Reliance on the central bank as the “buyer of last resort” for government debt will also have to diminish, maintaining the overall focus therefore on comprehensive debt reduction. Even a persistent balance budget rule would not outweigh expenditure  prudence and efficiency. Uncompetitive high rates of taxes as a percentage of GDP would still be a recipe for capital flight.
Conclusion To conclude, there are justifiable economic reasons to push for increased capital account liberalisation for The Bahamas. Where this process could end is much further than where the economy sits at present. However, there is no shortcut to the pre-requisite reforms to develop stronger institutions and policy frameworks, and healthier economic fundamentals.