Bahamas ambassadors at the opening ceremony of Diplomatic Week at Melia Nassau Beach resort on Tuesday. From left are Godfrey Rolle, Ellison Rahming, Calsey Johnson, Alma Adams, Ed Bethel and Mrs. Bethel, Rhoda Jackson, Dr. Eugene Newry. (Photo: Peter Ramsay/BIS)
Prime Minister Perry Christie said the government must raise $150 million by way of a special bond to "help the country to get back on its feet". However, Christie is worried that the traditional designation of The Bahamas as a high-income country -- using GDP per capita as a measure -- will make it extra expensive to borrow. And while he did not say the words "Moody's" or Standard and Poor's," Christie did tell diplomats gathered in The Bahamas that borrowing costs are exorbitant for The Bahamas in "the normal markets".
Christie was addressing the third Bahamas Diplomatic Week, under the theme, "Strengthening relationships for a more secure and prosperous Bahamas".
He said recovery from Hurricane Matthew cannot be accomplished in The Bahamas "by private assistance" -- however generous -- and that the government has no choice but to borrow to raise the money.
"Our second city Freeport, for example, is crippled economically with the power plant down and its main tourism engines badly damaged. Hundreds of homes have been damaged by floods, people have lost all their possessions from tidal surges and have no personal savings. In this instance only the Government has the resources to pay for this.
"We have had to bring in 200 people from outside The Bahamas through the Caribbean Disaster Management Agency (CDEMA) and the Caribbean Electricity Agency (CARILEC) and from Power Secure in the USA to augment the work that can be done by local people. This also costs money.
"We have some capacity to borrow but the costs of the borrowing is exorbitant when we have to go to the normal markets. The Bahamas cannot access the concessional financing because of this measure of GDP per capita. It would help enormously if that criteria were waived for this purpose. I make such an appeal here today," he said.
Christie also noted that one of the more pointed observations made by the CARICOM Secretary General when he visited last week that "the images of destruction and the news of the devastation of our country is not widely known or seen."
"In this, we are the victims of our own success, where many people see us as rich country able to back bounce largely on its own," he said.
Catastrophe
Christie told the diplomats about the catastrophic results of Hurricane Matthew, particularly on the islands of Andros, Grand Bahama and New Providence.
"It has been estimated that the overall cost of the damage could range as high as $400 million. The toll on homes, property and infrastructure has been high, but not one life has been lost as a result of this very powerful climatic event. For that we are extremely grateful... What has made this experience even more poignant is that it was just last year around this same time that the southeastern islands of the Bahamas were ravaged by Hurricane Joaquin and they have yet still to fully recover.
"The process of recovery, restoration and rebuilding is underway, and it will take time. I know, however, that my country will persevere due to the resiliency and strong faith of the Bahamian people. I am deeply heartened also by the generous assistance and donations from our friends around the world - national governments, international organizations and individuals -- who wasted no time in providing rapid support to, and continue to support, The Bahamas in the aftermath of the hurricane," Christie said.
"Our neighbors in Florida have been most generous with their support, because they know the country and the struggles that we face in bouncing back. Those farther afield do not know. I want to take time out to thank those businesses and private citizens in Florida who have started sending assistance from as soon as the storm abated. There are many other generous citizens from across the globe," he added.
In addition to thanking CARICOM (the Caribbean Community) for all of the help that has been provided, Christie also offered sincere condolences on behalf of the government and people of The Bahamas to Haiti, for the loss of life and the devastation wrought by Hurricane Matthew.
Change
Christie told the gathering that until the issue of climate change is addressed "with utmost seriousness and sincerity" the increasing severity of storms like Joaquin and Matthew will have a devastating effect on island states.
"The fact is that we can no longer question whether climate change is valid or not. Weather events - hurricanes, droughts, floods, storms and other environmental threats - are increasing in frequency and intensity, and they have become the "new normal". These events take a massive human toll and roll back years of development," he said.
And in fact, the International Monetary Fund (IMF) has just released a report estimating that The Bahamas lost $3.2 billion in GDP to storms and natural disasters between 1950 and 2014. The region at large lost $52 billion, for 148 disasters with information available.
Christie said the 'new normal' should not devolve into "business as usual".
"We have to put emphasis on actions to reduce and adapt to the impacts of climate change, and also to prepare for, and respond to, these climate-linked threats. The existential threat posed by climate change illustrates with crystal clarity the need for us all to work together. We have no time to waste. This we must do for human dignity, safety and well-being, as well as for economic and social development. It is for this reason The Bahamas was amongst the first group of countries to sign and ratify the Paris Accord on Climate Change," he said.
K. Quincy Parker, Guardian Business Editor
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