Dear Editor,
I do not know Mr Randy Persaud (`The fact is Guyana has a growing middle class and no letter writers can erase that’ SN October 30, 2009) but I assume he is either an indomitable patriot with blinders on or a political sycophant afflicted with myopia. His recent assertion of the Guyana middle class enjoying a better quality of life than many Guyanese abroad continues its perilous course with his recent pronouncement that the Guyana middle class is growing and no writer can erase that fact. Mr. Persaud is yet to define the middle class in Guyana and its growth patterns for us and is yet to provide us with statistics to support his position.
There is no evidence of a growing middle class in Guyana. In fact, the evidence supports a growing upper class and a growing lower class. This upper class has burgeoned through a new class of noveau riche beneficiaries of crime such as smugglers, drug kingpins, money launderers and corrupt officials who facilitate these activities. A smaller percentage of this upper class of noveau riche is comprised of those who enjoy significant remittances. By increasing the wealth of its group, the upper crust redefines the economic boundaries of what comprises the middle class in Guyana. The more wealth that is generated at the top, which is easily accomplished from illegal activities with no taxes and mind-boggling profits, means that those who were formerly classified as middle class but see no corresponding rise in their wealth naturally sink into the lower class. The middle class members who participate in and benefit from the criminal and corrupt economy migrate out of the traditional definition of the middle class into the upper class. For example, a middle class lawyer who starts handling more drug cases with greater financial rewards is able to move out of the middle class into the upper class smoothly. This migration is seamless in a narco and criminal economy. On top of this, the middle class continues to leave Guyana in hordes whereas the upper class stays because of a favourable environment for profits resulting in the logical decimation of the middle and the growth of the top.
However, for argument sake let us assume there is a middle class in Guyana and that it is growing. The unanswered question is the rate of growth considering the impact of migration, the swelling of the upper class and the diminished remittances due to the worldwide recession. The other question is what is responsible for the growth of the middle class in Guyana as claimed by Mr. Persaud? The answer is the narco and criminal economy and its spinoff of money laundering and the rise of the criminal enterprise. The other significant reason for the preservation of the Guyana middle class is the flow of remittances, which must be significant enough to match inflation and the economic redrawing being imposed by the growing wealth of the upper class. In light of these factors, it is difficult to see how any middle class barely propped up largely by a drug economy and remittances is cause for celebration or proof of growth. Mr. Persaud must also know that the majority of those graduates who excelled at the CXC will end up being underutilized, underemployed and unemployed in Guyana and will leave our shores for better opportunities in developed nations. There is a greater possibility that if they remain in Guyana rather than migrate to a developed nation that more will end up dead, killed or kidnapped, while others may become drug kingpins, corrupt officials and money launderers. A really tragic reality for these shining lights of hope but, if Mr. Persaud is to be believed, they will join the growing middle class in Guyana.
Yours faithfully,
Michael Maxwell
Mr.Persaud’s job is to paint a rosey picture of Guyana.
A peaceful exchange will be nice. The world is moving quickly to two classes, the rich and poor. People from all over the universe are migrating to where ever they can do better, even Americans do that on a low scale. “the land is the lords and the fullness there of.”
Excellent analysis. Over to you Drs. Persaud and Misir. I hope Freddie can read up one of his books on the subject and make a contribution too?
I think the Dr Randy Persaud lives in a lala land. If it was not for the remittance, the majority of Guyanese would have been only been able to afford food. But is food the only necessity to life?
Yes Guyana has an abundance of food and no one should stave in Guyana, but what about housing themselves and clothing themselves? What about payment to the utilities and transportation cost and a little to be merry and well.
This is where the remittance come in.
There is widespread poverty in Guyana in real terms, if once is to considered that most of the income fo many people is not self generative. It is generative by their doting mother in New York.
The Guyanese society need better paying jobs, more jobs, more opportunity and more sets of positive public policy. The Jagdeo regime has failed miserably to instill that optimism in the minds of the most important people – the youths. No Randy Persaud can erase that fact.
Ipso facto..All Guyanese at home doing well and staying in Guyana are drug dealers!!?
The freedom to be STUPID and GUYANESE is indeed getting commonplace.
There are two types of people in Guyana. Those doing well, a small minority and those unable or waiting to get out, the vast majority. Your comments from the U.S.A is proof positive of this dilemma. Hope to see future blogs from you with the arrowhead flying proudly.
A question for Mr. Maswell…where is your data to support what you have said. Is it based on observation? I only ask becasue you ask Persaud to define and provide the data to support his claim. Please do the same.
Truth come spend two weeks in Guyana and you will SEE all the DATA.
@ Berbician: Behind every fortune is a CRIME!
Well said Truth. I think Randy Persaud is farcical but Michael Maxwell in debunking Randy failed to supply stats/data to back up his argument, thus he destroys his own argument in his attempt to destroy Randy’s.
Truth, the question is : Where are your data not where is your data? Assuming that third countries would have Guyanese who want to leave Guyana, let the PPP Government allow a Castro type Mariel Exodus and see how many Guyanese jump at the chance to abandon a country that does not provide them with the opportunity to satisfy their basic needs. The talk of a middle class is a joke. The concept of class is relative and time bound. For there to be any meaningful discussion on the middle class in Guyana one should look at Guyana’s middle class relative to other countries like Singapore for example. In 1958 GDP per capita was the same for these two countries. Look at the data in 2009. Look at the MDG’s for these two countries. Look at savings, home ownership, educational attainment and you get the picture that Dr. Persaud is reinventing the sociology of development to suit the narrow political ends of a Government that is clueless about how to bring Guyanese out of poverty and underdevelopment.
Randy was supposed to provide hard data, culled either from the tax department or the labour ministry, because the term middle class in most countries speak of a group of people earning a certain amount of money per year that allows them to live in between the upper and lower clases of society. To determine what anyone earns would require a researcher to obtain records from the income tax department to see who earned how much and the taxes they paid. Now, did Randy do that? If not, how did he arrive at the boastful conclusion about Guyana’s middle class?
To determine who constitutes the middle class in Guyana I suggest consideration be given to enquiring about those employed by the government, the private sector or the self-employed and checking their earnings for 2008. People engaged in illicit activities – payin gor not paying taxes – should not be placed in the same category as those legitimately employed and paying taxes. The playing field has to be leveled.
The same principle should be applied to determine which businesses are doing well, because while some businesses are paying taxes and carry major overhead expenditures, they are being forced to compete in the same market place with businesses that get their funding from money launderers who don’t pay taxes and therefore can afford their overhead expenses.
Good analysis, Michael. Like you, I called upon Randy Persaud to define the middle class when I commented on the first letter he wrote on the issue. But he has avoided this definition issue like a plague.
Anyway, we all know that the man is full of nonsense. He somehow believed that his foolishness would have gone unchallenged because he is running around with a “Dr.” before his name. Perhaps Prem Misir did not brief him on the knowledge, wisdom, and understanding possessed by the readers of these pages.
I’m sure that his handlers are thinking about sending him back to the U.S. with a big sign that says MISSION UNACCOMPLISHED.
Have a look at the same report that Dr. Persaud points us to, and which he draws on very very heavily to make his case (refuting the failed state thesis, which is a direct response to Freddie Kissoon).
http://www.fundforpeace.org/web/index.php?option=com_content&task=view&id=391&Itemid=549
and which under Guyana country reports, says that some 20% of the country’s GDP is derived from the transnational drug trade (a figure I believe many would say is conservative). It is not me/we who brought this report to the public’s attention, and so I am – as a teacher – very curious about why Dr. Persaud has not dealt with these aspects of the report that do not fit his thesis.
Alissa Trotz
Myself and family spent 20 days vacationing in Guyana during the month of August 2009. A great time was had by all,we traveled around the country-Parika to the Guyana/Suriname ferry terminal.
The only problem I had was with the stench in the city(seems only I had a problem with the stench)!! Mosquitoes/blackouts etc..etc we took in stride. To my surprise, I found free wireless internet!!
Randy is only conforming what I and countless other Guyanese know,that is Guyana is growing,All classes!! Housing/Transportation (both personal and public)recreation/entertainment/foodstuff availability and last but not least, FREEDOM!! To go or stay.
Let me repeat,without love of Country or self, we will remain whining malcontents to the rest of the world,(the dog and the bone)syndrome.