SLIPPAGE IN THE ECONOMY IS TROUBLING
There is more bad news on the horizon for Guyana. Apart from the salary increase that created a fuss among the people, the country is faced with several other issues that need the immediate attention of the government. Guyana’s GDP has shrunk from 3.6 percent in June to 0.7 percent in September, a slippage of 2.9 percent. Tourism is down by a whopping 28 percent, and manufacturing and sales have steadily declined during the past six months. The fact that Venezuela has officially ended its Petro-Caribe agreement with Guyana at present, does not mean higher prices for gasoline at the pumps for consumers and lower prices for rice farmers. But it could mean something if the government allows it to. The outlook for gold and bauxite remains dismal. Guyana is like a ship on the high seas without a captain. The country is in panic mode and no one seems to know how to nurse the economy back to good health. It is a do or die situation for a people who suffered immensely under the PPP and have voted for change. The real question remains, how the government can get the economic growth at a higher rate on a sustainable basis that translates into jobs and a higher standard of living for the lower working class. However, a modestly high rate of economic growth is not in the near future, and it can only be achieved with increased production of sugar and bauxite, higher prices for rice and gold, and the expansion of cash crops farming and poultry rearing. Without a sound sustainable and human development plan, the economy would not grow and jobs would not be created but crime will increase. It will take more than promises; press releases and public statements to rejuvenate the economy, create jobs for the youths and reduce crime. The fact that the government has appointed mostly elders to senior government positions means that it has gone for experience over youth. Of course the political opposition sought to posit the view that the government had abandoned the youths who make up more than 60 percent of the electorate and who are the future leaders of the country. The government must be applauded for the outstanding work by the Ministry of Foreign Affairs to ease the fears of the people in light of fight of Venezuela’s threat to annex Essequibo. The Ministry of Finance must also be applauded for its forensic auditing of various government departments which has exposed several corrupt practices that took place under the previous administration. Likewise, commendations must be bestowed on the State Asset Recovery Unit which has identified a number of public assets allegedly stolen by the opposition. The CEO, Mr. Aubrey Retemyer and his team have done an excellent job. But it is not clear whether those involved in corrupt practices or found with stolen state assets will be prosecuted. So far, there is only one known case. However, these achievements do not change the fact that comprehensive policy measures are required to prevent further slippage of the economy. Stabilizing the economy is necessary but not a sufficient condition for producing a higher GDP growth rate. Economic growth that is accompanied by the creation of jobs requires increased output from existing productive structures or the building of new ones. Both processes require increased local or direct foreign investment. They should not be funded by more government borrowing, given the current fiscal and economic situation of the country. The government has to promote Guyana as a safe country for overseas investors in North America, Europe and Asia, where most foreign investors are located. The APNU+AFC coalition government is serious about the economy. The conditions may appear unfavourable, but a resilient people have always been able to find ways of making good out of the bad situation.
