"Economics@2007.com"
Stabroek News
December 29, 2006
It is hard to imagine this column was first written at the end of 2004. It was reprinted at the end of 2005 and now once again a shortened version for the end of 2006 with just the broad highlights in order for the readers to determine if the plan that was suggested in 2005 was given any thought by the current administration in 2006. For those interested in reading the last two end of year columns, it can be found in the SN Archives.
We are already now past the midway point of this decade without a sound economic plan that looks at the longer view for what Guyana can be by 2010. Interestingly enough, it was last Dec 2005 that the National Development Strategy developed at the start of the decade was finally being debated in our Parliament. Imagine if it was implemented in 2001, how much we could have accomplished. (Note: Dec 2006, the motion was once again presented in parliament by the Opposition and rejected by the ruling party - go figure!)
The debt burden on ordinary Guyanese continues to be debated. As so often happens, this argument leaves the real issues of economic management (or lack thereof) without proper consideration or attention. These real issues, while seemingly complex to some, have in fact simple basic points: unemployment is a real problem, the lack of a positive investment climate hurts foreign and local investors, and punitive tax and investment codes discourage business activity. At the end of 2006, our citizens are not accumulating any wealth; even the President now acknowledges the growing poverty in a recent speech this month.
I have not only written on this topic, but also invested real dollars extensively on building a Caribbean "Tiger" economy in Guyana and the need to sustain a "free enterprise" brand for our nation that will attract investment and encourage commerce. An encouraging government sector, with an activist mindset can drive economic policy. The current administration tendency to allocate funds by "fly-by spending" or "walk-about" programmes or lending money to certain private entities without any accountability is a failure of sound economic policies.
Public sector responsibilities such as law and order, public utilities, transportation infrastructure, health care, are all vital but the government must also encourage investment, a positive lending environment for business and banking sectors, and the development of globally competitive industry. They are many components of a sound economic policy that is geared to growth and stability that are discussed in both of my books on Guyana and also in the National Development Strategy. Some of the strategies proposed in 2005 to encourage this kind of change were: Engage the Diaspora. The skills, experience, and wealth of our brothers and sisters who have left Guyana should be engaged to help to bring businesses here. The need to focus our public debate on jobs, jobs, jobs! The need to encourage foreign companies to build operations here by building tax free export zones, freeing up the money held hostage in our moribund financial sector and by extending credit to consumers - we can do this all through a focus on growing employment opportunities.
We need economic policy that concentrates on real people and their real needs. Policy isn't about talking statistics and debt/citizen ratios, it is about making the hard work of all Guyanese pay off in better lives and stronger families. We must cease our reactionary budget approach and spontaneous spending and look at solid long-term investments that will demonstrate a Return on Investment (ROI) that every citizen can personally measure. Let's renew our commitment now as we start 2007 to an energetic, positive approach to bringing prosperity to Guyana.
Until next week: "Roop"