Negative attributes
For the past 22 years, the country of Guyana has been administered by an alliance known as the Peoples Progressive Party/Civic or (PPP/C). During this period, the PPP/C began to install Interim Management Committees or IMCs in communities and organizations across the country to replace elected officials whom it claimed were not functioning properly or effectively. The most severe of the IMCs is the one which the PPP/C has imposed on the entire country and by which Guyana has gained global notoriety. The IMC of concern here comprises “Incompetence, Mediocrity and Corruption” that appear to be the new normal for Guyana. These are negative attributes which have rapidly become embedded in the production, distribution, social and moral fabric of the Guyanese society. These negative attributes also show up as policies embraced by the government. This article points to three high profile cases which lead this writer to this conclusion and which reveal that half of a year’s income of a household whose breadwinner earns the minimum wage is lost to incompetence, mediocrity and corruption. As Guyanese head into the New Year, they must decide if they are satisfied with this ‘IMC’ and want it to continue.
Coalition of intentions and inaction
Writers on public policy like Thomas R Dye and Edward C Page, for example, view public policy as a coalition of intentions and actions of a government which are carried out or not carried out. From the works of Dye, Page and others, Guyanese should realize that inaction by the government to curb incompetence, mediocrity and corruption constitute public policy with which it seems to be quite happy despite the deteriorating image of the country. As such, the refusal to prosecute known cases of wrongdoing at the National Communications Network (NCN) constitutes public policy as is the refusal to investigate the assets of convicted drug dealers. The refusal to dismiss an Attorney-General who has brought disrepute to his office and profession also forms part of government’s policy. The refusal of the government to compromise to reach agreement on money laundering legislation and the construction of a hydropower station is also a policy of the government. Some of these decisions are made by public officials who lead organizations. In addition, Edward Page and others also point out that the practices of these organizations also constitute policy and therefore one could expect similar behaviour from subordinates who try to keep their jobs.
Guyana is a relatively poor nation whose government has spent in excess of $1.2 trillion over the last eight years on public works and services. Some of these public works have been described as transformative projects in the annual budget proposals. This level of public spending has enabled the government to report consistently that the economy has been growing each year. Some Guyanese are mesmerized by the reported economic growth and are unable to recognize the contrast between the reported economic performance and their own economic reality. In the view of this writer, some Guyanese are comforted by the fact that some of the money spent each year by the government ends up as wages and contract fees in their pockets. Some beneficiaries of government’s largesse feel the need to embrace the government and keep the ‘IMC’ going. Desperation leads a drowning man to clutch at a straw but it does not save him. Guyanese therefore need to step back and consider the bigger picture of the many undelivered or substandard public goods and services for which that money was spent, and thus the many benefits that they have paid for and are not getting. In other words, Guyanese must connect their poor standard of living and the inadequate public services received to the incompetence, mediocrity and corruption of the government as is discussed below with the benefits principle of tax policy in mind.
One example of this practice is the Amaila Falls road project. This contract was given to a contractor who did not have the industry knowledge, the industry experience, or the managerial skills to undertake the project. The least one expected was for the principal contractor to have some technical competence and proficiency in the field of work to carry out the assignment. This was not the case with the first contractor who was given the contract to build the road. As a consequence, the project was poorly implemented and fell behind schedule. US$15 million was budgeted for the project and the contractor was unable to deliver a completed project. A responsible government would not have chosen an unqualified contractor for the job.
In addition to the sunk cost of US$15 million or $3 billion at the current exchange rate, this incompetence led to Guyana spending an additional US$26 million or $5.3 billion. The value of the additional money spent could be measured in several ways. One is the amount of money that the public schoolchildren have been denied. Even without agreeing with the highly discriminatory school grant programme, one could see the impact of the incompetence stemming from the Amaila Falls road project on education. The additional $5.3 billion that had to be spent on the road could have been transferred to each schoolchild under the school grant programme. The impact on each child would have been threefold since each child would have gotten the equivalent of $40,000 instead of a mere $10,000. By passionately embracing incompetence, the government ended up under-serving the school children of Guyana. Alternatively, the money could have been used to increase the emoluments of public school teachers, nurses or even the police.
Production pipeline
The ‘IMC’ in reference here has sunk deep into the production pipeline and has clogged the wheels of development and does not respect the rule of law. Take GuySuCo as an example where over $40 billion of taxpayers’ money has been spent since 2005 to keep that company afloat. An industry that was producing over 240,000 tonnes of sugar in 1992 and was on the upswing when the PPP/C took over has sunk to its lowest level under the ‘IMC’ of the present government. Incompetence and mediocrity have infested this company so much that today surpassing a production target of 170,000 tonnes is deemed to be a major production achievement. The decline in performance has an impact on the quality of life of Guyanese, given that the benefits of this company are not spread evenly across the economy. In reality, each Guyanese household has had to reduce its standard of living by $140,000 in order for GuySuCo to stay afloat and to help pay the fat salaries of its directors and managers.
A pattern
One might be able to overlook an error or two, but when it becomes a pattern where billions of dollars are thrown down the drain and the pockets of most Guyanese keep being squeezed, the practice must be halted. It is hard to understand how leaders could remain content while the property of residents washes away with every rainfall or the maintenance costs of their motor vehicle increase with every pothole they fall into. Crime increases as desperate Guyanese prey like hungry cheetahs on vulnerable and unsuspecting victims and a demoralized police force tries its best. These are experiences which could be reduced or even eliminated if public expenditure was meant to help the people of this country.
Scarce resources
The economic resources of Guyana are scarce and public policy choices have to be made with regard to the use of those resources. The budget is a comprehensive policy document and those choices are often reflected therein. Thus, the budget is a place where incompetence, mediocrity and corruption could meet or be eliminated. One example of this choice is the decision to build a fibre optic network and a technology park. The budget of 2009 allocated $800 million for the establishment of a technology park. This writer will admit to not knowing the location of the technology park if one exists. However, this writer does not feel too bad since no one else that this writer has spoken to knows where this park is located. The issue that arises is what was the $800 million spent on and how much more has been spent on this project that does not appear to exist or has not been delivered to the government.
Equally troubling is the status of the fibre optic cable project. So far the government has expended over $10 billion on the project and the goods have not been delivered. Recent news reports have revealed that the project was in trouble and work on it was suspended over one year ago. Yet, the 2014 budget included an additional $1.1 billion for this project. This is another project where mediocrity was given preference over the welfare of the Guyanese public. An inexperienced individual was entrusted with managing an infrastructural project that was deemed critical to the competitive position of the nation. Not only has the country lost money already invested in the project, it is losing income from failing to strengthen its competitive position in the technology market. This is in addition to the loss in standard of living of $38,000 that each household experienced from contributing to the undelivered fibre optic and technology park projects.
Wrong activities
One of the things that help countries to advance is innovation. Guyana has been quite innovative over the past 22 years but those efforts have been directed at the wrong activities. In a recitation of Guyana’s efforts to smuggle cocaine and other drugs out of the country, a local poet cited a myriad of innovative ways used by Guyanese drug traffickers to export the illicit substances. The ability of persons to pass the checkpoints without detection speaks either to ineffective equipment or corrupt personnel. The frequent success at avoiding detection at the local airports reduces the credibility of the methods that are being used to stop the outflow of drugs through the airport. Public officials are responsible for security methods at the airport and each case of success means that corruption has infected the security apparatus. Just think of the recent case of the cocaine in the liqueur for the moment. Guyanese must ask themselves these two questions: One, is it that the law of probability favours one passenger to such an extent that he or she could successfully select randomly two defective bottles of liqueur with an equal amount of the same substance in it? The next question is, how did the bottles get on the shelves? The Duty Free shops are run by private sector organizations and the episode with the tainted liqueur is a grim reminder that the private sector is also compromised by the ‘IMC.’
Embarrassing IMC
When public officials tolerate these types of ‘IMC’ whether they are directly or indirectly responsible, the entire system becomes infected. This type of public policy has severe consequences for the nation and has to be stopped.
Happy New Year to all Guyanese!
