The president of the London-based Chartered Institute of Arbitrators (CIArb) has called on the prime minister to support the development of The Bahamas as a center for international arbitration, by committing to investment in the "intangible" parts of the economy as much as the physical.
Intervening at the National Conclave of Chambers of Commerce, held at SuperClubs Breezes yesterday, Michael Stephens said that The Bahamas has "significant legal, financial and maritime services which are there to be capitalized on".
Stephens is in The Bahamas to participate in the Pre-ICCA (International Council for Commercial Arbitration) conference, set to begin tomorrow.
Stephens made his comments following a speech by Prime Minister Perry Christie, who spoke of the $100 million investment his government intends to make in Andros.
Stephens told Christie: "I was delighted to hear of the government's intention to invest $100 million in infrastructure.
"The comment that I may make is this: infrastructure includes not just lengthening the runways, building schools and other tangible structures, it also includes investment in services. In The Bahamas you have significant legal, financial and maritime services which are there to be capitalized on.
"I was quoted in The Tribune this morning as saying there is now hope that The Bahamas will become an international arbitration hub in the next three to five years. The comment I would offer to you is could the government be mindful when investing that it is not just the buildings, it is also the invisible services that could also bring great economic benefits to the community."
In an interview with Guardian Business, Stephens called for arbitration to "become part of the judicial training, part of the court rules, and certainly to become a technique that is well-known in the community" in The Bahamas.
"It will have benefits not just for the international economic aspect in the Bahamas but also for community relations and therefore for the domestic economy as well," he said.
Stephens said that ultimately it would help the cause if the government would consider establishing a "dedicated facility" for arbitration and alternative dispute resolution.
Responding to Stephen's public comments at the conference, Christie said he too agreed that infrastructural development must encompass more than the tangible, and added that he is "excited about the possibilities of arbitration", even discussing the possibility of making Grand Bahama the home for such a center.
"We are trying to really move in 20 different areas at one time all with a view of really positioning our country to be positioned in a maximum way with respect to new products," he added.
Minister of Financial Services Ryan Pinder in an address later on during the conclave, also stated that the government supports the development of the country as a center not only for trade-related arbitration, but also for financial and maritime matters, and for domestic arbitration.
"It will create efficiencies for the operation of businesses and members of the Chamber," said Pinder.
Providing an example of when The Bahamas could become a choice location for a trade-related arbitration matter, Pinder pointed to a case where a business in Florida trades with a business in Brazil, and they end up in a dispute.
In such a case, the Florida business may not want the dispute arbitrated in Brazil, and vice-versa, out of concerns over bias, and therefore would choose The Bahamas as a geographically close and neutral site for arbitration.
Pinder suggested that the development of The Bahamas as an arbitration center would complement his ministry's efforts to further the amount of trade done by this country. At present, said Pinder, his ministry believes The Bahamas can find ways to expand its trade in goods with the outside world through a "value-added trade strategy" that would involve sourcing components from all over the world and putting them together in The Bahamas for re-export.
The minister said a study has been commissioned by the government with the Organization of American States (OAS) that will further explore the possibilities in this regard.
The Pre-ICCA conference will be held in Nassau tomorrow at the British Colonial Hilton under the theme "The emergence of The Bahamas as an international arbitration center - complementing the Americas."
It is free and open to the public.
Click here to read more at The Nassau Guardian
