THE Government of Guyana is continuing with its drive to promote private sector investment in Guyana. Despite criticisms by the opposition, the People's National Congress/Reform (PNC/R), that the business community is shrinking, the fact of the matter is that there has been an expansion in the number of new businesses under the People's Progressive Party/Civic (PPP/C) administration.
According to the records of the Deeds Registry, a total of 238 new companies have been established over the past 21 months. This is in contradiction to an allegation made by the opposition PNC/R at a recent press conference that the PPP/C administration "has brought the private sector to its knees."
While it is true that the investment climate has been somewhat affected by the recent acts of political instability orchestrated by the PNC/R, it is equally true that efforts by the Government to encourage new investment have yielded positive results. This is seen from the fact that for 2003 alone over 130 local investments were facilitated.
The Government of Guyana has indicated that it is fully committed to the facilitation of a conducive environment for the growth and development of the business sector. Over the past ten years, a number of tax and fiscal measures were taken to ensure that the private sector becomes the engine of growth. Among the several measures taken were the removal of withholding tax from local investors and an increase in export allowances.
Regardless of what the opposition may want to project, the trend is one of increasing confidence in the investment climate as reflected in increasing levels of deposits in the banking system by the business community. In 1992, the business community had the equivalent of US$30.4M in bank deposits as compared to US$85M today. This fact hardly suggests a decline in business activity as is being argued in some quarters.
The current PPP/C administration is taking measures to create that enabling environment to allow for the growth and expansion of the business sector. This is seen from quite a number of initiatives at the legislative level, including a new Bank of Guyana Act, a Securities Act that allowed for the creation of a local Stock Exchange, a Financial Institutions Act, and a Companies Act.
The attraction of foreign investment to the country is critical for the creation of jobs for the Guyanese people, in particular our young people who leave the school system and look forward to employment opportunities. The Government of Guyana has been doing everything possible to generate investor confidence in the country. Such efforts could be greatly enhanced by an opposition that behaves in a matured and responsible manner.
It is time for the opposition to stop being critical of the efforts of the government in promoting trade and investment and become more involved in the fostering of an investor friendly climate in Guyana. At the end of the day, all of Guyana will benefit from such a climate, regardless of political affiliation.