Dear Editor,
No government whose interest is in the people would be happy with a high unemployment rate. The statistics show that the unemployment rate is at approximately 40% for the youth of this country. On one hand there are calls for the government to do more to ensure that jobs are created for young people and on the other hand we have the President stating that the position of his administration is to create an environment where it is easy for jobs to be created presumably by the private sector or by new innovative ideas of the young people themselves which does not stray very far from what the APNU+AFC manifesto states. There are however some facts that need to be addressed if we are going to speak to the issue of job creation and who should be the primary job creator at this juncture in our nation’s history.
Guyana is still celebrating its 50th year of Independence which from a historical perspective makes the nation still a young one with many challenges to overcome and many decisions to be made as to the type of society we want. The status of ‘developing country’ also alludes to this. What then should be the role of a government in such a young country and what should the role be for the private sector.
It is my humble opinion that the local businessmen who are supposed to be the embodiment of the private sector are first and foremost capitalist whose main priority is and has been amassing enough wealth for themselves and dispersing excess only when there is a dire need to do so. There is also the belief that the current private sector does not have the capacity to adequately invest in the sectors that need diversification to ensure that there are adequate jobs for those who are seeking employment. Added to this is the belief that the private sector is holding on to the capital that they do have awaiting economic policy from the government. Whatever the reason we are currently at a juncture where if the private sector can invest they are choosing not to.
On the other hand we have the President of the Co-operative Republic of Guyana stating time and time again that the government is committed to providing an enabling environment for job creation. How does the government do this? What does the economic environment look like that would stimulate the private sector to open their purses? Has the private sector indicated to the government the specific hindrances that are faced when trying to create jobs? In the January, 15 2016 edition of the Stabroek News, Lance Hinds told Stabroek Business that the “Chamber is anticipating that this year’s budget will focus on job creation on a large scale” …. “What is clear is that an aggressive capital works programme, including infrastructural works like road construction must continue if we are to create jobs on a significant scale. We also need to see a budget that reflects planning for diversification into other areas that can grow the economy. We have no choice there”, Hinds said. This response suggests that the private sector is looking to the government to diversify industries which is an interesting position to have as the then president of the Georgetown Chamber of Commerce and Industry. One would expect that if the private sector sees room for development and profit to be made that they would put a proposal to the government that may be in the form of a public-private partnership.
My belief is that we are straddling two economic ideologies that are not helping us to create a solid economic agenda. A theory exists in academia that suggests that developing countries need a stronger sense of government intervention in their economies and as the country develops government should have less and less input into the economic affairs of said country. What economic ideology should we be utilizing when deciding on the best economic strategy for this
country taking into consideration the current stance of the private sector? If my belief is true that the private sector is not interested in investing and when they do invest it doesn’t help to significantly reduce the unemployment numbers then government’s job has to be more than creating an enabling environment to one where it is a provider of jobs. If our interest is ensuring we reduce the joblessness especially amongst our youth we need to recognize quickly the realities that currently exist and implement solutions that would see the reduction of the unemployment numbers across this country.
Yours faithfully,
Tabitha Sarabo-Halley
