Can the Bahamas Continue to Be “Powered by Sunshine”?

Abstract

Over the last year, the Bahamas has been featured in the news disproportionally. After reviewing the island’s vital statistics and some important physical, economic and financial events, this paper highlights the economy’s vulnerability to external shocks and extreme weather-related events. On the one hand, the island nation of less than 400,000 people—and the Caribbean region, in general—faces major challenges triggered by the intensification of global climate change. On the other hand, in order to mitigate the costs these events have had on the economy over the years, successive governments have repeatedly endorsed hosting dubious economic and financial activities. The enthusiastic reception given to FTX in fall 2021 is only the most recent example of the island’s encouragement of these questionable enterprises. Considering the economy’s performance over the last decade, an unorthodox proposal is recommended to support the future political stability and economic security of the Bahamas.