The government and private sector should embark on a fresh start

Dear Editor,

Relations between the private sector and the government of any country are critical to the development of the country. Some private companies are at times quite mercenary, focusing only on maximizing profits while disregarding the need to pay taxes, pay proper wages and offer good working conditions, etc. But an entire private sector cannot be punished for the faults of a few.

Further, various governments of a country when they take office, may offer different incentives from those of the previous government to the private sector and in doing so may favour those who donated handsomely to their elections campaign. Unless these incentives violate any campaign financing or other laws, then such actions are just the politics of business or the business of politics. Beneficiaries of such favour, once not in contravention of any law, should not be targets of a new government. But it must be ensured that these incentives are used for the purposes for which they were granted, and that job creation is one of results.

In recent letters I have been pointing to various examples in this hemisphere where governments and their private sector have been intensifying their collaboration and cooperation. Just last week the Organization of Eastern Caribbean States (OECS) announced a plan to facilitate financing for the private sector in its member states.

The Monetary Council of the Eastern Caribbean Central Bank (ECCB) approved and signed an agreement establishing the Eastern Caribbean Partial Credit Guarantee Corporation to facilitate private sector access to financing. The Eastern Caribbean Partial Credit Guarantee Corporation is designed to encourage financial institutions in the Eastern Caribbean Currency Union (ECCU) to increase their lending to micro, small and medium-sized enterprises through the provision of partial credit guarantees to facilitate access to financing by the private sector. The council also agreed that commercial banks should be encouraged to increase lending to the private sector as a means of spurring growth.

In the US, many Caribbean governments, jointly with their private sectors are looking at ways of influencing the implementation of the provisions of HR 4939—The US/Caribbean Strategic Engagement Act which, inter alia, provides for assistance in promoting the economic development of Caribbean countries. Here again the Guyanese private sector and government need to be working together on a strategy to identify initiatives, programmes and priorities that would help develop the economy. The diaspora too can also play a meaningful role here.

Against this backdrop, I am concerned about the current unease in the relationship between the Private Sector Commission of Guyana (and by extension the private sector as a whole) and the Government of Guyana. I point to these recent developments in other countries as yet another form of evidence as to how the private sector and governments in other parts of our hemisphere are working together for the common good of the people. It is my sincere hope that the Government of Guyana and the private sector of Guyana could embark on a fresh start and engage immediately in consultations that would lead to enhanced confidence in each other and collaboration on workable programmes to create much needed employment and grow the economy.

 

Yours faithfully,

Wesley Kirton