US Ambassador to Guyana, Roland Bullen says Guyana has to encourage private sector investment in non-traditional products that have the potential to become competitive export markets, thereby diversifying its economy.
And the country must provide the necessary business environment to allow those current fledgling non-traditional investments to achieve their full potential. The ambassador was delivering an address at the 71st annual luncheon of the Berbice Chamber of Commerce and Development association (BCC&DA) at the Caribbean Cuisine Restaurant, Number Two Village, East Canje.
"Part of what makes the business environment investor-friendly is the legal infrastructure and the judicial system. Although sometimes overlooked, a country's legal regime is critical to attracting investment," he said, while touching on a wide range of issues related to Guyana's economy and the role of Chambers of Commerce.
Speaking to a gathering which included representatives from the Essequibo and Lethem Chambers, the US ambassador observed that in recent years the economy has slowed "and Guyana today remains poor and underdeveloped".
The economy, he said, faces several problems. He pointed out that "many exports from Guyana are primary commodities and little value is added in most cases and in most sectors. The economy is characterized by mostly small firms with little international experience. There is small productive capacity and few firms would be able to supply an international market on their own and even one distributor in the United States." According to the US diplomat, few local firms are able to compete on the international market on a price or quality basis.
The ambassador expressed the view that "the business climate has to be integrated and strengthened if Guyana is to actively promote investment and exports. Guyana has to build capacity in order to effectively participate in the common Free Trade Agreements such as the Caricom Single Market and Economy (CSME) and the Free Trade of the Americas. It also needs to enforce its existing trade and business rights within Caricom."
Touching on what he described as "the vast Guyanese diaspora," Bullen noted that there are approximately 400,000 Guyanese in the United States; more than 250,000 in Canada; in excess of 100,000 in the United Kingdom and another 100,000 in the Caribbean. "It is essential that every effort is made to create and sustain employment opportunities for Guyanese in Guyana in order to stem the migration of educated and talented citizens. Developing countries like Guyana need the human talent of its populace in order to overcome the issues of under-development."
On the positive side, the recently-appointed head-of- mission referred to Guyana's relatively modern telecommunications network which he said could be built upon to take advantage of emerging information technology.
Asserting that reform of Investment and Small Business Laws, improvements in official bureaucratic efficiency and strengthening of the legal infrastructure "must come from the government," Bullen called on the private sector to take a pro-active role and demand these changes.
Berbice, he said, was critical to the development of Guyana and he congratulated the BCC&DA for its efforts to maximize the potential of the region through the promotion and development of commercial and other economic activities.
In recognition of the role and importance of Regional Private Sector Organisations in the development process of Guyana, the United States Government has worked to provide assistance to the Regional Chambers through the USAID-GO Project in the form of training and equipment. The diplomat also noted that "many chambers do not have the capacity to fully execute the tasks which fall within their mandate."
Bullen added that "in today's dynamic business environment, information management is crucial and anyone who does not have the ability to manage information in a timely manner will be left behind."
The ambassador challenged members of the BCC&DA to rededicate themselves to address the pressing needs of Guyana. "There is much Guyana's Chambers of Commerce can do. You can nurture young promising businesses, work to develop new levels of dynamic products, increase profit margins, pool experiences and knowledge to help members better compete on the world market and advocate for improvements in the business environment."
He maintained also that "Guyana is well poised to exploit regional markets because of its geographical location. It has the potential to be a gateway to northern and western Brazil and provide an access corridor to North America. The large Guyanese population in North America also offers significant markets for exports."