General Election in The Bahamas: ...Bahamians are expected to turn up at the polls in record numbers to vote in a new government - May 07, 2012

2012: The FNM’s new plan

The governing party puts forward its vision for the next five years

By Taneka Thompson
Guardian Senior Reporter
taneka@nasguard.co

Nassau, The Bahamas

With three weeks left until the general election, two of the three major parties jockeying for your vote on May 7 have released their blueprints for governance.  Last Thursday night, before thousands of jubilant supporters who converged at R.M. Bailey Park for a mass rally, Prime Minister Hubert Ingraham unveiled the Free National Movement’s Manifesto 2012.

The FNM’s extensive, 120-page document touches on the party’s plans to reduce and prevent crime, tackle illegal immigration, improve the country’s educational system, diversify the economy, reform the tax system and improve life for all Bahamians.  It places a heavy focus on youth development, national volunteering, business expansion and economic development of the Family Islands.

On Thursday afternoon, the Democratic National Alliance (DNA) released its Vision 2012 and Beyond – a document which sets out that party’s policies on crime, immigration, the economy and social issues.  At the time of writing this article, the official opposition Progressive Liberal Party (PLP) had yet to release its five-year blueprint, called “Our Plan”.  However, the party asserted that it had been releasing critical components of Our Plan, such as its crime fighting platform Project Safe Bahamas and a mortgage relief scheme for homeowners facing foreclosure, over the past several months.

While this is by no means an exhaustive look at Manifesto 2012, I have highlighted a few areas which should be of concern to voters.

Crime

In no other area has this administration faced more criticism and backlash than its crime fighting strategy.  Murders climbed to record levels under the FNM’s watch and incidents of other violent crime and anti-social behavior grabbed headlines during the past five years, in spite of the myriad of policies the government put in place to curb violence.

Critics from the opposition maintain that the government failed to deliver on its 2007 mandate for crime fighting and continue to lay the blame for the crime statistics at the government’s feet.  It is not surprising then that the fight against crime is listed as the main concern of the next FNM administration.

“Ensuring the safety and security of all Bahamians is our number one priority,” the manifesto says. “The business of police must be preventing crime not simply responding to it...  Our aim is not just to control bad behavior but to change it.”

In the document, the FNM lays out 11 ways it plans to ensure that the Royal Bahamas Police Force (RBPF) not only responds to crime, but also helps to prevent criminal behavior.  The FNM plans to accomplish this by increasing the police’s visibility and presence on the streets.  Low visibility is a common complaint from many in society who feel that officers spend too much time in their squad rooms and not enough time patrolling known criminal hot spots and neighborhoods which have become targets for housebreakers and armed robbers.

The FNM said during its next term in office, it will boost the ranks of the Royal Bahamas Police Force by 250 officers; require officers to spend half of their weekly shifts working the beat; and require police to spend as much time on the streets at night as they do in the daytime.  The FNM also said it will marry community policing with modern technology to increase the predictive capability of the police force and expand closed circuit television to assist in crime prevention and criminal detection. The FNM also says it will require district constables to hold monthly meetings in their areas to keep residents aware of crimes committed in their communities.

While placing more police on the streets and beefing up the command of the RBPF may put some residents at ease and catch a few criminals in the act, it will do nothing to root out the spirit of lawlessness, disorder and general disregard for human life that so many in our society are afflicted with. Focusing on at-risk youth, instilling positive values, education and affirmative life skills are the only long-term solution to the crisis our country is faced with.

There are several long-term initiatives in the FNM’s agenda that could lead to positive results if they are properly introduced and maintained.  One such policy is identifying troubled youth when they display anti-social or violent behavior in the school system.  The FNM says it plans to create “a fast and effective program in the school system and at the community level to address the early display of anti-social behavior by young persons as well as a targeted program for repeat offenders”.

Other proposed policies in the FNM’s manifesto for youth development include a mandatory community service program for government school students; creating a summer institute for boys making the transition from primary school to junior high; and creating a youth outreach initiative.

Education

Under its education platform, the FNM promised to ensure that every child is adequately numerate and literate before he or she leaves the third grade.

The manifesto says the FNM will create a mandatory work experience program if elected for another term, which will ensure that all high school seniors complete a minimum number of apprenticeship hours before being allowed to graduate.

The FNM also plans to place a heavier focus on skills training by expanding technical and vocational skills training offered at public high schools and increasing the budget allocation to the Bahamas Technical and Vocational Institute (BTVI).  The next FNM administration also plans to bolster programs at BTVI so that it can certify skills levels and standards for Bahamians trained in construction, plumbing, masonry, electrical work, etc.

Jobs

Another key issue in this election will be job creation.  According to recent figures released by the Department of Statistics, the country’s unemployment rate was 15.9 percent as of November 2011.  The unemployment rate for young people was 34 percent and the unemployment rate in Grand Bahama stood at 21.2 percent.

Unemployment and crime go hand in hand and in order to stem the level of violence and theft on our streets, the government must focus on job creation.  In order to stimulate job creation, a responsible government must look out for small businesses and create grants and stipends which allow them to remain afloat and keep people employed.

In its manifesto, the FNM said it will foster small and medium business development by giving more incentives to the manufacturing and industrial sectors; it will promote and encourage small resorts and bonefishing lodges that are Bahamian owned; and give incentives to entrepreneurs to open up shops in the Family Islands and create employment in those communities.  If re-elected, the FNM says it will also offer a one-time apprenticeship financial incentive to manufacturers for each apprentice they take on.

Tax reform

Although tax reform is noted in the manifesto under its plans to modernize the economy, just how the FNM will address the issue if re-elected is not made clear.

“Accelerate taxation system reforms to reduce dependence on border taxes and broaden the tax base,” is all the manifesto says on the issue.

Financial analysts have long maintained that the country has to move away from its heavily customs based tax regime to another taxation system which makes us more competitive in the global trade market.  Tax reform is also needed so that this country can fully comply with international trade agreements such as the one signed with the World Trade Organization.

Vote wisely

Bahamians are expected to turn up at the polls in record numbers to vote in a new government.  This election cycle there are many choices.  Three parties are fielding 38 candidates each and there are a handful of independents and fringe party members all hoping to be elected to Parliament come May 7.

In New Providence, it is now impossible to avoid the billboards and posters with the smiling faces of political hopefuls which crowd every corner, or to ignore the political ads filled with promises and election pledges which play every few minutes on the radio and television.

However, voters should not be fooled by the fanfare and theatrics which are commonplace in “silly season”.  In between the gibes, wisecracks and blame laying which are thrown about at political rallies are slivers of the real issues that will affect this country for the next five years and beyond.  The concerned voter, and every Bahamian interested in the future of this country, should make an informed choice based on the policies and promises each party and candidate has made on the campaign trail, along with their records in office.

The discerning voter should decipher the grandiose promises from the probable initiatives that can be implemented over a five-year period before he or she makes a choice.

Apr 16, 2012

thenassauguardian

The political parties seeking employment as the next government of The Bahamas should note that the increasingly informed Bahamian electorate demands 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 in The Bahamas

Another general election without substance?

By Arinthia S. Komolafe

thenassauguardian

Nassau, The Bahamas

Now that the election bell has been rung and the anticipated date for the election is scheduled for May 7, 2012, one can’t help but wonder what lies ahead for the Bahamian people during the next government’s term of office from 2012 to 2017.

It is now officially four weeks prior to the election date and we have yet to receive a single manifesto from any of the political parties vying for the top spot in governance.  The opposition Progressive Liberal Party (PLP) is running a campaign primarily based upon improving the economy, job creation and crime reduction and has released literature to that effect.  The newly formed Democratic National Alliance (DNA) has based its campaign on “real change” and being a viable alternative to the established parties outlining its proposals on certain issues such as the economy, crime and illegal immigration.  As anticipated, the governing Free National Movement (FNM) is running a campaign based upon leadership, delivery on its promises and its ability to manage the economy in the midst of the global economic crisis.

 

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

thenassauguardian

On the eve of a general election, sleeping trade unions in The Bahamas awaken... and suddenly take notice of ‘the plight of their membership

More union action as general election looms

By Taneka Thompson
Guardian Senior Reporter
taneka@nasguard.com

Nassau, The Bahamas

It never fails. On the eve of an election, sleeping trade unions in the country awaken and suddenly take notice of ‘the plight of their membership’. It is almost as perennial as the grass. They carry on about agreements that have been languishing at the negotiation table for years, company bosses who ignore them and a government that moves too slow. They summon the media to announce, time after time, that they are about to resort to industrial action to shut the country or a business down.

The truth is that these worn tactics – in the face of the global economic downturn and changing dynamics in the demand for labor worldwide – are becoming increasingly dangerous for the union’s members. Unionists have to, more than ever, work with employers, certainly to protect the ‘rights of the working man’ but also to ensure that this same man has work to go to the next day. No one can force a business to keep its doors open and no one would blame someone for closing up shop if that shop was not profitable. And as the events of the past few years have shown us, there is no such thing as a company too big to close its doors.

The most talked about issue over the social networks over the past few days was the nine-day closure of KFC. While many disgruntled customers joked about the lengths they would go to get their hands on a ‘two piece spicy meal’, the human element of the situation was glossed over. During the closure KFC executives said they would not pay staff, who they accused of engaging in ‘illegal’ industrial action on February 20.

For the 300 employees of KFC who sat in limbo, reporting to work every day under the union’s orders only to the find doors locked, there was more at stake than getting a fix of the Colonel’s 11 herbs and spices. They were forced to loiter outside the company’s nine Nassau locations, chatting amongst themselves, some with children on their laps or underfoot. Many of KFC’s employees are single mothers with, as a few of them told me, two and three ‘deadbeat baby daddies’. Unsure of when the next paycheck was coming in, some workers applied for the dole, desperate for emergency food stamps to feed their families.

Luckily for them, the standoff between the union and their employer was brief. After a series of negotiations mediated by Labor Minister Dion Foulkes, both sides came to an agreement over the terms of a new contract and stores opened on February 29. But the tentative contract terms contain reduced benefits for new employees and some concessions, albeit with expiration dates, for current employees.  And those employees are today without a week’s pay.

The unions overextended their hand and underestimated the lengths their opponent would go to prove his point. The franchise owner of KFC Nassau, George Myers, doesn’t need the doors of the chicken restaurant to be open to put food on his table – the union’s members do.

George Smith, former Cabinet minister and a good friend of Myers told The Nassau Guardian that Myers was ‘pushed too far’.

“We (the country) are having economic problems. They (the union) should have said, ‘Look, when the economy turns around can we revisit these things and set some benchmarks for when the economy improves?’ They know that their union isn’t about to supplement those people but [executives at KFC] know they could afford to hold out for a long period of time. I assure you, George Myers used the time to give his top people holidays and clean the place up a bit,” Smith said.

The only resort chain in The Bahamas to have two proprieties on two different islands, Sandals, faced recent union drama of its own. There was no actual industrial action taken by current employees of the Sandals Royal Bahamian, the resort’s property on New Providence. During the whole ordeal, I wondered what would have happened if in fact there was a walkout of workers at the property. Chairman of Sandals Resorts International Gordon “Butch” Stewart just invested $20 million in the refurbishment of a block of rooms at Sandals Royal Bahamian and millions more expanding his current holdings at Emerald Bay in Exuma.

His general manager in Exuma, Jeremy Mutton, recently spoke about the cost of running a resort on the out island. His son and CEO, Adam Stewart, has said that Emerald Bay will not be profitable until at least 2014. Royal Bahamian General Manager Patrick Drake is on record referencing the high cost of utilities in Nassau.

Gordon Stewart is essentially the sole proprietor of the multi-billion-dollar company. He has no shareholders, no board of directors to consult if either property does not make money. It is not out of the realm of possibility that he could one day pick up his marbles and leave. No one does business in The Bahamas – whether they are local or a foreign investor – because they think Bahamians are cute. They do so to make money. Let’s not fool ourselves; unions are a business as well too. They make money from the salaries paid to their members. Pushing an employer so far that he would rather close the doors of his business is like a parasite killing its host.

Labor unions have always had to negotiate in the context of the economic realities in which businesses and the employees who work in these establishments exist. As the world attempts to rebound from the worst global recession since the Great Depression, they have been focused on keeping the doors of businesses open and securing their members’ jobs. Nowhere is this truer than in the United States.

The Washington Times reported that according to the U.S. Bureau of Labor Statistics, major work stoppages — situations when 1,000 workers or more go on strike or are locked out — dropped 95 percent in 2009 compared with the previous year. This is the lowest level since the U.S. government began keeping a tally in the 1940s, the Washington Times said.

Even the mighty automobile unions of Detroit, in order to save the jobs of their members who are employees of General Motors and Chrysler, agreed to no-strike clauses which expire in 2015 as conditions of the government bailout.

However, here at home it seems the threats, and sometimes follow through, of work stoppages have not gone dormant because of the recession. Union leaders continue to threaten to withdraw labor and shut down essential services.

It’s not much of a stretch to say that the trade union movement has been flexing its muscles recently because of the looming general election. Union leaders, and their members, know that politicians will say and do anything to quell any discord that could derail their political ambitions.

“Unions tend to try to get what is duly, rightfully theirs at this time in the political season because over the past years unions have not been getting their fair share before elections. So if it takes a union this period of time to save their problems until now, then there you have it,” said Dwayne Woods, president of the Bahamas Utility Service and Allied Workers Union (BUSAWU), which represents workers at the Water and Sewerage Corporation.

“It doesn’t mean that they are not entitled, and it doesn’t mean that they are being political. Whatever is going on here is non-partisan and non-political. I don’t play games; [these are] the wishes of the membership,” Woods added.

A few dozen of his members protested and withdrew their labor for at least two days last week. They were pressuring government to immediately address a list of labor concerns, including the regularization of several contracted workers, some of whom had been working with WSC for 11 years, and who did not enjoy the same benefits as permanent workers. The union is also pushing for the corporation to revisit its ‘unfair’ promotion policies; pay separation packages to workers made redundant after government ended its practice of water barging from Andros, and rehire two employees who were recently let go from the corporation or pay them severance packages.

Over the last few months, unions representing Customs and Immigration officers, air traffic controllers and the public service have also been agitating against government to address their issues – or face industrial action.

Labor Minister Dion Foulkes said while some unions do have genuine concerns, it is no coincidence that they have ramped up their efforts to conclude trade disputes as the next election draws nearer.

“It does seem that some of the unions are using the election season as leverage in their negotiations. Some of the issues that have come forward have been very legitimate issues by the various unions. Some of the matters have been in negotiation for quite some time and they are just coincidentally coming to head at the same time when the next elections are due.

“It seems to be there may be some political motivation behind the actions by some unions, but the public will have to draw their own conclusions from the facts presented,” Foulkes said.

Mar 05, 2012

thenassauguardian

The political campaign season is well underway in The Islands... ...The governing Free National Movement (FNM) has officially launched its full slate of candidates for the upcoming general election... ...Its apparent messages were ‘We Deliver!” and that the FNM is, ‘Best for Bahamians and Better for The Bahamas’

Will the FNM deliver?

Erica Wells
Guardian Managing Editor
erica@nasguard.com

Nassau, The Bahamas

When Prime Minister Hubert Ingraham addressed the nation last week in his annual New Year’s address, there was something decidedly different about the tone of his presentation.

Outside of political rallies, formal communications such as an address to the nation are often relatively void of emotion.

Last Wednesday’s address was different.  It sought to give Bahamians a reason to believe.  At a time when many are struggling under the weight of a sluggish economy, and some are simply hopeless, it could not have been more appropriate.

Ingraham assured Bahamians that despite the tumultuous times brought on by the global economic downturn in 2008, and the impact that it has had — and continues to have — on The Bahamas, the country is headed in the right direction.

“Despite the severe economic shock of 2008 and the challenges of tomorrow, we are a fortunate country and we are moving in the right direction,” the prime minister said.

“So I say to you... that as a people, we can rightly feel a spirit of gratitude for the many blessings of our Creator.  Let us build on this spirit of gratitude with a spirit of hope.  Let us do so in grateful acknowledgment of the many blessings and the promise of our beautiful Bahamaland.”

This could turn out to be a hard sell for the hundreds of unemployed and underemployed Bahamians who are finding it difficult to meet the most basic of necessities.  Many cannot afford to pay their utility bills and are laboring hard to buy groceries.  Some have lost their homes.  Others have given up any hope of finding a job after months and months of searching.

Convincing Bahamians that the country is headed in the right direction may prove to be a difficult task.  Yet, as a general election looms, convincing voters that the country is headed in the right direction will be crucial to the Free National Movement’s success at the polls.

Progress

Even Ingraham’s harshest critics would have to admit that the Free National Movement in the last five years has accomplished a number of items on its ‘to do’ list.

Whether it has been enough to secure another term in office, and whether the party has been effective in communicating what it views as its major accomplishments, remains to be seen.

In his New Year’s address last week, Ingraham took the opportunity to remind Bahamians of the FNM’s accomplishments.  The New Year’s address reads a lot like a progress report.

The list of accomplishments highlighted by Ingraham was extensive.

It included job preservation and creation, the re-development of Lynden Pindling International Airport, the Airport Gateway project, the New Providence Road Improvement Project, an increase in funding for the resources for formal education, an increase in youth development programs, and sports funding.

Ingraham’s list also cited transforming the country’s crime fighting and judicial legislative structure and facilities, investment in healthcare through the prescription drug benefit and the upgrade of facilities at the Princess Margaret and Rand Memorial Hospitals, improved public educational facilities, the relocation of the downtown container port, the dredging of Nassau Harbour, the construction of a new straw market, and infrastructural improvements in various Family Islands, among others.

While Ingraham has not articulated the ‘national plan’ that many have called for, the significant infrastructure projects on which he has placed a priority in this term in office provide some insight into his vision for the country.

“Investing in infrastructure is a means to achieving essential national goals and creating jobs,” said Ingraham.  “Investing in infrastructure and in housing is an investment in people and communities.  It is an investment in the quality of life, livelihoods and life spans.  It is an investment in the future of The Bahamas.”

But some of the significant infrastructure projects, such as the New Providence Road Improvement Project, may do more harm than good when it comes to the party’s re-election prospects.

This point has not been lost on the prime minister, seen in his public apology to motorists during last week’s address.  Many have been greatly angered and inconvenienced by the extensive roadworks undertaken in the troubled project.

“I again thank you for your patience and apologize on behalf of the Government of The Bahamas for the delays, inconveniences and disruptions,” said Ingraham.

“Despite these challenges, we believe that in the end it will be well worth the sacrifice.”

But by the end of the project will it be too late for some voters?

The message

The address also provided an insight into how the party plans to convince the voting public that it deserves another term in office.

It attempted to drive home a message of action, a message of an administration that “gets the job done”, in comparison to a PLP administration which the FNM has labeled as indecisive and slow to act.

Referring to what he described as a response to “urgent infrastructure requirements” in the context of the global economic crisis, Ingraham said in the address: “No responsible government could have followed the path of delay, indecision and half measures.  We had to act decisively and comprehensively.  Not only was a collapse (of the Bahamian economy) prevented.  We are now moving forward.”

The campaign season is well underway.  The Free National Movement officially launched its slate of candidates for the entire Bahamas last night.  Its apparent messages were ‘We Deliver!” and that the FNM is, ‘Best for Bahamians and Better for The Bahamas’.

One is a familiar refrain from the “Delivery Boy” slogan used when Ingraham first joined the FNM as its leader.  The other seems a clear strategy not to cede any ground to the PLP on which party is more committed to the interests of Bahamians.

But it remains to be seen if these messages will deliver to the FNM and Hubert Ingraham a fourth election victory.

 

• Log on to thenassauguardian.com and take part in our regular web poll: Do you agree with Prime Minister Hubert Ingraham that the country is headed in the right direction?

Jan 30, 2012

thenassauguardian

The Economist magazine's Intelligence Unit predicts that the governing Free National Movement (FNM) party in The Bahamas will win the 2012 general election

Magazine predicts FNM will win in 2012


By CELESTE NIXON
Tribune Staff Reporter
cnixon@tribunemedia.net

Nassau, The Bahamas



THE analysis arm of a renowned financial publication has predicted the FNM will win the 2012 election.

The latest update by The Economist magazine's Intelligence Unit said that while the global economic outlook remains pessimistic, 1.8 per cent growth is expected in the Bahamas in 2011 and 2.3 per cent in 2012 - which should put the FNM in a favourable position for the next general election.

The report said: "With economic conditions improving and the opposition discredited by its own scandals, The Economist Intelligence Unit expects the FNM to retain a majority in the election."

The Intelligence Unit, a sister organisation to The Economist, provides forecasting and advisory services that help "business leaders prepare for opportunity, empowering them to act with confidence when making strategic decisions."

According to the report, the political scene in the Bahamas will be dominated by campaigning for the general election over the next six months.

It said: "The Free National Movement (FNM) led by the prime minister, Hubert Ingraham, has a small but workable majority in parliament and the election will indicate to what extent the FNM's support base has been eroded by the sharp economic contraction in 2008-09 and the government's privatisation programme, which is unpopular among much of the population.

"We forecast growth to pick up in 2012-13, although the more pessimistic outlook for the global economy and particularly the US, which will impact negatively on tourism, will hamper more rapid growth.

"We expect activity to expand by 1.8 per cent in 2011 and 2.3 per cent in 2012. Growth will pick up further thereafter, in line with more benign global conditions.

"Stronger growth will boost tax receipts, but spending will increase in the run-up to next year's election, causing the fiscal deficit to widen to 3.5 per cent of GDP in fiscal year 2011/12.

"The current-account deficit will start to narrow in 2012, as an easing of commodity prices offsets a rise in demand for imports."

The report also spoke of the government's efforts to crack down on crime, noting that on October 3, Mr Ingraham announced the establishment of two new courts to deal with crimes relating to drugs and illegal firearm possession, and a 30-day gun amnesty programme.

It said: "The ability of magistrates to hand down tougher sentences has also been strengthened, with the possibility of sentencing offenders -- including those on drugs and weapons charges -- to up to seven years in prison (raised from five years previously).

"Mr Ingraham also announced that amendments to the Firearms Act and the Dangerous Drugs Act are in the planning stage and that new legislation will strengthen law enforcement powers to address the sale of stolen goods and the proceeds of crime via third parties."

The Intelligence Unit described the new measures as "long overdue".

The unit said: "Considering the country's heavy dependence on tourism, there is widespread concern over the impact that such a deterioration in the security situation will have on the struggling economic recovery."

When informed of the report, FNM chairman Carl Bethel said: "While I have not seen it, let me say that we welcome any confidence from The Economist or other well respected institution, and are gratified that after examining our record the Intelligence Unit came to the same conclusion that we have: that the Bahamian people respect the good governance of the FNM and will reward it in the next general election."

October 25, 2011

tribune242

Bahamas Blog International