The Tribune

"LIKE FROGS we have settled on the shores of this sea," wrote Plato in describing the early beginnings of ancient Greece and its people who inhabited the shores of the Aegean Sea and over the centuries exported its culture to the rest of the world. Today Greece and its future demand centre stage as its failing economy threatens the stability of that world to which its ancestors bequeathed so much. Why should Bahamians be interested in far off Greece? We have often published commentaries by economists in this column about Greece, the austerity measures imposed on its people to get its fiscal house in order, the resulting public unrest and European governments making hefty loans to prevent its financial collapse and its exit from the euro. We have published these articles, not to fill space, but to help our readers understand that today the Bahamas is no longer isolated from the serious fiscal affairs plaguing Greece and other failing European countries, referred to as the PIGS --Portugal, Italy, Greece and Spain. In the world of finance, Greece is uppermost in everybody's mind. If Greece makes a speedy exit from the euro, wrote commentator Shamus Cooke, "the consequences for the global economy are spectacularly gloomy". Bahamians must remember that we are a part of that global economy. America is still suffering from the collapse of its various banks, starting with Lehman Brothers, a global financial services firm, which went bankrupt in 2008 resulting in the financial crisis from which there is yet to be full recovery. It was this economic collapse against which the Ingraham government had to struggle for most of its five-year term in office. Although, the PLP at first wanted Bahamians to believe that our economic woes were the sole fault of the Ingraham government, it reluctantly had to acknowledge that the Bahamas was also suffering from the global sickness. But, of course, the PLP had to add its own political twist -- the Ingraham government had "made that sickness worse." At least the Ingraham government's social programmes, and providing work for the many unemployed by investing in improving the island's infrastructure, kept the economy on even keel. Most noteworthy was the fact that, unlike other countries --including the United States--our bloated civil service remained intact. There were no firings to reduce the country's debt. At least what money there was was used to create jobs and build the country. We wonder what would have happened if - as the PLP did as soon as it was returned to power -- the Ingraham government had invested in enlarging its cabinet, rather than immediately tackling the economic emergency and putting Bahamians to work. Much credit must be given to Mr Ingraham's government for investing in the country, and, considering the obstacles, assisting as many Bahamians as possible through their difficult times. One only has to watch the television to see what is happening in the rest of the world -- a chaos that the Bahamas has so far avoided. We hope the PLP fully understands that the global recovery is not as robust as was expected. Even the US with its November elections looming seems to be holding its breath and keeping its fiscal fingers crossed. What will happen when Greece leaves the Euro? asks Shamus Cooke. He points out that "foreign banks hold over $90 billion in Greek debt in the public and in the private sectors. These enormous losses could very well bring down banks in Europe and abroad." He goes on to point out that the "European Union is the US' largest trading partner; US exports to the EU would instantly plummet if the above scenario were played out." America plans to increase its austerity programmes to combat its weakening economy. Among its 100-day promises if elected the PLP said job creation would be one of its priorities for economic improvement. The PLP promised that it would create jobs through more effective promotion of the Bahamas as a tourist destination. Mr Christie has also promised to create 30,000 jobs. However, the Bahamas' difficulty is that it is a tourist destination and in times of austerity people cannot afford vacations. That is why the far-seeing managers of the Atlantis resort on Paradise Island are moving their emphasis from their traditional North American market and wooing South Americans, many of whom still seem able to take vacations. And so it depends on where Mr Christie decides to concentrate this country's limited funds as to whether he too will be accused of making our economy worse. And so do not ignore Greece. We hope that history will not show that as went Greece so went the rest of the world -- the Bahamas included.