Misconceptions about the role of government

Tue, Apr 14th 2015, 12:42 AM

Freedom of speech is one of the most important liberties that we enjoy here in The Bahamas as it allows the citizenry to voice their concerns and share their thoughts on myriad matters. The gift of communication verbally and in writing within our nation is a distinguishing feature of our civilization, which we must not take for granted.

Views and opinions expressed by the populace over the years in general and in recent times in particular have been quite revealing. They have not only given us insight as it relates to the mentality of some of our people but they have also shed light on some misconceptions on the role of the Bahamas' government and what some perceive to be the responsibility of our political leaders. This piece addresses some of the misunderstandings on what the government should be doing in 21st century Bahamas.

The duty of government
The ultimate role of a government is to secure the rights and liberties of its people. The arms of government ought to work together to ensure that this fundamental function is fulfilled through the enactment, interpretation and enforcement of appropriate law as well as policies. In doing so, emphasis should be placed on the protection of the lives and property of the citizenry. This responsibility also extends to the securing of the country's borders and guarding of its sovereignty. In relation to infrastructural developments, investments in road construction and other public goods are often spearheaded by the government albeit the new paradigm calls for more public/private partnerships to achieve these objectives.

The level of involvement of government in the economy and other aspects of what constitutes our society is often dictated by the philosophy of the political directorate. However, in a strict sense, this can be placed somewhere between two extremes of a communist or socialist system to a pure market system. The reality is that in most cases, the Bahamas government is always somewhere in the middle with a mixed system which promotes policies that embrace components of a free market and socialist framework.

The prosperity of businesses
There has been the tendency to attribute the failures of businesses in The Bahamas over the years to the government. While there have been cases where certain decisions by the government have had significant adverse effects on enterprises, not all business failures should be placed at the feet of the government. The reality is that while some businesses will thrive, others will survive and some will fail either due to the quality of management, operational efficiency or business model employed.

The role of the government is to create a conducive environment by passing the necessary legislation, providing incentives where appropriate, granting concessions which translate into real economic activity and implementing policies that enable entrepreneurs to access the requisite funds or capital to make their dreams come to life. An important part of the government's role in increasing the probability of business success is making it easy to do business in The Bahamas by employing technology in its agencies and cutting the inefficiencies created by red tape. Once this is done the government should be kept out of the running of private businesses.

Job creation and security
One of the ways we ought to measure our progress in empowering our people is the extent to which the government is responsible for the creation of jobs, when compared with jobs created by the private sector. We should keep under watch the percentage of the workforce employed by the government and consider the speed at which such a ratio is being reduced. This is important, as the key driver of economic activity should be the private sector and not the government.

The other important issue in this debate is the perceived notion that the government should guarantee job security for the citizenry. This has resulted in several pleas and requests to the government to intervene in the affairs of private companies and companies within the private sector over the years. This seems to be partly responsible for the ideology held by some civil servants that regardless of their performance, their jobs are secure and there are no consequences for non-performance or inappropriate behavior.

Expansion and value of commerce
The public discourse on further relaxation and elimination of exchange control is not expected to end anytime soon. While the concerns relating to the value of the Bahamian dollar which is pegged to the US dollar is well documented, the impact of the current regime and restriction on the ability of Bahamian businesses to own more of our economy and expand beyond our shores is worthy of note. That being said, the exportation of goods and services by Bahamian businesses has been limited in general terms.

It was interesting to listen to the debate regarding the payment of artists scheduled to perform at the Bahamas Junkanoo Carnival. The intriguing part of the discussion relates to the demand for higher performance fees for local artists based on the market prices of international artists that were under consideration.

What seemed unclear is whether some Bahamian artists wanted the government and not the market to determine their fees. If the expectation was not that the government should increase their market value overnight, then the point raised by Bahamian music legend Ronnie Butler is a valid one. How could we want to overcharge the government and by extension our own selves? It is encouraging to note that some of our local artists have made us proud internationally and continue to spread their wings beyond this nation.

Conclusion
There are significant consequences for a system in which the government and the private sector are unclear on their roles. The country will prosper where the two important pillars of the economy function effectively and collaborate appropriately without assuming the other's responsibility.

The populace must be very careful not to draw the government into situations that do not call for such. In this regard, the main focus should solely be on ensuring that the laws of our land are being adhered to and agreements are not being breached.

The government should further enhance the legal framework to protect the populace by passing pension legislation and incorporating adequate protection in employment legislation. The National Development Plan, which includes stakeholders within the public and private sectors, should be clear on the evolving role of the government over the next 40 years. More importantly, we must change our thinking on what we expect of our political leaders and understand that they are indeed boundaries.

o Arinthia S. Komolafe is an attorney-at-law. Comments on this article can be directed to a.s.komolafe510@gmail.com.

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