November 29, 2013

Dear Sir,

I was sitting among a few pundits, each who at various levels have exerted influence in business; politics and even one, an author whose opinion is highly respected on economic matters. We were discussing the SAGE report, its implications and what we must do to get through this dilemma and in particular how to help those most affected by Bermuda’s continued economic decline.

I decided to have an affirmative approach in my input and proceeded by stating what I would do to solve our problem and propel the country forward if I had the political power to do so. In other words what I would do if I were the leader of the country. I take the position of making a plan rather than talk in circles and if it proves to be the wrong approach come up with one that is better, because an ill conceived plan is better than none at all. The country to date is without a firm and expressed plan and therefore I firmly believe with vision and determination we do not need to resort to the remedies of the SAGE report in totality.

We can use the report to deal with our general inefficiencies and as a rear mirror, but if we intend to drive forward, instead of an austerity plan, we need to embark on a recovery plan and here is what I said.

1) Bermuda is currently paying $130 million per year on interest which is (in rounded terms) half our current account budget deficit. I would erase the $2.3 billion debt commitment with zero interest Islamic financing. Eradicating the interest on our debt burden will free up future money to be committed to social programmes and services ranging from education to healthcare. Bermuda is a sovereign country and is a valuable asset that is not going to disappear. As long as there is social and political stability the risk to the investor over the long term is negligible. The imperative is to jump start and bring vitality to the economy. Fortunately because of our size $2 billion to $3 billion as the level of country or national debt from a comparative view is small and could be accomplished with a single investor.

2) I would incentivise the Islamic financiers with an offer to participate, at a reasonable level, in some of our infrastructural development and some of the several billion dollar projects currently on the table. The funding could be bundled, which makes the whole premise smoother and multiply the likelihood of success. Unleashing several major projects simultaneously will create hyper employment and stretch our workforce far beyond the point where Bermudians can fill the demand.

The benefit will be that it will put consumers back into the market place, employment for all Bermudians and tax revenues that will reverse the deficit position and bring the country towards a balance and even surplus budget. The add on effect is that Bermudians need to be retooled and suitably educated with a new invigorated programme that gives people the modern skill sets relevant to the new job demands and a hyper inflated economy is the only economy that will afford the resources to retrain and retool Bermudians.

3) I would actively pursue the opportunity to host the management for addressing the global infrastructural needs of under developed countries. I would massage the WIEF along with other financial bodies as the financial vehicle to underwrite the global funding campaign. This idea will bring highly skilled technical and professional persons to our shores and give an opportunity to Bermudians at all levels and attach them to a conduit to jobs and business opportunities on the global market. These opportunities to get it right for the country appear in cycles or epochs every forty or fifty years, when missed, leaves consequences in its wake before another like opportunity arises. Back in the early 60s at the dawn of desegregation we had such opportunity that was bungled when our progressive movement along with our business senses were derailed in 1965 by a false ideology and persuasions that emerged in the Progressive Labour Party along with a false handshake in the United Bermuda Party that within 30 years destroyed 200 years of black entrepreneurial development and more important, destroyed an opportunity to have a truly balanced society.

We are at another doorway with similar potentials today and the One Bermuda Alliance with its leader will either seize the higher potential to create a diverse future or will become a tool to further polarise the society, like both party predecessors. The mandate of the OBA arose out of two failures; Craig Cannonier’s face of premiership provided the thin margin of trust that the new government agenda would be aimed at the centre. Like the general election this is still a fragile moment the leader will either direct the ship towards the land of inclusivity or Quo Feta Ferunt will lead us to despair.

KHALID WASI