If the PPPC remains in power, Guyana  will continue its rapid regression

DEAR EDITOR, Over the past 10 years I have observed Guyana as a business expat. This country has the potential to become an emerging economy, but the current government and its many of its people constantly hinder Guyana’s potential. Here are some of my observations. GOVERNMENT The PPPC regime is autocratic, inept and is consumed with graft, corruption and revenge politics. The PPPC leaders have created a Russian oligarch economic model in Guyana –you have to be invited in and pay to play. For this reason, no substantial European, Japanese, South Korean and American company has a presence in Guyana. Therefore, Guyana does not benefit from the rich human resources and technologies (required for development) possessed by global corporations. The PPPC government, through crony companies, has its presence in virtually all major projects in Guyana. These crony companies lack the asset resources and technical management to successfully execute and complete projects awarded by the Guyana government. The PPPC leadership and their oligarch friends have profited from the largesse of poor Guyanese who are paying 16% VAT and other hidden taxes. Bharrat Jagdeo, ex-President of Guyana, is paid a retirement salary and perks greater than the Prime Minister of Trinidad and Tobago –a country with a much larger economy. Meanwhile, nothing works well in Guyana, and the capital city and the supply of electricity is expensive and intermittent. The capital Georgetown is filthy and many residents burn garbage on sidewalks because there is no scheduled garbage collection. The leadership of the PPPC is rife with incompetent people who are now benefiting from their decades-old membership to the party. Incompetence combined with graft makes Guyana an excellent case study: A natural resource rich county is heading towards a failed-state destination. THE PRIVATE SECTOR Guyana’s private sector is constantly hindered by government regulations, high cost of electricity and fuel, lack of credit and high corporate taxes. Guyana’s publicly traded companies are poorly run by inept boards and chief executives who have been installed in their offices for decades. Guyanese companies export virtually no branded or value-added products to overseas markets [not counting small West Indian-type grocery stores] with the exception of El Dorado rum – limited distribution in the United States, Canada, India and Europe. The Guyana stock market/bourse is controlled by individuals who are top executives with companies traded in the Guyana stock market. This is a conflict of interest which is a big negative for such a small capital market. Government oversight of Guyana’s public stock companies has been negligible. Competent finance personnel are not on the employee roster of Guyana’s government, so if the government was inclined to conduct detailed forensic audits there will be no technical staff to conduct forensic audits. In many cases, senior executives from public stock companies treat corporate assets as their own, while shareholders are handed small dividends with poor appreciation in their stock prices for such a risky market. The business environment in Guyana for small and emerging entities is treacherous. The negatives which affect public stock companies also affect small and emerging businesses. Out of control criminal activity and the enormous cost of operating a going concern are major risk factors in surviving Guyana’s horrible business environment. The high cost and scarcity of purchasing risk insurance is also a major impediment to conducting business in Guyana with commercial fire losses greatly eclipsing general liability claims. Hiring skilled personnel from Guyana’s small and diminishing pool of workers is expensive and the quality of many of Guyana’s “skilled personnel” is below global standards. Guyanese who have returned home to start various enterprises often fail, because many of these entrepreneurs look at Guyana through nostalgic eyes rather than considering corruption in the Government, the low skill level of most Guyanese workers and Guyana’s new environment: crime, bribery, corruption, theft etc. Guyana’s justice system is inefficient and establishing property rights can be a problem due to the outdated record keeping by various government departments. These negatives do not bode well for Guyana’s economic growth. Another major impediment to development is the limited availability of direct flights from North America (there are zero direct flights from Europe) to Guyana and high cost of tickets. Guyana also has high rates for international calls and cell service contributing to the high business costs. While internet connectivity is available in Guyana, the speed of uploads/downloads may be compared to slower DSL rather than broadband and service is sub-par. THE PEOPLE OF GUYANA The people in Guyana have been left to fend for themselves. Low wages, high cost of living and few opportunities combined with the high crime rate are major reasons for Guyana’s high rate of migration. Many Guyanese who cannot migrate depend on monthly disbursements and barrels filled with food, clothing and other items from overseas relatives. Guyanese are a relatively happy people but this country has one of the highest suicide rates in the world. The PPPC government has done little to build or develop institutions to foster an orderly society. Guyana has an inept police force, virtually non-existent social services, poorly trained teachers and the total lack of maintenance of whatever is left of the country’s infrastructure. Many working Guyanese openly ask foreigners for money or “top-ups” to supplement their meagre wages in Guyana’s high-cost environment. Others have turned to petty theft as a way of survival. With few opportunities to make living wages, Guyana’s crime rate has skyrocketed. Guyanese constantly complain among themselves about the misdeeds of the PPPC government and write letters to editors of the Stabroek News, Demerara Waves and Kaieteur News. However, there are few large and well organized demonstrations against the PPPC government, and it may appear that letters written to the newspapers and hawkish comments in anti-government blogs are largely ignored by the PPPC. Often university students are a hotbed of public demonstrations against autocratic/despotic governments, but this is not evident among the student body at the University of Guyana. Many Guyanese mistakenly think they will be rescued from the PPPC by foreign governments – especially the United States. THE FUTURE OF GUYANA If the opposition wins the national elections and the new government is constituted from all ethnic groups and parties [coalition], Guyana will still suffer from many of the same problems unless thousands of qualified technocrats are hired from overseas –including Guyanese in the Diaspora. The state of education in Guyana may be considered desperate since the University of Guyana and various technical institutes are not world class. The brightest graduates are migrating, so the country needs a substantial influx of seasoned personnel to reengineer every aspect of Guyana: Infrastructure, IT, education, law enforcement, healthcare, social welfare and defence. The new coalition government must quickly establish closer relations with the United States, Britain, The European Union and Canada. Closer relations with Australia, New Zealand, Norway, Gulf Cooperation Council countries, Singapore and Japan must also be high on the agenda. Guyana has to secure its borders and coastal waters to begin the battle against drug smuggling and money laundering. Guyanese who ply these illegal activities do so openly in Guyana to the anguish of the United States. Britain, The EU and Canada. Guyana has the natural resources to become an emerging nation, but it will require bold steps by a new government and its citizens to embrace radical changes. Security and infrastructure must be foremost in the new coalition government’s priority, followed by education – including adult education. If the PPPC remains in power, Guyana will continue its rapid regression towards a failed state status. Tom Christensen