A general discussion of Governments\u2019 emphasis on Foreign Direct Investment, which often appears to be at the expense of developing their local industries.<\/em><\/p>\n

In this week\u2019s news roundup<\/i><\/b><\/a>, there were a number of articles on Digicel\u2019s interest and anticipated entry into the Bahamas telecoms market. The company is in negotiation with the Government to offer Internet\/broadband services in the first instance, in order to get a foothold in the country, pending liberalisation of the mobile\/cellular market, which is still at least two years away. However, one of articles reported that a major union in the Bahamas was prepared to oppose Digicel\u2019s entry \u2018if there are Bahamian companies that can do the job\u2019<\/i>\u00a0 (Source: RJR News<\/a>).<\/p>\n

Although we might question whether there are indeed Bahamian businesses with the resources and capabilities to launch the scale of operation comparable with what Digicel might envisage in the Bahamas, the union\u2019s view does highlight an ever-growing tension within the Caribbean, especially the ICT\/tech industry. Governments are actively courting foreign companies in the hope that they will invest in their respective countries, but frequently they offer little support to their own indigenous industries. This post, which may be the first of many on this topic, introduces the differing perspectives of local sector development versus Caribbean Governments\u2019 focus on Foreign Direct Investment, and suggests in summary why it is important for that impasse to be bridged.<\/p>\n

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