THE recent release of the World Bank report on World Development Indicators for 2004 saw Bermuda rise to the top rank in terms of Gross National Income per capita. However, according to Opposition Leader Grant Gibbons, this ranking, although a measure of success to some extent, is rather deceptive.

"First of all I think that we have for a number of years ranked in the top five countries in terms of per capita Gross Domestic Product and per capita income as well," Dr. Gibbons said.

"I think it is a reflection certainly of enormous success Bermuda has had over the last 40 years in terms of economic success, but there are clearly issues that need to be addressed. I'm particularly worried in the last few years that we have seen what I will call a widening gap between the haves and the have-nots."

However, while Dr. Gibbons is concerned with the disparity between rich and poor, he is quick to point out that Bermuda's economic chasm is not always a case of non-Bermudians earning substantially more than Bermudians.

"I think there's a tendency when you look at this World Bank data to suggest that it's simply a reflection of a few highly paid non-Bermudians but I don't think that's the case," he said.

"The Census shows that while on average non-Bermudian households earned more than Bermudian households, the median was $75,000 for non-Bermudians and approximately $71,000 for Bermudians.

"They also found that within two-parent Bermudian households, they actually had higher incomes than the non-Bermudian two-parent households, with $106,000 compared to $97,000. What we're seeing here is that Bermudian households are doing quite well."

Dr. Gibbons also commented that while the international business sector is traditionally considered a non-Bermudian stronghold, Census figures show otherwise. "There are a lot of Bermudians in the international business sector that are doing very well. It used to run about 2/3 Bermudian to 1/3 non-Bermudian and it's slipped a little bit in the last couple of years. We're currently running at about 55 per cent Bermudian employees and 40 per cent non-Bermudians," he said.

"There's a perception that Bermudians aren't doing well in international business and I guess the point is that the majority of those working in international business are not Bermudian. One of the reasons that Bermudians don't tend to do as well in the average income numbers is because most of the non-Bermudians that are here in international business or indeed in law, banking and financial firms are here during their younger to middle age years," Dr. Gibbons explained.

"They simply leave at the end of that, and that tends to skew the numbers. They're here at their peak earning period and that's going to have an impact on how averages and medians work out as well." While in an interview with the Mid-Ocean News this week and BIU research officer Calvin Smith (see story above) claimed the wage disparity between the international business sector and other sectors had "nothing to do with education", Dr. Gibbons believes the current Government school system leaves students unprepared to enter the highly competitive job market.

"Clearly our education system needs to do a much better job in terms of preparing our students to be competitive in the job market," he said.

"I think this is something that the community feels and all of us have been saying for some time that if you're going to be able to take jobs that are available in international business and in other areas as well you have to be extremely well trained and well educated.

"I think certainly in the last few years we've been very concerned about the results coming out of our education system. That's another debate entirely."

Dr. Gibbons claims that while Bermuda's ranking of No. 1 world-wide in terms of GNI per capita is impressive, we must "look behind the numbers" and concentrate on solving problems like declining tourism figures, the housing crisis and the falling standard of living for the elderly.

"What's really concerned me over the last few years is that we are becoming less and less diversified from an economic perspective and I think that's been a great concern of the United Bermuda Party. What you have seen is a real precipitous decline of tourism if you measure in terms of income into Bermuda. That's particularly over the last five years and the numbers reflect that in terms of the expenditure by visitors here," he said.

"What you've got is an economy that is getting narrower and narrower in terms of our economic base. One of the things that we think is very important is to make a much greater effort to try and rebuild tourism but also to diversify our economy broadly.

"It's unfair and it's not workable in the long run that if you want to be very well-paid, you can only go into one specific area, international business."

Dr. Gibbons approached the topic of declining conditions for the elderly by looking at Census figures.

"If you actually look at the population aged 65 and older, some 40 per cent of those are classified as Poor and another ten per cent are Near Poor. What we're saying is about 50 per cent of those aged 65 and older clearly are in the lower end of the income structure and that's why there needs to be a great deal of emphasis put on issues of housing, not only for the broader population but also for the elderly," he explained.

"We need to look at issues of health care coverage and cost and certainly pension issues because it's clear to a large degree that the elderly are on the bottom section of the diversions between the haves and the have-nots."

In response to Calvin's Smith's complaints that the current Government has not lived up to its promises in regards to the housing crisis, Dr. Gibbons wholeheartedly concurs.

"I think Mr. Smith is correct and I think he is reflecting the broader views of the community," Dr. Gibbons said. "Over the last five or six years there has been no concerted effort to really address the affordable housing issue. Part of that has been the gross mismanagement of agencies like the Bermuda Housing Corporation.

"I think the Progressive Labour Party has so far failed miserably in terms of being able to address this in ways that former UBP Governments had in the previous 20 to 30 years with initiatives like the BHC and housing that was built like Duck's Puddle and all that sort of thing."

Overall, while Dr. Gibbons deems Bermuda's No. 1 position in the World Bank report a success, he sees flaws in the ranking system.

"Generally what happens is these figures get adjusted for Purchasing Power Parity (PPP)," he explained. "I don't know whether these were and I suspect they were not. The point is that while we may be number one in terms of income, it hasn't been adjusted to reflect a much higher cost of living in Bermuda, looking at housing, food, rent, and health care.

"If it was adjusted for PPP I think you'd find that perhaps we weren't number one. Other countries that have a lower cost of living might edge us out there."