From The Eneas Files>>>:

Nassau, Bahamas -

This has been relatively good year for Bahamians and The Bahamas. One of the reasons is due to the fact that the hurricane season was kind to us. We were spared nature’s wrath this year. Hurricanes not only wreak structural damages but also financial damages.

Most homes in The Bahamas are constructed through mortgagers. With a mortgage, there is the requirement of hurricane insurance which, in recent years, has skyrocketed to astronomical levels making it almost unaffordable for some people. Since there were no hurricanes, hopefully there should be a drop or decrease on premiums in 2007.

On the other hand, the Bahamian consumer saw an escalation in energy charges across the board, particularly in electricity rates, cooking gas, automobile gas, diesel and jet fuel. The Bahamas is a highly developed archipelago and just about every household is affected by electricity rates and the surcharges which accompany it and fuel for cooking.

As a mobile society, gas prices impact everyone as well, because people have to get to work, children have to get to school and, even though shopping has been decentralized, people still have to get from point A to B.

Everything we use in this country is imported. Freight rates have soared as a result of fuel charges and this has pushed up the commodity prices and caused an increase in the overall cost of living. This has resulted in everyday items becoming more and more expensive. This is particularly true with foodstuffs.

We are feeling the pinch in food prices, even in products, which we have the capacity to grow. During 70s and 80s, one could obtain a bushel of tomatoes between $2 to $3.00; today a pound of tomatoes could cost you as much as $5. Many people can remember when a dozen pineapples could be purchased for $10 or $12; today, one pineapple could cost you $5. The same pricing scenario exists for oranges, bananas, limes, peppers and a range of fruits and vegetables. We have lost our production capacity and, in the long run, this will come back to haunt us.

The Bahamas is now an urban society with 85% of the residents in this archipelago living either in Nassau or Freeport. With Freeport experiencing problems with its economy, more and more Bahamans have flocked to Nassau. With the Grand Bahama Port Authority having ownership problems, it could be awhile before Freeport and Grand Bahama get on track to sustainable economic development and growth.

These are just a few of elements, which have influenced our year. Recently, the Prime Minister indicated that The Bahamas was heading for full employment. If this happens, this will be a tremendous undertaking. There is, however, another side to this full employment issue and it is there will also be immigrant labour, some of which will be illegal. There is a demand for construction manpower which cannot be met by Bahamians. This will mean an inflow of foreigners.

Come January, election fever will hit the air as all of the political parties will swing into the campaign mode and from January to election day the national tempo will be one of excitement.

8 December 2006