The Tribune

Too many Bahamians are overlooking this nation’s “significant economic progress” because they are focusing on issues that “have not a Christ thing to do with sustainable development”, a leading businessman believes.

Franklyn Wilson, the Arawak Homes and Sunshine Holdings chairman, told Tribune Business that positive economic improvements were being ignored due to what he described as “death by a thousand cuts of complaining”.

He cited the “lowest ever” interest rates; the Bahamas’ “phenomenal standing” in the second home market; a pick-up in real estate sales; and the major profit increases being reported by some BISX-listed companies as evidence of an improving economic climate.

“The fact of the matter is there are so many signs in this country which point to very significant, positive progress, and which are being missed in the public dialogue by what I call ‘death by a thousand cuts of complaining’,” Mr Wilson told Tribune Business.

He argued that “none” of the issues provoking the complaints was “significant in the grand scheme of things”, and added: “The things dominating the headlines today have not a Christ thing to do with sustainable development in the country.”

The Arawak Homes chairman said the issues dominating the media and public discussion “may be important to some ideologues” and persons obsessed with topics such as transparency, but they were “not going to make a difference” to the Bahamas’ wider economic and social issues.

“None of that has anything to do with investing in this country. None of that has anything to do with sustainable development in this country,” he reiterated.

Mr Wilson’s comments effectively imply that the Christie government is not being given the credit it deserves for its handling of the economy, given the situation it inherited from the former Ingraham government in May 2012.

However, many observers are likely to interpret Mr Wilson’s comments as an attempt to ‘cover’ for the Government’s mistakes in handling numerous recent controversies, such as the Rubis gas leak; the Auditor-General/Public Accounts Committee saga over the former’s Urban Renewal report; and the Bahamas Agriculture and Marine Sciences Institute (BAMSI) dormitory fire/insurance woes.

And, with more than 30,000 Bahamians still unemployed, and a jobless rate that remains stubbornly high at 15.7 per cent, others will argue that too many cannot feel the improved economic outlook that Mr Wilson sees.

Asked by Tribune Business to identify the “very positive signs”, the Arawak Homes chairman said: “Today, the interest rates on home mortgages are the lowest as far as I know in the country’s history.

“If you have managed your affairs in a sensible way, you have a better opportunity to do things than at any time in Bahamian history.

“I don’t know of any time in the country’s history where the climate is more favourable for interest rates and home mortgages.”

Mr Wilson said Bahamians who had built up substantial equity in their homes and real estate holdings were now well-placed to qualify for a mortgage-type loan, which in turn would stimulate housing market activity to “pull construction out of the doldrums”.

While interest rates have dropped as banks compete to attract borrowers, too many Bahamians still fail to meet the more stringent lending criteria set by these institutions, which are collectively sitting on a pile of over $700 million worth in delinquent mortgages.

Mr Wilson, though, then pointed to developments such as Albany and Baker’s Bay, whose continued growth and expansion had “not happened by accident”.

“That’s because the Bahamas today has a standing in the second home market that is phenomenal. This should be fantastic,” Mr Wilson told Tribune Business.

“A week ago, a realtor from one of the largest real estate companies in the country was sitting in my office, and told me: ‘Mr Wilson, I don’t know what’s going on but the pace at which we’re closing home sales is incredible’. This is not being talked about.

“There’s a lot of positives being overlooked, and that’s sad,” he added. “While people are beating this drum about foolishness, the smart money in this town is going to work and making more money.

“Look at the BISX-listed companies. Some have profits going up 40-50 per cent, and are doing well but keeping quiet, and people are beating their mouth doing foolishness.”

While the Christie administration has implemented Value-Added Tax (VAT) and legalised the web shop gaming industry, other reforms vital to economic competitiveness, such as the BEC and wider energy industry restructuring, have been painfully slow to emerge or make progress.

And then there is the delayed completion of the $3.5 billion Baha Mar project, the key to economic growth, and the protracted wait for the promised 5,000 direct jobs amid the impasse with its Chinese equity partner and contractor.