Fingering a critical factor
Editorial
THE Institute of Private Enterprise Development (IPED) marked its 14th annual general meeting last week basking proud on several fronts, mainly in helping small business people.
The institute has scored heavily in its efforts to help spread the entrepreneurial spirit.
Its guest feature speaker at the annual general meeting, Mr Richard Olver who heads the United Nations Development Programme here, was, however, frank in pointing to a major drawback to a better business and investment climate in any country.
As a diplomat and probably taking heed of local political sensitivities in an elections period, he was careful not to point any fingers.
"We need a suitable business climate, or to put it more directly, we need to ensure the rule of law", Mr Olver stressed.
He did put the issue directly.
The unwillingness by some political leaders here to adhere to the rule of law, particularly since the December 15, 1997 general elections has affected the business climate.
The street troubles that followed the elections in Georgetown in which business places were targeted by roving mobs, and the underlying tensions have been identified as key reasons for some firms shifting, or contemplating shifting, their bases and operations out of the capital city.
The current standoff between the City Council and a group of vendors unwilling to abide by the court order barring them from selling on the pavements of Regent Street will not help the climate of uncertainty that continues to hang over the city.
Fear does not breed confidence and business people will not continue much longer to stick around in an atmosphere of lingering uncertainty.
It all comes down to a question of the rule of law and Mr Olver, without pointing fingers, has put his finger on a big issue.
If some people will not observe the rule of law in the commercial centre of a capital city, the business climate will suffer.
And that will affect investments.
"Without greater private investment - particularly foreign investment, Guyana simply cannot mobilise the capital it needs for growth and poverty alleviation", Mr Olver stated.
He argued: "Like it or not, a far greater presence of foreign capital is needed to fuel prosperity."
These are points that all those interested in ensuring the development of the country need to always bear in mind.
They simply have to realise the kinds of dividends to be reaped from people not observing the rule of law.
In spite of the drawbacks, IPED continues to make its mark.
Chairman, Mr Yesu Persaud reported that notwithstanding the difficulties of last year, the institute performed fairly well, making a surplus of $80M compared to $70.5M in 1998.
During last year, IPED also funded 5,057 macro and small loans totalling some $770.7M and creating 9,022 jobs, Mr Persaud said.
This is no mean achievement and the fact that ordinary working people are forging ahead makes it all the more significant.
Equally significant is the finding from the institute's dealings with its clients that women are exceeding men as "aggressive achievers". Women represent about 80 per cent of those who got micro sector loans last year.
When IPED started operations in 1986, the first set of loans was disbursed among 18 men and seven women. Men continued to play the lead role until 1994 when women broke that tradition with 32 more women than men receiving loans - 283 women, 248 men,
Today the lead by women is at an all-time high - women securing 2,721 loans and men 1,072.
The small entrepreneurs are growing in size and numbers.
Imagine what could happen if all move to ensure the rule of law.
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