Guyana concerned at drop in development aid
GUYANA is concerned at the steady decline of Overseas Development Assistance (ODA) flows critical to sustaining fragile economies like this country's. The share of ODA in total capital inflows for developing countries fell from more than 50 per cent in the 1980s to 20 per cent in the 1990s, President Bharrat Jagdeo has noted. "We need concessional financing and grant assistance for the development of our social sectors: financing education and health and in particular the reduction of poverty and the improvement in the quality of life of our peoples," he said Tuesday night at a function to celebrate India's 53rd Independence anniversary. President Jagdeo said concessional financing is needed since debt burden continues to consume a huge part of government revenue. The large international debt burden has undermined the possibility of developing countries achieving a sustainable growth path and reduction of poverty, he noted. In Guyana, in spite of massive debt write-offs the external debt now stands at about US$1.2 billion and this country's debt service obligations absorb about 50 per cent of revenues. "The governments of developing countries must, therefore, ensure that the developed countries and the multilateral financing institutions deliver the debt relief promised through various initiatives including the enhanced initiative for Highly Indebted Poor Countries (HIPC)," President Jagdeo said. The Head of Stated urged that Guyana and India seek to intensify cooperation with an aim at shaping a world system that is "more accommodating to developing countries". "Our cooperation must go beyond the bilateral to the multilateral in fora such as the Non-Aligned Movement and the Group of 77 and China and the United Nations," the President said. He added that these are extremely challenging times for developing economies such as Guyana and India. "International trade liberalisation can bring numerous benefits. However, we must agitate for the reform and democratisation of the World Trade Organisation (WTO) so that it can better serve the interests of developing countries... "Perhaps, we have become too complacent under the various preferential marketing arrangements from which we have been benefitting since the colonial era," the President remarked. He added: "We need to diversify our economies to become less dependent on those traditionally protected markets. "But, this will not happen overnight. We need time and technical support for this transition." President Jagdeo, heartened by the role India has played in championing the cause of developing countries in the WTO, said he hopes collaboration in this regard can be intensified. He observed that India and Guyana are historically and culturally linked and have enjoyed excellent bilateral relations over the years. This country, he said, is deeply grateful for the assistance given it through the Indian Technical and Economic Programme (ITEC), and the deputation of Indian experts to Guyana, who share their expertise in rice research, water management, legislative drafting and standardisation mechanisms. In the next few months, the third session of the Guyana/India Joint Commission is scheduled to meet in New Delhi. On that occasion, efforts would be made to build further cooperation between both nations. President Jagdeo said preparations are under way to identify practical areas for the intensification of cooperation in technology, small business management, university to university cooperation, technical and vocational training and the exchange of experts on study tours and familiarisation visits. The Indian economy during the last few years has been growing at a rate of seven to eight per cent annually. This is a rate of growth which will reportedly enable India to increase the per capita income of its nationals by no less than 500 per cent during the next 20 years. Also speaking at the function at his residence, Indian High Commissioner, Dr Prakash Joshi noted that India's economic growth has not been at the cost of the poorer segments of its populations, contrary to the belief held by some. India's emergence as a leading power nation is now being acknowledged by all countries. A consensus is gradually developing in the comity of nations that after the restructuring of the United Nations, India deserves to be given a far more significant role in the process of decision-making in the Security Council than is the case at present, he pointed out. Today, the Indian diaspora stands at 15 to 20 million and is spread over more than 50 countries. "India and Guyana share an identity of views vis-a-vis major international issues. The two countries have worked in unison in important international fora such as the UN and WTO," the High Commissioner said. Under the aegis of ITEC, 18 young Guyanese went to India last year and received training in a wide variety of fields. This year, after a gap of many years, three Guyanese were awarded Commonwealth scholarships and have been admitted to institutions of higher learning in India. Meanwhile, a number of study visits by local officials to India will be arranged in the coming months. (SHARON LALL)
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