Letters
A Changing Cayman Islands
Dear Sir,
I have been watching the movements of governmentsand the private sector for my entire conscious lifetime, whichhas been blessed with great depth and variety. I have had a profoundinterest in the human psyche.
I have been watching my sweet home, Cayman,slowly and (hopefully not irreversibly) slip into the traps ofother nations, a step at a time. It is now that we should takelessons from history regarding Government, and learn new lessonsas we enter this next decade.
The face of the Cayman Islands has indeedchanged. We are at a crossroads where we can do something aboutit now, or continue to gain momentum on the course other nationshave taken throughout history to either their entire destruction,or the enslavement of their people. We are an eclectic people.
The United States said that they are a nationof immigrants, thus their greatness. A lovely statement, but thetruth is not that they are a nation of immigrants, (most everynation on earth has claim to the same fact, if they face the truthwith the Cayman Islands above all being a nation of immigrants),but that the US people believe they are free in a casteless systemto lunge full speed into new ventures, new technologies, withthe thought of personal reward.
This belief system is contagious, synergisticand continues to gain momentum even in these troubled market times.During these times, the US average entrepreneur thinks, this isopportunity time. And indeed it is. Thus free enterprise.
Let us not forget that the American peopleare truly wonderful, though deluded folks. They never take timeto look at the very government that is over them. Thus governmentcan go virtually unimpeded. Governments are experts at boilinga frog, with the US and the United Kingdom (UK) leading the pack.I pray we do not emulate.
We in the Cayman Islands do not have tofollow the path of the rest of the worlds history, for example,establishment in a free land, small government, larger government,new laws, and finally absolute control of the masses by the elitefew. The next step is revolution and the cycle starts over. Theaverage democracy lasts 200 years, (though there are many notableexceptions, that is the average lifetime).
Now the true nature of this letter: Theneed for a new industry in the Cayman Islands as the face of theisland changes.
I was heartened to see the letter by Mr.Howard Peterson, stating very clearly that the only additionalindustry that can benefit the Cayman Islands is the TechnologySector. That is one with no pollution, no factories, and one thatcould control the flow of trillions (yes, T) of dollars daily.That is no small number to dismiss. I was also proud of Mr. MichaelPerez for his excellent follow-up to this issue.
Grand Cayman itself could fill all of itssee-through buildings in a matter of months with the specialtyof e-commerce. The specialties would be data transfer, broad bandstreaming (the up and coming technology requirement for the next12 years of its infancy), credit card authorisations globally,credit/debit card verifications (ie, authentication of a new technologyto come out in about six months), global Internet banking, database research centre and hosting of new Web commercial sites (asopposed to Internet... don't be concerned about technology here,just concept).
This doesn't even address the incredibleneed for great programmers for the development of ever new andbetter systems of legion kind, universally! I know of what I speak,for I have been involved in the core of all of the above for thepast 15 years.
How can this be done? It cant as long asCable and Wireless (C&W) has a monopoly in the island. I maybecome a pariah with that statement, but it is the truth. C&Wwill never become competitive, until it is truly deregulated.But they have a contract, a bureaucrat would utter. Reread history,my friends.
As early as 1630 the Bank of England hadnotes out paying an exorbitant 5 percent interest when the marketfell to a competition of 1.5 percent - an untenable loss of 3.5percent. They panicked, called a board meeting, and their JuniorSolicitor and Barrister said there was nothing they could do.It is the law. When the meeting was over, everyone left the roomexcept for the Chairman and the Senior Barrister. The old sagesat with the Chairman and said, "with all due respect tomy esteemed colleague, he speaks the truth".
"However, there is another truth thatexists in all governments, of which the Bank of England qualifies.If you say something, the people will accept it as law. I suggestthat you place a writ at all public places stating that all CrownNotes issued at five percent will have to be redeemed within 60days with 1 percent notes, or the notes will be cancelled."
"That's impossible! We'd have mutinyon our hands!"
"No," said the sagacious barrister, "my life studyis human nature. They will indeed trade in their notes, and noone will complain."
Indeed, on the allotted day, all of thepeople queued up to exchange their notes, and not one single complaintwas registered.
What relevance is this to CI? The relevanceis that the Government is of the people and governs for the people.It has the right (see above) to let C&W know that as of May30, 2002 there will be no government-guaranteed monopoly on theisland. Applications for competitive infrastructure can beginMay 30, 2001. That is a directive that is OF the people and definitelyFOR the people.
At least the Government could sit down inearnest with C&W officials and negotiate a new contract thatwould include deregulation and free competition. (This negotiationwill not work as C&W will only point to their contract). Theonly other way is to have the finest legal mind on the islandfind a loophole in the contract that would allow competition.
Do we actually think that C&W will voluntarilyprovide all the infrastructure and world-wide competitive rateswith a guaranteed monopoly? Of course not. Deregulated competitionis the only way our beautiful islands can maintain their beauty,their allure, and provide jobs for our children who are studyingtechnology on this island, (who now have to go off the islandto work!).
Have we all read of the lay-off by C&Wwho state they are streamlining the company's operations, to increaseefficiency and reduce costs. There is a crude word for that, butI'll refrain! Whose costs? Whose profits? Where is the service?Where is the additional infrastructure we need?
Now Jamaica will front all 411 calls! Although,I must admit I respect the move from management's point of view,the only efficiency created outside the walls of C&W is internalprofit that goes back to the mother country, and sacrifices thevery jobs and business potential of these idyllic islands.
There are only two ways a monopoly can exist:
1. By Government Guaranteed Monopoly
2. By a monopoly delivering such a perfectand complete service at the greatest price to its customers thatno one can compete. (This is the only kind of monopoly that benefitsthe consumer). Watch, the very second this kind of monopoly stepsout of line, a competitor immediately steps in to give the samebenefit to the consumer! That's how it works.
My dear friends, this is not a note of aradical. I have laboured diligently as an entrepreneur for 35years. I know of what I speak. I have been in love with the CaymanIslands for over 20 years, and my wife and I have had a residencehere for nearly 10 years. I am now retired and living here full-time,but my mind still continues to run at full throttle.
I have been known as a visionary, as someof the worldwide products now in play, that were thought anathemaat the time, were because I saw where the world and its marketswere going. That has been my reward. Now that I am here, I wantto truly enjoy the spirit of this island, its people - our friends,and all that it has to offer and all that we have to give. However,I feel it's my duty to, at least, write you this letter.
Do you know how to boil a frog, as all governmentsdo? If you put the frog in boiling water it will flip right backout of the pot. No, you get a pot of cold water. Put the frogin it and it will swim around happily. Gradually turn the heatup, a bit at a time. The frog will continue to swim in cluelessbliss, until it is cooked.
To all of you dear people who read this,I wish you what my father always said in his prayers, please grantus the power of our convictions. Let's look at our inner convictionsfor our country. Let your voice be heard. The temperature is rising.
D. Scott McGregor