The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Bahamians must “change their behaviour patterns” to lift the economy out of the doldrums, a leading businessman arguing that based on per capita income most were “worse off than they were 20 years ago”.

Franklyn Wilson, the Arawak Homes and Sunshine Group chairman, told Tribune Business in a recent interview that there was no reason “why tomorrow should be better than today” unless Bahamians radically altered their attitude towards consumer debt, and spending on numbers and cell phone cards.

Suggesting that Bahamians, on average, were spending 10 per cent of their monthly/annual incomes just to service interest on consumer debt, Mr Wilson said the onus for economic recovery rested entirely with this nation’s citizens.

He urged all Bahamians and residents to “work harder, work smarter and be more productive”, arguing that this was the “way out” for the economy’s current predicament.

While acknowledging that Bahamian economic recovery, to a large extent, depended on global growth factors, given this nation’s openness and vulnerability to external shocks, Mr Wilson said it was also influenced greatly by domestic factors.

Arguing that Bahamians of all political persuasions had to recognise certain realities, Mr Wilson told Tribune Business: “The fact of the matter is that the average Bahamian, in terms of per capita income, is worse off than he/she was 20 years ago.

“The fact of the matter is people have less income. The second reality is that people have far higher levels of personal debt than 20 years ago. Today, the average person is spending 10 per cent of their income on interest on consumer loans. That has consequences.”

While some might challenge Mr Wilson’s assertion that average Bahamian per capita income is lower than in 1992, especially after the economic growth experienced in the 1990s and earlier in this century, there is little doubt that consumer debt - and the way many manage their money - is causing considerable stress.

The Sunshine Holdings chairman, though, was not finished there. He added: “The fact of the matter is that today, people are spending money in ways which, a number of years ago, they did not.

“Five, 10,15 years ago, people did not spend money on phone cards and cell phones. For a lot of people, that has a bigger impact on their budgets than they realise.

“And the numbers business was never as widespread as it is today. That means there is a lot more expenditure on gaming and matters related to webshops than there was before.”

Summing up, Mr Wilson said many Bahamians were faced with lower incomes, higher debt and new ways to spend money, plus “changed behaviour patterns by what appears to be an increased amount of gaming”.

“It’s a new world. This is affecting everything in society,” he told Tribune Business.

“This is a new normal. No point in trying to deny that. We are dealing with a new normal. For example, in the housing business, what is a new home in terms of the Bahamian dream?”

Identifying the consequences, Mr Wilson said: “Unless we change one or more of these things I mentioned - per capita income, debt, the impact of gaming and how people spend their money - why should we expect tomorrow to be any different.

“It depends on us. If we work harder, work smarter, be more productive, there’s always a way out....... The way out has to involve some change in behaviour patterns as to how consumers spend money, particularly on consumer loans.

“We’ve got to work harder, save smarter, build family values. These are the things. That’s what it’s going to take.”

While acknowledging that the Bahamas’ relatively small size meant it would not require a massive multi-billion dollar injection to turn the economy around, Mr Wilson said it was more a question “of what we’re doing with it” should such an opportunity arise.

“We can’t just look at global figures and say because it’s happening there, this is going to impact in the Bahamas,”he added.

“Clearly there’s a relationship between the two, but there are other factors that have to be taken into account. The fact of the matter is there are always some local realities that could make it better or worse.”

As for the Bahamas’ current economic condition, Mr Wilson said: “The bottom line is that we’re in the dumps. It’s not good. This is a struggle. I see the Prime Minister expressing optimism, but that’s what prime ministers so. It’s going to take a little while.”