IDB executive says economic woes are ‘self-inflicted’

As of Friday, February 17, 2017

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

MOST of the Bahamas’ economic woes are “self inflicted”, according to an Inter-American Development Bank (IDB) executive yesterday.

Jerry Butler, Caribbean Executive Director for the IDB, told the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) “State of the Bahamian Economy Report” forum that many of the challenges being faced are not unique to this jurisdiction.

“The Bahamas is certainly not unique with the problems it is facing,” Mr Butler said. “We have studied these problems from country to country. While every country has a peculiar set of circumstances there is a prescriptive set of policies we can pursue that might solve some of our problems in the Bahamas without having to reinvent the wheel.

“Most of our economic problems are self inflicted. That means that we can solve them. The real prevailing perception is that we need to better prioritise and plan. Some of our threats are systemic and cultural but I’m also optimistic that education, training and the right tools can fix these problems.”

He noted that the IDB has produced reports on various issues impacting the country such as the skills gap, de-risking, Britain’s decision to leave the European Union and crime.

A recent IDB report entitled: “The costs of crime and violence: New insights in Latin America and the Caribbean”, revealed that the Bahamas leads the entire Caribbean on economic losses stemming from crime, losing $434 million or almost five per cent of its annual gross domestic product (GDP) to the scourge. The report shows that out of 17 Latin American and Caribbean countries, only Honduras and El Salvador incur greater annual costs as a proportion of GDP.

Mr Butler yesterday urged the Bahamas to examine its strengths, arguing that it is still a leader in the tourism industry. “With tourism, if we diversify and focus on niche tourism like medical tourism, maritime tourism, sports and education tourism, I think there’s an incredible opportunity for this country.”