Decolonization Models for America’s Last Colony: Puerto Rico

The Bahamas, Small Yet Sovereign

181 The Bahamas, Small Yet Sovereign October 25, 2007 Throughout our history, we have been told that to be sovereign means to be like the poor states of the Caribbean. We have avoided discussion of remarkable examples from all over the world of countries of a scale similar to that of Puerto Rico that have achieved economic and social development after abandoning their colonial status for sovereignty. Our very own Caribbean area provides us with one model, in this case a country with a much smaller population than Puerto Rico has. The Bahamas are an archipelago of seven hundred islands some fifty miles off the coast of Florida to the north of Cuba. They were discovered by Christopher Columbus on his first voyage in 1492 and were part of the Spanish Empire until 1647, when English colonists began to settle there and eventually turned the Bahamas into an English colony in 1783. In 1973, the inhabitants of the Bahamas voted for independence, attained sovereignty, and joined the British Commonwealth. Since their independence, the Bahamas have shown impressive development, particularly in tourism, international banking services, and investment management. The Bahamas have a population of 305,655 (Puerto Rico has 3,944,259) and a per capita income of $21,600 (Puerto Rico’s is $19,300). Its real growth (gross domestic product) is 4 percent (Puerto Rico’s is 0.5 percent). The labor force of the Bahamas is 58 percent of the total population (Puerto Rico’s is 33 percent). The Bahamas describe themselves as an “investment paradise.” In their advertisements, they quote ten reasons for investing in the Bahamas: (1) a stable and peaceful democracy; (2) proximity to 182  Newspaper Columns the principal financial centers in North America and Latin America; (3) skilled professionals; (4) ideal weather for recreation and rest; (5) a safe investment environment; (6) tax exemption on capital gains, inheritance, corporate and personal income, and dividends and interest; (7) proactive incentives for investments; (8) essential public services and modern infrastructure; (9) a legal system based on English common law, with judicial independence; and (10) a sound economy guided by a prudent fiscal policy. In 2005, they received an award from The Banker Magazine (published since 1926) for having the best international financial center in the Western world (Singapore received the award for Asia): they enjoy a favorable fiscal environment, political stability, and an efficient legal structure and regulatory system. Another point highlighted by the magazine is that the Bahamas keep up a close dialogue between the public and private sectors. The latter [characteristic] has played a key role in cultivating an environment that favors continued economic growth. Though the Bahamas are a sovereign country, airline flights enter the United States as domestic flights because immigration and customs are handled in the Bahamas before passengers board the planes. Puerto Rico is in a much more advantageous position than the Bahamas . In a world where the principal development resource is human capital , Puerto Rico excels in all fields. Relative to the Bahamas, Puerto Rico is better developed in high-tech manufacturing, and our higher-education system has no parallel in the region. This being the case, why are Puerto Rico’s growth and per capita income rates lower than those of the Bahamas ? And why does our future appear less prosperous than theirs? Being a sovereign country, the Bahamas can develop an economic model and establish whatever trade treaties suit them the best. Whereas the Bahamas can exploit opportunities in the high-tech, globalized world, Puerto Rico, with its extraordinary human capital, has to settle for colonial status, dependence on the will of an indifferent Congress. As a consequence , our economic model, our quality of life, and the very fiber of our society are gradually declining. Puerto Rico’s pathetic situation is forcing our educated population to immigrate to other countries. The Bahamas, Small Yet Sovereign  183 Given all this, we should not be surprised that the little Bahamas, in our own Caribbean region, have surpassed Puerto Rico in economic terms. The boom in the Bahamas began in 1973 when they achieved sovereignty . That, they concluded, was their only option: as in the case of Puerto Rico, the colonial power never did have annexation in mind. ...