Introduction:
Over the last few days our nation has been bombarded with information that ultimately will have a negative impact on our economy. When evidence about officials in our government can be presented in a court of law with such magnitude on killings, deception, drugs and corruption, both local and foreign investors feel the shock waves and this puts future investments at risk.
At the end of the day, each of us is feeling the pain as the cost of living continues to be on the rise. At no time during the last three years since the inception of the VAT has the government showed any sign of reducing the taxes to the 10% that by all indications should be the right number. Business owners still have to buy revenue stamps to paste on our receipts when we purchase items in addition to the VAT. These costs are passed back to us the citizens thus making the cost of the item sometimes beyond our reach.
Judging from the performance of Guyana’s economy since independence, it would be a contradiction to use the term economic recovery as what is needed. After all, a strong economy was never built, meaning that there is nothing to recover from. A unique blend of micro and macro-economics especially tailored for Guyana is necessary.
Last week the Government of Guyana finally allowed traffic to cross between Brazil and Guyana. This was all done in isolation to any economic strategy for Lethem or the road to Georgetown. I noted in previous columns that the PPP administration has failed to even create one economic free zone when the Brazilian Government already has designated Bon Fin a free economic zone. This will be one neutralizing factor in our economic development if we manage it properly by designating Lethem as an economic zone. I am a big proponent of looking south for economic infusion.
The road
Finally, we may now see the start of economic activity with the opening of the bridge between Brazil and Guyana. I have written about this many times but given the resurgence of the concept coming to reality, it is important that we conceptualize the magnitude of such activity and the benefits it can have on our population.
As was stated in the Guyana 21 Plan, new villages will be formed and other financial opportunities will naturally become available with this connection with Brazil. Immediate jobs created by this project would include jobs needed for the construction of a major highway and transportation jobs for drivers of large 24-wheeler trucks. Those trucks would be coming with goods for shipment out of our harbours and will then go back filled with our own products to sell to the rest of the continent. It is of great importance that we create economic free zones as an aspect that must also be part of any initiative.
Under this plan, customs and immigration jobs would also be created to manage border traffic and to collect appropriate fees from vehicles. Border management jobs would be created since we must open up the country thereby necessitating the strategic management of Guyana’s borders against drug trafficking and smuggling.
Guyanese could become owners of transportation companies instead of just driving mini buses. Computer related jobs would serve as the backbone of a sophisticated, well-run freight hauling and logistics management industry. There would also be a need for hospitality management and service related jobs associated with increased economic activity along the roads such as gas stations, hotels, motels, restaurants, entertainment, etc.
New villages would spring up along the highway, which will create new community jobs to support agricultural and tourism opportunities. A sustained market in tourism and eco-tourism would develop quickly and produce jobs since Guyana would be open and find it easier to attract international tourists to appreciate Guyana’s landmarks and biodiversity.
By paving the road to Brazil, we could be creating a whole new economic road for Guyana – one that could mean the end to the overwhelming state of poverty and lack that has besieged the nation. In the quest for sound economic decisions, it makes sense to focus our energy and finances on this project that promises a bright future for Guyana.
Conclusion:
We must create national strength and purpose when it comes to our economy. We should encourage thriving innovation clusters across the country that can successfully come together and help reshape our village economies. Our workers and our businesses can benefit enormously from an economic boom – if we follow the right policies. This government has demonstrated its unwillingness to work towards a closer integration of the national economies of the region, particularly through trade, capital and financial currents. We are cognizant of the fact that many people in developing vulnerable countries (such as ours) fear for their jobs and for their environment when faced with the prospect of globalisation or regionalisation, however, a strong democratic governance and modernised institutions would prepare the citizens of our country to seize the advantages of regional markets and competition. We must embrace the connection to one of the world’s largest economy – Brazil. We must welcome the Brazilians and work on creating valuable trade agreements that can benefit both nations. Export led development strategies are familiar to economists and developing world experts yet Guyana’s government has been slow to embrace the idea.
We must get on with the business of creating a real economy in our nation, one that will get you and I jobs, one that will see us getting pay raises, able to purchase a house and a car and take better care of our children. Let us lobby for our government to stop stagnating our progress and embrace policies that will help all of us create wealth, pay less taxes and see our children properly educated. Until next time “Roop”
Reply to peter.ramsaroop@gmail.com
