Rick Lowe
In 1848 the French Economist Frederic Bastiat published an essay titled "What Is Seen and What Is Not Seen" that is very relevant to the sale of BTC by the Government of The Bahamas.
As Rob Norton tells us in an article for the Library of Economics and Liberty:
"…Frédéric Bastiat often distinguished in his writing between the “seen” and the “unseen.” The seen were the obvious visible consequences of an action or policy. The unseen were the less obvious, and often unintended, consequences. In his famous essay “What Is Seen and What Is Not Seen,” Bastiat wrote:
"There is only one difference between a bad economist and a good one: the bad economist confines himself to the visible effect; the good economist takes into account both the effect that can be seen and those effects that must be foreseen.
If you're are asking yourself how this can possibly relate to the BTC sale please stick with me.
The focus of those opposed to the sale has mostly been centred on their belief that we (Bahamians) are losing something by selling 51% of the phone company to Cable & Wireless (LIME).
After decades of complaining about the service provided, all of a sudden BTC is a Bahamian treasure. And the list of reasons not to sell goes on in a similar vein.
But they seem to have lost sight of the fact that The Bahamas Government is retaining 49% (and I don't buy the Bahamian people own it rhetoric – at least I don't have a share certificate) of BTC.
Surely the "Unseen" in this equation must be mentioned by the nay sayer's somewhere?
Things like:
1. The improved efficiencies that should accrue.
2. Better rates.
3. More services.
4. How about a possible share offering? At least I hope so.
5. What about the possibility that the new BTC could make more for the public treasury than is currently being made?
6. How about more competitors down the road?
So I would hasten to suggest that those opposed should read Bastiat, and consider the "Unseen" in this particular process.
Could things have been handled differently and more information been put out for public consumption before now? Quite possibly, but we're told more will come in just a few days ahead.
At the end of the day if "all Bahamians" get better service, better rates, upgraded technology plus more for the public treasury, I'm all for Cable & Wireless having the cojones to buy BTC. It's quite obvious few Bahamians put in their offer or offered objections until the deal was signed some 13 years after the process of privatisation was started.
Rick: The people who are spewing off about BTC are the unions and the opposition. The unions are trying to keep jobs for members who can not and will not be able to get and keep jobs any where in the private sector because for too long they have not had to produce a days work for a days wages. It is high time that the Bahamian tax payer be relieved of the burden of paying for what they are not getting. The oppositon party is trying to make political hay and I suppose are burining inside that they did not win in 2007 and thereby lost out on the opportunity to buy it on credit. I recently talked with a person who told me one that a union member told him they believe there is going to be a lot of embarassment when the whole truth is made public.
Rick, as I said to you before, I believe that you like many others want to see BTC sold to get back at the employees who gave you lousy, nasty attitudes and horrendous service for so many years. That is understandable but not justifiable in terms of the importance of BTC as a national and profitable institution. You state the possibility of improvements as if there is no possibility of the opposite. What if rates don’t go down, service doesn’t improve? For all that I have seen the same things were promised by C&W in other locations and the opposite did happen. We also have the wonderful example of Cable Bahamas. A company which promised so much and has done so little.
Hi Ken:
No, I don’t want to “get back” at anyone but how could the management and staff let “our” company get in the state it’s in?
I’m prepared to take the risk with C & W and future liberalisation at this stage while holding on to a 49% stake.
See BTC’s audited statements here:
http://www2.btcbahamas.com/aboutus/publications/pdf/audited_2009_consolidated_financial_statements.pdf
Rick your comments are very interesting and also curious about how you came to this idea,because the Government should be selling Bahamasair first,secound B.E.C.Bahamas Electrical Corporation and third Water&Sewage all three failing Government Corpration.The Government is borrrowing money to pay workers and keep these Corporations operating.However it is qutie obvious that the Government should have had 51 percent ownership of BTC and C&W 49 percent.The Government want to be smart by letting C&W have 51 percent so they would be responsible for downsizing BTC.This deal ia a bad deal and a polictical failure by the F.N.M Government.
Thanks for stopping by Mr. Stuart.
Actually all of them should be sold you’re right.
The government owning it is why few people are happy with BTC so keeping 51% will continue the disservice to the majority of Bahamians in my opinion.
You might also be right that it is a political failure. But it is in the best interest of all Bahamians.
Can’t wait for market liberalisation and competition comes in.