Weak
The current administration was aware of the need to push investment in Guyana in an effort to grow the economy and to create jobs, and was engaged in several courses of action to achieve economic diversification through investment. Capital works involving roads, bridges, hospitals, schools, airports, and sea defence were the preference of the administration. The outcome is a mixed bag that leaves many Guyanese confused and dissatisfied since they are still unable to benefit from these investments with many roads sinking, school buildings still to be fixed, bridges collapsing and wharves floating away. The sectors of focus for the administration were reportedly rice, sugar, forestry, tourism, manufacturing, non-traditional agricultural products, fisheries, mining and petroleum, and information and communication technology. Many of these sectors remain weak and continue to struggle to establish themselves as relevant and important agents of the Guyana economy. The sugar industry is in confusion and manufacturing keeps going around in circles. The willingness of the administration to pursue certain investment and development policies was induced in part by domestic politics and international pressure that exposed its poor management of the Guyana economy, its corruption, bureaucratic and institutional weaknesses and repressive tendencies. These latter concerns remain on the minds of Guyanese today, especially since a large portion of the population with university degrees remains unemployed.
Among the reports that placed Guyana in an unfavourable light were the Global Competitive Index, the Logistics Performance Index, the Corruption Perception Index, the Index of Economic Freedom, the International Property Rights Index, the Human Development Report and the Doing Business Report. These indices and reports are produced by international institutions to which Guyana is a member and by civic-minded entities with a mixture of interests. Some are concerned about the misuse of domestic resources and international aid, others about the living conditions of the disadvantaged in the world, and still others look for the benefits of globalization to themselves. In effect, the Guyana economy is a place where Guyana’s domestic policies are increasingly being mixed in with international economics and politics, and civic interests.
Motivation
Action by the administration was also motivated by the threats and opportunities of globalization. New global trade rules removed the special treatment that key exports of Guyana enjoyed for years with the European Union. Guyana also finds itself in direct competition with several low-cost exporting countries like Brazil, China, Cuba, India, Thailand and Vietnam for some of its most important exports. This and other events forced the modernization of the Skeldon Sugar Factory and the search for alternative sources of energy. Despite knowing what it had to do, the administration has been unable to make the new factory work in the best interest of its employees and Guyanese in general. The performance of the Skeldon Factory is turning out to be a reflection of the incompetence of the administration and so too is the Amaila Falls Hydropower project. They both carry excessive costs for inadequate returns. The administration is also responding to threats and opportunities created by the formation of the Caribbean Single Market and Economy and obligations imposed by the International Monetary Fund, the World Bank, the World Trade Organization and regional bodies.
Blueprint
The basis for some of the work of the administration was the National Development Strategy, and the Millennium Declaration which was adopted by the international community in 2000. The Millennium Declaration contains the eight poverty-reducing goals of (1) eradicating extreme hunger and poverty; (2) achieving universal primary education; (3) promoting gender equality and empowering women; (4) reducing child mortality; (5) improving maternal health; (6) combating HIV/AIDS, malaria and other diseases; (7) ensuring environmental sustainability, and (8) developing a global partnership for development. These goals are to be achieved by 2015. Despite having a blueprint to guide its actions, the World Bank noted in its September 2011 update that Guyana was not on track to meet targets related to poverty, child mortality, maternal health, and major diseases. Indications are that between 20 and 30 percent of the population are still living in extreme poverty and the quality of education still needs improvement. The income disparity between the rich and poor continues to flourish.
Response
In response to the Millennium Development challenge and the global pressure to fulfill its commitments, the administration has pursued several contradictory courses of action. It has taken an interest in selected remote regions of Guyana while neglecting the administrative capital of the country. The administration also adopted a series of laws including the Procurement Act of 2003, the Fiscal Management and Accountability Act of 2003, the Investment Act of 2004, the Small Business Act of 2004, the Value-Added Tax Act of 2005, the Competition and Fair Trading Act of 2006, the establishment of a Commercial Court, the Guyana Forestry Commission Bill of 2007 and the Anti-Money Laundering and Countering the Financing of Terrorism Act of 2009. The administration also created the National Competitive Strategy and a series of management structures under the direction of the President to retain control over the decision-making process. During the course of time, the Low-Carbon Development Strategy (LCDS) became a major priority of the administration and a product of its control.
Conflict
Many of the decision-making structures being used to carry out public policy conflict with parliamentary intent. Instead of using the Public Procurement Commis-sion to oversee public procurement matters, the administration deferred to Cabinet. Instead of using the Small Business Fund to finance small business activities, the administration chose to go outside the parliamentary approved mechanism and create special handout programmes. The lack of faith shown in the agreed decision-making structures of Guyana has limited participation to a chosen few. Moreover, the Competition and Fair Trading Act of 2006 is being undermined by initiatives like the One Laptop per Family (OLPF) initiative which distorts the market for computers, and the setting of computer-related standards.
The work on competitiveness was being implemented in partnership with selected private sector entities. The administration received funds from the Inter-American Development Bank (IDB) and the Millennium Challenge Account for its work in the area of competitiveness, but only a few are able to decide on how that money was spent. As a consequence, many small-scale entrepreneurs found themselves without necessary support despite attaching themselves to major industry advocacy bodies like the Guyana Manufacturers and Service Association (GMSA).
The economic strategies of the administration are pleasing to some parts of the private sector while other parts have been left out. So it is for the population in general. Some have benefitted while most have been left out.
