absence of manifestos to date, it is without a doubt that the build-up to this year’s general election will lack the necessary substance to foster sensible debates on pertinent issues and ensure effective scrutiny of the next government. Politicians should be advised that the old tricks of sheer rhetoric and glorified baloney will no longer satisfy a people that desire more for our Bahamaland. The political parties seeking employment as the next government of The Bahamas should note that the increasingly informed electorate demand details of their proposed monetary, fiscal and macroeconomic policies before they cast their votes for them. The stakes are too high to entertain politics as usual.
• Arinthia S. Komolafe is an attorney-at-law. Comments can be directed to:arinthia.komolafe@komolafelaw.com
Apr 12, 2012
By Arinthia S. Komolafe
Gambling no doubt is one of the most controversial topics of discussion in The Bahamas. There are many proponents and critics. It remains uncertain, however, what percentage of the Bahamian population is for or against legalizing gambling by Bahamians. The reality is that we as a nation continue to go round and round in circles on this matter, while thousands of Bahamians patronize the multitude of what are commonly referred to as ‘number houses’ in The Bahamas.
The arguments
An argument against the legalization is that it will bring with it a myriad of social issues that are opposed to Christian values and will cause a decadence in Bahamian society. While it is accepted among some that gambling may not be an outright sin in the Bible, gambling done in excess is sinful.
Others opposed to the legalization of gambling have put forth an economic argument claiming that gambling is an open form of regressive taxation that will affect those of the lower income brackets more than those of the middle and upper class. As a result, those of the lower income class will fail to take care of their financial obligations at home such as paying necessary bills and caring for their families. A perception exists that individuals below the poverty line gamble more than persons who are not poor. However, studies in America suggest that the reverse is true as it was found that more persons of the middle class played the lottery as opposed to those of the lower income class.
Proponents of legalizing gambling assert that government cannot legislate morality. Further, proponents claim that there are many potential benefits including an increase in government revenue which can contribute toward charitable purposes, infrastructure and most notably education. Advocates of the legalization of gambling also argue that it is another legitimate source of income for a government that has limited ability to increase its revenue intake. Although this argument has been successful in persuading a lot of Americans to vote in favor of a national lottery, it was found that the eventual revenue was not utilized in the manner that many had hoped for. For instance, the additional revenue from the lottery did in fact go towards education; however, many states reduced or offset the allocation to the educational budget against revenue received from the lottery. Hence, the education budget was not increased overall but education was merely funded by another source of revenue. To remedy this effect, a few states in America have passed legislation to ensure that a certain percentage of revenue received from the lottery is allocated for the specific purpose of education. This ensures that the funds are used for the purpose intended on the one hand, and on the other hand it ensures that the states do not decrease their allocation to education.
The greatest issue with gambling in The Bahamas is the fact that there is much hypocrisy surrounding the point. Several decades ago, the government of the day approved policy for hoteliers and casino operators to provide gambling services, however casino gambling and ‘playing numbers’ was outlawed for Bahamians. It is interesting to note that civic organizations, churches and schools still have the ability to distribute raffle tickets as a major fundraiser. However, provisions have been made for such activities under the Gaming and Lotteries Act. Over the years, law enforcers have conducted random raids of ‘number house’ establishments in an attempt to discourage the practice of gambling by Bahamians otherwise called ‘buying and selling numbers’. However, the truth of the matter is that neither the government nor the law enforcers have done an adequate job ‘shutting down’ the number houses.
There is widespread hypocrisy in that the government allows foreign investors to enter the country and provide amenities for casino gambling for their guests, but Bahamians though guests of these hotels quite often are unable to utilize these gambling facilities. It is unclear whether the operators of ‘number houses’ want gambling by Bahamians legalized. Any potential legalization will certainly decrease their profits, reduce market share and relinquish their current control to a government authority. Liberalization of the gambling market will foster competition and encourage the entrance of more competitors. Hoteliers and casino operators may not prefer any gambling policy that allows Bahamians to gamble not because of a threat to their market share, but because it will provide Bahamians with the licence to enter these establishments and patronize all the amenities just as the foreign tourists and non-residents do. Arguably, hoteliers and casino operators may not find such a policy good for their businesses.
It appears that there are arguably many special interests who prefer to keep the status quo. However, maintenance of the current state of affairs will increase hypocrisy and anarchy among Bahamians. It is advisable for the next government of The Bahamas to ascertain the gambling appetite of the Bahamian population and propose a referendum on the matter. We must take a “what is good for the goose is good for the gander approach”.
Legal gambling in The Bahamas should benefit both Bahamians and non-residents alike. The same is true for illegal gambling; neither Bahamians nor non-residents should benefit. If Bahamians agree to legalize gambling, it follows that the government must take the necessary steps to comply with the wishes of the people. However, if the overwhelming response is to keep gambling by Bahamians illegal, the government and relevant government agencies must enforce the law and uphold the provisions of the Gaming and Lotteries Act. This is the essence of democracy – a government of the people, for the people and by the people.
Arinthia S. Komolafe is an attorney-at-law. Comments can be directed at: arinthia.komolafe@komolafelaw.com
Mar 01, 2012