Comment by Robert M. Persaud, MBA, MP, PPP Executive Committee Member and Member of the PPP/C Elections Committee on recent statement issued by PNC’s APNU, et al on Guyana’s development.
PNC’s APNU has no credibility to lecture Guyanese on management of the nation.
“Guyana has recorded a solid macroeconomic performance in recent years, supported by prudent policies.” This is a direct quote from the World Bank. Compare this quote with an IMF staff report on Guyana during the PNC period and you will see the difference. Here is the IMF quote about economic management during the PNC period – “Following the1973–74 crisis and throughout the late-1970s and early-1980s Guyana’s political climate was marked by continued instability, the absence of dialogue and consensus-seeking, and a further weakening of key institutions, such as the rule of law. Production of all the major commodities declined sharply; public utilities and social services barely functioned; and real wages fell sharply (by 40 percent between 1976 and 1986). During the 1976–88 period, real GDP per head fell by 31 percent, inflation soared eightfold, foreign exchange reserves dwindled, and government debt rose from 31 percent of GDP to 475 percent. In1984, real GDP fell to its lowest level since 1955, and the size of the informal economy was estimated at 40 percent of the formal economy.”
These are not the words of political operatives but of the World Bank and IMF. They should be taken seriously, and certainly more seriously than the fanciful pronouncements of Carl Greenidge, the last PNC Finance Minister and now APNU economics tzar. What Carl Greenidge fails to admit is that the PPP/C Government has established a solid macro-economic environment. So robust is our economy that Guyana has been able to survive global food, fuel and financial crises unlike many larger economies. Further he ignores the fact that in 2010, the Guyanese economy (at current prices) was more than fifteen times the size it was in 1991 when he was at the helm.
But when Greenidge refers to the PNC track record in government, he seems to forgot what the IMF said, the Caribbean Council of Churches and the hardship every Guyanese experienced during that disastrous period of our country when mismanagement was the most outstanding feature. But I will not quote those reputable findings but refer David Grainger, Maurice Odle and Greenidge to the last three budget presentations to the National Assembly of the PNC Government which was presented by no other than the then Minister of Finance Carl Greenidge:
In the 1990 National Budget presentation Greenidge compared the economy to a "crushed limb" when discussing the 1989 Economic Recovery Programme (ERP). According to Greenidge: "The programme should be seen as analogous to the restoration of a crushed limb. The first step would be to stem the haemorrhage. Then one can turn to setting the bone, dealing with nerves, and so on."
In the 1991National Budget presentation, Greenidge highlighted the great burden that the indebtedness that occurred under the PNC administration placed on the country. Greenidge said:"...debt servicing absorbs a substantial proportion of domestic resources...as an example, in 1990, the interest payment on the domestic debt...was about $4.2B, equivalent to 38.5% of Central Government expenditures."
In the 1992 National Budget Greenidge drew attention to the deteriorated "economic and social infrastructure" of the country and the significant resources that would be needed to restore them. “"The state of the social and economic infrastructure constitutes a major impediment to economic growth. Although reactivating these sectors is critical to continued improvements in the economy, the magnitude and urgency of the task place an unduly heavy burden on domestic resources."
Greenidge also outlined two of the results of "rampant inflation", which was occurring (in 1989-1991, the inflation rate in Guyana averaged 86.2%) under the PNC regime:"One of the evils of rampant inflation has been the marked upsurge in destitution and homelessness."
This is the legacy of Greenidge’s management.
Let’s compare some key indicators when Greenidge was at the helm at the economy and today’s reality under the PPP/C administration:
Importantly, under this Government extreme poverty has been reduced to 18.6 percent. In addition we have delivered positive growth over the last five and half years and we set to deliver again this year. This growth is a reflection of developments in the economy that can be translated into jobs and improved standards of living.
In addition, in 2009 the visionary Low Carbon Development Strategy which is based on a grand vision for Guyana’s future. The vision foresees a sustainable low carbon development trajectory. The LCDS is the anchor of a long term strategy that combines the sustainable use of material resources of the country with new developments in ideas-based value, that is to say, the new knowledge economy.
Far from the failed PNC “Feed, Clothe, and House the Nation” debacle that was visited upon the country, the Guyana of today is one of demonstrable growth and a country on modernisation flow.
APNU and the AFC also dismiss the construction boom, with anecdotal evidence of a few select streets rather than the comprehensive surveys which have informed the statistics that feed into the GDP. The following projects must surely, the Berbice River Bridge, the East Bank Highway, the schools and hospitals, all across the country, transportation infrastructure including the East Bank Highway, the National Stadium, the miles of street lights, agriculture and tourism infrastructure, and of course, the extraordinary explosion of home construction that has given thousands of families not only somewhere to live, but the opportunity to build equity. Just speak to any commercial banker or read the financial statements of those financial institutions for confirmation. .
Guyanese know that together we will continue to achieve greater economic and social progress as the transformation and modernization process initiated by President Jagdeo is accelerated under a Donald Ramotar Presidency.
PNC’s APNU has no credibility to lecture Guyanese on management of the nation.
“Guyana has recorded a solid macroeconomic performance in recent years, supported by prudent policies.” This is a direct quote from the World Bank. Compare this quote with an IMF staff report on Guyana during the PNC period and you will see the difference. Here is the IMF quote about economic management during the PNC period – “Following the1973–74 crisis and throughout the late-1970s and early-1980s Guyana’s political climate was marked by continued instability, the absence of dialogue and consensus-seeking, and a further weakening of key institutions, such as the rule of law. Production of all the major commodities declined sharply; public utilities and social services barely functioned; and real wages fell sharply (by 40 percent between 1976 and 1986). During the 1976–88 period, real GDP per head fell by 31 percent, inflation soared eightfold, foreign exchange reserves dwindled, and government debt rose from 31 percent of GDP to 475 percent. In1984, real GDP fell to its lowest level since 1955, and the size of the informal economy was estimated at 40 percent of the formal economy.”
These are not the words of political operatives but of the World Bank and IMF. They should be taken seriously, and certainly more seriously than the fanciful pronouncements of Carl Greenidge, the last PNC Finance Minister and now APNU economics tzar. What Carl Greenidge fails to admit is that the PPP/C Government has established a solid macro-economic environment. So robust is our economy that Guyana has been able to survive global food, fuel and financial crises unlike many larger economies. Further he ignores the fact that in 2010, the Guyanese economy (at current prices) was more than fifteen times the size it was in 1991 when he was at the helm.
But when Greenidge refers to the PNC track record in government, he seems to forgot what the IMF said, the Caribbean Council of Churches and the hardship every Guyanese experienced during that disastrous period of our country when mismanagement was the most outstanding feature. But I will not quote those reputable findings but refer David Grainger, Maurice Odle and Greenidge to the last three budget presentations to the National Assembly of the PNC Government which was presented by no other than the then Minister of Finance Carl Greenidge:
In the 1990 National Budget presentation Greenidge compared the economy to a "crushed limb" when discussing the 1989 Economic Recovery Programme (ERP). According to Greenidge: "The programme should be seen as analogous to the restoration of a crushed limb. The first step would be to stem the haemorrhage. Then one can turn to setting the bone, dealing with nerves, and so on."
In the 1991National Budget presentation, Greenidge highlighted the great burden that the indebtedness that occurred under the PNC administration placed on the country. Greenidge said:"...debt servicing absorbs a substantial proportion of domestic resources...as an example, in 1990, the interest payment on the domestic debt...was about $4.2B, equivalent to 38.5% of Central Government expenditures."
In the 1992 National Budget Greenidge drew attention to the deteriorated "economic and social infrastructure" of the country and the significant resources that would be needed to restore them. “"The state of the social and economic infrastructure constitutes a major impediment to economic growth. Although reactivating these sectors is critical to continued improvements in the economy, the magnitude and urgency of the task place an unduly heavy burden on domestic resources."
Greenidge also outlined two of the results of "rampant inflation", which was occurring (in 1989-1991, the inflation rate in Guyana averaged 86.2%) under the PNC regime:"One of the evils of rampant inflation has been the marked upsurge in destitution and homelessness."
This is the legacy of Greenidge’s management.
Let’s compare some key indicators when Greenidge was at the helm at the economy and today’s reality under the PPP/C administration:
Importantly, under this Government extreme poverty has been reduced to 18.6 percent. In addition we have delivered positive growth over the last five and half years and we set to deliver again this year. This growth is a reflection of developments in the economy that can be translated into jobs and improved standards of living.
In addition, in 2009 the visionary Low Carbon Development Strategy which is based on a grand vision for Guyana’s future. The vision foresees a sustainable low carbon development trajectory. The LCDS is the anchor of a long term strategy that combines the sustainable use of material resources of the country with new developments in ideas-based value, that is to say, the new knowledge economy.
Far from the failed PNC “Feed, Clothe, and House the Nation” debacle that was visited upon the country, the Guyana of today is one of demonstrable growth and a country on modernisation flow.
APNU and the AFC also dismiss the construction boom, with anecdotal evidence of a few select streets rather than the comprehensive surveys which have informed the statistics that feed into the GDP. The following projects must surely, the Berbice River Bridge, the East Bank Highway, the schools and hospitals, all across the country, transportation infrastructure including the East Bank Highway, the National Stadium, the miles of street lights, agriculture and tourism infrastructure, and of course, the extraordinary explosion of home construction that has given thousands of families not only somewhere to live, but the opportunity to build equity. Just speak to any commercial banker or read the financial statements of those financial institutions for confirmation. .
Guyanese know that together we will continue to achieve greater economic and social progress as the transformation and modernization process initiated by President Jagdeo is accelerated under a Donald Ramotar Presidency.
