It’s working in Cayman

The 31st May issue of the Caymanian Compass contained a letter from a Mr. Norman Linton who has been a non-working Cayman resident for thirty years. Mr. Linton makes several recommendations for changes in the Caymanian system, to which I would like to respond.

Mr. Linton compares Cayman with Singapore, a destination that he admires, suggesting that we change to be more like Singapore.

Crime

Mr. Linton states that Singapore has low crime and attributes this to the fact that their laws are very strict – that such punishments as caning are allowed. I would ask Mr. Linton to think back, as he was a resident at the time when Cayman began constructing a gallows at Northward prison in order to carry out the death sentences of two murderers. When the UK government learned of this, they advised us that, in keeping with UK law, we could not practice capital punishment. In addition, we were advised that we could not practice corporal punishment, nor could we put prisoners to work. Most Caymanians would agree with Mr. Linton that the Caymanian method of punishment was far more effective than that allowed by the UK and, in fact, our crime levels are indeed much higher than they were back then, due to a lack of a deterrent. However, we are a British Territory and we are not allowed to employ a system that has been proven to work for us.

Housing

Singapore provides cheap, decent housing and assistance to the poor. Here on Cayman, this is also done, but to a lesser degree. In Singapore, this is partially paid for by both an income tax and property tax, the median level of which are 8.5 per cent – 17 per cent.In Cayman we have no such taxes. We follow the principle that, the more tax people pay, the less likely they are to get ahead and, therefore, the more likely they will need government assistance. This seems to work, as our percentage of poor is lower than in Singapore and no one in Cayman suffers anywhere near the degree of poverty that exists there.

Foreign investment

Foreigners can own 100 per cent of a business in Singapore. Mr. Linton states that Cayman, by policy, “locks out potential investors.” Unfortunately, as he states, he has never been in business in Cayman. If he had, he would know that, for the last 40 years, Cayman has enjoyed a steady stream of investors. The mere fact that we have not thrown open the country to anyone who wishes to buy in has assured that we have maintained control. We have had measured growth over the years, assuring that there will be opportunities for the next generation. It should also be mentioned that Caymanians number roughly 25,000, whereas Singapore has over 3,000,000 natives. Had we opened the floodgates 40 years ago to all who wished to invest, Caymanians would now be a small minority of the population. (Other islands have thrown their doors open to anyone who had the money, with disastrous results for the locals.) Further, our policy of 60/40 partnerships with foreigners has resulted in two generations of Caymanians bettering themselves, while retaining control of their own country. And the outside investors have not been discouraged – far from it – they continue to come because we have a stable country that has managed itself well.

Work permits

Mr. Linton states that Cayman’s seven-year rollover policy would discourage, say, a Nobel prize winner from moving here, as he would have to go after seven years. While I would be disinclined to alter our immigration policy in the hope that we could woo Nobel prize winners to Cayman (Al Gore? Barrack Obama?), I would concede to Mr. Linton that our term limit does indeed discourage the very best people from wanting to pursue a position here. Anyone who is tops in his field will seek a jurisdiction that will provide him with a career, not a short-term job. Conversely, the rollover policy does attract the carpetbagger types, who move from place to place every few years and never make a valid contribution anywhere. With the rollover policy, we have taken an idea that sounded good on the surface, and shot ourselves in the foot.

Tourists

Finally, Mr. Linton suggests that we encourage long-term visitors who do not work and are not required to make any investment in Cayman, so that we can fill up the empty condos. This might be a workable short-term solution, but, as a long-term policy, it would inflate our population. Again, Mr. Linton has overlooked the fact that those jurisdictions that already have a large population, as does Singapore, need not fear their indigenous people becoming marginalized in their own country. We do.

Since the boom that began some 40 years ago, we have most definitely benefited from the influx of expats. Our growth has been measured and successful and it has been a team effort between Caymanians and expats all the way. We are now about half Caymanian; half expat and that has been manageable and beneficial to all.

Many countries make the mistake of thinking that success lies in inviting the maximum number of foreign workers; the maximum number of residents; the maximum number of investors; the maximum number of tourists. Instead, what this does is burn the jurisdiction out quickly. It’s good for the short-termers who can go elsewhere afterward, but the indigenous people are out of luck.

Interestingly, Mr. Linton’s comments are similar to those we generally hear from newly-arrived expats workers, who often seem to know all the answers for Cayman prosperity. After a few years, they either leave Cayman or change their point of view. An expat who learns the ropes, realizes after a few years that our system works for us and, in time, he becomes….like us. He becomes more Caymanian. That can only be a good thing. Many of them settle here and spend their lives here, becoming “new Caymanians.” Cayman benefits greatly from this diversity.

Had Mr. Linton actually worked here in all his 30 years here, I believe he would also have learned this. Unfortunately, he retains the convictions of a newcomer. However, he does continue to live here, rather than in Singapore, so we must be doing something right.

Steve Hawley