LEAP of faith
Project moving too slow for Linden
By Nicosia Smith
Stabroek News
February 27, 2004
The Linden Economic Advancement Project (LEAP) has been up and running for two years, but businessmen in Linden say it is far from achieving its objectives.
LEAP was formed to create new jobs and to encourage new investments in Linden. According to its website, LEAP should realize eight million euros in new investments for residents in Region Ten (Upper Demerara/Upper Berbice), particularly Linden, by 2009. The eight million euros should realize 800 of the 1,700 jobs that are the project's target. The European Union provided $2.2 billion to fund LEAP and the project was launched on February 11, 2002 at the Linmine Consta-bulary Recreation Hall, at Linden.
"My concern about LEAP is what [it is] doing to achieve its objective... LEAP is supposed to contribute directly [in the community by] providing 1,700 jobs," says Dunstan Barrow, former chief executive officer of the bauxite company at Linden and now, a leading businessman in the community. Barrow is of the view that LEAP's scheme should be a national and international one, geared toward creating new jobs in order to increase the wealth of the area. "We have all of these seminars going on," he says of LEAP, "they need to focus on creating jobs."
"By the end of year five... At that point we will be able to answer questions on jobs," International Project Manager Kathleen Whalen says in response to a query. The LEAP project has a duration of seven years.
Whalen says they are working very hard to change the attitude of Lindeners from being the employee to becoming the employer.
"The first year of the programme we had a very low response rate to training." On the issue of becoming an entrepreneur, she says: "It is a big bite for anyone. It isn't for everybody," adding that LEAP's aim is to help everyone in the community who wants to take this step.
She says in "the first 18 months [of the project] there were three project managers, including [her]." She also reveals that it was only in May last year that the organization received its first work money, $30 million, for the designated work period of December 2002 to June 2003. Only a small portion of this could have been used; the remainder had to be sent back to the bond because of the short period of time they had to utilize the money. For the work period of June 2003 to March 2004, $61 million has been allocated; already 75% of this allocation was disbursed.
"We have just completed our second year," says Ricardo McKlmon, LEAP's public relations officer, adding that during that time they were facilitating staff placement and other elements of the organization's operation.
McKlmon said LEAP conducted several business-related training seminars and workshops for residents in the community, providing potential entrepreneurs with the necessary skills to manage their own businesses. The Guyana Manufacturers Association (GMA) and the Guyana National Bureau of Standards (GNBS) among other agencies have collaborated with LEAP to conduct seminars.
Among the people slated to benefit from LEAP's training exercises are groups of entrepreneurs requiring skills training, specific to, new or extended business opportunities; groups of employees, requiring skills training; and school leavers requiring skills-training opportunities for employment. So far, LEAP has had 746 training days but officials could not say the exact number of persons who were trained. However, 376 entrepreneurs who LEAP refers to as clients, submitted business proposals in the areas of cosmetology, timber, craft, agriculture, among others, to the organization.
An integral part of LEAP's goal to realize the eight million euros investment is to open a 'business incubator' to nurture entrepreneurs by providing them with the necessary support to properly manage their businesses. The Guyana National Industrial Corpora-tion Inc building was given by the government to house the business incubator, according to McKlmon. He says LEAP will rehabilitate the building. According to LEAP's website, the business incubator was scheduled to be opened this month.
Small start-up entrepreneurs and community enterprise groups will be eligible for the incubator process and will benefit from services such as telephones, computers, fax machines, marketing, a secretary and a receptionist while housed in the building. Each enterprise will be leased office space for a specific period and a flat fee will be charged for rental, utilities and services but this is expected to increase over time.
The Linden Economic Advancement Fund (LEAF) worth 1.9 million euros will also be made available to businesses participating in the incubator process. Six hundred thousand euros of LEAF's funds are to be used to provide micro credit and $1.3 million euros to provide support for small and medium-scale enterprises. Businesses with between one to 25 employees or 25 to 50 employees will benefit from this fund. A local financial institution has been short-listed to manage the fund but final approval is yet to be received from the UN-Brussels headquarters. (The fund will be managed under a contract between the Government of Guyana and the financial institution, but LEAP will provide guidance.)
A part of LEAP's economic drive is the extension and rehabilitation of the West Watooka Road which is expected to open up close to 200 acres of agricultural land. According to LEAP's website, 3.5 million euros are expected to be made available for infrastructural improvements.
Whalen says she understands that not everyone in Linden will become entrepreneurs. And she put the unemployment rate in the community at over 60%. She emphasized that they are working with the Guyana Office for Investment, the Ministry of Trade and five potential investors who are based here and abroad and should be able to create 500 jobs.
This, she says, will coincide with their efforts to create small and medium-sized enterprises, through which, "we think we can generate 700 jobs," Whalen says.
Some of LEAP's plans for job creation include a feasibility study to advance the development of an industrial zone, the expansion of wharf facilities and the conversion of the Watooka Club, at Riverside Drive, Watooka, into a hospitality training centre and conference facility.
Whalen says LEAP will be looking at the potential of agriculture in the intermediate savannahs, which can create a "significant amount of jobs"; at ornamental (aquarium) fishes; manufacturing of garments, jewellery, electrical parts; wood products; clay for tiles and bricks and at the dairy industry. LEAP is also focusing on the hospitality sector, whereby guest houses, restaurants and rest stations will cater for persons who are going into the interior.
An 11-member LEAP team visited the Roraima State in Brazil to speak with officials of the Brazilian Enterprise for Agriculture and Cattle Research (EMBRAPA), which is expected to lend technical support in developing the intermediate savannahs for agriculture.
Institutional strengthening
Regional Chairman of Region Ten Mortimer Mingo said LEAP's contribution to the community had several components. Among these are inward investment, institutional strengthening, infrastructural development and training.
Mingo says as regards inward investment (people going to Linden to start up businesses), "I have not seen any of this... I know they are pursuing that."
However, "the RDC has benefited from some form of institutional strengthening," he says.
Mingo said the RDC received a new computer from LEAP and the organization also hired a consultant to carry out a survey of the operations of the RDC. A report was submitted to LEAP. The survey is to determine how the RDC can be more effective.
Mingo sits on LEAP's advisory board, which is made up of LEAP members, the government, the Mayor and Town Council, the Linden Chamber of Commerce and the Linmine Technical Institute.
New money
"Anything that we do in Linden must be based on getting new money [into Linden]," Barrow says.
"We have to be careful that these new enterprises or businesses do not result in just recirculation of the same dollar and nothing new." He adds that in many cases similar types of businesses are opened which reduce the income of those businesses that are already there. Evidence of this can be seen in the numerous small shops selling confectioneries, the snackettes and the licensed liquor shops lining the roadside and in the alleyways.
"If we were to get 200 persons working in a factory and carrying home $10,000 per week but the produce is being exported [then this would be good]."
"LEAP is spreading itself over a great many different activities," Barrow says, instead of focusing on the 1,700 jobs that must be created.
He says LEAP should be doing everything humanly possible to team up with other funding agencies or with the private sector, other donor money and other commercially available funding.
"Somebody should tell us how well LEAP is doing. A lot of people have pinned their hopes on LEAP ... to revitalize the Linden community," Barrow says.
Linden, he says, has ample forest resources, gold and diamond and something should be done to develop these.
Forestry
The Region Ten Forestry Association was given a 43,000 hectares concession by the government in 2001, so that Lindeners who wanted to get involved in forestry could join the organization and be allowed to fell wood on the concession.
But members of the association are currently not allowed to cut wood on the concession because the association's permit was not renewed this year. However, members within the association, according to its Acting President Lawrence Fiedtkou, were still cutting wood on the concession leading the Forestry Commission to seize their lumber. Fiedtkou explained that the association and the Forestry Commission are committed to solving the matter. He also indicated that the association faced financial constraints, adding that the habit by some members of not paying their fees was a contributing factor.
But a member of the association told Stabroek Business that "bad management and pilfering" was what made the association dysfunctional. The whole thing [was] run without a system and there was no directors meeting. Most of the financial members of the association are not from Linden," the member charged.
Fiedtkou agreed that a large percentage of the members in the association were not from the region but said they were committed to finding a solution to this.
The member said in order to bring about change in the organization, "[there must be a] transparent election and [the] directors have to run it. It [cannot] be run by a one man or two men. Since the organization [is not] functioning a lot of people [are not] working."
Phillip Bynoe who is now in hiding after he was charged with treason based on allegations that he was attempting to overthrow the President, was the association's head.
A Mackenzie lumber yard owner said the majority of the lumber her facility bought was from persons who did not belong to Linden, since Lindeners owned a very small portion of the concessions.
"Some people may want to get involved [in forestry]," the business woman says, but they do not have forest concessions and if they are caught clearing concessions owned by others, then all of their machinery and produce are confiscated.
"It is not easy for them to have a concession close to Linden," she says, adding that getting involved in forestry can be very costly, hence unprofitable.
"People coming out of school [and] there is nothing to do," says the lumber yard owner, adding that LEAP's purpose is going to be defeated if the organization is unable to advance an industry or industries that can significantly reduce unemployment.
Furniture Manufacturing
Geoffrey Peters, a furniture- maker who operates from his bottom flat says, "over the years [furniture orders] continues to decrease ...[and] business right now in Linden kind of stop."
Peters says residents prefer to purchase their furniture from local stores such as Bolo's Variety Store at Wismar and from Kissoon's furniture store in Mackenzie. Their furniture are supplied mainly by manufacturers in Georgetown.
This practice, Peters says, is not beneficial to the Linden community. "[Linden] has so many that are unemployed that have the same skills but have no opportunities," he says. He believes some plan must be formulated to allow local manufacturers to sell their wood products commercially.
Peters says most of the finishing products (lacquer, stain, thinners) for his furniture must be purchased from stores in Georgetown, so manufacturers in Georgetown have the advantage and can sell cheaper. "That is one of the problems . Unless you can get the rest of the raw materials cheaper, then manufacturers in Linden will continue to be at a disadvantage. When it is made [in Linden] it is double the cost."
Although wood is relatively cheap in Linden he says, "There is no market in Linden [for wood]," adding that there must be a manufacturing industry in Linden to take off the wood.
"LEAP should come into these small bottom-house workshops and see what is going on," he posited, saying he is yet to attend one of LEAP's seminars.
Garment Manufacturing
Carl Bryan, a tailor who lives in Canvas City, Wismar, says he can create employment for 20 females if he receives the required finance to open a garment factory at his bottom flat.
Bryan says he needs the additional funds to install seating for the workers, to facilitate electrical wiring, for raw materials such as cloth and trimmings and for marketing. Electrical wiring and painting is expected to cost $203,000 and $75,000 respectively.
Bryan was able to complete some work on his bottom flat and to buy 11 used, heavy-duty machines through a loan from the Institute of Private Enterprise Development in 2001.
Bryan says he attended a joint seminar sponsored by LEAP and the Guyana Bureau of Standards which dealt with garment manufacturing last August and also attended training sessions held by GMA.
After giving his plan to LEAP over a year ago Bryan is yet to get a firm response from the organization. "One person [at LEAP] told me it needs reviewing. They frustrate me a lot, I never really go back. I expect that [LEAP and us will] work together, so that we [can], put the plan into practice, so that people [can] be employed."
But for now, he is maintained by his small garment store in Mackenzie market, which has three sewing machines. He says it allows him to "live a average and a standard life." However, he says, business in Linden is seasonal, for example during Mashramani, Christmas and Linden Town-day business is good.
Among the apparel he plans to make at the factory, if it gets off the ground, will be children's uniforms, adult clothing (for work and other occasions) and this will cater for commercial and customized sale.
On a daily basis Bryan says, young adults who are single parents and others go to his tailor shop looking for work and there is nothing that he can do to help them. At present, his tailor shop inside the Mackenzie Market only has one employee.
Dwayne Cornell, who farms cane, cassava, pawpaw, pumpkins, tomatoes and other cash crops on three hectares of land in Industrial Area, Mackenzie, says Lindeners need to get involved in agriculture.
"Linden is one of the biggest regions and most of the food comes from Georgetown," Cornell says, adding that this should not be. "It is just creating, I creating work for myself. I prefer [to] plant... and sell the food to get money. This land owes everybody a living and if [there is no] work then you have to create work".
Cornell attended an entrepreneurship training workshop conducted by Empretec Guyana Centre in November, which was sponsored by the United Nations Development Programme and the GMA. He has opened a shop on his farm.
However, this entrepreneur may soon have to move from the land he farms on, because Linmine is seeking to repossess the land after giving permission to Cornell to farm there.
He says once he visited LEAP's office for assistance with his farm but was told that LEAP could not get involved until the land issue is resolved. But Cornell emphasized that LEAP should also provide finance as well as training. "LEAP [is] training people to manage finance but they still cannot put it into action, because they don't have the finance. He says he has never attended any of LEAP's seminars.