The advent of a new year is often marked by festivities and new goals in the form of resolutions by individuals across the globe. The Bahamas and Bahamians as a whole are not exempt from this tradition and practice as we seek to start afresh using the metaphoric blank canvass to paint that which we aspire for in 2014.
On a national level, it seems reasonable to state that 2014 could very well be the most important year in Bahamian history since 1973 - the year we obtained political independence from Great Britain. The subsequent parts of this article help to substantiate the notion that 2014 could be a break or make year for The Bahamas. There is indeed so much at stake and more than ever before, collaboration among all stakeholders will be imperative in this self-defining year. Simply put, all hands should be on deck and not be used in fighting one another to the detriment of our nation.
Constitutional referendum
The report produced by the Constitutional Commission in 2013 recommended among other things that all forms of discrimination against women in the supreme law of our land - the Constitution should be removed. It has been announced and rightly so, that the upcoming constitutional referendum (the first of many) will focus solely on the elimination of this discrimination against the Bahamian woman.
The Convention on the Elimination of All Form of Discrimination Against Women (CEDAW) adopted by the United Nations General Assembly on September 18, 1979 and ratified by The Bahamas with three reservations on October 6, 1993 describes discrimination against women as "any distinction, exclusion or restriction made on the basis of sex which has the effect or purpose of impairing or nullifying the recognition, enjoyment or exercise by women, irrespective of their marital status, on a basis of equality of men and women of human rights and fundamental freedoms in the political, economic, social, cultural, civil or any other field"
It is noteworthy to state that the Free National Movement (FNM) government in a referendum held on February 27, 2002 had sought to address the gender discrimination within our constitution but the majority of the populace had voted against this proposal. The Independence Celebrations Committee under the current Progressive Liberal Party (PLP) administration last year recognised the struggles and achievement of the Bahamian woman on the 50th anniversary of the women's suffrage movement. Based on the actions of the PLP and FNM governments, it is apparent that they are both in agreement with the need to eliminate discrimination against women in our Constitution. Hence, we do not expect the politicising of this matter, rhetoric on process, excuses on education or plain baloney in the debates leading up to this much anticipated referendum. While education will be important, this is our second shot at this issue and considerable education should have taken place in 2002. Further, the matter is crystal clear and the injustice apparent for all to see.
Fiscal reform
After years of burying our heads in the proverbial sand, we have finally accepted either by choice or force that our current tax system is inadequate and fiscal position unsustainable. In spite of pressures from multilateral agencies and international rating agencies, there is no doubt that the future of our country lies in the balance and urgent action is needed to address our fiscal imbalance.
The public discussion on the proposed Value Added Tax (VAT) system has been predictable but interesting to say the least and is expected to gain momentum in the coming months as we approach the proposed implementation date of July 1, 2014. The private sector under the umbrella of the Coalition for Responsible Taxation (Coalition) has been vocal on this issue and has suggested alternatives to VAT. The Government's position is that VAT is superior to the alternatives proposed by the Coalition and remains our best option to broaden our tax base while increasing revenue.
Ideally, the Government should seek buy-in from the business community and taxpayers in order to encourage voluntary compliance. However, the nature of a consumption tax is one which impacts the consumer and ultimately the bottom line of merchants, retailers and businesses as a whole. Hence, the Government can expect to have a fight on its hand from the business community on VAT. The Government and business community will do well to educate the masses on the urgency of now, the reasons why VAT is the best option at this time and explain in layman's terms the potential impact of VAT on the average Bahamian.
The Government will also have to demonstrate ongoing fiscal prudence on the expenditure side and continue the trend highlighted in the first quarter of fiscal year 2013/14. Regardless of what direction the debate on fiscal policy takes, an overhaul of our fiscal and tax systems will take place in 2014.
Financial services
Our financial services industry is the second largest contributor to our Gross Domestic Product (GDP) constituting approximately 15% to our GDP. This important industry, especially on the international side has been under significant pressure in recent times. However, initiatives such as the US Foreign Accounts Tax Compliance Act (FATCA) which is expected to come into effect in 2014, the revisions to the Financial Action Task Force (FATF) Recommendations and the move towards increased international tax cooperation and automatic exchange of information are expected to significantly increase compliance costs for industry participants.
On the positive side, opportunities abound for The Bahamas in the areas of captive insurance and funds. We will have to continue to add value to our clients and ensure that we maintain our position as the wealth management jurisdiction of choice. Our service delivery, ability to serve as a one-stop centre and strategic geographic location must be key parts of our message in marketing The Bahamas. The survival and future of our financial services industry will also depend on our innovation, ability to adapt to the changing international landscape and the ease of doing business in this jurisdiction.
Tourism
The opening of Baha Mar in December 2014 will arguably be the most significant event in the tourism sector in years. In the lead up to this opening, it is anticipated that Baha Mar will be hiring thousands of Bahamians; a much needed boost for our economy with a high unemployment rate. The opening of the Reef in Grand Bahama should also provide some relief to the ailing economy of that island.
The proposed Gaming Bill has been described as a game changer for licensed casino operators in The Bahamas. While affected hoteliers are anxious to see the Bill passed in Parliament, the discussion on web shops and the ability of Bahamians to gamble in The Bahamas has been injected into the public discourse on the Gaming Bill which basically maintains the status quo. This comes in the aftermath of a referendum in which the majority of Bahamians that participated rejected the proposal to allow Bahamians to gamble via local web shops. The government will need to navigate through this issue in the enactment of the Gaming Bill in 2014.
Crime
The last but not least of the matters to be considered in this piece which we will be watching is the scourge and fear of crime in The Bahamas. The Bahamian people will be carefully watching whether all stakeholders including political organisations, civic groups and the media will work together to confront this ill within our nation. It has become sheer rhetoric to state that crime is not a political issue albeit politicians have been infamous for using this vexing issue as a political football.
The Government has its work cut out as it assumes the lead in implementing appropriate policies and adopting strategies to subdue this menace to our society and threat to our way of life. In 2014, we must take a stand as a people to bring crime under control in our country by adopting a zero-tolerance approach to illegal behaviour. The Bahamas belongs to us all; as Bahamians we have nowhere else to run to or call home. Let us take pride in our country and work together by taking responsibility for the preservation of our quality of life. Crime is an enemy that threatens our social, economic and political prosperity in 2014 and beyond.
In the final analysis, all eyes will be on 2014; a year of implications of significant proportions for the Commonwealth of The Bahamas.
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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