As crime continues unchecked and raids by bandits are carried out on households and businessmen with virtual impunity (the police never seem to arrive on time, despite desperate calls for help) the kick on effect on business will inevitably be serious and is already taking a heavy toll. The arson after the 200l elections and again more recently in Regent street is making it increasingly difficult to obtain fire and other liability insurance. Lloyds of London have indicated that they will not be renewing various long standing policies. And as Mr Errol Cheong, the managing director of Guyana and Trinidad Mutual Fire Insurance Company Limited indicated as regards local policies, there will be increased premiums and more restrictive conditions and the cost of reinsurance with foreign companies will increase. Many businesses will not want to operate without adequate insurance cover in these dangerous times, but it may become increasingly difficult and expensive to obtain this.
The emigration of skilled labour is another problem facing manufacturing and other businesses. With Canada having opened the door wide there is an outflow of talent and almost every businessman has a tale of woe to tell of losing highly trained staff. Each new crime doubtless strengthens the exodus. Where will it all end?
Sales in many businesses are down, particularly with the ongoing difficulties in the rice and bauxite industries which affects the spending power of those industries and those working in them. Guysuco is also running a very tight ship in preparation for expansion. Also, as is well known, some well known businesses have been put into receivership by the banks due to their inability to service their loans. And of course interest rates are still high and the cost of buying new equipment given the rate of exchange is horrendous.
Businessmen in Guyana today need nerves of steel, the patience of Job and the faith of a saint. They face a multitude of problems, many beyond their capacity to solve. Not a few will find it increasingly hard to keep their heads above water. Crime and political instability have ripple effects, one of which is to make it increasingly difficult for what our politicians are sometimes pleased to call, these days, the engine of growth to putter along and not stall.