Dear Editor,
Why is it that we are so often our worst enemy? I refer to your business guru and analyst Christopher Ram and his second column since his return, “Business Page 2 of 2008” (Sunday Stabroek, January 13, 2008). I will return to Mr. Ram’s obvious state of mental confusion but first wish to highlight excerpts from two other of your regular columnists, Ian Mc Donald and David Jessop in the very issue.
Writing on the Economic Partnership Agreement between the European Union and Cariforum which came into force on January 1, 2008, Mr. Mc Donald has this to say “It would be futile to complain and expect any EU sympathy if and when horrors emerge in future to threaten some company’s or industry’s viability or even some vital national interest. This is a done deal, treacherous fine print and all”.
He goes on to say that Cariforum countries (of which Guyana is one) had to abandon special and differential treatment previously granted to vulnerable developing countries, and accept instead the brutal new reality of the primacy of the market and the paramouncy of reciprocal free trade. The velvet glove has given way to the big stick.
Writing on the very topic, David Jessop was more pointed in his opinion and suggests that “sometimes it would seem as if the region has a death wish” Success and petty nationalism he goes on to say seem to breed jealousies that drag down those most able to deliver.
Both of these commentators recognise the gargantuan task that it is “to foster globally competitive economies and industries” within the three-year preparatory period.
According to Mr. Jessop, already two Cariforum governments, aware of the short time scales, have met at cabinet level to discuss what is needed to become competitive and how the EPA might drive institutional change in a manner that also facilitates the completion of the Caribbean Single Market and Economy.
Your business columnist, on the other hand, remains unrepentant and continues to see himself as an oracle duly pronouncing and pontificating on all and every topic apparently unmindful (or unconcerned) of possible harmful consequences of his actions.
In this the most recent of his columns Mr. Ram castigates the Private Sector Commission and in particular its Chairman accusing them of among other things “insensitivity” and “lack of depth” as well as implying that the earlier charge of immaturity directed against them was merited. As for the main opposition party, the PNCR, he proclaims that they now “hardly pretend to be an effective opposition”.
How does Mr. Ram, however, seek to contribute towards the badly needed restructuring of our economy and the hoped-for creation of globally competitive producers? It is to draw attention in his column to what he claims to be Guyana’s “extremely attractive regime of export allowances” suggesting it to be “a breach of WTO rules”. Mr. Ram who exhorts “the PSC and its leadership to be mature and not overlook key issues” clearly in this instance is suggesting the withdrawal of this incentive feature. For readers who may be unfamiliar, export allowances is an aid-to-industry incentive that allows for reduced taxation on profits of non-traditional exports only to extra-regional markets. Traditional exports being defined as sugar, bauxite, rice, gold, timber. The aim therefore is to encourage investments in such activities and which will lead to job-creation and new economic activity. As for achieving international competitiveness however, that is a mammoth task given the manifold deficiencies present locally and certainly is not something that can be decreed or legislated into being.
Has Mr. Ram done a check on the ostensible face-value loss to the treasury of taxes resulting from this feature and a determination that this incentive is counter-productive and unjustified. If so I would welcome his sharing this information with readers in a subsequent column. My suspicion, however, is that he hasn’t and this is but another example of the destructive and anti-national mindset of this individual. My suggestion to Mr. Ram is for him to concentrate his undoubted expertise to areas where he can contribute meaningfully, anti money – laundering being an obvious one and not continue his perverse ways. He can as well use his talents, experience and wealth to get involved in any of these perfectly legal activities and reap the bonanza that he seems to feel is there for the taking.
Yours faithfully,
Ronald Bulkan
Precision Woodworking Limited
