Dear Editor,
My attention was drawn to a letter by JC Bhagwandin, in Stabroek News, February 09, 2021. Initially, I was tempted not to respond because I believe everyone is entitled to their views and opinions. But, having been goaded into replying by a number of persons and, having read the letter twice to make sure I was not missing anything the writer may have intended, I have decided to respond.
In my few letters to the media, I have tried to analyse, elucidate and clarify. In doing so, I have shared my knowledge and experience, accumulated over 40 years, and brought information into the public space that, otherwise, would have remain-ed buried, hidden or unknown. I believe that my recent letter in Stabroek News, February 08, 2021 did just that. Rather than adding to the debate, Mr Bhagwandin’s letter, “This is why IDB Invest could not find bankable projects,” came over as the usual political drivel that dominates social media, but now threatens the national media. Thankfully, the letter was short.
Mr Bhagwandin seems to take issue with my working tirelessly to bring funding to the local private sector. For his edification, very early in the Coalition’s term in office, in 2015, I took a memorandum to Cabinet, seeking approval for Guyana to take up the additional shares on offer by the Inter-American Investment Corpora-tion (IIC), the precursor to IDB Invest and the then private sector funding arm of the IDB Group. This was done in recognition of the importance we attached to the private sector as a partner in the development of Guyana.
Cabinet approved the memorandum and Guyana took up the additional shares, thereby maintaining our quota share in the IIC. I should let you know that, with the possible exception of a project to manufacture furniture, in the 1980s, the IIC had virtually no presence in Guyana. The International Finance Corporation (IFC), the private sector arm of the World Bank, has had similar difficulties in finding bankable projects in Guyana. And when they did, as was the case of a proposed large expansion project in the forestry sector by a prominent private sector individual (now deceased), their efforts were stymied. So, much of IFC’s lending has been restricted to international firms seeking to do business in Guyana. Such is the case of a large foreign investor in the gold mining sector.
Yes, I worked tirelessly to change the narrative that these agencies could not find bankable projects in Guyana, irrespective of which government was in power. The data I presented showed that up to 2017, neither the IIC nor IDB Invest had any active pipeline or portfolio of projects in Guyana. This led me to aggressively push for increased public and private sector lending, a fact that can be attested to by the likes of the then President, Vice Presidents, other senior bank personnel of the IDB as well as the IDB’s local Resident Representative.
Mr James Scriven, General Manager, IDB Invest visited Guyana, twice, between 2017 and 2019, to speak with private sector representatives and familiarise himself with the environment. I made sure that he spoke to the non-traditional private sector and small businesses, a margi-nalised group that does not enjoy similar attention as the traditional private sector. As they say, the rest is history. The IDB Invest now has a presence in the country, which is expected to grow steadily, in future, as the IDB Lab works with the micro, small and medium (MSMEs) to scale up their operations to attract lending from IDB Invest.
Mr Bhagwandin accuses me of having a “contradictory fiscal agenda” during my five year tenure. He does not go on to explain what he means and provides no examples or data to back his contention. My suspicion is that he has bought into the false narrative espoused by the PPP, both in Opposition and Government, that the Coalition Government introduced 100 new taxes. This falsity has been repeated so often, and accepted by so many, as to make Joseph Goebbels proud of his new adherents.
I have consistently attacked this narrative, throwing down the gauntlet to the PPP in Parliament for them to name these new taxes. They have never sought to do so. They know it to be false. No new taxes were introduced during my tenure. Rather, our 5 budgets were replete with tax measures that redounded to the benefit of the private sector. Too numerous to mention here, I would just name the lowering of the corporate income tax to 25% (one of the lowest in the Caribbean), the lowering of the VAT to 14%, and the significant exemptions granted to fishing, forestry, manufacturing, industry, among other sectors, as indicative of what we accomplished. Our fiscal policy was aimed, principally, to broadening of the tax base as this would have afforded the lowering of tax rates. In executing this policy, we stepped on the toes of a few powerful private sector operators. At the same time, though, we won the plaudits of many.
Editor, this is my only response in this matter. I do not intend to engage in prolific letter writing with this or any other of your letter writers.
Yours faithfully,
Winston Jordan
Former Minister of Finance