Does The Haitian Constitution Trumps The Bahamian Constitution in The Bahamas

DOES THE HAITIAN CONSTITUTION TRUMPS OUR BAHAMIAN CONSTITUTION?

From Speak Up Bahamas:

I’m trying to understand something… and maybe someone can explain it logically.  Why are some Bahamians now arguing that the Haitian Constitution is more powerful than the Bahamian Constitution?

The Haitian Constitution says that once you are born to a Haitian parent — whether mother or father — you are Haitian, and that citizenship cannot be renounced.

But let’s be very clear… We are in The Bahamas, governed by OUR Constitution.  The Bahamian Constitution clearly states that if a Bahamian married to a Haitian woman, and they have a child, that child is Bahamian — with the full rights of a Bahamian, including the right to vote, and it doesnt mattter how fluent they are in the English language.

So the real question is: Which Constitution governs The Bahamas?  Are we seriously saying that a foreign constitution can override our own laws, our own sovereignty, and our own identity as a nation?

That would mean we are no longer in control of our country — and that simply cannot be the case.

You cannot pick and choose when to respect the Bahamian Constitution and when to ignore it.

This is not about emotion, politics, or division — this is about law, sovereignty, and national identity.

Bahamians must decide:

👉 Do we stand on OUR Constitution?

👉 Or are we now allowing foreign laws to dictate who is Bahamian and who can vote?  Make it make sense.

Speak Up Bahamas. 🇧🇸

Source / Comment

Bahamian Constitutional Attorney - Craig Butler, Esq., Answers:

I’m answering the question and authoritatively so:

👉🏽 I’m the constitutional expert.

 

👉🏽 if you think you’re smart take me on Peter.

The Bahamian Constitution governs The Bahamas.  Full stop.

No foreign constitution overrides it, dictates it, or displaces it.

But that is not the real issue here.

The confusion is coming from a failure to understand how citizenship actually operates in law.

There are multiple pathways:

• Citizenship by descent (through a Bahamian parent)

• Citizenship by birth with entitlement to apply (e.g., persons born in The Bahamas to non-Bahamian parents applying at 18–19)

• Registration and naturalisation

So when people raise the Haitian Constitution, they are not saying it overrides Bahamian law.  They are pointing to the fact that another country may also recognize that person as its citizen.

That creates dual nationality issues, not constitutional supremacy issues.

And here is the key point many are missing:

A child born in The Bahamas to Haitian parents does not automatically become Bahamian.  They have a constitutional right to apply for citizenship between ages 18 and 19.

Many have exercised that right. Lawfully.

Once granted, they are Bahamian citizens—under our Constitution.

So let’s not distort this.

This is not about Haiti overriding The Bahamas.  This is about people misunderstanding:

• how citizenship is acquired,

• how dual nationality arises, and

• how our own Constitution actually works.

If there are concerns about abuse of the system, then address enforcement and administration.

But do not invent a constitutional conflict that does not exist.

Source / Comment

Political Issues in The Bahamas

Politics in The Bahamas

THE BAHAMAS: ELECTORAL REALITY, HISTORICAL STRUGGLE, AND THE WORK AHEAD

Saturday, 4 April 2026

4:07 PM Eastern Standard Time

Nassau, The Bahamas

By Craig F. Butler, Esq.

Today marks 58 years since the assassination of Dr. Martin Luther King Jr. in Memphis, Tennessee — 4 April 1968.

He was killed standing on a balcony.

But what he represented was never killed.

Because the struggle he spoke to — dignity, justice, legitimacy, and the structure of power — did not end in Memphis.

It continues.

And we must be honest enough to say:

It continues here.

I. THE CONTINUITY OF STRUGGLE

We like to think of the African struggle as something external — something that happened “over there,” in America, in South Africa, in the streets of history.

But we are confronting our own version of that struggle right here in The Bahamas.

Not in the same form.

Not with the same violence.

But with the same underlying question:

👉 Who controls power?

👉 How is that power exercised?

👉 And who benefits from it?

II. THE PRESENT MOMENT — EMOTION VS LAW

Right now, the country is agitated.

People are speaking about:

• the voters’ register

• citizenship concerns

• passports

• electoral integrity

• governance and spending

And much of that concern is real.

But we must separate two things:

what is emotionally compelling

and, what is constitutionally possible.

III. THE LEGAL REALITY🇧🇸🇧🇸

Let me state this plainly and finally:

👉 The Prime Minister has exercised the prerogative to dissolve Parliament.

👉 The House is prorogued.

👉 The election is called.

That power is spent.

It is not reversible by public pressure.

It is not undone by commentary.

It is not halted by applications that do not meet constitutional threshold.

So let the Bahamian public understand clearly:

There is nothing — short of war, catastrophic disaster, or a true national emergency — that is going to stop the general election scheduled for 12 May 2026.

Not the courts.

Not politics.

Not outrage.

IV. THE HARD TRUTH

We have been talking about these issues for years.

Not one election.

Not two.

Multiple election cycles.

The voters’ register concerns are not new.  Citizenship questions are not new.  Administrative weaknesses are not new.

They are systemic.

So let us stop pretending that this moment created the problem.

It did not.

V. THE REAL ISSUE🇧🇸🇧🇸

This is where the country must mature.

The election is going forward.

👉 Votes will be cast

👉 Results will be declared

👉 A government will be sworn in

That is going to happen.

So the real question is no longer:  “Can we stop this election?”

The real question is:

👉 Why have we allowed this issue to persist for so long?

👉 And what are we going to do to fix it after the election?

VI. THE DANGER

Too many of our people are locked into budget politics:

- Who gets contracts

- Who controls spending

- Who distributes the billion dollars

That is not governance.  That is access to power disguised as democracy.

And until we confront that honestly, we will continue to recycle the same problems.

VII. THE WAY FORWARD

If we are serious, the work is clear:

• structural reform of the registration system

• modernization and digitization

• legal accountability where wrongdoing exists

• continuous audit — not election-time outrage

• and sustained national discipline beyond party politics

Because shouting at the moment of election will never fix a problem that has been growing for decades.

VIII. CLOSING

Dr. King fought for justice, but more importantly, he fought for structure — for a system that could sustain dignity, not just promise it.

That is the lesson.

Not emotion.  Not outrage.

Structure.

So let us be clear:

👉 This election is happening.

👉 These problems are not new.

👉 And the real work begins after the vote, not before it.

Because if we do not fix the system, we will be right back here again.

With Professional Respect Asé

CRAIG F. BUTLER ESQ.

Constitutional Theorist

Pan-African Methodology

Commonwealth of The Bahamas

Source / Comment

The Impact of Foreign Direct Investments on The Bahamian Economy in The Bahamas

The Importance of Mandatory Economic Partnerships in The Bahamas

By Jamal Moss

Foreign direct investment has long contributed to Bahamian economy.  However, the structure of this investment has often marginalised Bahamian policymakers and citizens, limiting their influence over national economic outcomes.  Bahamians increasingly recognise that genuine progress is achieved when citizens control their resources and determine their own economic future.  Revisiting and strengthening investment laws would ensure that Bahamians are not passive participants in development but active decision-makers and long-term beneficiaries of economic growth.

Economic Empowerment and Ownership

Compulsory alliances would place Bahamian ownership and leadership at the centre of wealth creation.  Local equity participation ensures fairer profit distribution and greater reinvestment within the domestic economy.  This approach promotes generational wealth, strengthens local entrepreneurship, and reduces economic dependency.  Ownership also develops managerial skills, innovation, and professional capacity among Bahamian citizens, allowing economic growth to translate into meaningful social mobility and long-term financial stability.

Keeping Wealth Within Bahamas

The primary advantage of compulsory alliances is the retention of capital within the country.  Profits generated by companies operating in The Bahamas are frequently repatriated abroad, limiting their long-term national impact (Syed et al., 2012).  We must be conservative and intentional with this because when Bahamians hold equity and decision-making authority in foreign-led ventures, dividends, wages, and reinvestment remain within the domestic economy.  This strengthens local financial institutions, increases government revenue, supports small and medium-sized enterprises, and stimulates sustained economic activity across multiple sectors of society. It is just good common sense.

National Security and Economic Sovereignty

Economic control is closely linked to national security.  When foreign interests dominate key industries, national priorities can be undermined.  Bahamian participation in ownership and governance ensures that strategic decisions align with national interests, cultural values, and sustainable development goals.  Local involvement also improves accountability, transparency, and resilience during global economic shocks, protecting the country from external vulnerabilities.

Ending Second-Class Economic Status

Reforming investment legislation sends a clear message that Bahamian citizens are equal stakeholders in their own economy.  With a common sense approach, we will get common sense results.  Mandatory partnerships promote dignity, equity, and self-determination.  Bahamians understand that meaningful development occurs when citizens exercise control over their resources and economic direction.  Strengthening Bahamian ownership through law will result in a more inclusive, secure, and prosperous national economy. 

FNM St. Barnabas Candidate, The Bahamas
Jamal Moss

Source / Comment

Rick Fox - Betrayal or Survival?

Survival is serious, says Rick Fox

BETRAYAL OR SURVIVAL?

Rick Fox Legacy

Was it Betrayal or Survival?  What would you do?

Survival is serious.  The lengths we go to in life to secure our future and our family’s future can be serious.  Some people bet on a life of crime.  I bet on basketball.

Some of you have asked: Why did you play for another team?

It was a simple decision: I played to secure a future for my family.

At the time, The Bahamas didn’t have a national team that competed globally.  There was no path to the NBA from home.  Playing for another team wasn’t betrayal, it was the only opportunity to be seen, to prove myself, and to secure my future.

In the summer of 1990, with the guidance of my coach Dean Smith and my parents, I joined Canada’s NBA summer league team.  I made the all-star team, caught the attention of NBA scouts, and earned my place among the pros.

That decision was never about leaving The Bahamas behind it was about making sure The Bahamas would one day be seen on every stage I stepped on.

Every decision since then has been in service to my family and to The Bahamas.  Every opportunity I’ve had has come from God.  He is driving this ship.

From championship podiums to Hollywood sets, from boardrooms to global summits The Bahamas has been with me every step of the way.

You don’t have to be seen to serve.  You just have to be in action.

And I’ve been a Bahamian in action my entire life building, competing, and winning for my family and our people.

WHAT HAVE I DONE FOR THE BAHAMAS? WHAT WILL YOU DO?

People ask: What have you done for The Bahamas?

My question back is simple: What will you do?

Let’s turn the conversation of service into a competition.  Who among us has done more for the nation we love?

Just because one is unseen doesn’t mean one was absent.  Let me shine a light.

For over 30 years, I’ve made The Bahamas number one: not just in sports, but in business, culture, and innovation.  From courts to boardrooms, studios to sustainability summits, I’ve delivered results that carry the Bahamian flag higher every time.

I’ve rebuilt our basketball programs, mentored athletes, brought world-class coaches, and funded clinics and camps.  I’ve fought for Bahamian players to gain international exposure and opened doors for scholarships around the world.

Through Partanna, I’ve positioned The Bahamas as a leader in climate innovation — creating jobs, opportunities, and global respect for our people.  I’ve sponsored students to study abroad, bringing knowledge and technology home to fuel our growth.

This is the work of impact — not applause.  I don’t chase validation.  I chase results.  I didn’t return home seeking fame or power.  I was invited to help solve national problems: housing, opportunity, and sustainability.

I am not a politician.  I am a winner who happens to be on Team Bahamas.

THE MOVEMENT TO WIN

Some enter politics to serve.  The day I enter, I enter to compete to defend, to facilitate, and to lead.

Winning requires strategy, focus, discipline, and execution the same principles that have guided my success for decades.

This movement is not for everyone.  Some are satisfied with what they have.

But this movement is for Bahamians who want to see our country rise to a level not seen before, locally and globally.

We will finish what our forefathers started.  We will go all the way.

Any unseen work I’ve done, any blessing I’ve received, has been used to lift this nation, open doors for our youth, and build pride that cannot be taken away.

That is my contribution.  That is my legacy.  That is what I’ve done — and will continue to do — for The Bahamas.

Every chapter of my life has been about winning: on the court, on the screen, in business, and now, in building solutions for our people.

Today begins the most important chapter yet: competing and winning for the Bahamian people from home.

I have a vision for the next 50 years: a Bahamas where our children inherit a nation that works for them, not against them.

Where we don’t just talk about progress we deliver it.  No movement builds a future alone.

This vision needs teammates, builders, and believers.  It will grow as quickly as the Bahamian people decide they’ve had enough — that they deserve more — and are ready to rise.

I’m ready to stand shoulder to shoulder with every Bahamian who wants more: more honesty, more opportunity, more action, more results.

Today is the beginning of a movement that competes, wins, and delivers for The Bahamas.

Source / Comment

Trump Bahamas!

What's Donald Trump Plans for The Bahamas?

By Dennis Dames
Nassau, The Bahamas

Donald Trump will soon be officially the 47th President of the USA.  He is also #45.

He has clearly been nicely and attractively refined and repackaged, and he appears eager to be the mighty dictator of the greatest nation on earth – and perhaps the world.  He has promised that he would be a dictator for just a day.  We know better than that!

Soon to be President Donald Trump has wasted no time ruffling feathers in his homeland, the region and the world.  He has boldly pronounced his interest in Canada and Greenland becoming States of the Union.  He has also expressed his interest in taking back control of the Panama Canal – among other feather-ruffling statements!

I wonder what are #47 plans for The Bahamas; as the USA government presently considers The Bahamas as its third border!

We will learn more about what our friendly neighborhood dictator has in store for The Bahamas – sooner rather than later no doubt.

The Bahamas Immigration Minister Keith Bell resists United Nations - UN call to suspend deportations to Haiti as Haiti's crisis deepens

The Bahamas Immigration Minister Keith Bell resists UN call to suspend deportations to Haiti as situation spirals out of control

“Haiti has political instability, economic deprivation, and complete social collapse.  So you are talking about a myriad of challenges and problems.  That problem can only be addressed at the international level and so it isn’t a matter of frustration

DESPITE calls from United Nations officials to suspend deportations to Haiti, Immigration Minister Keith Bell said The Bahamas has “a job to do” to ensure that officials protect the country for Bahamians.

The Bahamas is facing an influx of Haitian migrants.  However, United Nations Secretary General António Gutierrez on Monday called on governments to consider halting deportations as the situation there spirals out of control

Speaking on the sideline of a Labour on the Campus event, Mr Bell recognised the duty of the secretary general, but made it clear what the government has to do.

“The United Nations obviously they seek to ensure that there is harmony, there’s unity among all nations, so obviously that is his job.  We in The Bahamas have a job to do to ensure that we protect The Bahamas for Bahamians.  It’s as simple as that.  The Bahamas as all governments have consistently said we cannot absorb these persons who come in The Bahamas illegally,” he said.

“If you want to come to The Bahamas as a tourist or want to work, then there is a process.  If you follow that process, you may be granted access to The Bahamas.

“If you come here illegally and unlawfully, then, of course, there has to be swift justice.  We will not tolerate, nor will we support reasonably anyone coming into The Bahamas from undocumented or illegal means you will stay in the jurisdiction you will be deported.”

He also shared doubts that The Bahamas would sign on to provisions allowing for free movement when asked about CARICOM’s freedom of movement or labour within the region.

“I know you’re talking about a treaty – I think the Treaty of Chaguaramas and the (free) movement of people through the Caribbean.  The government of The Bahamas, both PLP and FNM, has consistently not signed on to those specific provisions.  I do not foresee in the very far future that we’re going to support a free movement throughout this country of anyone.”

Prime Minister Philip “Brave” Davis said the crisis in Haiti poses a substantial threat to The Bahamas due to an increase in irregular migration.

He spoke earlier this week at the opening session of the heads of summit meeting of the Community of Latin American and Caribbean States (CELAC) in Buenos Aires, Argentina.

During his remarks, Mr Davis stated: “With the support and leadership of Haiti, collectively, we can, through CELAC and other regional organisations, help Haitians build a path out of crisis.”

Asked if there was frustration with the international community over addressing Haiti’s issues, the labour minister listed some of the factors that needed to be considered when helping countries.

“I will not say it there is frustration and you would have seen all around the world where first world developed countries, superpowers go into these countries where they need help — where there is a genocide or there is this civil war and the like.  When you go into these countries you have to ensure first of all, what is your objective?  What are the objectives of you going in?  And what would be your exit strategy?

“Haiti has political instability, economic deprivation, and complete social collapse.  So you are talking about a myriad of challenges and problems.  That problem can only be addressed at the international level and so it isn’t a matter of frustration.

“It’s just a matter of how we’re going to address these issues and challenges and then determine how we can help, but Haiti has 12 million people, The Bahamas cannot under no circumstance, support any illegal and unlawful entry of persons from Haiti and that has extended to Cuba where we’ve had an exponential growth in illegal migrants coming from that country. We will not tolerate it.”

Source

The Bahamas Prime Minister Philip 'Brave' Davis brings focus on Illegal migration and gun trafficking to meeting with US Vice President Kamala Harris

The United States reaffirmed their commitment to strengthening partnerships with The Bahamas, and the nations and peoples of The Caribbean

As Chairman of CARICOM, the Bahamian Prime Minister believes it is important for the United States and other partners in the hemisphere to support Haitian-led efforts to stabilize that country and find a path forward out of crisis

Washington, DC - January 17, 2023 – Prime Minister Philip 'Brave' Davis met earlier today with US Vice President Kamala Harris at The White House to discuss a number of issues facing The Bahamas and the wider Caribbean region.

The United States reaffirmed their commitment to strengthening partnerships with The Bahamas, and the nations and the people of The Caribbean.

In discussing items relating to our bilateral relationship, the Prime Minister and the Vice President emphasized the importance of both strengthening efforts to combat illegal maritime migration and reducing the flow of guns illegally entering The Bahamas from the United States.

The Prime Minister also raised the importance of reinstating pre-clearance facilities in Grand Bahama, a critical step to support the island’s economic recovery.

The discussion widened to cover a number of regional issues, including food and energy security, and efforts to combat climate change.

As Chairman of CARICOM, the Prime Minister believes it is important for the United States and other partners in the hemisphere to support Haitian-led efforts to stabilize that country and find a path forward out of crisis.

Source

Understanding The Significance of The United States Game Against The Bahamas and Cuba

CUBAN STORY - JOSE MARTI

“Deo adjuvante, non timendum.”

“With God as My Helper, I have nothing to fear”

We Must Ensure that the United States of America Does Not Create Confusion in The Bahamas Relationship with the Republic of Cuba

By Dr Kevin Alcena

Unlike men with political ambition, Jose Marti was a man with political ambition with a difference: a difference that propels a political activist, poet, journalist and teacher to attain national heroic status in the Republic of Cuba. Born in 1853, Jose Marti became a known activist against established foreign institutions and powers that dominated Cuba. He suffered and labored for the people - notwithstanding the level of oppression by colonial powers against him and his people.

No wonder he wrote that "Men of action, above all those whose actions are guided by love, live forever. Other famous men, those of much talk and few deeds, soon evaporate." His love for his people is immeasurable and profound, without form and shape and not bounded by any potential personal gain.

Jose Marti’s dedicated and zealous pursuit of freedom resulted in many incarceration with authorities right from an early age of 17 when he was exiled to Spain for being vociferously against the colonial rule suppression of the people of Cuba. and exploiting the natural resources of Cuba. Jose Marti selflessly took up the task of educating the people of Cuba to contradict the political system of the colonial powers in order to raise awareness with the generality of the people of Cuba to stand up for their rights. He used his expertise in poetry, and journalistic edge to advance his fight for the freedom of the Republic of Cuba from foreign domination.

Most interestingly, Jose Marti was very plain in denouncing the lack of spirituality and arrogance in the colonial powers’ approach to the manipulation of Cuba. He was strongly in support of democratic principles that will provide and assure ordinary Cubans the greater national security, respect of dignity of being a Cuban.

His zeal for the development of Cuba and freeing Cuba from the domination led him to leave the shores of the US (where he had flee to avoid the retribution of colonial masters) to join the war in Cuba for the independence of Cuba. Jose Marti was a man with courage to leave his comfort in the US to fight for his people without concern of his personal safety, but with vision of the future of the free Republic of Cuba.

Against advice from friends and well-wishers for his welfare and safety and his lack of military training, Jose Marti valiantly went to Cuba to fight the war in favor of his beloved country, which resulted in his death. This conforms to his philosophy that "just as he who gives his life to serve a great idea is admirable, he who avails himself of a great idea to serve his personal hopes of glory and power is abominable, even if he too risks his life. To give one's life is a right only when one gives it unselfishly.”

Jose Marti was one of the most prolific writers in the Hispanic world that helped to transform Cuban arts and cultures. He was a man of great ideas and philosophy that was ahead of his peers.

His vision and thoughts were innovative and constructive to help the development of democracy in Cuba, as he wrote in one his famous quote that ”like stones rolling down hills, fair ideas reach their objectives despite all obstacles and barriers. It may be possible to speed or hinder them, but impossible to stop them."

The Bahamas is not torn between the United States and the Republic of Cuba regarding the two Doctors detained at the Carmichael Detention Center. The Bahamas is a country of law and order and is signatory to international treaties with various countries such as the United States and Cuba, and the government has the obligation to uphold these treaties. The two Cuban Dentists should be prosecuted and fined for entering The Bahamas illegally, regardless of the fact that they are Cubans and have resident documents enabling them to reside in the United States.

We must be very careful with the United States, because they are the ones that brought these two Cubans to The Bahamas detention centre. We have to ensure that the US does not use this strategy to create confusion in our relationship with the Republic of Cuba.

If we comply with the US requirements to send the two Cubans to the US, we would be breaking the treaty between The Bahamas and Cuba, and in addition, it will result in mass travel illegally through The Bahamas by Cubans who have US visas but without Cuban exit permits that would allow them to leave Cuba legally.

In the views of Jose Marti, “the struggles waged by nations are weak only when they lack support’…wisdom and the ability to insist on agreement as guided by treaty between the Bahamas and Cuba. We must not forget that Cuban delegates were kicked out by US imposed conditions to a Sheraton Hotel in Mexico as a result of the US Helms-Burton Act. These Cuban gentlemen were minding their legitimate business, but the hotel was threatened to be fine up to $300,000 against the Hotel for accepting these Cuban delegates.

This is not political - it's perversity. It is not even the Superego judging the Ego. It is our own capacity for hate, increasing until it becomes a kind of compulsion - neurosis where reverence and destruction alternate and we reverently destroy. We falter and faint and deny him thrice. We develop sympathy at the expense of loyalty. I don't like it. It just ain't right.

Where is the outcry? We have become silent spectators, eagerly awaiting our daily dose of public scandal, noisy expulsions and excommunications.

''A man must swallow a toad every morning if he wishes to be sure of finding nothing still more disgusting before the day is over.'' (Morley)

We must stop this. It's not right. There is no honour in this battle. There is no dignity in this death. There are no victors on this battleground of shame. Only a man with the shield of Perseus against the ghosts of character assassination. ''Whatever you blame, that you have done yourself.'' (Groddeck) There is no hate without fear. Hate is the consequence of fear. We hate what we fear and so where hate is, fear is lurking.

We must stop this moth-and-candle preoccupation with hate, this triumph of resentment, this abuse of intellect, this perversion of the heart that obliterates our knowledge of the purpose of life; that denies the God within us, wantonly exterminated. I don't like it. It just ain't right.

The world failed to respond to this abhorrent issue, neither did Wall Street or any major US authorities. According to E. M Forster: ”if I had to choose between betraying my country and betraying my friend, I hope I should have the guts to betray my friend”. It is imperative that our Cabinet Minister understand the significance of this game that the American has instigated against The Bahamas and Cuba. Let’s not forget that our greatest friend is our greatest nightmare: that is the United States of America. They enjoy the art of propaganda and manipulation.

As President Fidel Castro said in an address on the celebration of the 51st Anniversary of the Attack on the Moncada and Carlos Manuel de Cedspedes Fortresses, “I shall address a sinister character that keeps threatening, insulting and slandering us. This is not a whim or an agreeable option; it is a necessity and a duty”.

Source/Comment

Wake-up My Bahamian People!

The Bahamas: A Perfect Financial Storm Brewing in Tourism Paradise

By Norman Trabulsy Jr.

The Bahamas is entering a period for which I see a Perfect Storm gathering, and this is unfortunate. A Perfect Storm comes about when a number of factors synergize to exacerbate what would otherwise be a mildly disruptive event. Although a number of other supporting realities strongly buttress my view, for the sake of brevity I will base my analysis and prediction of a Perfect Storm on the following.

Implementation of a value-added tax (VAT)

It does not take a Sherlock Holmes to figure out who owes hundreds of millions of dollars to the Bahamian government in uncollected property taxes. Value-added tax is being implemented because the government has failed in its job and been unable, or unwilling, to collect even half of the taxes it is owed. The VAT is a consumer-based and regressive tax, meaning that it hits the poorest the hardest.

The estimated revenue from the VAT assumes that the economy will remain roughly at its current level. I strongly suggest that the Bahamian economy will take a very hard hit for several years due to the high cost of VAT compliance, higher prices, fraud, and the overestimate of the tax revenues to be collected, causing the government to further tighten its belt, all contributing to a dangerous shrinking of the economy. This: before the risk of any hiccup in the tourism sector, which accounts for 80 percent of The Bahamas’ gross domestic product (GDP). It is rather naive to suggest that the tourism sector is immune to rising prices, when survey after survey show that the No. 1 complaint of tourists is high prices. Sun, sea and sand have a value, but there is a limit, and we are pushing it.

Legalization and proliferation of gambling web shops

In The Bahamas, a social epidemic of gambling appears to be a symptom of the larger desperation of being unable to make a decent living and provide for one’s family by holding an average job. But more on that later. I predict that the net effect of a proliferation gambling web shops will be a continued drain on the real economy and an increasing transfer of monies into the hands of web shop owners. The health of an economy is based on the amount of money that freely circulates within it. As more money leaves the real economy via the web shops, the net result is unarguable: a rapid and decisive transfer of wealth into the pockets of those who produce nothing.

A software designer for some of the web shops told me that, for every winner, there are 8,000 losers. Ponder these odds for a moment. I live on a small family island, and I have paid attention to this matter for nearly a decade. I cannot count the times Bahamians who do not gamble have said to me, “These web shops are going to take this country down.” Perhaps they say this because, like me, they have seen the dashed hopes, the unfinished houses, the children whose lunch moneys were squandered by their parents’ spinning, and the money leaving this small island on a weekly basis that could have gone to so many worthy causes and needs. The language should be more honest: gambling is not an industry, it is a Ponzi scheme, and it should be called what it is.

Downgrading of the credit worthiness of The Bahamas by Moody’s

Moody’s recently downgraded the credit worthiness of the Bahamas due to the unlikely probability that it will reduce its 50 percent debt-to-GDP ratio. We are unlikely to do this because for the past 10 years our country has only grown by six percent, and we continue to borrow more money. Moody’s rightfully wonders where the government will find the money to pay off its increasing debt. The prospects are bleak. I liken this situation to the following conversation. A friend comes to me and says, “You owe me $500 today.” I ask, “Why is that?” He answers, “Because 50 years ago your grandfather borrowed $500 from my grandfather and he said you would pay me the $500 your grandfather owed him.” Who doesn’t think this is absurd? Yet, what do the Progressive Liberal Party (PLP) and Free National Movement (FNM) do each year to the citizens of The Bahamas? How is this any less absurd than what our well-educated economists, politicians and lawyers are proposing to us today? When politicians take out these big loans, with interest, who winds up paying for them?

State of the global economy

Not enough honest people have spoken out about the implications of what the major players in the financial sector and government officials have been doing. Since the global financial crisis in 2008, the United States in particular, has pumped trillions of taxpayers dollars into the banks and financial institutions there and around the world, in an attempt to “save” the economy that was put in danger by, you guessed it, the banks and financial institutions. Soon the consequences of this policy will become yet more apparent in rising inflation, increasing inequality, and a greater impoverishment for most of humanity. Any prudent government would have, after assessing the crisis and its causes, broken up the largest of banks and nationalized those that had done the most harm to society.

The largest banks, financial institutions, and here in The Bahamas even the web shops, have completely captured our politicians and the political process. Consider the phrases: Too Big To Fail and Too Big to Jail. Justice has become lopsided and no longer applies to the rich and powerful. This is the reality today throughout the world, and it is contrary to any concept of democracy. The people of The Bahamas said “No” on the referendum regarding web shops. Yet, what did our Prime Minister do? Who do the politicians really work for? Does democracy exist in The Bahamas, or anywhere? Answer honestly. Now, what are you going to do about it?

Increasing poverty rate in The Bahamas

The realities about poverty in The Bahamas are probably worse than the government statistics suggest. For an indicator of the real state of our economy and the hurdles that must be overcome to change our course, speak to any social service worker. They will tell you that they are seeing an increasingly depressed, despondent and hopeless people who come for assistance. Yet the government is cutting back on social services to balance the budget, so that there will be even less resources to help the rising numbers of people who need them. The economic considerations are in themselves sufficient cause for concern, but it is also reasonable to expect that, as the poverty rate increases, the crime rate will increase, and public safety, the quality of life and tourism will decline.

Increasing emphasis on the “financial services industry”

The so-called financial services industry is the second largest contributor to the GDP of The Bahamas, after tourism. It is not an industry but a scheme to attract people who don’t want to pay taxes in their own countries and need a place to hide their money. The Bahamas levies no income tax, no corporate tax, no inheritance tax, no capital gains tax, and it seems that property taxes are very low and not collectable. The money to run the government comes, for the most part, from the working people of The Bahamas. The rich pay a minuscule percentage of their incomes to live in paradise: sort of like going to Disney World for free.

If the tax policies here in The Bahamas actually created an incentive for investment, an improvement in the job market, and a healthy economy, wouldn’t there be better results after all these decades of such policies? Instead, our politicians, lawyers, bankers, the financial services representatives, all of them, have become beholden to big money. Who, in their right mind, can possibly say that things here and around the world are going well and that the future looks bright for most of the world’s people? The “financial services industry” produces little to improve the lives of ordinary people. There is no reason to give the rich a free ride in this country; the benefits of living here are too great to be given away for free. I say: make them pay their fair share. The Bahamian people need to stand up and call for these changes, because not one person in the government has the guts to tell it like it is.

Aspiration to join free-trade organizations

Generally speaking, free trade in today’s world is a way for transnational companies to subvert a county’s legal system and destroy its sovereignty. The result of almost every modern free-trade agreement has been the destruction of a country’s agricultural and manufacturing base and its replacement by highly subsidized foreign corporate ownership, gutting of environmental laws and crushing of organized labor. Any complaints and lawsuits must now be handled by an extra-judicial group of corporate lawyers with loyalties to big business. This idea of The Bahamas joining these free-trade agreements will only further the interests of those businessmen, lawyers and politicians who are pushing them. They will not help the tourist economy or manufacturing economy of The Bahamas or create more and better jobs for Bahamians. These issues must be known to the Bahamian people before our politicians sell this country out from under our feet.

Lack of leadership

Anyone old enough to remember, or who has gone to YouTube to hear, the words of Martin Luther King Jr. understands that we have no statesmen in this world today. Do not be duped by the words of the first African-American US President. He is not even worthy to stand in the shadows of MLK Jr. Listen to the words of our own politicians in The Bahamas: mere words, poisonous words, for they are meant to trick us into believing that they have our interests in mind. Nowhere in the world is there a leader with the integrity, honesty, courage and fortitude required to govern. Each and every one is beholden to the moneyed interests in the world today. I have heard the expression, “We get the government we deserve.” If this is true, I am saddened by where we are as a people. If we can rise up, and create a better society, it is time to do so. Let us get rid of the charlatans, the spineless, the greedy, the dishonest and egotistical excuses for public servants that we now have. This isn’t about one political party or another. Wake up people! I believe we are staring a Perfect Storm in the face. It is up to us to do something for ourselves to avoid the impending crisis.

Editor’s Notes: Norman Trabulsy Jr. is an expecting father, restauranteur, sailor, captain, carpenter and naturalist living in The Bahamas. His writing generally focuses on environmental issues concerning tropical marine ecosystems and economics.

Photographs one, four and nine by Thomas Hawk; two, five and fourteen by Albyan Toniazzi; three and ten by Susan; seven and thirteen by Bruce Tuten; eleven and twelve by Shutter Runner; six by Jordon Cooper, and eight from the IMF archives.

Oct 13, 2014

News Junkie Post

Do we really need value-added tax (VAT) in The Bahamas

Do we really need VAT?

For most persons in The Bahamas, the talk of value-added tax (VAT) has been more of a nightmare than a pleasant discussion. Questions continue to surface because there is a distrust of the proponents for VAT.  Do we really need VAT?  Can we not implement another process which addresses the need for revenue generation without imposing a VAT?   What about curbing expenditure and taking meaningful steps to assure the electorate that expense reduction is a part of the tax reform being touted.

Having done a study on the taxation system of the Cayman Islands, I am able to say that the indirect taxation model that is employed both here in The Bahamas and in the Cayman Islands has been working and is workable for the future.  With this premise, in order to effectively eradicate deficit spending, we need revenue but we also need expense reduction.  Expense reduction is the part of the equation that many seem to forget and/or wish to ignore. Revenue generation and the search to find ways to increase this part of the equation is not sufficient if we are going to address our financial challenges as a country.  If it is that we have a revenue generation problem then finding creative but sustainable ways of generating revenue is the first step to the solution.

To assume that international agencies are the only solution providers when it comes to running the finances of our country is nonsensical at best and depressing at worst.  Moreover, having seen the decline of the Jamaican economy over a period of 30 years with all of the involvement of the international agencies suggests to me that the solution for fixing our country’s problems cannot come from the outside but must come from within.  After all, it is us who will bear the brunt of the financial realities.  Moreover, it is my generation and the generation after me who will suffer from any adverse consequences with respect to VAT.

We must be adamant in ensuring that we do not idly allow this to be forced on us because some external groups says so.  The Turks and Caicos Islands rejected VAT.  The Cayman Islands does not have VAT.  Why must the Bahamas adopt VAT? We can do better than that.

When I did my master’s degree in finance and studied taxation models, I realized very quickly that the indirect taxation model that we employ can work, contrary to what many would have us to believe.  The fact is that Bahamians do not want VAT.  Let’s just stop pretending that it is ok.  From the feedback that is in the public domain, there is a dominant view that VAT is being forced upon Bahamians.

Let’s be more serious and efficient in collecting the taxes that we now have outstanding before looking at adding more.  How many businesses are in arrears that should pay?  This has to happen.  Why should the masses be penalized because of the few?  It is unfair to the majority of the Bahamian people to be saddled with VAT when there are workable alternatives which technocrats refuse to review or accept because of the international agenda being driven by them.  The sovereignty of The Bahamas is at stake when the few impose their views on the many with far reaching detrimental effects.

If all Bahamians were to be honest when coming through Customs and paid their duties so that as a young sovereign nation we could have revenue to take care of our expenses, then we would probably not be at this point, watching VAT debated in parliament.  While the government needs to do its part in collecting taxes, we as citizens have a responsibility to do our part and be honest and pay our fair share in order to build better schools, roads, parks and hospitals.

If 200,000 Bahamians travel to Florida or anywhere overseas annually and currently enjoy $600 in duty exemption, I am sure they would give this up to contribute an additional $120 million in revenue to the government.  Further, if we looked at our work permit system as a source of revenue generation, which would also allow for an increase in foreign workers similar to Cayman, Bermuda or the British Virgin Islands, the potential for substantial annual revenues would be tremendous and the spin-offs in spending in the community would be beneficial to Bahamians.  What percentage increase at the port could the Bahamian population afford that would provide the revenue needed while eliminating the call for VAT?

Sustainability is a key component and so this brings me to expenditure control.  There has to be a reduction policy on expenditure in the public sector if we are going to be serious about eliminating our deficit.  The Bahamas needs to have balanced budgets and we need to move in the direction of having surpluses.  Is this doable?

The same level of aggressiveness with revenue generation must be exercised on expense reduction.  It is no longer OK to do what is politically expedient or what is internationally directed when there are realistic alternatives to implementing VAT.  Have we commissioned our economics professors at the College of the Bahamas to do a study that would support us using an alternative?  If we believe in Bahamians we must start listening to what the Bahamian people are saying.  Do not assume for one minute that they are stupid.  With the addition of VAT there will be a need to add government services.  What is the cost associated with this and doesn’t that add to the deficit?  Could this expenditure cost an additional $30 to $40 million in Social Services costs?

VAT will add to the cost of living and this is a fact. Wouldn’t an alternative plan that has a lesser effect on cost of living be better for all of us?

Who will listen to the ordinary Bahamian? I know we all like the pie in the sky talk so when one hears of oil exploration in The Bahamas or the potential for salt production in Long Island or an increase in aragonite production for revenue, that too sounds good. Truth be told, if it were that easy it would have been done a long time ago.  I think the sobering reality is that we must start with proper studies being done by Bahamians which include and take into account what the majority of Bahamians want. If it is that they want VAT, then VAT it shall be.  As for me, I can say I don’t support it nor do I accept that it is the only logical way forward.

• John Carey served as a member of Parliament from 2002-2007 and can be reached at: johngfcarey@hotmail.com.

August 01, 2014

thenassauguardian