Former IMF Advisor… Guyana’s economy an envy in the Region … says country poised for rapid economic development
FORMER Senior Advisor to the International Monetary Fund (IMF) Asgar Ali has said Guyana remains a leading light in the Caribbean, enjoying sustained economic growth of five per cent over the past decade.
But he noted for the development to continue, Guyana has to move away from the “pulling down” political culture to one of “pulling up,” pointing out that development is not about any political party, but the people of the country.
According to Ali, it is time the deep political hatred which is manifest in the political Opposition comes to an end, and both the Government and the Opposition find a way to work together, so that decisions are made in the best interest of the people.
In an exclusive interview with the Chronicle, Ali, a former Minister of Finance said Guyana has come a far way since 1992, but noted that the developments experienced in the past 23 years did not happen overnight.
CDB President, Dr William Warren Smith
It happened as a result of the work done by the People’s Progressive Party/Civic (PPP/C), he said, contending that the ruling party laid the foundation for not only a democratic Guyana, but a Guyana managed in the tradition of Dr Cheddi Jagan.
Ali, who was once Deputy Governor of the Bank of Jamaica, was brought to Guyana when the PPP/C emerged victorious at the polls in 1992.
He recalled at the time that all the international financial institutions, from the World Bank to the IMF, had stopped lending to Guyana. All the financial programmes, he said, had been suspended until free and fair elections were held.
This, he said, reversed when the PPP/C was returned to power. In its first year in office, the economy grew 8.5 per cent and the following year 5.5 per cent.
But problems began to develop in the international community and Guyana was affected. It did not stop Guyana from pressing on however, the former Finance Minister said, relating that through strident advocacy by Dr Jagan, Guyana was able to benefit from debt write-offs through the Paris Club and from the commercial banks.
Guyana was also taken off the list of Heavily Indebted Poor Countries (HIPC).
BUILDING A STRONG ECONOMIC BASE
On assuming office in 1992, Ali, who also served as President of the National Investment Bank of Jamaica, said the PPP/C focused on building a strong economic base. This, he said, coupled with prudent management set the stage for the rapid and sustained economic growth Guyana enjoys today.
And the former IMF advisor said, the current outlook indicates that growth of the economy will continue and accelerate.
Testifying to the sound management of the economy, Ali, an economist by training who has practised in several Caribbean states, said despite the opposition-induced turmoil in the National Assembly during the past three years, Guyana still managed to enjoy economic growth of about four to five per cent.
Undoubtedly, he said, Guyana was hurt but was resilient enough to avoid being brought to a standstill. While expressing kudos to the Government, he emphasised the need for the Government and the Opposition to work together, in the best interest of the people.
From 1992 to today, the well-known regional economist said Guyana has been able to make laudable strides in infrastructural development. Today, he said, though more needs to be done, Guyanese enjoy new roads, access to water in their homes, significantly better access to health care and unprecedented access to housing.
Guyana needs to continue on this path, building on the gains made, to the benefit of all her people.
He noted that notwithstanding the incessant propaganda being pushed by some, the achievements made by Guyana in the past 23 years have been noteworthy enough as it has made Guyana the envy of the Caribbean.
President of the Caribbean Development Bank (CDB), Dr William Warren Smith on a visit to Guyana in 2014, spoke glowingly about this country.
CHANGING BEFORE YOUR EYES
He said: “Guyana is a good example of a country that has done some of the right things…They have come a very, very long distance in terms of their fiscal situation. They have been responsible in terms of addressing it… Generally, there is a lot of vibrancy in the Guyanese economy. Just by casual observation, one can see that there is a lot of construction that is taking place in the country…you can almost see the country changing in front of your eyes, and so is just a casual indication of the extent to which economic activity is vibrant and buoyant in that country.”
Guyana is one of few countries in the Caribbean that enjoys sustained economic growth, healthy foreign exchange reserves, a stable currency and low inflation.
The per capita income has moved from about US$300 in 1992, among the lowest in the Region, to about US$4000 today, positioning Guyana on the path to move from a Low-Middle-Income Country to becoming a Middle- Income Country.
The former Finance Minister said with a stable economy and sustained economic growth, Guyana has become a prime destination for investment as Caribbean businessmen now have confidence in the local economy.
However, the marked development that Guyana has witnessed over the past two decades has been dogged by allegations of corruption.
Ali told the Chronicle that allegations of corruption are a big issue not only in Guyana but in Jamaica, Trinidad and Tobago, even Barbados, and a matter of fact, the entire Caribbean.
He said it has become commonplace for politicians to make claims of corruption against their rivals, but said in Guyana, there is a legal recourse to deal with these matters but it is not utilised.
SLANDER
On that note, Ali said though he would not doubt that cases of corruption exist, much of the talk about corruption is based on perception and hearsay with a clear intention to slander.
Speaking with certainty, he told this publication that when he became Finance Minister, he recalled instituting systems to weed out corruption which was glaring in the public sector.
Serious allegations of corruption, he said, should not be downplayed. And in light of the vociferous claims being made by some sections of society, the former Finance Minister said a commission should be established where these matters are heard, examined and a determination is made.
Nevertheless, Ali said he sees a bright future for Guyana, noting that a solid foundation has been laid for continued growth and development.
But he said greater attention needs to be paid to the skilled professionals leaving the school system, especially the University of Guyana.
Guyana, needs to find ways of getting these persons to remain in Guyana upon graduation as the country needs their expertise to continue developing on the upward trajectory, he contended.
Blessed with an abundance of resources, which includes intact forests, vast arable lands and potential for hydro power, he said Guyana is the richest in the Caribbean.
This country, he said, has the means to create wealth and it is time for petty politics to be put aside and for the Amaila Hydro Project to come on stream.
This, Ali said, along with the deep-water habour, the road from Georgetown to Lethem and the opening up of the Intermediate Savannahs will create an upward spiral in commercial activities.
Guyana is moving in this direction, and according to the former Finance Minister, it should remain focused as it is well positioned for rapid economic development and becoming a ‘first world’ country.
But, he reminded that a new approach is needed: one where the government and opposition work together, and irrespective of their differences, the national interest must always come first.
By Tajeram Mohabir
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