The Tribune

EDITOR, The Tribune,

“Paradise.” A phrase echoed by many, especially tourists visiting The Bahamas. With our sun-kissed sandy beaches and crystal-clear blue seas, our islands have continued to live up to its international reputation as a bastion of beauty. However, many Bahamians do not feel that the term “Paradise” encapsulates their lived experiences. For many the following questions may frequently linger in their minds: “How will I pay the light bill?” “How will I pay the water bill?” “Will I be able to put food on the table for my family?” In essence, the cumulative question for all of these inquisitions would be “Will I survive to see another day?”

On paper, these sentiments are translated into statistics as the United Nations Economic Commission for Latin America and The Caribbean (ECLAC) reports that The Bahamas boasts the highest level of inequality (Gini coefficient of 0.57) in the Caribbean. Based on the GINI coefficient, The Bahamas has a higher level of inequality than neighbouring Barbados, Haiti and Jamaica. This means that only a small minority of Bahamians enjoy the full rewards of the economy while the masses struggle day by day to make ends meet. Additionally the average cost of living has only gone up for ordinary Bahamians as their salaries prove to be insufficient for purchasing basic necessities, such as groceries and utilities. The Bahamas also suffers from high structural unemployment alongside an over concentration of industry in New Providence. These problems were exacerbated during Hurricane Dorian and the COVID-19 pandemic in which the inherent flaws of our social welfare systems were exposed as thousands attempted to obtain assistance from the government.

In response to these flaws, the Bahamian government has rightly tried to repair the current economic order. Examples such as an increase in the national minimum wage, conditional cash transfers to the underprivileged along with continual investment in the education, health and social services sectors must be commended as steps in the right direction towards an equitable Bahamas. Yet despite these “traditional” policy solutions, many of the problems endemic in Bahamian society have remained and in some instances worsened. These “traditional” policy solutions are only one half of the solution towards solving our nation’s problems.

Enter Universal Basic Income. According to the International Monetary Fund (IMF) a universal basic income (UBI) can be defined as “an income support typically intended to reach all (or a very large portion of a population) with no (or minimal) conditions. In other words, a UBI is income provided to all persons with no strings attached on a frequent basis. This characteristic distinguishes UBI from a salary obtained from a job or a welfare cheque obtained without having one. The concept of a UBI has existed for centuries in various iterations and has been advocated by figures as wide-ranging as Bill Gates, Elon Musk, Martin Luther King, Jr, and Pope Francis, to name a few.

Presently the call for a UBI has only grown louder globally due to an unstable global economy. Rising income inequality and technological automation, which has been associated with unemployment have been touted as logical reasons to support a form of basic income. These calls have also begun to permeate throughout the Caribbean as Barbadian Prime Minister Mia Mottley has voiced her support for the eventual implementation of basic income in Barbados.

Hence, what are the benefits of a UBI? A UBI would allow for the following goals to be achieved:

i) Poverty Alleviation - A UBI would give the lower and middle classes a fighting chance. Thousands of families would no longer be torn between putting food on the table and paying the light bill. Rather than sacrificing one choice for the other, a UBI would personally grant Bahamians greater agency to utilize both choices for their survival. In summary a UBI would break the chain of systemic poverty in our nation.

ii) Social Stability - Alongside poverty alleviation, a UBI would provide greater societal stability. With a UBI, persons would be less likely to participate in criminal activity that is directly linked to poverty conditions. Gender equality would also increase as a UBI would act as a “blanket payment” for traditionally unpaid work done by Bahamian women in the household.

iii) Economic Stimulus - Lastly, a UBI would stimulate growth in the Bahamian economy. With cash in hand, greater consumer spending would heighten aggregate demand for goods and services which would stimulate economic activity. Bahamians would also be granted the agency to better transition to different job professions that will positively benefit society as a whole. With this agency, Bahamians may even be compelled to relocate back to the Family Islands and contribute to the local economies there.

In essence, a UBI extends paradise to all Bahamians. A UBI would allow for some degree of leveling of the playing field for all Bahamians irrespective of gender, race and social class.

While critics will point at affordability issues, this retort distracts from acknowledging potential alternative sources of funding. These sources can range from tax reform, a reallocation of welfare spending or even a climate reparatory fund financed by former colonial powers such as the United Kingdom and multilateral development banks such as the IMF. Continual retorts can also discourage further meaningful discourse on devising innovative economic policies for the Bahamian people. A 21st century economy requires 21st century economic solutions and I am confident that a UBI is a 21st century economic solution.

Former Prime Minister the late Sir Lynden Pindling once said that “Bahamians are nevertheless, still the victims of an unbending social order which, if it now refuses to bend, must now be broken.” While a UBI should and would not serve as an answer to all of our problems, a UBI would bend our socio-economic order in a manner that allows for greater efficiency and equity in the 21st century. It is my hope that this article can spur a national conversation moving forward.

LIAM MILLER

Nassau,

October 10, 2023.