Once brimming with innovation and hopes of an economy bolstered by our own industries, the vibrant ambitions concerning our manufacturing sector seem to have long been shelved. A casual walk through any of our local corner stores and supermarkets would lay bare the glaring truth of how local manufacturing has been placed on the backburner. This is not to say that the sector has been sitting on its hands, but with limited access to finance, inaccessible markets, lack of innovation and restrictive governmental policies, they have been unable to expand and compete with imported items.
In countries such as Guyana, there is the often-made mistake of becoming over-reliant on foreign investment. It is understandable that as economies concerned with growth and progression, we would seek out ways in which to attract large financial payouts. In doing so however, we have relegated our own small and medium-sized domestic industries to the position of step-child. While protections and incentives are usually put in place to help safeguard the interests of foreign investors, local manufacturers are not offered a modicum of these opportunities. Through a lack of vision and innovation, we have encouraged lining the pockets of foreign investors, while our home industry suffers. There has been some progress in the provision of access to financing for small manufacturers however. The Small Business Bureau has particularly played a role in developing small agro-manufacturers with grants and has also helped in the expansion of modest international markets. While these efforts must be commended, maintained and expanded, they are still only a small drop in the bucket of ways that we need to maximize the potential of the industry.
It is a sad time for manufacturing given its previous capacity for expansion and development. During the height and fervour of post-independence Guyana, then Prime Minister Forbes Burnham had placed a lot of emphasis on diversification of the local manufacturing industry as a means for economic development. Existing at a time in which Guyana was seeking freedom not only in terms of sovereignty but also from economic colonialism (which continues to plague us today), there was a great need and push to consume what we produced. This resulted in a host of manufacturing industries being set up across the country to aid in the development of the sector and satisfy consumer needs – but the plan did not exactly pan out. While the drive toward self-sufficiency was and still remains a good idea, poor planning and execution resulted in widespread food shortages and the emergence of a black market to serve those who could afford the inflated item prices. Added to this was the West’s anti-communist trade strategies which impacted the country’s ability to access and benefit from export markets.
Following the death of Burnham, there was an immediate shift from self-sufficiency and a return to neo-liberal governance through President Desmond Hoyte and his economic recovery programme. Guyana’s market once again opened to foreign imports, investments and trade, while the manufacturing industry was allowed to wither away. Successive presidents did not do much to help the industry despite returning to the ideology of consuming the things we produce and today, many consider it an industry on its deathbed. Were it not for the historic accounts of glass, clay and vehicular factories and the structural remnants of their short-lived existence, many new generation Guyanese would not have known how extensive Guyana’s manufacturing sector was and the possibilities that could have come out of its growth.
With significant declines in the agricultural industry particularly, the manufacturing sector today makes very little contribution to the overall Gross Domestic Product (GDP) of the country. Currently, our markets remain flooded with foreign products that we can easily manufacture here and have been manufacturing for years. It is a tragically funny thing to be buying coconut and plantain products from other countries at significantly marked up prices when it is available here. Of course, it is the consumers that drive product demand and dictate where money is spent – but if policies and incentives are not put in place to help local manufacturers get a solid footing in the local market and enhance the quality of their products, then the reality is that the decision of where and what to spend on is being made for the consumers. Regardless of their personal views, governments are responsible for setting the environment for the growth of its various industries.
The benefits of an economy bolstered by our own products can be much more than just a pipe dream to recount to the masses when the situation calls for it – it can be an achievable reality if proper attention is placed on holistically revamping the manufacturing industry. Maintaining a sole reliance and dependency on foreign and extractive industries will be something we soon come to regret.
