The Tribune

By RICARDO WELLS

Tribune Staff Reporter

rwells@tribunemedia.net

THE country must adapt to global integration or lose out on its chance at a "Bahamian renaissance," Immigration and Trade Minister Brent Symonette suggested yesterday.

In a speech to open the Bahamas Economic Outlook conference, Mr Symonette said as a small island state economy, the Bahamas must embrace global integration and make it work or get left behind.

He added the country must acknowledge it still has a long way to go to before it can boast "real economic growth and sustainability".

Mr Symonette said: "Our slow pace in embracing global integration into the world economy has caused us to be at a disadvantage, having to play catch up and not realise the full benefits of globalisation, a process that could increase the resources available for economic growth.

"There are two things we must consider. The first is that developing countries like the Bahamas really have no choice, we must integrate into world markets if we are serious about real economic sustainability.

"The success of the European Union since the 1950s attests to the advantages of regional integration. Although, some may argue that the exit of the United Kingdom from the European Union, Brexit, is a manifestation of the disintegration of the European Union. This may also have implications for the Bahamas.

"As a signatory to the Economic Partnership Agreement (EPA) of which the Bahamas, the UK and the European Union are signatories; the exit of the UK from the European Union raises issues which may impact trade, foreign direct investment, immigration and even technical assistance for the Bahamas. A process we will have to monitor and manage."

Mr Symonette added: "Second, there are risks inherent in an increasingly integrated world economy. We must identify them, and consider to which extent is globalisation really good for small countries such as the Bahamas?

"... The government of the Bahamas recognises that we can no longer remain on the periphery of the global discussions that impact the way we do business we must act now. And, despite the uncertainties prevailing in the global market, the Bahamas, as a small island state, has always been adaptable to the demands of the global economy, and will continue to do so.

"Having natural strategic advantages of being located, just 80 miles off the coast of the continental United States, allows us to have convenient air and sea connections to the North America and South America, the Caribbean, Europe, and Asia; and the natural beauty of our archipelagic make up makes us an attractive destination."

Mr Symonette said the government continually engages stakeholders in every segment of the economy.

Speaking specifically to efforts by his office, he said officials currently meet with industry partners to assemble working groups to hear and address concerns, and to share ideas on the way forward for our country.

Additionally, Mr Symonette said the Minnis administration believes its approach will attract more business, create jobs and improve the standard of living of all Bahamians.

He said the government has also recognised the answers do not lie with one agency, but it must be a concerted effort involving both the public and private sectors, if there is to be economic success despite the current global environment.

During his address yesterday, Mr Symonette also addressed the government's "ease of doing business" policy and several other key economic drivers.

Of the former he said: "Improvement in the ease of doing business is necessary if we are to compete in the global market and stimulate positive and sustainable growth, as well as create greater efficiencies in how we do business. We are also looking at amendments to legislation coming from the Central Bank of the Bahamas, around making the process around 'know your customer,' money laundering and terrorist financing less regimented and more fluid to make it easier to open accounts and transact business."

Mr Symonette said his ministry is also engaged in discussions with the governor of the Central Bank on calls to relax exchange controls, an issue which is of concern to many in the business community.

"Many believe that relaxation can attract foreign direct investments and allow Bahamians and foreigners alike to move goods and products more freely and efficiently," he said. "The Securities Commission of the Bahamas is also making amendments to the Investment Funds Act which is out for consultation."

The second initiative touted by Mr Symonette yesterday was the possibility of the country's accession to World Trade Organisation (WTO).

He said the Bahamas, as a member of WTO, would finally play a part in the decision-making process affecting its development.

"Not having a voice when rules or decisions are made is no longer an option for the Bahamas," he said. "We aim to become an active participant in making those rules and decisions that can affect our country's economic well-being."

According to Mr Symonette, the government is also moving to modernise the Customs Department, making it more efficient in its delivery of services which is necessary for the business community to operate efficiently.