The Tribune

By the ORGANISATION FOR RESPONSIBLE GOVERNANCE

AS The Bahamas ushers in 2022 amid the social and economic crises brought on by the COVID-19 pandemic, there are many immediate needs that the current Bahamas government should address. However, the challenges that have emerged from the current crisis build upon decades of issues with governance, partisan politics and changing agendas. As the Government tackles immediate needs, it is vitally important to take steps towards long-term, sustainable reform.

The Organisation for Responsible Governance (ORG) has identified several key policy and legislative opportunities for the coming year that that can address long-standing issues which have plagued The Bahamas, strengthen transparency and accountability, improve governance and benefit mid and long-term economic growth and development in the country.

The five Priority Policy Opportunities in 2022 for The Bahamas are:

• The full enactment and functioning of the Freedom of Information Act (FOIA) 2017. Passed in the final days before the 2017 general election, the Act has yet to be fully implemented and the Bahamian public have long waited for the ability to access this fundamental right. While experts have reported that the average time to bring such an Act into full effect can be expected to take three to five years, The Bahamas remains in the formative stages of bringing the legislation into force after a five-year period.

To-date there have been consultations with Freedom of Information Act experts in Jamaica and Latin America, and some preliminary training and public outreach. However, the public still cannot utilise their legal rights as per the Act. The hiring of an information commissioner, deputy and associate information commissioner, and the opening of their office indicate the most significant step forward. Late last year, the Government also stated that ten of its agencies will be able to receive and respond to FOIA requests from the public beginning in 2022.

In anticipation of this, ORG will be offering virtual town hall sessions to provide public education on how and when to use the FOIA. ORG also encourages the Government to commit, over the next four years, to an equal or greater number of government agencies being added each year to those responding to FOIA requests. This will ensure compliance and citizen access to information across the entirety of government.

• The full enactment and compliance with the Public Procurement Act. Brought into effect on September 1, 2021, this legislation is designed to make government procurement more transparent and encourage economic growth by making public sector contracting opportunities more accessible to a wider scope of Bahamian vendors. Key components of the Act are based on global standards including online pre-registration of vendors; established government procurement criteria and processes by amount; regular reporting of awarded contracts; and the development of a Procurement committee for open multi-sector oversight of significant contracts.

The Government has pledged to assess, and potentially amend, the Act to increase opportunities for local vendors and to remove obstacles for government procurement in times of crisis. ORG holds that it will be important for any reforms to be undertaken through extensive consultation with the private sector, and to ensure no loss of transparency or accountability. Adherence to open and timely reporting of awarded contracts will be critical to ensure public confidence and the competitiveness that will result in the widest participation by Bahamian vendors.

• Change the Fiscal Responsibility Act to strengthen the role of the Fiscal Responsibility Council. In response to the implementation of VAT, ORG and many civil society and private sector groups pushed for the passage of legislation to commit the Government to reduction of the national debt and more open reporting. The passage of the Fiscal Responsibility Act in 2018 brought The Bahamas in line with modern governance expectations.

However, the dual crises of Hurricane Dorian and COVID-19 required The Bahamas to deviate from its pre-established fiscal responsibility goals. The Government has continued to borrow funds to manage the expenses of the COVID-19 crisis, and the national debt has expanded to near 100 percent of the nation’s economic output. Subsequently, The Bahamas’ credit rating was reduced to ‘junk’ status making further borrowing more difficult and expensive at a time when government revenue is down.

As the economy recovers, utilising the structures outlined in the Fiscal Responsibility Act will be a key resource for the Government and public to monitor the nation’s fiscal health and the strategies in place to support sustainable growth. The Government has indicated they wish to amend the Act to strengthen the role of the Fiscal Responsibility Council. ORG commends this and supports the timelier inclusion of independent perspectives and expanded public reporting of The Bahamas’ fiscal position, and the sources of expenditure and revenue.

• Passage of anti-corruption legislation. Corruption, and the perception of corruption, continue to be a drag on The Bahamas’ reputation, competitiveness and culture. Estimated to result in hundreds of millions of dollars in lost revenue to The Bahamas, the cost of corruption is borne by the public. Many steps have been taken, such as moving government services online, to reduce the incidence of corruption, but a stronger national response is required to make a significant impact. Comprehensively addressing corruption at all levels can result in increased revenue, increased public trust and increased efficiency and effectiveness in government services. Over the past years, ORG has dedicated significant time and resources to advocate for the establishment of an independent body to receive and vet concerns and claims related to corruption, conflict of interests, public disclosure and patronage. This body can lead the public and government towards a culture of Integrity, identify and monitor opportunities that can reduce the incidence and perception of corruption, and stand as a testament that The Bahamas is a best-of-class jurisdiction for investment and development.

• Comprehensive programme of public service reform, including legislation, evaluation and training. All who reside or do business in, or with, The Bahamas rely upon the public service to provide a functional operational framework and an accessible direct point of access for the citizen and private sector. The effectiveness and efficiency of the public service is strongly linked to the capacity of the private sector to grow. A well-managed, dependable and user-friendly public service can improve the ease of doing business, inclusion and competitiveness. A mismanaged public service leads to increased corruption, non-compliance with laws and wastage of taxpayer money through recurrent expenditure on non-performing civil servants.

Past studies have estimated that 20% of the Bahamian public service is under-performing. In 2019, the Inter-American Development Bank (IDB) rated civil service development to be low with a score of 19 out of 100. Functional capacity and management capabilities were identified as the most critical areas of need. The IDB offered recommendations for improvement using seven indices that included: Efficiency, merit, structural consistency, functional capacity, integrative capacity, management capabilities and diversity management. Additionally, the Government of The Bahamas is the largest employer in the country with the public service accounting for a significant portion of annual expenditure. Subsequent administrations have been reluctant to reduce the public service even in the face of significant under-performance.

The draft National Development Plan of The Bahamas refers to the many limitations in the public service and identifies several specific recommendations. In response, the Government has looked to improve the performance of government agencies through the development and work of the Deliverables Unit and the Public Financial Management and Performance Monitoring Reform (PFM/ PMR) project. These programmes have been in place for several years, but levels of success have not been easy for the public to discern.

Strong legislation can ensure that improvement of the public service is seen as a priority by being grounded in statute. There are several relevant policy examples that can be used as benchmarks including the Public Service Bill, which was tabled in The Bahamas in 2010, or the State Sectors Act from New Zealand, which was the key to reform of their public service. As such, ORG is currently benchmarking these and other pieces of policy to complete a report with recommendations for legislative improvements to support a more effective, efficient and well-managed public service. ORG contends that The Bahamas would be well served by developing a strong open plan, anchored by legislation and the recommendations of the draft National Development Plan, for public service improvement across all government agencies and state-owned enterprises (SOEs), which would be co-ordinated via the Deliverables Unit.

ORG offers the above policy recommendations as feasible, and imminently actionable, opportunities for the gGvernment to improve the conditions and democracy of its citizens, and support the growth and success of the private sector. Additionally, the policy actions are opportunities to respond to needs identified in the National Development Plan: Vision 2040 and, subsequently, the United Nations (UN) Sustainable Development Goals. As polices are developed, ORG encourages the broadest engagement of the public through consultations and education so that their input and interests can be fully considered. ORG recognises the vital importance of civil society and private sector collaboration with government, and stands ready and available to apply our time and resources in partnership to advance these policy opportunities work toward a brighter future in The Bahamas.