By Peter R. Ramsaroop, MBA
Introduction
Prime Minister Patrick Manning of Trinidad said in a recent interview that given the criticism of his government he felt it is good governance to have elections. Although many feel that to call an election now could be the downfall of the PNM since there is a united opposition, the maturity displayed is refreshing. We have had similar criticisms of the government in our own country over its the poor economic performance but we have seen no signs of any early attempt to get a new mandate.
The government is proud of its so-called economic accomplishments, but as I wrote in a previous column, our dollar in 1992, is 16 cents today. Many still live below the poverty line. However, many new banks and insurance buildings are being constructed and this observance is being used as a measure of growth while the average person’s salary remains the same. While there are new housing areas, older housing schemes are depressed and deteriorating. It is a sign of a stagnant economy.
Energy-led economy
We must continue to focus on the plan for this new decade. The Amaila Falls project will take ten years and will not produce energy fast enough to bring about the changes we need. We need major shorter term energy solutions to boost a move to more value-added products and manufacturing in order to create new jobs. Our economic prosperity depends on rapid new energy investment which can be met best by renewable energy. Options to integrate our energy supply with our continental neighbours are also worth examining. We have not seen any real movement towards solving the country’s immediate energy needs.
It is also not true that Amalia will seriously dent the import of fuels, as the Minister of Finance said recently. There will be some decrease in fuel imports, but Guyana still needs to import fuel for vehicles. That is why hydropower has to be backed up by other forms of renewable energy such as ethanol. There has to be a portfolio of renewable energy and not a single silver bullet energy source. It is also doubtful that a single hydropower project would be enough to make electricity cheap so that our manufacturing can take off. This is the principle of economies of scale.
For us as citizens to see a rise in our standards of living, we must attract large investments that create major tax revenue to help pay for government services, create high paying jobs, avenues for related investments, and ultimately promote new innovations.
We need to create a non-resident Guyanese (Diaspora) programme that truly attracts our people to invest and return to our country. Their needs are simple, security and healthcare. These are issues that we can manage effectively with the right determination and support. Simplify the duty-free concession for vehicles. Some re-migrants have left-hand drive vehicles and would prefer to buy right-hand drive, duty-free. These policies could reduce the costs of remigrating, which the government is yet to figure out.
The President will visit South Korea shortly to receive an award and will talk about the Low Carbon Development Strategy (LCDS). The size of our forest is twice the entire area of South Korea, but their economy is booming and ours is stagnant. I hope the President comes back with a renewed sense of commitment that there must be a better vision for our nation.
About 1% of our population was consulted on the LCDS yet the President boasts that the population of Guyana supports the LCDS in its current form. Moreover, the LCDS has failed to obtain the US$580 million per year. Also, future carbon markets are uncertain and unlikely to occur anytime soon. There are better and more realistic alternatives to LCDS that could be implemented now.
We keep waiting for magic to happen in Guyana and the promises that we will move to a renewable energy-led economy but we are yet to see any true programmes that will get us there.
We need to get out of the rut we are in and create that vision of growth for our nation that puts prosperity for all on the front burner.
Conclusion
Re-orienting our economy with a vision of growth and change is needed. Waiting for funds from others is not needed. We must solve energy first with a mixed portfolio management approach. They are so many smaller waterfalls across the country that will produce hydropower for communities such as Bartica and Linden in a much shorter time span than the Amaila Falls project. There are also run-of-the-stream hydropower systems that can be deployed. Renewable energy developments can also have a rapid impact on Guyana’s energy supply as well as on quality job creation. We should invest in those before spending $15 million on access roads to one big hydropower project. That sum can be invested in Tiger Hill Falls and the Bartica area falls to produce hydropower that can boost these communities in less than a year versus the Amaila Falls project that is ten years out.
Reorienting our economy also means finally putting the effort and resources into real integration with our continental neighbours. Guyana has a continental destiny and we need to lead the effort rather than be pushed by our neighbours. We need to take advantage of our location next to one of the major global economies, an emerging global giant. We have wasted enough time. We need to seize the opportunity that presents itself with the general election in 2011 to begin the reorientation of the country. Until next time “Roop”
Send comments to peter.ramsaroop@gmail.com