Peter R. Ramsaroop, MBA CEO, AFC
Introduction
Minister of Tourism Manniram Prashad was very proud of an external report which said that Guyana has had the highest rate of tourism growth in the region. But if there was only one visitor in 2007 and two in 2008 then that is a 100% increase and shouldn’t be compared to tens of thousands in other countries. The point is that with issues such as torture, crime, blackouts, sexual abuse of our young children, we cannot expect our economic situation to reflect any improvements that will make the lives of our citizens any better much less an increase in tourism.
I went to the races on Sunday, so did the minister, President Bharrat Jagdeo and Prime Minister Sam Hinds. The road to the race track is deplorable. Imagine, government officials have gone to the races every year and not once have any of them decided: ‘You know this is a key tourist attraction, why don’t we fix the roads?’
Minister Prashad must measure what is needed for tourism to be successful. A major economic operation is needed. I am not sure what luxury we have as a nation that we can refuse over four million pounds from the British government for security reform. Any citizen will tell you that without security in our nation, business operations, tourism and foreign investments are severely affected.
Components of a sound
economic operation
In my book The Road to Eldorado, Chapter 7, I outlined a few components for us to ensure that we have economic stability that is geared at measurable growth.
The goal of full employment and decent work means that policy must be built on shared economic and social values at the same time.
Growth is needed (not only for employment but also) for sustaining macro-economic stability.
Free markets must dominate economic activity but prudent government intervention is essential. This intervention must be transparent and not inflict burdens too grievous to be borne by the private sector.
Guyana must manage its own “economic” house, built on a “third” way that is a flexible and pragmatic framework focused on growth and employment.
Guyana, like many other developing countries, faces a “stabilisation trap” with surplus labour and poverty. Rationalising public spending and support of the private sector is needed.
The goal in socio-economics is to create jobs at the village levels so that persons do not have to travel to another area in order to gain meaningful employment. Those who live on the West Coast Demerara face that every day. They must travel hours to Georgetown in order to make a $40,000 salary. After they pay income taxes, NIS, transportation and the rest on living expenses that includes VAT, they might as well stay home and not work.
The example that I use the most is that if the villages were given back the money they pay in taxes and told to maintain their drainage systems by hiring their own workers, I strongly believe we will get better results. Micro loans to farmers in the community to plant key products are much better than passing out one plant and a few seeds. Providing micro loans to create sewing cooperatives where each community retains the jobs to sew school uniforms will ensure that parents do not have to travel to another community, and then pay to get the uniforms.
Guyana is already one of the highest taxed countries in the world. For the administration to want to tax us more is just plain sad.
We already pay 33 1/3% income tax, 5.6% NIS, 16% VAT, fuel tax and rates/taxes, yet the government wants to increase what we pay into the treasury. With all this money, one would think that the government would want to make each community better. If citizens’ lives are improved, they would do their part to make our nation better. Imagine your roads in Industry, Mon Repos and Bartica paved because the taxes you paid were sent back to your communities? Is this not the best way to run the government?
Technology can go a long way in helping facilitate the collaborative processes of public and private development. As the business world continues to gravitate towards globalisation and consolidations, companies that join together to deliver solutions on a larger scale will survive and even thrive.
Conclusion
Let us revisit the Minister of Tourism’s statement on the report about how our visitors’ growth is one of the highest in the region. The minister has not outlined a proposal, as we have done in the AFC, to establish a tourism development zone for the entire city of Georgetown for example, and grant incentives for public-private partnerships to develop our river banks, waterfronts and parks similar to cities such as Washington, DC, Baltimore MD and others around the world. Maybe if he had, we would see a real increase in tourism.
The localisation of taxes is also one of the key proposals for our economic operations. If central government controls the cash – as it does now – it can hold communities that are not under its full control hostage.
This is a dictatorial method.
Creating wealth for ordinary Guyanese will be the focus of our economic operation. In order for us to compete globally we must solve our energy issues as described in previous columns and part of the AFC Blueprint for Change in Guyana. The power of a combined economic operation where the private and public sector come together with real plans would be a welcome development for all of us. Until next time “Roop”
Send comments to peter.ramsaroop@gmail.com
