The Chief Financial Officer of Fidelity Bank Gowon Bowe says the economy of the Bahamas is on an upward trajectory. However, he does not want to see the government either blindly or intentionally damaging this upward movement.
Appearing on the JCN Radio and Television show Jones and Company this past Sunday, Mr. Bowe noted that there may be some bumps in the road, whether it be from external forces or our own initiatives, adding that sometimes these things are not plotted for the long haul, using National Health Insurance as an example.
He said, “While it sounds good to say two per cent to a person that’s only making $10,000, just around the minimum wage level; they’re only paying $200. They’re saying the annual premium is still $1,000 and the employer has to pick up $800. In that scenario, whether intentional or not, you’ve just forced the employer to increase the wages of the person that’s on minimum wage.”
Mr. Bowe quoted the late Winston Churchill, “Trying to tax your way out of debt is like standing in a bucket and trying to lift yourself up.”
While he noted that tourism numbers have been up due to neighbouring Caribbean countries suffering from hurricane damage in recent years, there is still some feelings of fear or anxiety surrounding the present state of the economy.
He added that the average person talking about economics judges the country’s current state by indicating whether they can feel it in their pockets.
He said, “unemployment is a number that external observers say we really don’t have a very good picture on because we take it at two times during the year.”
He added, “when you look at North America, the numbers are published on a monthly basis; so that you have an understanding of what you’re going to call the natural ebbs and flows.”
“We know that during certain periods where there’s lowering of unemployment because of activities that were going on in the past. We know that following graduation, that number jumps up, because we’re not creating jobs fast enough to absorb the graduation numbers.”, he said.
Mr. Bowe also suggested developing a plan that is tailored to The Bahamas that recognizes foreign direct investment as a catalyst for some activities, but not a centerpiece.
He said, “It has to be a part of a wider plan where Bahamian entrepreneurship is at the center plank. I think that too often we hear about the new developments, and who do you often hear as being the primary shareholder?”
He added, “we need to have more of the good news around Bahamian shareholdings that are starting to expand and grow. We’re still seeing a lot of hesitation with businesses because there is still some uncertainty within the economy. It’s improving, but not to the point where people are relaxing,” the accountant said.
