(This column explores initiatives to improve the business climate of our nation and make Guyana Open for Business a reality. Peter R. Ramsaroop, MBA Chairman, RoopGroup)
Introduction:
Over the years, I have had the opportunity to interact directly with Go-Invest and was most disappointed by the end result. This office was set up to cut out red-tape while providing incentives for foreign and local investors, but instead it has been branded as an unnecessary stop and many investors must then fend for themselves with the various ministries. Over the years, Go-Invest have advertised billions of investments and thousands of jobs but we never see many of these investments finalised. We first called for eliminating Go-Invest in 2006 and to establish an Economic Leadership Group in which I would volunteer to be on the team or even lead (without pay).
Over the last several years, it has become clear to me that a fundamentally different approach is needed at the macro-economic level from our public sector leaders to encourage investment and rebuild our business climate. Much of the energies of investors has seemingly been stymied by the discouraging climate for business in Guyana.
Anti Business Rhetoric
I get at least one call a week from potential investors, asking me for my opinion on investing in Guyana, and what are the pitfalls. I am very honest with them, telling them, don’t do what I did, meaning, if you are not willing to become a PPP/C supporter, there is a minimal chance your business will succeed regardless of your experience, knowledge and past successes.
None of the PPP/C economic programmes has so far yielded real, tangible economic success that is measurable in job growth and personal income for the vast majority of Guyanese. Continual, grinding poverty, corruption and the lack of work all have led to the “stagnant economy”, crime-ridden situation we find ourselves in. The “plunder”economy we witness daily is however the major achievement of the last fifteen years. The arrogance of talking about investments such as the Marriot demonstrates a lack of transparency while spending our taxpayers’ monies to prepare the area for such a hotel.
The Economic Leadership Group
Over the next few years and the next decade we have to radically change the way we manage the economics of our nation. We need a diverse economic group with a charter and a set of incentives that is ready to attract foreign direct investment (FDI) and major local investment.
The commerce minister visited the bridge from Guyana to Brazil and seemed pleased, but it was the initiative of the Brazilian Government that made that a reality. The minister should have been upset that nothing has been done on our side of the border in getting our road and bridges ready for this major economic change that our country badly needs.
We need political will to reorganize. Economic policy and execution need a new powerhouse group that takes away the fragmented approach where each Minister gets a piece of the pie and nothing is done at the end of the day. This includes the current industry and commerce portfolios headed by Minister Prashad and foreign trade headed by Minister Jeffrey and what we know as Go-Invest headed by Mr. Da Silva. Why do we have three different groups trying to do the same thing without any success? This new economic group must be empowered to cut red tape and performance needs to be measured to ensure progress is accountable. Parliamentary oversight is needed.
Big impact projects: that must be
aggressively pursued and managed
The Brazil Road/Deep Water Harbour – to open up Guyana to the wider world and encourage cross border investment.
Lead a New Economy Programme fully supported by the public sector in terms of incentives, infrastructure, and training for our graduate work force. Build on Indian cultural and economic links to generate the national connections necessary to provide real, tangible support for this massive growth opportunity in the area of business process outsourcing.
Workforce Development – Coordination and Resources. Retraining the sugar workers in non-traditional farming and or related industries is vital to the health of our agribusiness sector
Export Zones – Export led development strategies are familiar to economists and developing world experts yet our government has been slow to embrace the idea. The development of tax free export zones in current ports and the development of the tax free export zone in Hogg Island are vital components of a growth strategy that can be an economic driver beyond anything our nation has known in the last fifty years.
Education – While arguably not in the portfolio of this group, the educational requirements of economic progress should not go uncoordinated. One of the striking characteristics of Asian Tiger economies is the degree to which educational policy and institutions are responsive to and integrated with the economy. The needed upgrades to our educational system are important social issues to Guyanese yet they are also the linchpin for our economic competitiveness. While many of our schools still look the same as they did 30 years ago, we must work to make sure that they offer curricula and technology that are on a par with world standards.
Alternative Energy – Guyana needs an aggressive implementation of alternative energy sources to increase our competitiveness and to adequately supply energy to a growing economy. We ought to seek to lead the region in alternative energy practices rather than pine about the high costs of fossil fuels.
Leveraged Success – Guyana needs to focus on the areas where its core capabilities either in agriculture, minerals, tourism, or services can be leveraged to create new markets for non-traditional products. One idea is to actively support the development of 5 nontradi-tional large scale agricultural programmes such as for peppers.
Conclusion: By giving free rein to the private sector, less intervention and more support, eliminating bureaucracy, supporting a viable and transparent commercial legal system, acceptance of CSME and assisting the formation of indigenous regional companies, a new more powerful economy can become the engine of growth rather than a downward drag on our region.
An active programme of economic development and empowerment coupled with an energized public/private sector partnership can help stop migration, alleviate the scourge of massive unemployment and even add to the public coffers to improve health care, education, and the delivery of public services. Our nation can excel and prosper if we just have the will! ……Guyana can become the Singapore of the Americas.
Until next week “Roop”
