The Tribune

By Roderick A. Simms II

An sdvocate for sustainable

Family Island development

E-mail: RASII@ME.com

Ihave covered a lot in the past three years, ranging from development solutions for each inhabited Family Island to decentralisation of the Bahamian economy, advancing the National Development Plan (NDP) and even the COVID-19 pandemic's impact on the Bahamian economy. Each segment was aimed at provoking thoughts on how to achieve measurable outcomes that promote the sustainability of Bahamian social and economic development. In these final thoughts, I feel it would be best to cover what this has been trying to achieve, which is true Bahamian ownership. In this segment, we will discuss ideas that would lead to more Bahamians being involved in economic ownership in their own countrty while ensuring that negotiations are legally and environmentally sound.

No more 'stalled' projects

In a previous Island Insights segment on Crown Land: Ownership and management, crown land was defined as public land. It is a territorial area owned by the state (government) where citizens have access and rights to use this land. Crown land is a government asset that is managed by the Department of Lands and Surveys in The Bahamas. While it is a state-owned asset, its operation and administration may be better suited for private sector management. There is a constant struggle between Bahamians and foreigners over who is likely to obtain acres of this asset to build residential or commercial properties. Many Bahamians say they struggle to gain approvals for crown land applications and land registrations, with an estimated 30,000-plus outstanding applications said to remain in the system.

Crown land is usually developed through a sale or lease of this asset, which involves a shift in rights and responsibilities from the government to the private sector (Government Finance Officers Association 2018). However, both present and past governments have not been successful in managing crown land applications, and especially those submitted by Bahamians. It is clear that the process of obtaining crown land is discriminatory, lacks transparency and accountability, and requires better management.

Ley us now shift the conversation from "who gets what" to "what are the consequences if the land is not developed for its proposed purpose?" We have seen it too many times. What happened to the Boston-based I-Group, which proposed the $1.8bn development of Mayaguana back in 2006, or the former Ginn Sur Mer project in Grand Bahama's West End? Why have these projects, among others, either stalled or require some form of revitalisation? Simply put, the answer traces back to poor management from the government's end. Crown land that was awarded based on development proposals to groups such the I-Group and Ginn, along with many others, should be returned to the Bahamian people because of their failure to make good on their agreements and obligations. Currently, the I-Group is economically strangling Mayaguana's growth, development and progress because it is has not held up its side of the Heads of Agreement, yet it has most of the island's prime real estate in its possession. That is now unavailable to others who may want to invest in Mayaguana. Also, land speculators and speculations should cease at the expense of the Bahamian people. This should not be allowed to happen. Leasing crown land on watertight terms, so that it automatically reverts back to the government and Bahamian people if a developer fails to live up to its obligations within a certain time period, rather than unconditionally giving it away is an important step towards avoiding "stalled projects". At the same time, the process for obtaining crown land - whether for sale or lease - must be improved and requires further scrutiny.

Requests to obtain land for development purposes should receive an expert-led economic analysis but, more importantly, undergo a competitive process for the sale/lease of the property to ensure that prospective buyers are able to meet The Bahamas' strategic development goals. In addition, given the growing concerns surrounding climate change, investors must be required to obtain a carbon credit, which is a permit that allows a company to emit a certain amount of carbon dioxide or other greenhouse gases. Taking into consideration all these steps, what also deserves greater thought is to determine whether a sale or lease is the best arrangement on the basis of policies that strictly monitor a proposed development for a reasonable time period. Leasing crown land should be done in phases rather just an absolute number of years because it could lead to a developer pulling out at any given time, resulting in costly and prolonged legal disputes.

According to the Government Finance Officers Association (2018), the process to obtain land (property) should consider the following when selecting a developer:

1. Concept plan for any intended development.

2. Qualifications and experience of the proposer/developer.

3. Business plan for the project and financing plan

4. Anticipated time schedule for development

5. Evidence of financial strength and viability of investors

6. Identification of any adjacent property proposed for inclusion in the project and an offer amount.

The above should also be reviewed by a skilled set of professionals who are independent of government to ensure transparency and non-interference with both potential local and foreign developers. If we do not take the necessary steps to ensure the best deal is obtained, we will do a disservice to Bahamians and future generations. If investors are to come here, then Bahamians deserve a seat at the table when negotiating, forming a board and priority when staffing at all levels of management. There are many Bahamians capable of leading major decisions in private-public partnerships (PPPs). This would ensure that these investments are aligned with government's strategic goals and long-term development plans. There should be awareness and a real sense of care for the future of The Bahamas.

National Lottery or Not

Since we are discussing Bahamian ownership, we should also consider how local investments and industries could bring about the best benefits for Bahamians. Perhaps one way to achieve this is by introducing a national lottery. Lotteries run for or by government can be used to support public programmes such as infrastructure development, public safety, public health, and education (Mccabe, 2012). However, lotteries do have a regressive impact when lower income to poor people spend their earnings on tickets in hopes of winning a cash lump sum. One way of looking at a national lottery is similar to a tax where income is transferred from the consumer to the government, since the total amount of money spent on a lottery ticket could have been spent on other goods or services such as education, health, food and/or clothing. A national lottery is also not a better way of combating an existing addiction to gambling.

In fact, many would argue numbers houses also encourage irresponsible behaviour that could lead to a pattern of addictive gambling. I would encourage more research to be done on this in the context of Bahamian society since an evidence-based approach is always better. However, what is the net benefit when gambling at a web shop (numbers house) versus a national lottery? The most common argument is that revenues earned from a lottery go back into the economy, and therefore benefit its citizens and residents. This is not necessarily guaranteed with number houses. To be fair, the advancement of these local "web shops" and regulations have allowed for greater economic contributions through direct employment and taxation. Then there are earnings from winnings and other donations that are used to stimulate consumer activity. But in order to determine which is better, this would require an analysis on proportionality, keeping in mind that both activities are voluntary.

However, if a national lottery can be managed correctly, it could be an additional means of revenue for the government and gains could go to improving public infrastructure, education and health care systems, plus capacity-building initiatives. This type of investment could lead to an increase in consumer savings rather than spending to gain money just to make ends meet. If this can be achieved, a national lottery could be another useful Bahamian asset.

Conclusion

This segment is designed to encourage more Bahamians to "sit at the table" so that any local or foreign investment will result in the best deal for citizens and residents. It is important to gather feedback, opinions and expert advice of Bahamians to advance this country. To achieve this, Bahamians need to have a real say in the process of selecting, negotiating and taking decisions which impact the social and economic development of The Bahamas. Change will always require action but, coupled with political will and abolishing the Quieting Titles Act, it can put us on the path towards land reform for a start.

A country's assets are its people, land, air space, sea, natural resources and, in the case of The Bahamas, its geographical location. Land is an infinite commodity, so leasing as opposed to selling it is in the country's best interest. Everyone wants a piece of it. Therefore, the country must understand, appreciate and exploit this value. In real estate, it is location, location, location. All assets should be audited and valued so that, in negotiations with third parties, The Bahamas knows its value and positions itself for maximum return. There are firms/specialists that can place value on a country's assets and position the country for optimum return when negotiating. Once a firm or specialist has valued the country asset/s, an RFP (local or international) should be issued to attract the right investors and achieve optimum return for The Bahamas.