The PNCR is challenging the government’s understanding of macro-economic theory as it pushes back against President Irfaan Ali’s assertion that the PPP/C government has done “a lot” to cushion the cost of living, while criticising the administration’s inability (or refusal) to publish pertinent data.
In a release yesterday, the PNCR stated that for any government to be taken seriously when it talks about its economic policy, it must at minimum, know the unemployment and inflation rates. It noted that policymakers, central bankers, international agencies, and the media, all monitor these key data points closely, to help evaluate the health of an economy, the effectiveness of economic policymaking, and the well-being of people.
The PNCR expressed its reproval of the manner in which the government deals with inflation and the data it employs. “The PPP operates in its own world. It does not calculate, let alone publish, official unemployment figures, and its inflation numbers are highly suspect. Even now, the government clings to pronouncements about 2% inflation in 2023 (which means it believes prices did not change significantly all last year), whereas the IMF and US government numbers for Guyana (of 4.5% and 6.6% respectively) are far higher.”
Referring to the President’s recent pronouncement that the PPP/C had done “a lot” to cushion the cost of living, the release countered that he was talking purely about input measures – how much money the government spent – but completely ignored whether those expenditures had any impact on the unemployment and inflation rates – “the so-called Misery Index.”
It went on, “The PPP does not care to know if these rates keep increasing. Its only concern is to try to mislead the Guyanese public that cost of living is under control because the government has spent so much money here and there. But, as we said at a previous press conference, the President and his Vice President should sit in the kitchens of ordinary Guyanese families to face the harsh realities.”
The PNCR also accused the government of attempting to confuse the Guyanese people in another way. It argued that even if the assumption was made that inflation has been tamed, that still means that the cost of living remains high from previous spikes in inflation since 2020. Ergo, if income levels have effectively stagnated, as they have since 2020, then Guyanese will still struggle to make ends meet, as they are doing today.
According to the release, the lack of unemployment figures means the government is unable to determine what effect its spending is having on Guyanese’s access to an income. It stated that if money is being spent but it’s not generating jobs that Guyanese can fill, then clearly they will not be able to weather this cost of living crisis. Mention was made of the several delayed school rebuilding projects, from Linden to Georgetown, road works like Cemetery Road, Conversation Tree, and Thomas Lands, as well as pump station contracts where little to no work has been done, which serve to compound the unemployment situation as workers are often sent home by contractors. The release concluded, “President Ali does not know the effect of his government’s policies, and he and his propaganda cannot change that reality. Only totalitarian regimes – regimes that seek to manipulate and control the public – hide unemployment and inflation numbers. We must not let the PPP get away with normalizing governance that is anything but normal. Factual inflation numbers must return to government statements and publications and regular monitoring of the unemployment rate must resume. What is happening in Guyana is bizarre, and only a kleptocratic government would be comfortable driving the Guyanese economy on, with no idea where it is heading.”
