President Donald Ramotar has guided Guyana to further development
Written by Weekend Mirror
December 3, 2013 marked two years in office for President Donald Ramotar. In the two years, Guyana continues its path of growth and development, adding new dimensions to the development trajectory of our country. Guyana has been recognized by the FAO as one of only 38 countries that has reduced hunger by 50% before 2015 and as one of only 17 countries that has reduced child mal-nutrition to less than 10% before 2015. It is one of few countries that have attained universal treatment for HIV positive people and a country that has reached elimination mother-to-child transmission of HIV.
Guyana has gained recognition for its efforts to reduce poverty and further consolidating its status as a middle income country, being one of the few developing countries that have attained the 2015 MDG goal of reducing poverty by half.
President Donald Ramotar has insisted that Guyana must develop its economy into a high middle income country in order for its citizens to have a standard of living at least equal to those of people in countries like Barbados and Trinidad and Tobago. Signs of improved standard of living are all around us. For example, more people own homes, cars, lifestyle commodities like TV, refrigerators, computers, washing machines, cameras, the latest cell phones etc.
The President always rejected the notion that poverty and backwardness are inevitable consequences of our colonial past. He can take comfort that his country has graduated from being a least developing, bankrupt, highly indebted country in 1992 to a middle income country today. In part it has done so by reducing the debt servicing from about 94% of income to less than 10% and reducing the debt from more than700% of GDP to less than 48%, among the best debt ratio in CARICOM.
President Ramotar has consolidated the development path that the PPP/C Government has pursued, but he is looking to accelerate the growth and diversification of the economy. Since he took office on December 3, 2011, the GDP continues to grow at over 4%, the highest GDP growth of any CARICOM country in the last two years. The GDP growth in 2012 and 2013 has been greater than 4% for each year and, in this regard, Guyana continued its GDP growth for eight years in a row. The IMF now predicts that Guyana’s GDP will be among the best two in the Caribbean and Latin America in 2014.
Continued economic development is reflected by further increases in per capita GDP to almost $US3,500. In 1992, Guyana’s GDP was merely about $US300 per capita. The growth has led to massive infrastructure development. New roads, bridges, schools, hospitals and health centers continue to positively change the landscape in all regions of Guyana. Major upgrading of main highways is underway. Two new boats ply the Essequibo River. Work to build a new Demerara River Bridge and a bridge across the Corentyne River is underway. A new specialty hospital is being built. New secondary schools at Kato, Sand Creek and Leonora are soon to be opened. In a short while a new athletic track and a new technical center will be commissioned at Leonora. International swim competitions are already a feature of the Aqua-Sports Center at Turkeyan.
The IMF, IDB, World Bank and the CDB continue to invest in Guyana and demonstrate confidence in the economic policies and programs of the PPP/C Government. Recently, the CDB approved the first Caribbean Development Fund projects – Parika Backdam/Ruby, Laluni and Onverwagt Roads. This is an example of the confidence these multilateral funding agencies have in Guyana.
Robust growth is seen in each of the sub-sectors: mining, forestry, ICT, service, manufacturing, transport, education, health and construction. Mining continues to grow, with gold mining spreading into new areas. Two examples of the robustness of the economy are agriculture and tourism. President Ramotar’s Government has guided the agriculture sector to expand and grow. In spite of growth of mining, tourism, ICT and manufacturing, agriculture continues to account for almost 23% of the economy of Guyana. In part, the continued growth of agriculture is attributed to the tremendous growth of the rice industry. Both 2012 and 2013 were record-breaking years as rice production surpassed 422,000 and 530,000 tons.
Rice farmers continued to benefit from certain policies. For example, Government is making fertilizers accessible to farmers at a subsidized price that would save farmers more than $800M per year. In addition, Government is expending billions on improving the drainage and irrigation system and in putting more pumps in place to reduce the impact of flooding. The Rice Research Center has introduced several new varieties and in 2012 a new aromatic variety gave farmers more options. Rice farmers, buoyed with confidence in the development trajectory of Guyana, have acquired more than 1,000 tractors and 120 combines in the last two years.
The Ramotar-led PPP/C Government recognizes that sugar is undergoing a tough time because of climate change and the loss of preferential status in Europe, difficulties that have ended the sugar industry in several countries. But the Government has invested more than $8B in the last two years to re-engineer the industry so that it could recover its glory days. The present grinding season, in spite of bad weather at the beginning and now causing a premature end of the crop, has produced more than 130,000 tons of sugar. This is an indication that given time for the changes to materialize, the industry will bounce back to new heights.
The tourism industry has been singled out by the President as a growth pole for the economy and for small business development. In the last two years significant progress has been made in developing a strong tourism industry. Since 1992, the PPP/C Government recognized that tourism is a viable industry, a different approach from the PNC-led government before 1992 which considered this industry as not viable.
President Ramotar has led an aggressive effort to complete two significant projects which were initiated before December 2011. These are the completion of Guyana’s first five star hotel, the Marriot Hotel, and the expansion and modernization of the Cheddi Jagan International Airport. The Marriot Hotel should be opened for business in 2014. The modernized and expanded Cheddi jagan International Airport should be completed by 2015.
Guyana continued to attract the interest of the international tourist industry. Recently, Guyana was named as one of the top 10 tourist destination for 2014 by the National Geographic Organization. Guyana has previously been named as one of the top bird-watching countries and increasingly Guyana is seen as an eco-tourist haven.
President Ramotar has directed a people-centered development program. He has maintained a PPP/C tradition of increasing salaries for public servants and increasing old age pensions. Wages and salaries of public servants have increased by about 11% and pension by about 40% in the last two years. Sugar workers, in spite of the difficulties the industry has experienced, has had overall increases of close to 10% in the two years. More than 31,000 employees in the private sector, such as those working as security, domestics, sales people in stores, in restaurants etc. have had their wages increased by Government rules to national minimum wage levels. In addition, the income tax threshold has increased and tax rate for those who pay tax has been reduced to 30%.
As part of the people-centered focus, the PPP/C Government has introduced credit for first time mortgage holders who could deduct the interest for mortgages up to $30M from income tax. Further, the Government has introduced an electricity relief for pensioners for up to $20,000 per year, similar to the relief they receive through exemption from water rates. The government continues to provide free school uniforms for all children in primary schools and a hinterland feeding program has led to better nutrition for our children.
In the last two years, education, health and housing have continued to improve. Space does not allow this discussion to describe the improvements. But we note that Guyanese students continue to top the region in CXC and there is no match for Guyana’s housing program in CARICOM. New housing schemes dot Guyana’s landscape in all the Regions. Earlier this year Guyana developed a Science and Technology Policy and the University of Guyana has launched online programs for students.
Amerindian communities are being demarcated and they are receiving titles to their land. This is together with community development programs being developed by the communities and funded by government through the Norway LCDS fund. Hinterland economic and social development is unprecedented.
Investment by the local private sector continues to grow. Credit to the private sector has topped $80B in each of the last two years. Besides the large private sector investments, small entrepreneurs are flourishing across the country. Whole new town-like communities have developed in Lethem, Parika, Rosignol, Vreed-en-Hoop, Lenora, Bush Lot, Bath Settlement and dozens of other locations in all regions of Guyana. Small stores owned by ordinary Guyanese families are springing up everywhere and beauty salons, restaurants, agro-processing facilities, and other small businesses owned by young people are providing livelihood and jobs for people in every community of Guyana. Private schools and health facilities have become serious enterprises in Guyana.
The government invested in a bio-ethanol plant at Albion; it was commissioned earlier this year. This is to signal the government’s intention to promote a bio-fuel industry and several investors have shown interest. Mega-farms are being developed for corn, soya beans, palm oil etc. in the Canje Basin, Intermediate Savannahs, and Region 9.
President Donald Ramotar and his Government are trying to accelerate Guyana’s development, addressing the challenges developing countries face. Guyana continues to fight climate change, energy insecurity and unfavorable global economic conditions. It will take more than Government to overcome the barriers to development.
But the opposition and their partners continue to place unnecessary barriers to Guyana’s development. The President continues to plead with the Opposition and other stakeholders for everyone to work in solidarity for our country and our people. In spite of his willingness to work with the Opposition, the AFC and APNU have collaborated to stymie development. In the last two years, they have cut more than $50B from the national budget. This means that they have combined to limit Guyana’s growth. The shame in this is that even the people who voted for them are hurt.
The Opposition parties have combined to embarrass Guyana. They voted against an amendment to restrict trafficking of illegal arms and ammunition into Guyana, supporting criminals in our country. This is at a time when Guyana joined other countries at the UN agreeing to restrict movement of illegal arms and ammunition. In addition, in another bonus to the criminal community, they rejected the anti-money laundering bill, causing Guyana to be blacklisted.
While they supported and demanded more subsidies for electricity in Linden, the opposition voted against the development of Amaila Hydro-electricity plant in order to chase away the investors. This project would ensure all Guyanese have cheaper electricity, save Guyana more than $US300M per year and provide businesses with cheaper rates, making them more competitive. Guyana benefits from such projects, but the AFC and APNU voted against development.
The Opposition has converted the Parliament into a circus and has used parliament to diminish our democracy. They have refused to consult in good faith and have passed bills that are unconstitutional. They demanded a commission of inquiry for the Linden riots and deaths in 2012, but when the fingers pointed in their direction, they rejected the COI. The Government is trying to finally have the Walter Rodney inquiry, but the Opposition has vowed not to cooperate.
Given the absolute non-cooperation and the aggressive anti-development position of the opposition, it is remarkable what the Ramotar-led government has accomplished. Guyana can do even better, but the opposition parties have intensified their obstructionist actions. Donald Ramotar has vowed that 2014 will be an even better year for Guyana.
