The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A well-known businessman yesterday branded the Bahamas’ economic philosophy of the past two decades as “deficient”, and urged the country to “get off the treadmill” of dependence on large resort projects.

Sir Franklyn Wilson told Tribune Business that it was “terrible” that the Bahamas’ possible downgrade to ‘junk’ credit status depended on whether one hotel development, namely Baha Mar, would open within a reasonable timeframe.

The Arawak Homes and Sunshine Holdings chairman said the Bahamas needed to focus on becoming more “self-reliant”, and less dependent on large-scale foreign direct investment (FDI) to drive job creation and economic growth.

Praising Dr Olivia Saunders’ new book, ‘Tomato Economics’, for introducing fresh economic thinking, Sir Franklyn called on political leaders from all parties to “stop rowing over foolishness” and instead develop strategies to solve the country’s deep-rooted structural problems.

“The one thing I would genuinely, desperately urge to anyone listening is that this country has to get off this treadmill where its entire strategy depends on this [Baha Mar],” he told Tribune Business.

“We’ve got to change this vision, this concept, where a downgrade depends on one thing. We just can’t do it.

“We all have to develop a clearer strategy, vision of what is development. If one person builds a hotel, you become totally dependent on that to determine the country’s validity. That’s terrible.”

Standard & Poor’s (S&P), the credit rating agency, indicated last summer that whether it downgrades the Bahamas again in the short-term (within the next 18 months) depends to a large extent on how quickly the standstill over the $3.5 billion Baha Mar project is resolved, and the development opened to paying guests.

Any further downgrade by S&P would drop the Bahamas to ‘junk’ status, costing it its investment grade rating and some reputation among international investors, hence Sir Franklyn’s call for this country to become less economically dependent on several mega resort projects.

“I say to all the political leaders, and I don’t care which side of the fence you’re on, that you have to develop a vision of development that extends beyond this narrow view,” he explained.

“Self-reliance is the key to tomorrow, and has to extend beyond Baha Mar. The fact of the matter is that these patterns we are living with have been in place long enough.

“No one government can take the blame or credit for it. But the economic philosophy guiding this country for the last 20 years has been deficient. This is not economic development.”

Sir Franklyn said Bahamian politics was too focused on personalities, at the expense of ideas and personalities, which could chart a different - and brighter - economic future for this nation.

“Look at what the politicians of today are arguing about,” he told Tribune Business. “Who’s saying anything that speaks to economic philosophies, concepts, strategies?

“This thing about which Minister and MP can speak or can’t speak. This is not the pathway to development. We need new ideas. That’s a perspective bigger than the stuff they’re talking about; not this sameness about people rowing.

“Demand of the political leaders that they do more than just rowing over foolishness. Stop rowing over foolishness.”

Sir Franklyn emphasised his belief that any new Bahamas economic strategies had to emphasise self-reliance as a core component, with Bahamians growing and owning businesses, and investing and creating the lion’s share of new jobs.

“You look at this country’s current account deficits. That’s why we’re in this challenging environment,” Sir Franklyn added.

“It ain’t Baha Mar. This is a problem that has been going on for a long time. No one is saying how we overcome these problems. Instead, we’re rowing over foolishness.”’

Despite the shortcomings, Sir Franklyn said: “There are some positives in this society that continue to at least point the direction.

“Dr Olivia Saunders’ new book about trying to move from scarcity to abundance, at least it’s fresh thinking. The fact of the matter is that so much of politics in the Bahamas is driven by personalities, and there’s no ideas. It’s who can speak, who can’t speak.”