In a press release the party said it appears as though Jagdeo and a few other persons will now continue their campaign across the globe even though the agreed sum to be shared among vulnerable poor countries is far less than had been expected. It said too while Guyana should not ignore the potential for obtaining small amounts of finance from the said funds, energies should also be directed elsewhere to modernise the production structure and enhance competitiveness and capabilities of the economy.
The AFC does not agree that the LCDS is a realistic model for development financing and that the PPP has put the development financing of the nation at the whims of making a global deal and political uncertainties. “As the Jagdeo government waits for US$580 million each year to be realized to implement the LCDS, the PPP has chosen to enter into short-term relationships with bilateral donors to obtain small change to keep the government’s current expenditures going,” the release said. The party charges that this shows that the government’s policy is to maintain its cash flow so as to present a façade of success, however; these short-term strategies do not lead to fundamental transformations and independently verifiable job creation.
The AFC posited that this reveals the PPP’s short-sightedness and it proposes an alternative vision of development financing which entails seeking financing from different sources simultaneously. Further, it said too development financing must lead to positive structural changes in the economy and submitted that it would mobilise domestic savings thorough financial market development; establishing a state development bank in order to deepen financial markets and complement commercial banks.
According to the party it would pursue foreign direct investment; mobilise finance from the Diaspora in which the proposed state development bank will play a role; bilateral development financing for fundamental projects and not just cash flow sustenance; multilateral financing from IDB and other similar agencies; issue tax incentives to domestic and Diaspora investors though these must be tied to performance measurers of businesses and refocusing Guyana’s foreign policy to lead to maximum development financing.
