The Tribune

By ​Kenneth​ ​Delano​ ​Bowe Sr

kb@chatnchill.com

ELECTIONS ​have​ ​consequences. The​ ​Free​ ​National​ ​Movement​ ​(FNM) won​ ​the​ ​recent​ ​election,​ ​so​ ​Prime​ ​Minister​ ​Hubert​ ​A.​ ​Minnis and​ ​his​ ​Cabinet​ ​must​ ​now​ ​make​ ​decisions.

The​ ​first​ ​crucial​ ​decision​ ​should​ ​be​ ​whether​ ​web​ ​shops​ ​should​ ​be​ ​allowed​ ​to​ ​continue​ ​to​ ​exist. Keeping​ ​in​ ​mind​ ​that​ ​a​ ​‘referendum​’ ​held​ ​by​ ​the​ ​previous​ ​PLP​ ​government​ ​rejected​ ​the legalisation​ ​of​ ​web​ ​shops​ ​or​ ​‘numbers​ ​houses’ ​as​ ​they​ ​were​ ​previously​ ​known.

By​ ​whatever​ ​name,​ ​the​ ​web​ ​shop​ ​industry​ ​is​ ​destroying​ ​the​ ​banking​ ​system ​and​, ​at​ ​the​ ​same time​, ​wreaking​ ​havoc​ ​and​ ​breaking​ ​down​ ​the​ ​social​ ​fabric​ ​of​ ​marginalised​ ​communities​ ​across this​ ​country.​ ​This​ ​is​ ​evidenced​ ​by​ ​the​ ​exit​ ​of​ ​commercial​ ​banks​ ​from​ ​the​ ​Family​ ​Islands​ ​in​ ​the case​ ​of​ ​Scotia​bank’s​ ​closure​ ​on​ ​Long​ ​Island​ ​and​ ​North​ ​Eleuthera,​ ​and​ ​Royal​ ​Bank​ ​of​ ​Canada’s closure​ ​in​ ​Bimini.

The​ ​primary​ ​purpose​ ​of​ ​a​ ​bank​ ​in​ ​any​ ​community​ ​is​ ​to​ ​provide​ ​services​ ​such​ ​as​ ​chequing​ ​and savings​ ​deposits,​ ​and certificates​ ​of​ ​deposits,​ ​all​ ​of​ ​which​ ​are​ ​packaged​ ​and​ ​offered​ ​as​ ​loans​ ​to qualified​ ​customers​ ​and​ ​entrepreneurs once​ ​risks​ ​are​ ​assessed​ ​and​ ​interest​ ​rates​ ​are calculated.

Since​ ​legislation,​ ​or​ ​regularisation​ ​as​ ​it​ ​was​ ​called​ ​to​ ​by​ ​the​ ​previous​ ​government,​ ​web​ ​shops are​ ​now​ ​sucking​ ​up​ ​the​ ​limited​ ​savings​ ​and​ ​funds​ ​from​ ​Bahamian​ ​communities​ ​by​ ​offering games​ ​in​ ​the​ ​form​ ​of​ ​entertainment,​ ​which​ ​often​ ​offer ​customers​ ​little​ ​chance​ ​of​ ​winning.​ ​They also​ ​offer​ ​free​ ​money​ ​transfer​ ​services​ ​from​ ​customer​ ​to​ ​customer​ ​as​ ​an enticement​ ​to​ ​gambling, and​ ​presumably​ ​without​ ​Central​ ​Bank​ ​approval.​ ​Funds​ ​are​ ​siphoned​ ​from​ ​marginal​ ​communities and​, ​what​ ​is​ ​even​ ​worse,​ ​this​ ​new​ ​gambling​ ​addiction​ ​undermines​ ​the​ ​work​ ​ethic​ ​of​ ​many Bahamians​ ​who​ ​believe​ ​they​ ​can​ ​‘get​ ​rich​ ​quick’ ​by​ ​gambling.

If​ ​banks​ ​have​ ​no​ ​deposits,​ ​then​ ​they​ ​exit​ ​communities.​ ​Moreover,​ ​their​ ​absence​ ​deprives communities​ ​of​ ​other​ ​services​ ​such​ ​as​ ​reliable​ ​money​ ​transfer,​ ​cheque​ ​cashing,​ ​loans ​and credit​ ​card​ ​processing.​ ​​Potential​ ​investors​ ​will​ ​not​ ​consider​ ​projects​ ​on​ ​an​ ​island​ ​without standard​ ​banking​ ​services​ ​for​ ​the​ ​purchase​ ​of​ ​goods​ ​and​ ​supplies​, ​and​ ​the​ ​payment​ ​of​ ​salaries. Otherwise​ ​all​ ​transactions​ ​would​ ​need​ ​to​ ​be​ ​done​ ​on​ ​a​ ​cash​ ​basis​, ​which​ ​becomes​ ​problematic and​ ​can​ ​result​ ​in​ ​the​ ​possibility​ ​of​ ​robbery.

Web​ ​shops​ ​add​ ​zero​ ​dollars​ ​to​ ​the​ ​Gross​ ​Domestic​ ​Product​ ​(GDP).​ ​These​ ​web​ ​shop​ ​operations are​ ​practicing​ ​a​ ​reverse​ ​Robin​ ​Hood​ ​game​ ​of​ ​taking​ ​from​ ​the​ ​poor​ ​to​ ​enrich​ ​a​ ​few.​ ​​​In​ ​fact,​ ​the previous​ ​government​ ​selected​ ​and​ ​created​ ​a​ ​new​ ​class​ ​of​ ​oligarchs​ ​to​ ​amass​ ​wealth​ ​while destroying​ ​poor​ ​communities.

If​ ​it​ ​happens​ ​that​ ​web​ ​shop​ ​licenses​ ​are​ ​locked​ ​in​ ​for​ ​some​ ​period​ ​of​ ​time,​ ​then​ ​consideration should​ ​be​ ​given​ ​to​ ​a​ ​‘Bahamas​ ​National​ ​Lottery’ ​that​ ​would​ ​operate​ ​parallel​ ​to​ ​the​ ​already​ ​existing​ ​‘web​ ​shop’ ​groups.​ ​In​ ​so​ ​doing,​ ​a​ ​‘Bahamas​ ​National​ ​Lottery’ ​would democratise​ ​the​ ​process​ ​by​ ​opening​ ​up​ ​the​ ​purchase​ ​of​ ​lottery​ ​tickets​ ​to​ ​a​ ​broad​ ​spectrum​ ​of retailers​ ​such​ ​as​ ​gas​ ​stations​ ​and​ ​‘Mom​ ​and​ ​Pop’ ​operators​ ​throughout​ ​the​ ​country. The​ ​revenue​ ​from​ ​the​ ​Government’s​ ​‘Bahamas​ ​National​ ​Lottery’ ​should​ ​have​ ​specific allocations​ ​to​ ​targeted​ ​activities​ ​such​ ​as​ ​education,​ ​sports​ ​and​ ​culture.

In​ ​conclusion,​ ​increased​ ​taxation​ ​on​ ​web​ ​shops​ ​may​ ​not​ ​be​ ​sufficient,​ ​as​ ​it​ ​still​ ​allows​ ​the enrichment​ ​of​ ​a​ ​chosen​ ​few​ ​whose​ ​power​ ​will​ ​increase​ ​in​​ ​society,​ ​and​ ​who​ ​over​ ​time​ ​can influence​ ​the​ ​political​ ​process.

The​ ​Prime​ ​Minister​ ​and​ ​his​ ​Cabinet​ ​should​ ​recognise​ ​the​ ​wisdom​ ​of​ ​crowds.​ ​This​ ​is​ ​most brilliant​ ​in​ ​a​ ​book,​ ​The​ ​Wisdom​ ​of​ ​Crowds:​ ​large​ ​groups​ ​of​ ​people​ ​are​ ​smarter​ ​than​ ​an​ ​elite few),​ ​written​ ​by​ ​James​ ​Surowiecki​