Commentary: Caribbean Sugar Daddy Economics
Originally published by South Florida Caribbean News Read the original
CAYMAN ISLANDS – I contributed hundreds of thousands of dollars to a family business in the Cayman Islands that never made a profit or paid a dividend. That foolish endeavour of the heart and not the head was not alone. My sister ran an antique reproduction business that ran at a loss for several years, even with a free location from her husband, before closing without debt.
Her husband loved it, because he knew where she was at all times. I did not.
Sugar Daddy Economics
This business concept is called Sugar Daddy Economics which exists on the back of a profitable unit, often professional, and is not required to produce a profit, but operates for many years. This exists in many different businesses from retail to media but all Sugar Daddy Vehicles require regular cash injections.
That is not unique to the Cayman Islands but survives throughout the Caribbean, probably on a reduced scale of payment, and for many years, before and after independence. It is a concept as old as the Bible and involves not money capital, but the never ending waste of that unfortunate duet, emotional financial capital.
Strange as it appears, most Caribbean governments, especially the Cayman Islands, operate on the worst kind of emotional business, Reverse Sugar Daddy Economics. That is where the population hands over all government revenue every election cycle, often to the most unqualified people. Good money, or profit, is funnelled into the desires of the ruling party as they stray far from electoral promises and party manifestos into a kind of financial Never Never Land as people watch blindly and silently.
Sovereign Fund
An example of this would be the recent announcement by the rookie Premier of the Cayman Islands to create a sovereign fund in circumstances that the country is virtually bankrupt if you include pension and healthcare liabilities. Worse, if anything happens to the fragile financial industry with nothing new on the horizon.
A classic case of politicians inheriting prosperity, but creating nothing new for which they are elected.
Raiding the barn without planting the corn according to Anthony B.
Coincidentally, many business dealers are like this but they only have to answer to shareholders, not the electorate.
Round and round the merry go round.
It is a kind of emotional prison that you cannot leave before the next election, somewhat like the original Sugar Daddy Economics that you cannot leave except by separation or divorce.
Reverse Sugar Daddy Economics
The unusual thing about Reverse Sugar Daddy Economics is that it requires conspirators called the party faithful, who maintain a democratic fantasy as they drop crumbs of social assistance for crumbling health, education and housing systems. It is everywhere in the Caribbean, especially post Hurricane Melissa Jamaica.
What to do is a valid question but it starts with a recall provision in the Constitution.
The puzzling thing is how an entire electorate and civil society are held hostage by Reverse Sugar Daddy Economics year in, year out.
Happily, the book of Matthew provides a suitable teaching.
Beware of false prophets, who come to you in sheep’s clothing but inwardly are ravenous wolves.
The post Commentary: Caribbean Sugar Daddy Economics appeared first on South Florida Caribbean News.
