Slow pace of market diversification

LUCAS STOCK INDEX LSI There was no change in the LSI in week two of trading in July 2011 after week one recorded a four percent increase in value. With the increase so far in July, the index has gained more than 20 percent for the year. As a result, the index exceeds the risk-free Treasuries due to mature in December 2011 by more than 16 percentage points.

Aggressive Spending

In articulating the national competitive strategy, there is no doubt that a major focus of the administration was expanding the export activity of Guyana.  The pursuit of this objective would be reflected in the actions taken by the administration to create opportunities for success.  That success would show up in the growth in export volume and in a rebalancing of the share of revenues earned by traditional and non-traditional exports.  Where Guyana is today by the numbers would not convince many that the market diversification efforts could be regarded as successful.  While volume data is currently unavailable to this writer, the value of non-traditional exports in total exports is not impressive.  In 2006, non-traditional exports accounted for seven percent of export revenues.  The share was the same in 2010.  Much more alarming, though, is that the share of export revenues from non-traditional exports is no greater than it was in 2001, even though there has been aggressive spending on improving Guyana’s competitiveness since 2006.

Positive Direction

To be fair, there has been some increase in exports of non-traditional products.  A review of export statistics in the annual report of the