We have all just experienced a very peaceful and joyous Christmas season. I believe that this is a sign of the times. For now and for the future, Guyana is stable and free. Long may it be like that.

I have visited many areas during the festive season and it brought me great joy seeing so many of our people beautifully illuminating their homes and surroundings, shopping with enthusiasm and sharing with their families, especially the children, the spirit of good cheer. It is good to know that many of our overseas Guyanese brothers and sisters have returned home to spend some time with their families and friends and revel in the festive mood that was characterized by our well-known tradition of hospitality.

2001 has been a tough year. Some of the strongest economies in the world suffered decline and recession. Millions of jobs were lost due to factory closures and bankruptcies. And the outrageous September 11th event in the United States and the consequential war against terrorism have shifted the international agenda. Security concerns now over-shadow development needs. In other words, developing countries such as ours will benefit less from bilateral aid budgets and assistance from multilateral financial institutions.

We successfully emerged from the challenges of 2001. But faced with a world situation as I described before, it is not going to be easy in the future to deal with our problems unless we tackle them internally as a united people, and externally in solidarity with the Caribbean Community and hemispheric partners.

Earlier in the year, we held national elections. The election results were certified by the international community as free and fair, and representing the will of the electorate. The harmful events that followed were fortunately abated due to the commitment of the Guyanese people not to travel the path of division and destruction. They recognized that violence does not resolve differences and supported the process of dialogue in the national interest.

While the elections resolved the issue as to who legitimately forms the government, there were important national issues to be addressed which required the support of every Guyanese including the political opposition and civil society. One such issue was Constitutional reform to give all Guyanese a meaningful role in influencing and fashioning policies for national governance. We have included new provisions in our Constitution to set up a number of Commissions to deal with women, children, gender ethnic and indigenous rights issues. The new constitution provides for the establishment of a procurement commission to have an oversight role in the awarding of contracts by the Government. Each of these changes addresses real concerns of large sections of our population.

In addition, the Constitution provides for the establishment of four sectoral committees of Parliament - Foreign Affairs, Economic Services, Social Services and Natural Resources - to overlook key areas of government operations. This will allow the various political parties in Parliament to play productive roles in the governance of our country.

The various service commissions will now have Parliamentary inputs.

These measures along with other provisions help to make our revised Constitution one of the most progressive in this hemisphere!

Moreover, I am proud to say, that the reform of our Constitution reflected the broadest possible consensus of our society, and was a product of political cooperation.

My Government hopes to build on this experience in consultation and cooperation by making meaningful participation and inclusion the norms of our political culture. The national interest requires this.

The economic climate of the world is very cold. Ensuring economic prosperity in the midst of a world economic recession, depressed prices and shrinking markets for our exports and an anticipated slowdown in development assistance, is a challenge we are confronting. It is therefore a comfort to us that in Guyana, in spite of the difficult external environment, we kept inflation low and our exchange rate relatively stable. Without being fiscally irresponsible we have provided more services to our people. We have built more schools, health centers, roads, water supply systems, and sea defence and drainage and irrigation structures. And at the same time, we have reduced our external debt.

Is your Government content with these achievements? The answer is a resounding "No"! So, we have gone back to basics. The rice, sugar, bauxite, forestry, and mining sectors are being restructured. We are supporting new areas of wealth and job creation through Tourism, Information Technology, Garments and value-added industries.

But economic prosperity is a like a delicate plant. It needs stability to survive and develop. Without that it would wither. This is why everyone must work together to ensure lasting political and industrial stability.

2002 should be a better year. Our investment drive will continue. Our focus remains on creating more jobs. We will continue to improve health services, education, drainage and irrigation, housing, water and physical infrastructure. We will make our best efforts to get more wealth from our natural resources.

My administration will continue to provide more resources to our security forces. Our people's protection and our nation's defence are paramount.

We will ensure that our legislative programme includes strengthening of laws to secure greater safety of commuters on the road and the protection of our children.

In 2002 we will further broaden our democratic system. We will hold local government election to bring democratic renewal at local levels. More resources will be given to local communities and they will be expected to manage their affairs in a more transparent manner.

We will provide greater incentives to the private sector and will work with labour to provide better conditions and benefits for our workers.

But economic improvements and constitutional changes are not the only factors to ensure a better quality of life for Guyanese.

The sheet-anchor of our democracy is the rule of law and due process, the custodian of which is that important branch of the State called the Judiciary. Guyana has an enviable reputation of producing many legal luminaries and outstanding jurists known for their judicial rectitude. However, over the years, ordinary people have been complaining about bottlenecks and lethargy in the justice system. This should not be, as unnecessarily protracted trials and delays in handing down judgment, for example, create grave hardships for our people.

In the past attempts to rectify weaknesses in the administration of justice was frowned upon as attacks on the judiciary and as political interference with its independence. But in the interest of justice we need to walk the thin line between non-interference and rectification. We therefore need to enhance the mechanism by which ordinary citizens can have more protection and redress under the Law. I have been exploring the idea of a Parliamentary judicial oversight committee. I intend to seek the support of the political opposition and civil society organizations for this or any other mechanism which will address this particular concern of our people.

We also need to see further modernization and improvement in public services to the people. Tell me: why should teachers' pay be delayed because someone did not process the release on time? Tell me: why should a pensioner not get pension on time because a clerk did not come to work; tell me: why should someone be denied justice because a file a misplaced or stolen at the Deeds or court registry? Or, why should someone be asked to give a bribe to get public service?

These things disturb me tremendously. I know that we may not be able to prevent and correct all these wrongdoings. But if we - government, opposition, civil society and ordinary citizens - work together then, I am sure, we can resolve most of these problems thereby creating more responsive and accountable public services, leading to a better quality of life for our people.

Such are the political and economic forces driving our world today that it is only through concerted action, at the national and international levels, can we hope to adequately address and eventually overcome the many challenges to our development.

As a peace-loving nation, we have worked assiduously to build friendly and cooperative relations with our neighbours.

I am pleased to note that within the past year, we have drawn closer to Suriname through diplomatic contact to the point where I believe my forthcoming meeting with President Venetiaan will lead to a new dispensation of mutually beneficial and good-neighbourly relations. Similarly, with Venezuela, fresh prospects have been generated for greater bilateral cooperation as we continue to seek a peaceful resolution of the border controversy. At the same time, our proximity to and friendship with Brazil has opened up enormous possibilities for Guyana`s economic development.

Within the Caribbean Community we are now on the verge of creating a single market and economy whose potential, if fulfilled, will undoubtedly hasten our progress as a country and as a region. Guyana will assume the Chairmanship of the Conference of Heads of Government in 2002, placing us in an ideal position to play a pivotal role in the integration process. Additionally, as host for the UK-CARICOM Forum next year we will have yet another opportunity to display our commitment to constructive multilateralism.

Guyana remains committed to the Free Trade Area of the Americas. But our trade negotiations will continue to emphasise the need for special mechanisms to recognize and provide for the special circumstances of small economies. This principle will also guide us in the post-Cotonuo and World Trade Organisation negotiations.

The past year has brought us mixed fortunes. Some things were good, some bad. But on the whole, our country and our people lived in peace and harmony. We continue to be a nation standing on solid ground. We are hopeful that our fortunes will be better tomorrow. We intend to work hard on the tasks ahead in nation building, including the way we live and work together.

At the commencement of my tenure of office, I articulated this approach to moving our country forward. I recognized that there would be difficulties and differences. But these can only be constructively resolved through dialogue and genuine cooperation. Over the past six months, there has been continuous dialogue between the two major political parties. This dialogue has been constructive and is supported by the people of Guyana. Political leaders have a duty to enhance this process and to display a sense of political maturity in dealing with national issues.

Surely, there will be hiccups, sometimes fuelled by media sensationalism and speculation. There will be differences. But these are common even in a family. What I am most proud of is that Guyanese leaders, without the prompting of external parties, are able to sit down and resolve differences and find solutions to Guyanese problems. This is the only way. That is why I am committed to this course and will do everything possible to see that it continues.

As we look around, we see a world caught up in unrest, conflict and violence. Some countries are trying as best as they could to develop cohesive and prosperous societies. Some are even battling to survive. In Guyana, we are greatly endowed to create a better place for all of us, now and in the future, in spite of our own periodic episodes of instability. To do this, we need the resolve to work in Guyana's best interest. To do this, we need a new Guyanese spirit and commitment.

Let us therefore in this New Year make a Guyana resolution: To love our country; to love our fellow Guyanese; and to work and live in unity.

Let us therefore embrace the New Year with greater confidence, and let us all go forward with renewed hope!

In closing let me thank our public servants and farmers, sugar and mine workers, nurses and teachers, policemen, firemen and soldiers, entrepreneurs and professionals, our womenfolk, and young people and every single Guyanese for your support in 2001. And let me wish for all our people, those living here and abroad, a peaceful, and prosperous 2002!!