H.E. Arthur A. Foulkes, Bahamian Ambassador to the People's Republic of China
When the great ideological struggle of the twentieth century came to a sudden end with the collapse of the Soviet Union, there were mixed reactions around the world. There was euphoric applause from the victorious capitalists and a sigh of relief from the millions who had lived in fear of a nuclear holocaust. At last everything had been settled and the world could look forward to unprecedented prosperity for all under the bright banner of globalised trade. Some even went so far as to declare that this was the end of history!
But there were others who remained sober remembering the lessons of real history and the overwhelming evidence that for thousands of years there had been no perceptible change for the better in the nature of human beings. Some religious leaders, including Pope John Paul II, warned against triumphalism and smugness and reminded the world's leaders of their responsibilities towards the economically and socially disenfranchised millions in the developing countries.
For us in the small and vulnerable Caribbean states, the hammer of the new rules-based economic order fell first on the banana export industry. The World Trade Organisation judged that the preferences enjoyed by Caribbean banana exporters were against the rules and had to end.
I will not weary you by recalling the extraordinary debate in which considerations of grave concern to our region were given short shrift. I am sure it is all too vivid in your minds.
You will recall also that another item of vital interest to the Caribbean region -- the rum industry -- was advanced rapidly up the agenda by the movers and shakers of the New World trade order. Now, we await the conclusion of that debate to see whether West Indian rum will survive in the global market place and, indeed, in its traditional markets.
The financial services industry in the Caribbean has for some time been under the scrutiny of the developed countries and that scrutiny intensified with the proliferation of illegal drug trafficking through the region.
The relevant agencies and officials in the developed countries not only observed but were by no means shy about criticising and accusing.
Criticisms are quite in order but it is distressing when they are generalised, sweeping, and lacking factual foundation. I believe we have all readily acknowledged the legitimate concerns of our friends over drug trafficking and money laundering, but I am not so sure all of them acknowledge our own concerns, which are of equal or greater intensity.
After all, while great damage can and is being done to the societies of the industrialised countries, this nefarious business poses for our small island states the real possibility not only of serious injury but the veritable destruction of our social, political and economic institutions.
Let me say in this regard that we Bahamians were quite mystified when our American friends removed the aerostat surveillance balloons which were so effective in tracking and apprehending drug traffickers in our scattered islands.
At one time the criticisms levelled against our financial services sectors had mostly to do with possible money laundering, but there were also quite audible murmurings about "tax havens" as well. Now these whispers have been amplified into loud talk about "harmful tax havens", an appellation described by our Minister of Finance, Sir William Allen, as being "deeply offensive".
The difficulty with our competing with giants even for a tiny niche in the agricultural export market already has been painfully brought home to us. But we have demonstrated that in the financial services market, as in the tourism market, we are able to compete successfully with the rest of the world. We might not be able to stop the pollution and global warming which threatens our tourism industry, and our very survival as island countries. But, certainly, no one should ask us to surrender the historical advantages which, together with our God-given talents and the help of our international friends, enable us to compete in the financial services marketplace.
That we are under attack there can be no doubt. So what is our response to be?
The fact that you are here for this seminar indicates that you have determined the first requirement: Solidarity. The same geography which makes us so attractive as a region has, unfortunately, made us vulnerable to some divisive temptations.
The intellectual insularity, jealousies and prejudices which have plagued us in the past must be put aside in favour of regional solidarity and cooperation. Not only must regional cooperation be intensified, but we must identify and work with our natural allies on this contracting globe and with our many good friends in the developing countries as well.
No government, no international agency, no political leader, no technical official who can influence the course of events must be left ignorant of our circumstances, our points of view, and our interests. With the information highway now open to us, this need not be as formidable a task as it might seem at first glance.
Another element of the defence strategy, I would suggest, is the acceptance of valid criticism. We need not deny ourselves a discreet chuckle at the embarrassment of Moscow, London and New York over the laundering of billions of Russian Mafia dollars. But we must be serious about strengthening the integrity of our financial services sectors. We must be ever vigilant against criminal penetration and must be willing to change what reasonably needs to be changed.
We Caribbean people are resourceful, resilient and talented and I have no doubt that if we manage properly our resources and collaborate with our friends from around the world, we will not only survive the twenty-first century, but will prosper in it.
The Ambassador's Opening Remarks to the "Offshore Financial Services in the Caribbean" Seminar hosted by Caribbean/Latin American Action and the McHari Institute on June 16, 2000. Co-sponsored by BFSB, the one-day event was held at the British Colonial Hilton, downtown Nassau.
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