Dear Editor,
The recent sitting of Parliament has provided a healthy debate on the country’s economic development. It has clearly highlighted the extreme positions of the Government and the Opposition. This has been going on for some time, and it should be noted that the best solution is not at the extremes but in the middle ground. Having the fastest growing economy at a time when the world is experiencing the highest levels of inflation (price increases) seen in decades, places Guyana at a disadvantage and increases the cost of our development. As a Nation we should temper our expectations and reduce our expenses. This means that the government should encourage the Ministers to rein in their spending. Only critical must-do projects should be undertaken at this time. Projects such as those to improve sea defence & drainage, projects that will help meet urgent health care needs, and projects that will improve food security, should be the only projects currently in the project hopper and should be given first priority for funding. All other nice-to-have projects should be tabled until global inflation has subsided and or until the earnings of the government can support the growth of the number of projects undertaken, so as to encompass additional projects which are less urgent to support economic growth.
*“Spending as we earn” will help avoid the economic mistakes that have resulted in the US downgrade. Debt driven growth should be avoided when possible and the continual pursuit of debt ceiling increases should be only undertaken in the case of an emergency. Currently, no such emergency exists and the use of debt to fuel our economic growth is not necessary. Therefore, the annual request for additional funds should no longer be allowed and the Nation’s borrowing should be curtailed. Improved budgetary management must be the expectation of each governing administration. To put it simply, we must not let the Ministries run their business like a mini bus driver who speeds down the road trying to maximize the number of passengers they pick up with no regard for the speed limit and the traffic lights. This inevitably leads to a disaster which could have been avoided. Pursuing votes by excessive spending on projects which are not urgent will not strengthen any party over the long term. Being effective in the implementation of each project and ensuring that it meets the needs of the population will be a better guarantee of future voter support.
*We can as a Nation avoid the pitfalls of the US government by minimizing our borrowing, and by better controlling the pace of growth of our economy while also ensuring that it matches the global economic environment. This will allow us to maximize the purchasing power of our hard earned limited funds and place our earnings from exports in sync with global demand. Investing ahead of the curve is a must, but it should not result in lower demand for our goods. Currently, the non oil economy has been unable to capitalize on the higher demand and pricing power in the global commodity market. The construction boom has also come at a time when prices have increased. We must adjust our investment cycle. By only focusing on the must haves in the near and medium term will allow us to make this urgently needed adjustment.
* Inflation has made it necessary to continue many of the tax breaks put in place by the Government, but we must also be cautious to not create a dependency on government handouts. Guyana must not become a welfare state, where poverty will skyrocket once again when our oil sector winds down. As the non oil economy improves there will be an opportunity to scale back on some of the tax breaks which have been put in place to combat inflationary pressures. A more effective alternative to the continued tax breaks would be a salary increase to ensure that our citizens earn a livable wage that keeps pace with inflation. This places the responsibility of good financial/budgetary management back on the shoulders of each Guyanese family. It will also help improve the financial acumen of our citizens.
* Our Parliament must find a balanced approach to ensuring our Nation’s growth is sustainable over the long term. Increased transparency and continued auditing of the financials of each Ministry will also ensure that spending is efficient and effectively carried out for its intended purpose of improving the livelihoods of our citizens. We must continue to keep each other on a strong and straight path towards achieving our objectives for development. This is accomplished by respectfully challenging the ideas put forward and constructively criticizing the suggestions on each side of the aisle. Objectively listening to each other remains an essential part of good governance. By doing so we will reach a more comprehensive and effective solution to the problems faced by our citizens.
Sincerely,
Jamil Changlee
Chairman
The Cooperative Republicans of
Guyana
