Stabroek Friday Business supplement is the only such publication in Guyana. For many of us in the business community, this is a key information tool on the business and economic climate of companies and the nation as a whole.
Recently I had the opportunity to participate in a University of Guyana student’s forum on the Value Added Tax (VAT). Many of the students referred to this publication for the information they were using. Many also expressed interest in being exposed to more free-market thinking and how Guyana can implement such economic policies. In speaking with many of these students after, they wanted to understand more about the rate at which our economy was growing, the burdensome tax system, and the purchasing power of the dollar. I have concentrated my recent columns on these subjects. In addition, many questions came up on our current industries such as sugar and the impact on our economy given the recent European decision and the environmental issue that is gaining international attention as it relates to the harvesting of our forest and what impact it will have on our economy when it is fully exposed.
How will the sugar industry affect our economy? Note the following facts that must be addressed in the near future. World prices are down from 14 to 10 cents per pound. Refined sugar is down from US $575 to US $450 a ton. I have shown in previous columns how inflation has affected the current cost base. Add poor productivity and investment in a refinery that cannot show a return on investment and these will affect the final numbers in our economy this year.
The recent exposure of what is happening to our forest will also have an impact on our economy this year. Reports have shown that many blocks of our forest were harvested illegally. When you add that it is alleged that GFC officers have been found to be paid on the side not to report harvesting has taken place this will all impact negatively and affect our economy.
The Government recently announced hundreds of scholarships to Cuba, a country ruled by a dictator. When will we also announce scholarships to the USA, Canada, and UK where many Guyanese in the diaspora are creating wealth and adding value in their adopted countries. When will their monies and skills be attracted to Guyana? When will the investing conditions be right? How many Guyanese have created wealth in Cuba or Russia? Over the last five years, Guyana has seen very low or negative growth and other economic indicators such as inflation and the consumer price index are all in double digits. What has the business education from these countries done for our nation where many in leadership positions have been trained.
The challenge for many in the business community, students aspiring to get a business and economic education and those wanting to invest in our nation are the understanding of our true business climate and opportunities. Our economic measures are our baseline.
Until next week “Roop”