Dear Editor,
A recent article published on December 3rd in the Washington Post by Francisco Toro titled `What would happen if we randomly gave $1,000 to poor families? Now we know’, clearly shows the positive impact of direct cash transfers. This was an experiment carried out in Africa by three highly rated and reputable American Universities including Princeton. To summarize, they found a positive impact occurred on the economy and local villages; inflation increased less than 1% and no increase in the negatives (smoking, alcohol, rates of domestic violence, gambling, etc…) The economy grew significantly with a fiscal multiplier greater than 2. That means for every $1 given to a poor family greater than $2 of GDP was generated.
This positive economic growth should also be expected in Guyana’s economy as we decide what to do with our Sovereign Wealth Fund. A minimum distribution amount per household should be outlined as we move into the new cycle of economic activity after the upcoming elections. Even if some may argue that “Guyanese are different” the remedy for the problem is quite simple. If a household uses the funds given for criminal activity or crimes against society as has been argued previously by others against the distribution, then we put in place a process of suspension of the distribution of funds to those households which are in violation and relinquish their funds upon judicial approval. Their funds can remain in trust via an interest bearing account until such time. However, our people are quite astute and would make the most of the opportunity if given a chance. There is no need for the many to suffer for the foolish few.
Yours faithfully,
Jami Changlee
