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One step forward and two steps backward under the PPP

December 28, 2014 | By | Filed Under Letters 

Dear Editor, For every one step of development taken during the 22 year old leadership of the PPP/C we have taken two steps backwards. Let’s look at the facts: (1) out of 177 countries, Guyana is ranked 136 in terms of most corrupt; (2) Guyana is the 2nd most impoverished country in Latin America and the Caribbean, (3) Guyana has the highest incidence of suicide in the region and is ranked 121 out of 187 with the highest per capita suicide rates, (4) Guyana is ranked number 15 in per capita homicide rates in the world by the United Nations, (6) we are the drug trans-shipment capital of South America, (7) in terms of per capita income (this is the average salary earned by Guyanese we are the second poorest in CARICOM according to the World Bank and (8) Guyana has the highest incidence of brain drain in Latin America and the Caribbean, and the world; (according to the International Monetary Fund, approximately 80% of tertiary educated Guyanese leave Guyana annually). When you combine these issues and factor in police criminality, injustice, and inadequate public health and education services and limited job opportunities, one gets a better picture of how far behind Guyana is and the foxhole we have found ourselves in. Editor, I thought I should share these facts prior to voicing my concern and disgust regarding a pre-recorded interview, featuring Minister Irfaan Ali, during which he attempted to use capital expenditure as a yardstick to measure the care and concern the PPP/C Government has for Guyanese.  The Minister also went on to note Guyana’s development, insinuating that we are on par with the developed world, a lie even the most docile would be unable to comprehend.  On December 18, 2014, Minister of Housing and Water and Minister of Tourism Industry and Commerce (ag.) Irfaan Ali, appeared on a pre-recorded show titled Political Scope: Housing Perspectives 2014. During his interview, the Minister referenced capital expenditure during the 22 years the PPP/C has made up the Government and highlighted same in 2014 as an example of how much the Government cares for Guyanese and has invested to improve the lives of Guyanese.  Editor, there are a few issues with equating capital expenditure with “development” and care.  First, the money spent by the Government belongs to the people of Guyana, not the PPP/C; following this up is that much of the private investment we see are profits from the underground economy, primarily gold smuggling and drug trafficking. We all know that one of the easiest ways to launder money from drug trafficking is to invest in business opportunities, including concerts, casinos and hotels.  Second, most of the money invested came in the form of loans from the Inter-American Development Bank, Caribbean Development Bank, China Development Bank, World Bank etc. which means that Guyanese are saddled with paying back this debt for generations to come (think about it, our children and children’s children are unborn, yet they are already indebted) and third, the topic is economic growth/development, while a concern for us all is secondary to our concern with higher incomes and greater disposable incomes, personal and community safety, security, debt-free living, improved water and sanitation and self-governance. While showcasing his statistics, the Minster shamelessly went on a self-praise tirade, glorifying himself and the PP/C Government; for what, I asked myself.  First, the PPP/C has set Guyana back decades, given the massive corruption, moral decay, suicide rates and upward climbing brain drain.  With economic growth and Guyana being known internally as a major drug transshipment location has come a serious decline in law, order, social decency and under-education.  The economic growth the Minister so praises is not an extraordinary feat; in fact, we should be much better off in terms of income levels and security given all the money (taxes, development loans, private investors, etc.) available to this Government since 1992. I am most appalled that the Minister did not even once mention or thank all public servants and other professionals, who are the real heroes in our quest to advance the minds and prosperity of our people and nation. This gives insight into his thinking and feelings about the folks who toil on the margins daily; I am willing to bet the Minister that, nine tenths of public servants, if given an opportunity to leave Guyana or offered better paying and working conditions, will jump at the opportunity.  Note the Minister and PPP/C Government, without the masses there could be no economic progress.  In fact, economic progress is not some herculean feat, it is expected and sadly in a country of only approximately 750,000 persons we should have been much better off to date, considering all the investment finance available to the PPP/C post 1992. In fact, the issue is not economic progress at all, it is bad governance, corruption, the lack of justice, proliferation of crime and illicit trafficking in narcotics, moral decline and general insecurity felt by most if not all Guyanese that are the issues we are concerned about.  I found the Minister’s insinuations condescending, as if Guyanese are dunces.  Clearly, his strategy was an attempt to fool Guyanese into thinking the PPP/C Government’s record on capital expenditure indicates his Government has not underdeveloped Guyana significantly. Editor, to equate capital expenditure with development is like saying a family earns more money today than they did 22 years ago, so they’re better off.  Most Guyanese understand this is far from the truth. Increases, capital expenditure or household income does not reflect development, especially when the cost of living has also increased, the quality of life decreasing and the threat of injustice felt daily.  One must look closer at what the money was spent on, how the money was sourced (underground economy, loans, taxes, money laundering, irregular financial deals, kickbacks, etc.), the cost of accrued benefits, the relevance of projects financed (think the defunct Skeldon Sugar Factory, Berbice River Bridge, Marriot Hotel, the numerous faulty road works, etc.). James Carville, the once campaign strategist for Bill Clinton, coined the phrase, “the economy stupid”, a later variation reads “it’s the economy stupid.”  Well, the opposite is true for Guyana.  So I offer some advice to those who believe Guyanese are only concerned about the economy or that we are better off as a people, it is not the economy stupid. Mike Archer

Replies sorted oldest to newest

Capital expenditure, or spending money, is one thing.

Getting "bang for your bucks" is another thing.

The proof of success or failure is the result of the expenditure.

The result over 22 years shows that the PPP regime made one step forward and two steps backward.

FM
Originally Posted by Gilbakka:

Capital expenditure, or spending money, is one thing.

Getting "bang for your bucks" is another thing.

The proof of success or failure is the result of the expenditure.

The result over 22 years shows that the PPP regime made one step forward and two steps backward.

You mean from a bankrupt nation where 96% of foreign earnings went to service debt.  Where poverty was 80%.  So tell me about this net backward movement nah!

FM
Originally Posted by baseman:
Originally Posted by Gilbakka:

Capital expenditure, or spending money, is one thing.

Getting "bang for your bucks" is another thing.

The proof of success or failure is the result of the expenditure.

The result over 22 years shows that the PPP regime made one step forward and two steps backward.

You mean from a bankrupt nation where 96% of foreign earnings went to service debt.  Where poverty was 80%.  So tell me about this net backward movement nah!

Talking bout debt, base, I understand that the debt service ratio is rising again.

The net backward movement is reflected in messed up projects and the people not receiving the full benefits of capital expenditures. Badly constructed schools, health centres, roads, bridges, etc.

Season's greetings, bro.

FM

The Debt today has surpassed what it was under Burnham, the only thing saving the population from those effects is remittances which were nowhere near the levels they are today in GY.

 

Without remittances GY would be worse than it was under the PNC today.

 

FM
Originally Posted by HM_Redux:

The Debt today has surpassed what it was under Burnham, the only thing saving the population from those effects is remittances which were nowhere near the levels they are today in GY.

 

Without remittances GY would be worse than it was under the PNC today.

 

Tell us the debt service ratio!

FM
Originally Posted by Django:

www.forbes.com/places/guyana/

Guyana

GDP $3 BAs of December 2014
  • GDP Growth: 5.3%
  • GDP/Capita: $8,500
  • Trade Balance: -16.9%
  • Population: 700,000
  • Public Debt As % of GDP: 60%
  • Unemployment: 11%
  • Inflation: 3.9%

My question was the Debt Service Ratio, not debt to GDP.

 

http://data.worldbank.org/indicator/DT.TDS.DECT.EX.ZS

FM
Originally Posted by Django:

www.forbes.com/places/guyana/

Guyana

GDP $3 BAs of December 2014
  • GDP Growth: 5.3%
  • GDP/Capita: $8,500
  • Trade Balance: -16.9%
  • Population: 700,000
  • Public Debt As % of GDP: 60%
  • Unemployment: 11%
  • Inflation: 3.9%

why don't you post Haiti's growth rate too. 

 

No one in Guyana really thinks that unemployment is 11%.  That is a laugh.  People scrunting a living on the side walk are NOT employed. They scuffle a living because they have to pay the bills!

FM
Originally Posted by baseman:
Originally Posted by Gilbakka:

Capital expenditure, or spending money, is one thing.

Getting "bang for your bucks" is another thing.

The proof of success or failure is the result of the expenditure.

The result over 22 years shows that the PPP regime made one step forward and two steps backward.

You mean from a bankrupt nation where 96% of foreign earnings went to service debt.  Where poverty was 80%.  So tell me about this net backward movement nah!

Many indeed seem to forget these poignant situations.

 

Also, they seems to lack basic understand that it takes time to overcome these issues and also to provide astute management for the improvements in Guyana.

FM
Last edited by Former Member
Originally Posted by HM_Redux:

The Debt today has surpassed what it was under Burnham, the only thing saving the population from those effects is remittances which were nowhere near the levels they are today in GY.

 

Without remittances GY would be worse than it was under the PNC today.

 

Not only this, but also higher gold prices, even if down off their peak.  In addition the Hoyte liberalization meant that lots of economic activity occurs DESPITE the government, as compared to the Burnham era when 70% of the economy was under state control.

 

The prize goes to Hoyte for depriving Janet Jagan of the ability to convert Guyana into Cuba when the PPP regained power in 1992.

FM
Originally Posted by baseman:
Originally Posted by Gilbakka:

Capital expenditure, or spending money, is one thing.

Getting "bang for your bucks" is another thing.

The proof of success or failure is the result of the expenditure.

The result over 22 years shows that the PPP regime made one step forward and two steps backward.

You mean from a bankrupt nation where 96% of foreign earnings went to service debt.  Where poverty was 80%.  So tell me about this net backward movement nah!

Debt service fell because most of the PNC era debt was WRITTEN OFF!  Much of the PPP debt is sourced from locally based financial institutions, and so cannot be written off.

 

 

Please don't credit the PPP for higher remittances, and gold and rice prices which are responsible for greater money circulation, with its spin off into construction and retail.

 

What areas that are under PPP domain are thriving?  Start with sugar which is now back to where it was under the PNC.

FM
Last edited by Former Member
Originally Posted by caribny:
Originally Posted by Django:

www.forbes.com/places/guyana/

Guyana

GDP $3 BAs of December 2014
  • GDP Growth: 5.3%
  • GDP/Capita: $8,500
  • Trade Balance: -16.9%
  • Population: 700,000
  • Public Debt As % of GDP: 60%
  • Unemployment: 11%
  • Inflation: 3.9%

why don't you post Haiti's growth rate too. 

 

No one in Guyana really thinks that unemployment is 11%.  That is a laugh.  People scrunting a living on the side walk are NOT employed. They scuffle a living because they have to pay the bills!

Haiti

GDP $8 BAs of December 2014
  • GDP Growth: 3.4%
  • GDP/Capita: $1,300
  • Trade Balance: -15.4%
  • Population: 10M
  • Unemployment: 40.6%
  • Inflation: 6.3%
Forbes Lists

 

Django
Originally Posted by Django:
Originally Posted by caribny:
Originally Posted by Django:

www.forbes.com/places/guyana/

Guyana

GDP $3 BAs of December 2014
  • GDP Growth: 5.3%
  • GDP/Capita: $8,500
  • Trade Balance: -16.9%
  • Population: 700,000
  • Public Debt As % of GDP: 60%
  • Unemployment: 11%
  • Inflation: 3.9%

why don't you post Haiti's growth rate too. 

 

No one in Guyana really thinks that unemployment is 11%.  That is a laugh.  People scrunting a living on the side walk are NOT employed. They scuffle a living because they have to pay the bills!

Haiti

GDP $8 BAs of December 2014
  • GDP Growth: 3.4%
  • GDP/Capita: $1,300
  • Trade Balance: -15.4%
  • Population: 10M
  • Unemployment: 40.6%
  • Inflation: 6.3%
Forbes Lists

 

I would not pick on Haiti, they were a victim of a century of enslavement conspiracy by France and the League of Nations.

FM
Originally Posted by baseman:
Originally Posted by HM_Redux:

The Debt today has surpassed what it was under Burnham, the only thing saving the population from those effects is remittances which were nowhere near the levels they are today in GY.

 

Without remittances GY would be worse than it was under the PNC today.

 

Tell us the debt service ratio!

PPP seh dat information you are asking for is top secret. They refuse to share the real numbers regarding how the state is operating today.

 

Whatever bogus GDP and unemployment numbers they put out there is complete bullshit.

FM

Guyana has received debt relief from various initiatives and as a result, traditional
indicators of external indebtedness have improved. However, Guyana is still considered to be at
moderate risk of debt distress under the debt sustainability analysis (DSA) carried out by the
IMF and the World Bank in March 2007. It remains vulnerable to various factors, including

exchange rate depreciation and significantly lower economic growth.

 

Tek a read base..........http://www.iadb.org/res/publications/pubfiles/pubCSI-156.pdf

FM
Originally Posted by HM_Redux:

Guyana has received debt relief from various initiatives and as a result, traditional
indicators of external indebtedness have improved. However, Guyana is still considered to be at
moderate risk of debt distress under the debt sustainability analysis (DSA) carried out by the
IMF and the World Bank in March 2007. It remains vulnerable to various factors, including

exchange rate depreciation and significantly lower economic growth.

 

Tek a read base..........http://www.iadb.org/res/publications/pubfiles/pubCSI-156.pdf

The very debt relief that the PPP is so proud of has blocked Guyana from the private capital markets.  So it must raise cash from entities like the IDB, or from excessively liquid local financial institutions.

 

With the gold sector in trouble and uncertainties of the Venezuela market for rice there are clouds on the horizon.   Suppose rice prices slump because of strong Asian harvests?  Even with these higher prices rice farmers have problems!

FM
Originally Posted by Ramakant-P:

       

Under the Jagdeo administration the PPP did 100 times more than what the PNC did in 28 years.


       
Yuh right. They tief 100 times more.
Mars
Originally Posted by Ramakant-P:

Under the Jagdeo administration the PPP did 100 times more than what the PNC did in 28 years

What has the PPP done.

 

1.  Rice, farmers not paid.

 

2.  Sugar, production as bad as it was during Hoyte's years, and this after millions invested in a white elephant factory.

 

3.  Gold, increased prices not due to the PPP, and this sector is now in trouble.

 

4.  Remittances due to hard working in caring Guyanese living in places like Barbados, St Kitts, NY and Toronto.  Under PPP rule their families still need help.

 

5.  Cocaine, yes the PPP can claim credit for that because Guyana has never been so much under drug lords as it is now.

 

6.  Money laundering, leading to a construction boom, see above.

FM
Originally Posted by Mars:
Originally Posted by Ramakant-P:

       

Under the Jagdeo administration the PPP did 100 times more than what the PNC did in 28 years.


       
Yuh right. They tief 100 times more.

Whatever they 'tief'  may not be criminal because they are still walking the streets. My congrats to them.  They beat the PNC at everything.

R
Originally Posted by Ramakant-P:
Originally Posted by Mars:
Originally Posted by Ramakant-P:

       

Under the Jagdeo administration the PPP did 100 times more than what the PNC did in 28 years.


       
Yuh right. They tief 100 times more.

Whatever they 'tief'  may not be criminal because they are still walking the streets. My congrats to them.  They beat the PNC at everything.

Aluh hear how this man Rama a like he tiefing them.

FM
Originally Posted by Ramakant-P:

Under the Jagdeo administration the PPP did 100 times more than what the PNC did in 28 years.

And when you wake up what happen, were you dribbling!

FM

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