The New York Times recently used its vast influence to create a media sensation by calling on the US government, US domiciled corporations, and US taxpayers to brand any company choosing to leave the US in this time of economic crisis a traitor.

We should have anticipated this backlash and established a plan to deal with it well in advance. Imagine if the shoe was on the other foot. Imagine if during these harsh economic times, several of our local companies moved to the Cayman Islands or Dublin because they were being provided with “better services” than in Bermuda.

The fact that The New York Times is trying to discredit Bermuda under the guise of ‘patriotism yellow journalism'.

By taking this nationalistic stance, The New York Times and opportunistic politicians have obviously chosen to ignore the fact that without the favourable regulatory environment in Bermuda, the global insurance industry would be worse off than it currently is.

The regulatory environment in their own country does not lend itself to allowing their home-grown corporations to respond efficiently and effectively to problems and shortfalls created in the industry. Hence corporations are forced to go where they can respond in a manner which will allow them to stay in business, keep people employed and earn a profit. After all isn't that what capitalism is all about?

Let me emphasize that favourable regulation does not mean zero regulation, which is the flavour of the month right now for other jurisdictions around the world. Bermuda, a tiny little island, the second most remote inhabited island in the world behind Tristan da Cunha, has established itself on the international stage, not through shady business practices but by keeping up with the times. Let's stop hiding under a rock every time one of these big countries tries to discredit us. Let's let them know that we do regulate our companies.

How in the world could Enron go bust with all of the regulations that companies are supposedly subject to within the United States of America? Enron was able to get around the SEC, the accounting rules, the respected rating bodies, and the investment fraternity. How could that happen if the US system is so regulated and protective of its shareholders?

September 11 caused us to re-examine our trust in one another. It caused us to question our safety. Then Enron happened. The biggest bankruptcy case in US history. The company that “stole” its workers' pensions to line the pockets of their executives. The company that was privy to the inner circle of the White House. This bankruptcy has caused us all to wonder where we should invest our pensions. We are questioning whether our is money safe. Who can we trust any more? Were the people who kept their life savings hidden under their mattresses right all along?

These life-altering events occurred in the United States, which symbolises capitalism and individual freedom. Yet all of these things have now come back to haunt them. Naturally, some people in the US are going to go after the country that is perceived to be reaping the benefits of their shortcomings because we always try to find fault with someone else rather than examining our real issues and dealing with them.

I'm not worried about the commentary in The New York Times. It's actually good to know that our little island can make the front page of a major newspaper. I also believe this coverage has put us front and centre stage to gain access to the US government, and let it know just how much we have contributed to balancing the insurance shortfall by providing a stable and regulated environment for the new capital to find a home.

Ms. Ellen Seidman, former special assistant to President Clinton for economic policy and chairman of working group on natural disaster insurance pointed out in her address to the World Insurance Forum, that the insurance industry does not do a very good job at making itself known to the US government. Now is the time. The negative press from The New York Times and opportunistic politicians can actually be turned around in our favour if we use the right pitch.

As a country, we need to make sure we don't compromise our standards for anyone. We must always keep abreast of what's happening on the worldwide stage, and never relax our way of thinking to believe that we are better than any other jurisdiction. Most importantly, what September 11 was meant to show us is that we can no longer afford to be xenophobic. It can be argued that it was xenophobia that invited this horrible terror to our side of the world in the first place. We were so arrogant to believe that nothing like it could happen in our “civilised” part of the world. Well it did. Now the last thing we should be doing is trying to become insular again. For The New York Times and others of its ilk to use patriotism as an excuse for xenophobia is inexcusable. The world, whether these people want to accept it or not, has become a global village and we should allow companies to operate accordingly. Companies choosing to set up in Bermuda or to establish their headquarters here should be viewed from a global balance perspective. For example, are they still keeping people employed? Are they reducing their overall operating expenses, thus creating greater operating efficiencies for themselves. The decision to relocate to a user-friendly domicile may be the only way that several companies can continue to operate in an otherwise stagnant to declining economy.

The New York Times should be using its vast influence to educate people about the benefits of operating in a global environment, rather than using it to create a battle, which does not need to be fought at this time. In my opinion, all The New York Times is doing is deflecting people's attention away from the real causes of why the global economy is in such a mess.

Cathy Duffy is a chartered property casualty underwriter and is now a freelance writer. She is a former executive of Zurich Global Energy and has 15 years experience in the insurance industry. She writes on insurance issues in The Royal Gazette every Monday. Feedback crduffycwbda.bm.