Theme 4: Maintaining an Inclusive Strong Economy
Imagine...
- An island where we continue to have the resources to import the technology and goods we need, and to travel from the island to broaden our horizons and gather new ideas.
- An island where we achieve an economy which constantly improves the quality of peoples' lives; offering high quality employment, with internationally recognised labour rights and fair trade principles.
- An Island where businesses which choose to locate here share responsibility for their impacts on the infrastructure, particularly transport and housing, and play a full role in training Bermudians; while Government and the private sector work together to ensure that our education systems adapt quickly to changing needs.
- An Island where we reduce our reliance on imports, and sustain our economic growth by looking for new opportunities to achieve diversification, working in partnership with our current businesses, forming joint ventures with overseas partners and reassess our protectionist model.
- An island where we redevelop our waterfronts and pedestrianise parts of Hamilton, installing sidewalks along the major roads, and phasing major construction such as the causeway, the hospital, the police station and the courts.
- An Island society where through constructive dialogue, access to education, careers advice and support of good business ideas, we have levelled the playing field from its current imbalance, and freed residents from their racial prejudices; here everyone has the skills and opportunities to progress to a suitable job and we are welcoming to all visitors – both workers and tourists.
Where are we now?
Bermuda's economic position is almost unique. With one of the highest Gross Domestic Products per capita in the world yet very few natural resources, the population is dependent on imports for most basic commodities and consumer goods. Bermuda imports merchandise and exports services. Foreign currency generated by international businesses, from tourism and from overseas investments, makes Bermuda a wealthy island which sustains many varied local businesses.
In 2004 Bermuda earned over $1.7 billion from tourism, the financial sector and international business and spent $964 million on imported goods (including $64 million on cars and vehicles), and $226 million on over 155,000 overseas trips.
Yet Bermuda's current economic success is, like any other economy, vulnerable. The economic mainstays are subject to many influences beyond Bermuda's control, including increased competition from other jurisdictions. However, the lack of economic diversity and the difficulty in identifying alternative economic sectors to earn foreign currency which will not impact negatively on Bermuda's infrastructure and limited workforce means that Bermuda has to be more nimble and watchful than other, larger jurisdictions in protecting its current economic situation.
This has always been the case and Bermuda has been successful in identifying and embracing new opportunities throughout its history. This Chapter seeks to explore some of the issues associated with maintaining the economy, as well as ensuring that all Bermudians have the opportunity to share in Bermuda's prosperity.
One area which is very difficult to address is the cost of living and doing business in Bermuda. Bermuda's small size presents issues of scale throughout the market, which in a number of cases prevents effective competition that could bring down prices. Equally, the high cost of living is simply an indicator of the sustained success of the economy and an increase in disposable incomes.
Issue 4.1: Is everyone sharing in Bermuda's economic success?
Issue 4.2: How do we strengthen the existing economic sectors which earn foreign currency?
Issue 4.3: How do we diversify the economy?