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| Reaching for the lowest hanging fruit |
A serious developmental strategy should encompass the breath of
all potentially productive sectors of a country's economy. In the case of
Dominica, Agriculture cannot be ignored. Ecotourism can augment but, not
replace agriculture, which remains the major resource potential for the island.
Above all, a serious developmental strategy cannot, should not, be based on one
product, passport sales. Lets briefly examine the challenges of CBI, that
renders it unsustainable. Critical flaws in the program include: -
1) Opaqueness - this makes the program susceptible to abuse. While
Dominicans are always directed to gazette to receive information, the number of
non-native Dominicans who hold Dominican Citizenship remains a mystery shrouded
in intrigue. This has been fostered by lack of guidelines regarding the number
of citizenship that should be issued, either yearly or over a specified period.
2) CBI depends on continuous passport sale, with no end in sight. A predictable consequence of open-ended sale of citizenship is absence of a sunset period. This could theoretically lead to non-native individual outnumbering native Dominican in a few years. The social and political consequences are complex and carry great risks , including racial tension, ethnic conflicts and other unpleasant acts that maybe committed against less powerful in society. From the perspective of the current Administration, this is inconsequential as they are of the mindset that 'Dominicans are not particularly nationalist'.
3) Lack of Residency Requirement. Most purchasers of
passport through Dominica's CBI program have never visited the island. At
present, most have no intention of ever living in Dominica. The passport is
purchased to permit travel to larger countries that otherwise would not be
accessible to them. Unfortunately, this non-residency aspect posses many risk
to Western Countries, which accept Dominican passport without need for Visa.
Interestingly, defenders of the OECS CBI program usually point to US and
Canada Programs. However, this is a grossly inaccurate and inappropriate
comparison. The US and Canadian Programs are Residency by Investment program;
you have to be in the Country and invest in the Country before you can apply
for citizenship.
4) CBI programs disproportionately benefits passport-selling
agents and the Ruling Political Party. The extent of Diversion, from the Treasury is
unknown but, may be substantial. It is noteworthy that in Dominica, a
handful of agents and persons affiliated with the CBI Program have come into
view as the emerging wealth barons who are purchasing multiple homes /
properties, own multiple business and in short order are manifesting a
lifestyle in-congruent with known income stream. In the meantime, the rest of
the island is left to get by on the crumbs of the program.
5) Administration of these CBI programs, through reckless
operation, places International Banking Organization at undue risk. This is a particularly
stark reality for Correspondent Banks, which have been rapidly severing ties
with risky financial and governmental institutions in Dominica and the rest of
the Caribbean. In Dominica, the Labor Party Administration finds itself in the
unfortunate and untenable situation whereby, International Banking Institutions
no longer wish to do Business with the Government and have closed Accounts as
part of de-risking measures. The Minister of Finance, Prime Minister Skerrit,
has yet to advance a plausible explanation for closure of government accounts
at these International Banks.
6) In Dominica, disbursement of CBI Funds is grossly imbalanced
and tilted towards hotel development and tourism. Currently, there are at
least 5 hotels projects in various stage of development, that are primarily or
completely funded through CBI passport sales. In contrast, there is not
a single major agricultural developmental initiative that can be identified as
a CBI-Funded undertaking. Why? This is particularly troubling, especially in an island
with topography that is more suited to agriculture rather than 'classic tourism
product'. As a result, the program appears to lack focus and coherence.
Hotel development is getting the cream while the rest of the island is left
with the crumbs. Agriculture, Agro-industry and other feasible endeavors are
left to languish. Lately, to satisfy grumbling in various regions, the Labor
Party Administration has started disbursing funds to minimally defined,
unsolicited 'small business' initiatives and various 'community projects (again
ill-defined and poorly construed) to quell growing discontent.
7) In Dominica CBI Program, a major flaw relates to the absence
of Independent Oversight and existence of Extra-Executive management (it
is never clear who controls all stages of the process from identifying clients
to receiving payments for passport). Accordingly, the program is prone to
mismanagement and abuse; it is at high risk for Diversion and, potentially a
bonanza for Crocks and Scoundrels acting as sales agents or other functionaries.
The amount of funds generated under Dominica's ECP and the
recently 'upgraded' CBI over the last fifteen years is neither publicly
available nor accessible. It appears to be a secret. Why? At the most recent
sitting of Parliament, under questioning from the Opposition in Parliament, the
Minister of Finance (Roosevelt Skerrit) recently revealed funds derived from
passport sales that available in various government accounts. The public needs
more details; it their monies and does not Labor Party or Roosevelt
Skettit.
ECP and CBI has
provided Dominica with benefit, but at a high cost to its people. Given the duration of the program,
those benefits have not been easily discernible. Due to Labor Administration
incompetence and mismanagement of the island's resources, a program that was
supposed to augment development has morphed into the main source of foreign
exchange and income for the island. This both frightening and
unsustainable.
It is time for the current administration to appreciate that CBI and similar program cannot replace properly designed, comprehensive development strategy that can stand the rigor of regional and international scrutiny. Given the financial risk to Dominica, as CBI faces increasing internal constraints, the island has arrived at a juncture where the people can no longer afford to bury their heads and hope the problem will evaporate. The current Administration must descend from its arrogant posture and start working with the opposition parties, farmers, hotelier, business organization and other stakeholders to fashion a development strategy for Dominica that is not entirely dependent on a shaky entity, CBI. Like all good things, CBI will eventually recede and reach a point of diminishing returns. Without a carefully designed long term development strategy, what will be the alternative(s)? There is a wealth of talent within and outside of Dominica, who can sheppard the island in the proper direction ahead of a potential disaster. The current Administration needs to harness that potential or 'step aside' as they do not appear to foresee a potential disaster.
