NASSAU, BAHAMAS — A well-known banker has warned against selling ‘a false dream’ that the country’s debt situation has significantly improved, stating: “We have to pay the piper at some point.”
Gowon Bowe, the Fidelity Bank (Bahamas) chief executive while addressing the Rotary Club of West Nassau on Thursday also lamented that the country’s taken system is “broken”, due to it being inequitable and also unable to meet the government’s expenditure needs.
Bowe said: “We should not be trying to sell what is a false dream. We should not be saying that our debt situation is much improved. We should be acknowledging the truth of the matter is that our economy is doing better, so therefore, our level of debt is better manageable but we have to be realistic that we have to pay the piper at some point in time and start to repay the debt and that means getting us to the point of a fiscal surplus.”
Bowe noted that the Bahamas has not enjoyed a fiscal surplus in 50 years. “Deficits for 50 years is not an appropriate fiscal policy because it means we are borrowing against the future, not borrowing for the advancement of the people,” Bowe noted.
“We haven’t had a fiscal surplus since Independence. We need to be able to stand up and take accountability for when we have failed to take things forward.”
Bowe argued that the COVID-19 pandemic highlighted the need for the country to have a national development plan. He noted that the country needs a national development plan to take it forward not simply in five years but from where it is now to another generation.
“COVID highlighted that there are going to be periods when we do not have a clear sight of all that is taking place, and a plan allows us to continue the methodical steps we set out even when we don’t have clarity,” said Bowe.
He also contended that there is no philosophical difference between the political parties in the country.
“I don’t think there are any philosophical differences between the political parties. All want to be center because they want to be capitalist when talking about raising money and socialist when on the political platform and making promises to the people,” said Bowe.
He further noted, “You have to have an economic philosophy, social and political philosophy about how you are going to generate revenues and who you see yourself being responsible for. If we develop a national development and gain consensus that says civil society, business, and government are in relative agreement over the vision for the country, then we will start grading our politicians on the execution and not philosophy.”
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