By Peter R. Ramsaroop, MBA CEO, AFC
INTRODUCTION:
One of the weakest links in our system is the lack of a foreign policy agenda which in turn affects the development of our nation and the creation of jobs. We must focus on countries which can best become a partner with Economic, Industrial, Social, Infrastructural, and Financial assistance.
A few months ago, the Minister of Foreign Trade was sacked because he stood up on principle on the EPA agreement, since then there has been a stagnation of Foreign Trade issues. We got lucky with the fly by night signing of the rice deal with Venezuela. It showed no prior preparation and market analysis had taken place since the deal was cut between the two Presidents.
Lethem Stagnation:
After the official inauguration of the Takutu Bridge and with many bilateral agreements signed by both the Brazilian and Guyanese governments, there is total stalemate in this area. Many promises to improve Lethem as an important centre for the distribution of commodities, warehouses, industrial and commercial district have been made, but nothing has been executed to date.
The big question is: WHY? There are now in place, immigration, customs, agricultural, public health, public safety, and other departments operating on both sides of the border. There are taxis, charter buses, cars, trucks, pick-ups, and other vehicles crossing daily on the Takutu Bridge, and even a Brazilian-Sub-Consulate in Lethem. The Brazilian Government has started efforts to install more bank branches in Bon Fim and at the same time in Lethem. Where are our government efforts at this important trade zone?
In fact, there should be no more apologies for the delay of real improvement of Lethem as the new economic zone of Guyana.
1. The airstrip at Lethem should be upgraded as an interim step to accommodate larger cargo aircraft while we dink around on how to get the road paved to Georgetown. In addition, we need to be building warehouses to increase the circulation and the commerce of commodities. In contrast, Bon Fim’s leadership created a Free Trade Area Zone over a year ago, and the President of Brazil has indicated that Bon Fim will have an airport to accommodate larger trade. A cargo rail system should be underway to facilitate better trade between the two countries.
2. The Lethem Development Plan prepared in 2005 for the period of 2005-2010 by the Central Housing & Planning Authority, seemed to have been shelved. In this plan, an upscale housing community project was proposed along with commercial and agriculture development and transportation solutions. It seems like none of these plans is ever used by the current administration, and fly by night policies are created for media flair.
3. The Minister of Agriculture. Minister of Works and Minister of Housing and Water are nowhere to be seen addressing these areas of basic infrastructure for the community, including paved streets, avenues, waste services, potable water and sanitary landfills.
There is a big opportunity for the Government to create a model of a town today with planned districts serving the local population with basic services. Lethem must become an important city to Guyana and not only as a logistic centre of commodities, but also an important centre of international commerce with Brazil.
A Foreign Trade Policy with Brazil and Venezuela must be executed:
1. Brazil: I believe in forging stronger ties with Brazil for both development and trade. As one of the top ten largest economies in the world, and a neighbour, I would like to posit that we create bilateral policies and programmes instead of tapping into the usual resources of the ABCs (America, Britain and Canada).
The fact is that Brazil exports over $100 billon of its agricultural products to North America and we need to see where we can feed that system. Northern Brazil desperately needs our waterways.
2. Venezuela: Hydro power needs to be a point of discussion between Guyana and Venezuela given the common position of a serious lack of reliable electricity supply. Eastern Venezuela also desperately needs our waterways. We believe though that the sovereignty of our nation must be respected and all claims be withdrawn.
Additionally, Guyana, rather than maximize its efforts for loans and financial aid from rich countries, should expend its efforts on developing strong economic relationships with globally successful countries, such as Singapore, Malaysia, United Arab Emirates, Dubai, Saudi Arabia, India, and China.
DOMESTIC POLICY CHANGES:
Hog Island: We have discussed the development of Hog Island on many occasions. We can develop our own Barbados in Guyana. Imagine an island that can house thousands of Guyanese who may want to return to a more secure environment. Imagine the deep water harbour ports that can be a shipbuilding yard with a deep water harbour. How many of us may want to move to Hog Island instead of Barbados if we put in the right modern infrastructure. The Hog Island Deep Water Harbour will function as an Export Processing Zone where domestic taxes and other obligations are minimized, thus encouraging private investment in small, medium and large enterprises. Tourism can benefit from such a move. We have over 300 islands in our country and most of them are larger than most Caribbean islands we associate with and are sometimes ejected from.
CONCLUSION:
We must work together today to make these changes to our domestic and foreign policy. Yes the question of financing does arise. This can be done via the utilization of strategies known as Build-Operate-Transfer (BOT), Build-Own-Operate-Transfer (BOOT) and Build-Own-Operate (BOO). These mechanisms have been used with great success in Asia (especially in the “Asian Tigers”: Taiwan, South Korea, Thailand and Indonesia) and more recently in Latin America, the Middle East, South East Asia and Africa.
In the ever-present debate between “realists” and “dreamers,” we often find that the “dreamers” are actually the more realistic of the two. That is because “realism” is often pessimism disguised and pessimism validates its own dark predictions by keeping us from striving forward. “Dreamers,” on the other hand, create their dream by striving for it even when circumstances seem bleak. Therefore, believe that the “dreams” described in this column are truly realistic goals—when we dare to envision and actualize them. Until next time “Roop”
Send responses to peter.ramsaroop@gmail.com