By Peter R. Ramsaroop, MBA, CEO, AFC
INTRODUCTION:
The cost of living woes are being discussed from the living room, the board room to the political policy makers’ offices. Cost of living is the cost of maintaining a certain standard of living. Maintaining one’s standard of living is being tested more than at any other time in recent history. From the developed countries to the poor countries, we all face the same issues. People are cutting back their standard of living in many areas. Gas and food prices are of the greatest concern to all of us. The key solutions for our nation lie with us focusing on key development areas that can become new economic zones and contribute to prosperity for our citizens.
Last week I discussed Foreign Trade Policies and outlined how a new key economic zone in Region 9 and Lethem in particular could be developed and the stagnation of these communities by the government. Key programmes that should be put in place have not started and are affecting the way of life of our citizens.
A Roll back Policy:
When the government was introducing the 16% VAT, many of us argued that the number was too high and that it would contribute to the decline in the economy and without an overhaul of the entire tax system, it would put the economy in a tailspin. We argued that the purchasing power of a dollar in 1992 was now worth just .24 cents and that with inflation in double digits and the Consumer Price Index on food items up over 20% that any other pressure on the consumer will have grave impact. Another argument that we had was every dollar spent by a consumer turns the economy over about 10 times. None of these facts were heeded by the government and they have ignored the call by every citizen to reduce the 16% VAT. We are also in favour of raising the tax threshold to $75,000. The key for our economic policy makers to remember is that the more money we have to spend the more the economy will grow. The danger we now face is that parents who can’t afford to pay for transportation for the children will keep them home and that I believe should be our greatest concern. We must create new industries in order to create jobs and wealth.
The Bartica Triangle:
This is another key area we are proposing to become a major economic zone for Guyana in addition to Lethem in Region 9. This is the area west of the Essequibo River. It is accessible by river and road. The Bartica-Potaro Road passes through the area on the watershed between the Mazaruni and the Essequibo Rivers. The Bartica Township occupies the apex of the Bartica Triangle.
Although we talk about protecting our forest, protected status for the Bartica Triangle is highly improbable. A study done by a German group concluded this will not be possible because of the variety of activities and private lands there.
Bartica has a unique value in areas such as eco-tourism and forestry. In 2003 the German Study looked at hydropower sites at Ikuribisi and Big Barabara which were considered critical to the future development of Barticia. Had we focused on this project, today many of the tourist operators would have had energy to the resorts in the vicinity. They were many mini-hydro projects that needed to get underway in these areas.
The Ikuribisi Falls which is located about 29km upstream of Bartica was identified as a key project. The government keeps waiting for the big one when many of these smaller hydro projects could have been completed. Some of these studies go back to 1984 and the site at Barabara could have produce 170KW. These projects can significantly improve the Bartica Triangle and make this area a key development zone for our nation.
Bartica is an area that we need to develop as a major hub for both mining and agriculture. It was once known for its peanuts, but lack of infrastructure has destroyed the markets. We must all lobby for a large portion of our taxes to be put back into our own communities.
Conclusion:
The cost of living solutions must be a coordinated effort among government, private sector and citizens. We all have to manage our standard of living; we have to look at new and innovative ways on our purchasing trends.
We must prioritize what is important, such as our children’s education, meeting the needs of our families and ensuring we all contribute to the growth of our nation. Significant moves that will make a difference today are a roll back of the VAT to 10% and eliminating the zero rated policy. Focus must be given to the new key developmental zones that can boost our economy and create prosperity for all of us.
Send comments to (peter.ramsaroop@gmail.com)