Yet another setback for the development agenda
Editorial
Guyana Chronicle
March 26, 2003

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FOR citizens acutely aware of the myriad ways in which the economies of small, underdeveloped states are affected by events half a world away, the current war being prosecuted by the coalition forces in the Persian Gulf could only spell more bad news in terms of financial aid and technical assistance. Foreign Minister Dr ‘Rudy’ Insanally put it most succinctly last week when he warned that the world community was entering a period of great uncertainty with the imminent war in Iraq. He divined that the impact of the war was likely to result in a diversion of resources to reconstruction (of Iraq), which would be to the detriment of developing countries like Guyana. This would be especially pronounced if the war is prolonged or if it spreads to other countries. Dr Insanally is reported to have said that the last Gulf war provided examples of the actual and potential threat to Guyana’s economy in areas such as tourism, the loss of jobs and the remittances from Guyanese overseas as a result of its impact on the economies of the developed countries.

We can recall Dr Insanally voicing similar fears some weeks after the terrorist tragedies of September 11, 2001. The forum then was a panel discussion aired on the Guyana Broadcasting Corporation (GBC). He had predicted then that the war on terror launched by the coalition of countries, headed by the United States and Britain, would have a profound impact on the existence of peoples in the Third World because, once more, the development agenda would be sacrificed in order to divert funds to this initiative.

Minister Insanally had noted then, also, that whenever there is a concerted initiative to bring stability and order to countries undergoing social or civil turmoil or conflict, almost the first casualty would be the development aid, which poor countries desperately need to keep their societies in some semblance of decent and civilised existence. He had cited the mid-1990s crises in Bosnia and Rwanda where mass killings had resulted in the displacement of millions of people, who were then forced to depend on the humanitarian assistance of western governments and agencies such as the Red Cross and the various arms of the United Nations.

The grim irony of the current international situation is that Caribbean territories have not yet recovered from the negative and economically crippling effects of September 11, 2001. Formerly strong airlines such as Jamaica Air and BWIA find themselves making deep job cuts, paring salaries of senior staff and exploring merger options in their bid for survival. For most of 2002, hotels in popular tourist destinations such as Barbados found themselves in the unimaginable state of having scores of unoccupied rooms and idle armies of waiters, maids, chefs and bartenders. This situation developed after the usual torrent of visitors from Europe and North America had trickled to a thin stream. People became fearful of flying. In an effort to lure persons to the Land of the Flying Fish, some hoteliers made the dramatic decision of cutting rates of accommodation by 35 per cent.

Now, 16 months after the worst day of terrorist tragedy, the world is again plunged in the depths of uncertainty by a war that everyone hopes would be short with the least possible loss of lives, both civilian and military. Since there will be less funds for aid and fewer opportunities to attract direct foreign investment in the coming years, Guyana, like many other countries striving to overcome underdevelopment, will be constrained to explore all possible mechanisms for modernising its communication and production systems in order to retain its place as an important producer for the international markets.

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