By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
GRAND Bahama needs an influx of foreign investors and international residents to generate economic prosperity, a former Cabinet Minister has argued.
Zhivargo Laing, former minister of state for finance under the last Ingraham administration, told the Grand Bahamas Business Outlook conference that foreign investment offers the quickest path to economic prosperity.
"If Grand Bahama does not have an influx of foreign investors and international residents it cannot see prosperity," he said. "We have to have thousands over the next 10 years come and make Grand Bahama home. When they come they bring their money.
"The absence of that circulation is why this island's lifeblood is being squeezed to death. You and I have no new money to pump into the economy. I make no apologies for it; foreign investment now, foreign investment later, foreign investment as often as we can get it because we need it. When they come here we have to treat them right just as we treat ourselves right."
Mr Laing said he believes the Bahamian economy is 'picking up', but he did not agree with the International Monetary Fund's (IMF) projection that this nation's real gross domestic product (GDP) will grow by 2.5 per cent this year.
"I believe that a 2.5 per cent projection of growth for the Bahamas is overly ambitious. The IMF has that but I don't believe that we will achieve that. I believe that we will achieve something in the order of 2.1 per cent because the economy of the Bahamas is picking up," Mr Laing added.
"My own observation and research tells me that something is percolating on this island, and if some of the things come through it will be a better year than last year. We are on the way up in Grand Bahama but it's going to take some patience."
Comments
John 6 years, 1 month ago
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For a learned economists this seems a rather weak statement. Very weak. the only way to reduce the need for foreign investment is to allow Bahamians to become investors. Every major company around the world has shareholders. that way they allow the ordinary citizen to participate in the company and their earnings. Here all doors are continuously CLOSED to Bahamians. How can the economy grow when every cent of profit that is generated is exported? Case in point a FIVE BILLION refinery< if it was genuine which i doubt> refining 192 Million barrels of oil a year. hundreds of millions profit. BUT The Bahamas gets 600 jobs and a One Hundred Thousand annual gratuity
observer2 6 years, 1 month ago
Agreed with you 100% John.
Successive governments have gotten this wrong time and time again. Let be clear, there is nothing wrong with foreign investment however that is only one component of a comprehensive economic growth plan. Ever wonder why our economy with the billions of incoming foreign investment can only grow by over 1.5% a year? Remember the PLP 10 anchor projects? One for each island...they all failed. Why?
Zhivargo here are some other items you need for a balanced development strategy (1) removal of exchange controls so Bahamians can invest outside the Bahamas (2) float the Bahamian dollar so we stop deluding ourselves that our money is worth the same as the US dollar (3) educate our children so they can read and write (4) sell off the utilities (light, water, cable, BTC, post office) so we can have a sensible infrastructure (in most developed countries utility companies were privatized a half century ago! (5) cut out the inefficient government and make it more efficient so people don't get the run around when they want to invest (5) please put an international airport in the southern islands (6) develop the family islands and stop the over crowding of government (7) local government.
Until we stop looking at foreigners as some sort of messiah we will never develop our country to its true potential.
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