The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

THE Opposition’s deputy leader yesterday expressed concern that the Government could give away Bahamian sovereignty over this nation’s economy via its “laser beam focus” on China.

K P Turnquest, also the Free National Movement’s (FNM) finance spokesman, told Tribune Business that Prime Minister Perry Christie and his Cabinet were being “myopic” in the search for investment dollars, and seemed to be abandoning the Bahamas’ traditional trading partners.

And he questioned whether the Government was sacrificing the Bahamian economy’s long-term prospects in favour of its 2017 re-election prospects, given that it was seemingly pinning all its hopes on Chinese-related investment to drive an economic revival.

Pointing out that the Chinese entities already invested in, or exploring, the Bahamas were state-owned, not private entities, Mr Turnquest said there was “a very legitimate concern” about whether the Government was ceding too much economic sovereignty in the aftermath of its recent Far Eastern trip.

He added that these concerns had now expanded beyond the Chinese involvement at Baha Mar, the British Colonial Hilton and downtown Nassau’s redevelopment to Beijing “potentially controlling a significant portion of our external debt”.

That is a reference to Mr Christie’s desire to access $3 billion worth of funding the Chinese are making available to Caribbean nations to help with debt restructuring and refinancing, something that might reduce the burden from the Bahamas’ $6 billion national debt.

“We have to be concerned about giving away our sovereignty. We have to be concerned about that,” Mr Turnquest told Tribune Business.

“The Prime Minister seems to have a laser beamed focus on China to the exclusion of our traditional trading partners. Putting your eggs in one basket is never a good idea.

“I remain concerned we are limiting ourselves and being myopic in nterms of opportunities out there for investment and debt financing.

“There’s nobody that could argue the US couldn’t do more, but what are we doing about soliciting investment from our traditional partners, the US and Canada?”

With capital and investment sources from traditional markets, such as the US, Canada and Europe, having either slowed to a trickle or dried up completely post-recession, the Government’s focus on China makes sense as it looks to kickstart the economy via fresh foreign direct investment (FDI).

China has the surplus dollars that it is willing to invest overseas, and judging from the ‘laundry list’ of ‘wishes’ the Christie administration took with it to Beijing, it is a more-than-eager partner in waiting.

The Prime Minister encouraged the Chinese to look at acquiring stalled investment projects such as the ex-Ginn development in Grand Bahama, with the list of ‘give me’s’ ranging from educational tie-ups to air services agreements.

The extent of the Government’s requests indicates that Prime Minister Christie is depending almost exclusively on Chinese investment to revive the economy and create Bahamian jobs - developments vital to 2017 re-election prospects.

But, in the process, Mr Turnquest questioned what the “quid pro quo” was for the Chinese if they granted the Government’s wishes, and called on Bahamians to be mindful of the “economic control” and geo-political issues this would create.

Questioning whether the Government was relinquishing the Bahamas’ long-term economic destiny for short-term gain, Mr Turnquest told Tribune Business: “At a certain point, we are going to reach a nexus where control of the economy is taken out of our hands.

“We are a much smaller country and economy, and less able to counter any actions not in our best interests.”

Suggesting that Mr Christie’s plans would “go up in smoke” if one of the proposed Chinese projects fgell through or was delayed, Mr Turnquest said the Government’s concentration on Beijing did not say much for its ‘Believe in Bahamians’ election slogan.

“As we sell out, for want of a better word, to these huge state-owned foreign entities, there is less room for local entrepreneurs,” he added.

Mr Turnquest also asked whether Chinese investors’ long-term goals were aligned with the proposed National Development Plan, which the Government is working on to guide its strategy and investment priorities.