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PM Minnis remarks at IDB/IMF/WB Conference re Climate Change — in Washington, D.C.

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#Washington, D.C., November 27, 2018 – U.S.A

Intervention by

 THE MOST. HON. DR. HUBERT A. MINNIS, O.N., M.P.

Prime Minister

COMMONWEALTH OF THE BAHAMAS

 

Inter-American Development (IDB)/

International Monetary Fund (IMF)/

World Bank (WB)

Conference – Building Resilience to Disasters and Climate Change in the Caribbean

 

“Improving Risk Transfer”

 

IMF Headquarters, Washington, D.C.

November 26th 2018

 

Like many other Caribbean countries, disasters in the Bahamas can have a large, direct impact on economic conditions through reduced productivity and increased national debt due to reconstruction costs.

For example, as a result of Hurricane Mathew in 2017, The Bahamas Government initially borrowed $150 million and made allocations for capital works, and transfers and subsidies for relief and reconstruction.

This widened the fiscal deficit from an estimated 1.0 per cent of GDP in 2016/17 before Hurricane Matthew to 1.9 per cent of GDP after Matthew. This represented an $81 million increase in the deficit after the hurricane.

Subsequently, we recognized that in post-disaster relief and recovery, we should have the resources and means at our disposal to finance our direct contingent liabilities more efficiently, and to be better able to provide additional aid to small businesses and low-income farmers, who are disproportionally impacted by disasters.

As the frequency and severity of disasters increase due to climate change, the intensified shocks could create debt burdens on future generations, and erode development progress.

The need for us to understand our fiscal risk and for us to create cushions against adverse economic impacts is more urgent than ever, and this highlights the importance of developing risk financing strategies and transfer mechanisms to avoid reliance on public debt.

We also need to promote insurance solutions for homeowners. The possibilities of introducing natural disaster insurance for homeowners are as varied as the disaster management strategies of different countries.

There is no single ideal or universally applicable solution for homeowner’s disaster insurance. Each country must find and adapt a model that best fits its exposures, existing insurance market infrastructure, institutional set-up and political acceptability.

The solutions in place in different countries range from comprehensive compulsory natural disaster covers offered by government-sponsored insurance entities  to privately organized voluntary disaster insurance products.

However, pooling of risks at the regional level may be the solution to overcome any shortcoming in any particular country.

We are cognizant that ex ante instruments are the most effective and efficient means of governments practicing self-insurance.

Ex ante instruments require proactive advance planning and includes reserves or contingency funds, budget contingencies, contingent debt facilities, and a range of insurance or other risk-transfer products.

These risk transfer instruments that transfer contingent liabilities to the market or other agencies make it harder to game the system for political reasons.

They will be triggered only in particular circumstances and are more easily directed to the plans they were meant to finance.

Further, they require less discipline by the user because discipline is built into the rules of the contract and is part of the service provided.

Even though we are aware of the many benefits on improving risk transfer there are still a number of challenges in accomplishing this task.

One such challenge is that policymakers often have difficulty in obtaining political and economic commitment due to other competing needs and priorities.

While  many  agree  that  reducing  disaster  risks  is  important  for  saving  lives  and  property,  few  countries such as the Bahamas  have  appropriate  measures  in place because other policy issues require greater  attention  and  funding.

This has resulted in the insufficient earmarking of financial resources for risk transfer measures. Policymakers are in need of clear evidence, including cost-benefit analysis, to convince the public and various stakeholders that a commitment to risk transfer is as practical and necessary as any other priority.

Additionally, the liquidity secured through sovereign risk transfer requires a pre-existing targeting and distribution infrastructure, such as a social protection mechanism, which is underdeveloped in the Bahamas.

Therefore substantial investments  in  targeting  and  distribution  infrastructure,  and  in  enabling  markets may  need  to  be made  alongside securing  financing  against  risk.

This suggests the need for a high level of commitment and coordination across investments.

Risk prevention and mitigation strategies must be the first priority in managing natural disasters. But no organization or country can fully insulate itself against extreme events.  To enable and sustain growth, transferring catastrophic risk must therefore be a key element in the financial strategy of every disaster-prone country or region.

We must recognize that “financial resilience is a critical component of disaster management” because the immediate availability of funds to finance the necessary disaster response and recovery is critical to take appropriate action for individuals, businesses and governments.

There is little awareness among decision makers, disaster management authorities and potentially affected households, businesses and governments about the role insurance instruments can play.  The donor community can also play key complementary roles in the development of catastrophe insurance solutions for developing countries.

These roles include: helping to subsidize insurance premium in the context of a country putting together a sound macro-fiscal framework, and increasing the capitalization of CCRIF, so that insurance premium come down automatically.

In terms of convening power, the World Bank and other IFIs can play a catalytic role in the development of efficient partnerships among countries, donors, and private markets for the financing of catastrophic risks.

Donors can play a major role in financing public goods that contribute to the creation of a risk market infrastructure, which facilitates the development of market-based risk financing solutions.

Public goods include information collection and management systems, catastrophic risk assessment programs, risk modeling development programs, awareness and education campaigns, and institutional capacity building.

By being the provider of technical assistance for innovative catastrophe insurance solutions, donors can promote the emergence of innovative risk financing solutions, including index-based insurance products, national and regional catastrophe insurance pools (for example, TCIP, CCRIF), and risk transfer vehicles (such as reinsurance, catastrophe bonds, weather derivatives).

IFIs such as the IMF can help to subsidize insurance premium in the context of a country putting together a sound macro-fiscal framework.

For example with the assistance of the IMF and CARTAC, the Bahamas has passed Fiscal Responsibility Legislation which aims to bring discipline to the Government’s fiscal agenda with a view to attaining future fiscal surpluses.

With this in our tool kit, the Government has pledged to set aside two to three percent of these surpluses in a fund that can be used to pay the CCRIF premiums and assist to rebuild after a natural disaster.

Moreover, public intervention in catastrophe insurance markets, supported by the donor community and the World Bank, should be country-specific.

Low income countries, where the domestic non-life insurance market is undeveloped, should focus in the short term on the development of sovereign catastrophe insurance solutions and the promotion of public goods related to risk market infrastructure.

These countries are usually not developed enough for the promotion of catastrophe insurance pools for private homeowners.

Middle-income countries, where the domestic non-life insurance market is more developed, should help the private insurance industry offer market-based catastrophe insurance solutions to homeowners and to small and medium enterprises, including those in agricultural and fisheries industrie

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Bahamas News

Diamond Stubbs, 17 • Betrica Brown, 19 • Stania Webb, 19 • Fourth victim yet to be identified

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Deandrea Hamilton | Editor

Six road deaths in two days leave a nation searching for answers

NASSAU, The Bahamas – A nation that only days ago celebrated graduations, scholarships and bright futures is now united in grief as six lives were lost on Bahamian roads in just two days, including four young women whose deaths have shaken the country to its core.

The names Diamond Stubbs, 17; Betrica Brown, 19; and Stania Webb, 19 have become the heartbreaking symbol of one of the country’s deadliest road tragedies in recent memory. A fourth young woman, believed to be 18 years old, had not been publicly identified by authorities up to publication time, as families continued to mourn and await official confirmation.

The four were among eight occupants travelling in a gray Mazda when it crashed into a tree on Shirley Street shortly after 1 a.m. Sunday. Police said the 19-year-old driver reportedly struck a pothole, looked back toward his passengers and lost control before the vehicle slammed into the tree. Three young women died at the scene, while a fourth later succumbed to her injuries in hospital. Four others, including the driver, remain hospitalized as investigations continue.

The tragedy’s impact reached the House of Assembly on Monday, where Members observed a moment of silence – led by Prime Minister Philip Davis – in honour of the young women whose lives were cut tragically short.

What has resonated most across the country is not simply how they died, but who they were.

Diamond Stubbs had just graduated from Old Bight High School in Cat Island as valedictorian and head girl. She was preparing to attend Langston University in Oklahoma on scholarship and was remembered by her father as an exceptional student who earned virtually every academic award presented at graduation while inspiring other young people to pursue their dreams.

Betrica Brown, who called both Cat Island and Abaco her homes, had recently travelled to Nassau to secure her student visa. Youth and Sports Minister Mario Bowleg said she was preparing to begin college on a volleyball scholarship.

Stania Webb had already distinguished herself at Langston University, where she earned both President’s List and Honour Roll recognition after graduating from Old Bight High School at just 16 years old. Family members remembered her as a quiet, ambitious young woman deeply committed to her Christian faith and education.

Speaking in Parliament, Prime Minister Philip Davis described the loss as heartbreaking, extending condolences to the families, classmates and loved ones whose lives have been forever changed. He urged Bahamians to keep those still hospitalized and the grieving families in their prayers. Similar expressions of sympathy came from across the political divide, churches, schools and communities throughout the country.

Some residents were also chided for sharing gruesome and graphic photos and video in the hours following the shocking car crash.  Relatives said it made a difficult, heartbreaking time more unbearable.

Condolences poured in from government and Christian ministers; The Bahamas Union of Teachers; The Bahamas Christian council and other leaders from across the islands.

The national tragedy extended beyond New Providence. Also on Sunday, 26-year-old Nica Julien lost her life in a separate traffic collision in Grand Bahama. Then, on Monday, a road traffic accident claimed the life of a 30-year-old man on the highway of Abaco.

Together, the six deaths have transformed what should have been a season of celebration with graduations and independence festivities in play, into one of national mourning, leaving families, communities and an entire country searching for answers—and praying that no more names are added to the list.

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Twist of Timing Shifts Focus in Jonathan Gardiner Case

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The Bahamas, June 26, 2026 – Imagine boarding a plane for another Bahamian island, only for it to crash in U.S. waters during what now appears to have been a remarkable twist of timing.

Jonathan Gardiner’s Election Day flight has dominated headlines for weeks, but Thursday’s decision by a New York federal judge suggests the story may be far bigger than the crash itself.

Gardiner was denied bail after U.S. District Judge Gregory Woods described him as a danger to the community, a significant flight risk and concluded that the government’s evidence is “very strong.”

For many Bahamians, however, the public narrative has remained fixed on the approximately $30,000 recovered after the crash, including an envelope reportedly containing $5,000 intended for an unnamed politician.

Gardiner’s attorneys have argued the cash was legitimate, saying roughly $20,000 had been withdrawn from his business account the day before the flight. They also maintain the prosecution’s case is circumstantial and have argued that his speedy trial rights are being violated.

But prosecutors say the charges stem from a three-year federal investigation into an alleged conspiracy to import cocaine into the United States—not an investigation that began because a plane crashed in Bahamian waters.

That distinction may prove critical.

The crash brought the case into public view, but it may not be what ultimately determines its outcome.

The judge’s ruling raises a question that now deserves greater attention: What evidence from that three-year investigation persuaded a federal judge that the government’s case is “very strong”?

The answer may not lie in the cash recovered after the crash, but in investigative material that has yet to be fully presented in open court.

As the case moves toward trial, Magnetic Media will continue looking beyond the headlines and following the evidence that underpins one of the most closely watched criminal prosecutions involving a Bahamian in recent years.

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Bahamas News

He’s Not Dusting Off Yesterday’s Plan… He’s Trying to Rebuild Government  

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By Deandrea Hamilton | Magnetic Media

 

The Bahamas, June 26, 2026 – Just in case you thought Sebastian Bastian, The Bahamas’ first Minister of Innovation and National Development, was about to dust off Vision 2040 and carry on where others left off… think again.

In his maiden Budget Communication on Monday, June 15, Bastian unveiled what amounts to a blueprint to rebuild how the government works.

Not with another glossy vision document.

But with an execution machine.

The clearest indication came when the Minister acknowledged that while Vision 2040 was an important national achievement, it also exposed a weakness.

“So we are changing what we are building. The National Development Plan will no longer be a document we complete and set aside. It will be a living instrument — continuously reviewed, always current, resourced by full-time professionals, and grounded in real data — that shapes how this government, and every government after it, chooses its priorities. A plan is a document. What we are building is an institution.”

It is a remarkable shift in philosophy.

Instead of governments producing national plans every decade, Bastian wants professionals monitoring implementation in real time, measuring progress and ensuring administrations stay focused on delivering what they promised.

To Bastian, national development goes far beyond the roads, airports and buildings Bahamians can see. It also means creating the invisible infrastructure of government — smarter systems, better planning, reliable data, accountability and institutions that survive changes in political administrations.

His speech repeatedly returned to one central idea: government itself has become an obstacle to opportunity.

He described a Family Island entrepreneur waiting weeks or even months for approvals because government systems do not communicate with one another. He spoke of public servants trapped by outdated manual processes instead of serving people. And he highlighted an 18-year-old entering a workforce being reshaped by artificial intelligence before graduation.

As he explained:

“…our job is a practical one: to make government work better, to make The Bahamas easier to do business in, and to make sure our country and our people are ready for what comes next.”

For ordinary Bahamians, he said the objective is simple.

“…a government that is simpler, faster, and far easier to deal with… dealing with your government will get easier, year after year, by design.”

His ministry’s four pillars are ambitious: modernizing government, preparing the nation for artificial intelligence, developing Bahamian talent and driving long-term national development.

Among the initiatives announced were a National Artificial Intelligence Authority, the country’s first AI legislation, a National Digital ID, SmartGov productivity tools for public officers, connected government systems, a National AI Literacy Initiative, an independent National Planning and Development Institute and a Delivery Division dedicated to turning plans into action.

The speech stopped short in one important area.

While Minister Bastian thoroughly explained how government intends to transform itself, he did not establish the measurable targets by which Bahamians can judge whether that transformation is succeeding.

However, he did reveal the next milestone.

Beginning in August, the National Development Plan Secretariat will begin assessing the planning capacity of every ministry and department while establishing a national tracking system before the renewed development plan moves into execution.

With 23 ministries and offices in the Davis administration, Bahamians now have a timeline.

It would not be unreasonable for the public to expect Minister Bastian to return once that assessment is complete with the findings, benchmarks and measurable goals that define success.

After all, the Minister’s own philosophy leaves little room for anything less.

“Delivery does not happen by good intentions — it happens when you build the institutions to carry it: capacity for research and policy thinking; teams dedicated to implementation; structures that demand accountability; systems that measure progress; and continuity that outlives any election cycle.”

If this speech is any indication, Minister Sebastian Bastian is not asking Bahamians to judge him by promises.He is asking to be judged by performance.

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