CARIBBEAN/BAHAMAS: Potential lessons from successful island community 'Spanish Wells'

Potential national lessons from Spanish Wells 

In an article under the heading "Economic planning necessary to unearth 
Family Island gems," we said: "From time to time, we intend to direct our 
focus on the economies of some of our Family Islands, as our travel permits." 


Today, we shine the spotlight on the small island of Spanish Wells that sits 
just off North Eleuthera. According, to the 2000 census, Spanish Wells has a 
permanent population of 1,527 people divided among 586 households; a landmass 
measured in acres (instead of the usual square miles) making it perhaps the 
most densely inhabited island in all of The Bahamas. 

However, the social problems that are normally associated with densely 
populated area are all absent in Spanish Wells. Generally speaking, it 
appears that the family structure is very much intact and the church plays a 
very influential role in the community. 

What we discovered was one of the most "ordered" societies that we have ever 
witnessed anywhere in our extensive travels. Spanish Wells retains a pristine 
charm and pride of ownership is very much evident among property owners. 
Bermuda, which has an international reputation for cleanliness and 
well-maintained homes, has nothing on Spanish Wells. 


The purpose of our article today is to share with our readers the economic 
miracle of Spanish Wells, a community based almost entirely on the lobster 
industry. Unlike elsewhere in The Bahamas where entire local economies have 
abandoned fishing and pursued tourism, Spanish Wells has maintained its 
traditional economic mainstay and has a comparative unmatched advantage in 
fisheries. We would venture to say the productivity of Spanish Wells 
fishermen competes with the best in the world. 


The question we ask is "why have the people of Spanish Wells been so 
successful in fisheries?" 

Why have we not seen this replicated in hundreds of communities throughout 
The Bahamas? While we readily admit the real answers to these questions can 
be extremely complex, we would like to challenge other communities and 
central government to perhaps examine some of the factors that have allowed 
the people of Spanish Wells to enjoy such success, manifested in the island's 
high standard of living. 


One has to be impressed by the cooperative spirit so evident throughout the 
community. The fishing boats are owned not only by suppliers of capital, but 
also those who work them. The workers share directly in the success of the 
boat, cementing a relationship between hard work, care for equipment, pride 
of ownership and financial reward. During the "season," fishermen are away 
from their families and friends for extended periods of time, but at the end 
of the day this sacrifice is well rewarded. 


It is said many fisherman are able to save their money and build their homes 
without mortgage. Similarly, there are very few expensive cars on the island, 
with the golf cart the preferred form of transportation. 

It is said a typical middle class household probably spends 30-50 per cent of 
its income on housing and transportation. In this case there would be 
substantial disposable income for savings and investment. 


The power company and the major food store in Spanish Wells are owned through 
widespread share ownership within the community. We are told that both 
entities are financially successful and provide first-class service. 

Dividends paid to shareholders flow directly back into the community. 


We have always held the view that Bahamians ought to strive to own more of 
their economy and not depend exclusively on the "international investor" for 
their economic survival. We were extremely proud to see that the people of 
Spanish Wells have been able to develop and retain ownership of key entities. 
We feel there is a model here for all of The Bahamas to embrace and expand. 


We do not pretend to be social scientists and nor social commentators, 
however, we do understand a bit of economics and we have an unwavering 
commitment to do our part in making our Bahamas the best little country that 
it can be. 


Our analysis clearly shows that Spanish Wells' success has been achieved 
through hard work (none of it white-collar office jobs), savings (containment 
of excessive consumerism) and investment (mostly in areas you know). This 
model clearly emphasizes self help and not outright dependency on government. 
A major identified success factor is the fact that this community is not 
dependent on "outside" capital investing there, but rather, a true spirit of 
entrepreneurship is alive and well in Spanish Wells. 


Until next week... 


The views expressed in this article are those of the authors and do not 
necessarily reflect those of Colina Financial Advisors Ltd. Please direct 
your comments or questions to info@ colinafinancial.com or call us at 
502-7010. 

Posted Tuesday 22nd July, 2003

Spource: The Nassau Guardian