: the need for these is, of course, rooted in the country ’ s decision, almost forty years ago, to adopt its own currency at values which have always been fixed and not permitted to float on the currency markets. had the decision been taken at the beginning or early on to adopt the u. s. dollar ( for example ) as the currency, or to allow the b. dollar to float, exchange controls would not have been necessary. i would argue that we are too far down the path of having pursued the fixed exchange rate arrangement to make a sudden complete reversal. it is therefore, in my view, necessary to pursue the measured liberalization path which has been followed for more than ten years now, the ultimate objective being complete removal of controls in the future. i have said on a number of occasions before, and sincerely believe, that the bahamas will at some point during the next ten or so years decide to become a member of a larger currency arrangement. the main implication of such a step would be the loss of the government ’ s ability to borrow from the central bank. the most important theoretical benefit to the economy of the eventual removal of exchange controls is the removal on restrictions to the movement of capital. i believe that the bahamas would be a considerable beneficiary of such a development when it eventually is possible, but wish to emphasize that it would probably not be possible in the very short term. investments : national security, environmental, and reputational concerns dictate that there should be some level of approval with respect to proposed investments into the economy. however, i am not certain that the strict reservation of certain activities for bahamians can be maintained if our economy is to achieve the level of competitiveness needed in the current and developing environment. the policy requires review in the context of what is happening around us. public utilities : unless we move quickly to commercialize the benefit of the diminishing monopoly, we will completely lose the stock of value developed in the national telephone company over the years. as in the tourism and financial services industries, and numerous others, telecommunications has become one of those industries which is driven by global forces. in the same way that communist china found that they could not control it, and particularly its internet applications, the bahamas needs to embrace international telecommunications industry fully, and allow business and the community generally to realize the tremendous benefits it provides. i realize that there is an understanding of this reality at the policy - making level, but as in other domains

. 4 ben heineman, the inside counsel revolution 7 ( 2016 ). 5 see generally lee ross and richard e. nisbett, the person and the situation : perspectives of social psychology ( 1991 ), 28 ( “ ocial pressures and other situational factors exert effects on behavior that are more potent than we generally realise.... [ t ] o understand the impact of a given social situation, we often need to attend to its subtle details. ” ). 6 sue jaffer, nicholas morris and david vines, “ why trustworthiness is important, ” in capital failure : rebuilding trust in financial services ( morris and vines, eds. ), 15 – 16 ( 2014 ) ( “ trustworthiness requires conscious choices to be made rather than merely being the outcome of a reliable process. ” ). 6 / 6 bis central bankers'speeches