Dear Editor,
As someone who was instrumental in engineering the formation and victory of the PNCR-led administration, I have over the term of the new government had cause for reflection on its conduct and the policy positions it has adopted. This has reached the stage where at times I almost feel I have to apologize to Guyanese, particularly those who suffered tremendously at the hands of the current administration, but I recognize that we were all in this together; the former government had more than overstayed its welcome given its corruption.
I contemplated that the economy needed time to adjust, and that in its first year or two it would need some latitude to sort itself out and make a few administrative decisions to guide its policy framework. It is now appropriate to seriously take stock of what has transpired and the direction in which the country is going.
To rub salt in its political wounds, the Mayor has been returned for another year of the city council’s three-year term after some behind-the-scenes political pressure. Prior to this there was Budget 2017 about which much of the country is up in arms. The budget is an entire issue all by itself, but in a nutshell, as has been pointed out, the restructuring of VAT as presented will undoubtedly cause inflation, something which Guyana has battled to keep in check since the early 1990s. Further, these represent permanent increases in prices, the type economies could do without as a result of deliberate government policy.
While it is recognized that many businesses, not to mention professionals such as doctors and lawyers, do not pay their fair share of taxes, applying VAT on water and electricity, which are primary inputs into the production of virtually all goods and services, deserves revisiting since businesses will very likely pass much of the upfront cost of the tax on to an already overtaxed, low-income population. Quite frankly, the budget is counter-intuitive, since it raises the costs of businesses, makes our goods and services more uncompetitive, and by taxing an overtaxed population, reduces real incomes, which in turn reduces consumption, and thus growth. The addition of parking meter fees will further reduce growth prospects. To rectify this, Finance just needs to retain the old VAT structure and reduce expenditure by the corresponding amount of lost revenue.
The nonsense at City Hall coupled with discontent with the budget has emboldened Mr Jagdeo and the PPP to start preparing their campaign for the next election. Mr Jagdeo is not joking. The coalition administration has managed to engineer a political crisis all by itself in less than two years. It is time the PNCR recognized the need for new, modern ideas and leadership and incorporated people like myself into its administration. Much more needs to be done to impress the world and attract the kind of new foreign investment that will create much needed jobs.
One of the facts that the coalition administration needs to recognize is that Guyanese have just about had it with their national politics. Guyana is a young nation on a journey of economic and social transformation in a global environment that is engaging in rapid technological progress. We cannot afford to be left behind in the fishbowl of our petty national politics. Both the PPP and the PNCR have demonstrated for us that we need new political leaders, individuals who have risen to the pinnacle of their careers, who can exert influence and secure the respect and confidence of the masses, and who can deliver on developing and managing a sturdy economic framework founded on sound governance principles.
A friend of mine was ribbing me recently that I should give the presidency a shot. While it might have been a joke, if the coalition seems intent on handing government back to the PPP, then maybe my countrymen would consider me in the goat race.
Yours faithfully,
Craig Sylvester