Public policy analysis
The analysis of the individual performance of the commercial banks that are part of the Lucas Stock Index (LSI) will conclude when the 2014 annual report of the Guyana Bank for Trade and Industry (GBTI) becomes available. In the meantime attention will turn to other entities that operate in the Guyana economy. This week consideration is being given to the activities of the National Industrial and Commercial Investments Limited (NICIL). NICIL is no stranger to inquiry and discourse since its behaviour and several of its activities have given rise to vexations about the relevance, rationality and legitimacy of the policy positions of the government. The soundness of decisions made by the officials of NICIL has also caught the attention of political, economic and financial analysts who believe that the social, economic and financial values that could be derived from its investments are often subordinated to the narrow political interests of the government. This article examines the financial profile of NICIL and its links to the long-term investment policies of the government. Such a public policy analysis of NICIL enables one to develop a balanced perspective of the performance of the company. It also enables the analysis to start from the point of view of the government and to rely on the data of the entity to form judgements about its performance and the rationality of its investments.
Creation
NICIL was created in 1990 under the Companies Act to hold and manage the assets of the government. The policy focus at the time was to wean Guyana off the mercantilist policies that had resulted in the accumulation of substantial economic power in the hands of the state. At the time of NICIL’s formation, many public corporations were under the direct control of the government. These entities had buildings and other assets which had to be disposed of. Through an economic recovery programme which was developed under the Hoyte administration,