Dear Editor,
I too have always held Dr. Randy Persaud in high regards because in my estimation he has in the past demonstrated a sense of what justice is. However, I have little interest in mutual respect when injustices are ignored, especially, by academics who should have a high sense of morals but choose instead political expediency. I refer to Dr. Randy Persaud’s letter titled, `The fact is Guyana has a growing middle class and no letter writer can erase that’, (SN 10.30.09) which is a response to my letter, titled, `It is the poor and downtrodden that must permanently suffer the wrath of the PPP’s mismanagement’ (SN 10.29.09). In my letter I asked Dr. Persaud the question, since the socio-economic ills of which he writes exist in the more developed societies, should we as Guyanese be comforted and thus accept the political malfeasants in Guyana? As expected he chose to ignore this question but insisted on the assumption of the growth of the middle class in Guyana.
Therefore let me engage Dr. Persaud on his analysis of the growth and size of the middle class in Guyana, but first I must ask him what methodology he employed to estimate the growth of the middle class, in terms of income origination and distribution and dispersion of wealth and productivity. Dr. Persaud is a social science-tenured professor and therefore knows the importance of methodology in determining the growth in social class. Also what income threshold did he used to define middle class?
Middle class as a social structure is commonly associated with the availability of a pool of commercial, entrepreneurial, professional, and technical abilities and talent, which generally tend to be drawn from those occupational groups. In Guyana, It has always been known and recently confirmed by the UNDP report that professional and technical abilities and talent is migrating, comparatively, at the highest rate in the hemisphere. Guyana has a migration rate of 33.5 percent and among those are a high percentage of University graduates.
Unemployment and under-employment remain extremely high in Guyana and is the main reason for the high rate of migration. While government figures record unemployment at 9.7 percent, when consideration is taken of those who have stopped looking for work, the unemployment rate is far much higher. Economic growth for the last ten years has fluctuated between -0.5 percent to 1.5 percent, with the government recording (questionably) 4.7 percent growth in real GDP in 2008. The increase in real wages and salary in the Public and the legitimate Private sector as a measurement of GDP continues to contract when compared to the rate of inflation. Teachers and Nurses continue to leave the shores of Guyana in search of employment elsewhere, too often suffering the humiliation of illegal immigrant status.
The government’s own figures show that the only sectors that are performing comparatively well are rice and sugar. Bauxite and other mineral production have declined significantly in the past five years, with major companies like Omai and Alcoa leaving the mining industry because of high cost of production. There have not been any major investments in Guyana that can account for high employment utilization. Among the companies that have shown interest in Guyana’s investment market, Russian Aluminum Company (RUSAL), Aroaima Mining Company (AMC) etc, have not realized expected production capacity and have not increased their employment capacity. Barama continues to reduce production and to lay off workers. And I can go on.
As such what is facilitating the growth in the middle class as Dr. Persaud so expertly judged? Would Dr. Persaud point to the legitimate or illegal commercial sector? And what percentage of Guyana’s work force do they employ. The small business commercial sector is a low wage earner. Overseas remittances still account for a large percentage of Guyanese livelihoods, and drugs and money laundering activities are suspected to account for another large portion of wealth distribution with the ill effects of the high rate of murders.
If there is an increase in the size of the middle class as Dr. Persaud suspects, who should take credit? Is it government due to robust economic growth, hard working overseas Guyanese due to remittance distribution or drugs and other illegal activities in the active underground economy?
Quite honestly I have little interest in the assumed growth of the so called middle class in Guyana when corruption in government is evidently at an alarming rate; Poor Guyanese continue to suffer police brutality and extra-judicial killings; and the judicial system and other institutions are subverted by political bosses and their consigliore.
Further, I refuse to engage Dr. Persaud on the parochial assumption that since Queen’s College produced the region’s top CXC students (congratulations to these students) this is a measurement of how well Guyana is performing in overall educational output. I’m indeed saddened for the large percentage of students who are performing poorly due to inadequate facilities, teachers and money for extra lessons.
Yours faithfully,
Dennis Wiggins
The key words are FORMAL SECTOR. Very nice letter Mr Wiggins.
I have watched these letter exchanges over the last few days on the middle class question in Guyana. The striking thing about all (or most) of them is that they are arguing over something that is not clearly defined by both sides of the argument. Strangely, smart people are drawn into a subjective argument and passion rather than reason drives the argument. The common mistake in these letters is that they are comparing what they perceive as middle class in the US and other places to what they think it should be in Guyana. Little do they know, there is a strong likelihood that “US middle class” will be very poor in their retirement years because the 401Ks might not be able to sustain the lifestyles many of these letter writers see today.
There is no universal definition of a middle class. Every country has a middle class. Every country use different measurements to define its middle class. These measurements could be literacy rates, disposable income (developed world measurement), educational qualifications, neighborhoods one live in, access to certain basic services (Africa does this)etc.Many times a combination of these things can constitute a clearly defined middle class. In countries like Guyana simple things like owing a television set and a car or motor bike can put you in the middle class because these things represent AN ACCOMPLISHMENT AND PUTS YOU A STEP ABOVE THE VERY POOR IN THE COUNTRY. Conversely, in the US even if you own a car, a television set or works for $40,000/year you could be classified as a working poor. In short, middle class definitions are always shifting as a society changes and the lay man definition of it is that “one is better off than the worst in society”.
Are there more people graduating from UG today than 1990? Yes. Are there more people who own a car in Guyana today than in 1990? Yes. Are there more resident Guyanese who can travel in an out of Guyana today than they were in 1990? Yes .Whatever is making it possible for Guyanese back home to do thse things be it investments, remittance, better money management or other means it sure sounds like less Guyanese are oiling their foot with coconut oil and going barefoot to school.
Using these measurements, Randy Persaud does have a point.But let’s remember middle class definitions are always shifting and these things might not hold true in the next two years as the luxuries of today become the necessities of tomorrow.
I don’t think it is best to infer the status of the middle class from observing consumption patterns.
Dr. Cummings are you truly familiar with the literature on development? The most effective proxy of class is income adjusted for Purchasing Power Parity. How many Guyanese earn more than 5 US dollars per day ( legally and morally)? How many earn less than 5 US dollars per day? What is the Ginni coefficient. I do not think these data are available. Just look at the Human Development Report of the UNDP and the World Labor Report of the ILO and you will see that Guyana cannot produce these statistics for the last 20 years either because of shame of what will be exposed as the sad underbelly of a poverty stricken society attempting to punch above its weight or the current Government lacks the capacity to collect, collate, analyze and honestly interpret the data. The upshot is Dr. Randy Persaud’s crude and vulgar attempt to reinvent the harsh reality of living in Guyana for the majority of the population. Let us talk about a Manifesto for ameliorating the rampant poverty and penury in our land and quit the propaganda.
Guys, I am not saying that Guyana’s middle class is where it should be or Guyanese should accept it. All I am saying is that the definition of the middle class in any society varies with the development of that particular nation. It’s a step by step process and I hope we can all agree on that. As a society develops the middle class takes on a new definition. Quite true the purchasing power parity plays a crucial part in this definition and that is why it is dangerous to compare middle classes among countries and over time. Many of you know of people who have left better living standards in their home countries and move to the US and find it a struggle. Here in the US there was a time when having a bachelors degree was a ticket into the middle class. The GI Bill introduced after the war recognized this. During the industrial revolution people hinged their middle class dreams on becoming a member of a labor union. Today many people here in the US with graduate degrees and impressive jobs who appear to live society’s definition of the middle class life are one pay check away for financial ruin. These people are classified as the working poor by people who make these classifications but they themselves think they are in the middle class. The economic collapse harshly informed many. As this reality takes hold there are new definitions being attached to middle class in the US.I am sure many of you have heard about the term “networking” being thrown out there. Today the number of contacts on your LinkedIn page or the number of clubs you are a member of or the size of your rolodex is being used to put you into a class.
If you ask me to give a definition of the middle class of any society I would say that it is that group within a particular society that have the competitive advantage over a substantial size of the population(working class), those with a super competitive advantage being classified as upper class. Because of this advantage you are able to reap greater rewards and you become the standard by which those on the lower rounds measure their standings in society. As those at the bottom catch up, the standards required to maintain competitiveness are raised. That is what development is about, allowing people to strive for better and living their dreams. The good thing about this is that it allows the next generation to outdo their parents and with the encouragement of the very same parents they are trying to outdo.
Another day I will tell you guys how generational wealth transfer helps to advance a middle class.
I hope I was clearer this time. Let’s not try to keep up with the Jones because we know where than can lead us. This thing is a step by step process.
And to Patriot, please drop the Dr. .I am a dissertation away but reminded my professor that I am still a silly kid who sometimes ride a GSX750R down I95 when the weather is good. My personality would dishonor such a title and besides I am a practical kind of person. I am just not interested,I would be laughed at by my friends.
Cummings: “There is no universal definition of a middle class. Every country has a middle class. Every country use different measurements to define its middle class.”
Reminds me of the definition of pornography as given by the Supreme Court Associate Justice Potter Stewart. “I cannot define it but I know it when I see it.” Something with a definition so ephemeral and relativistic should therefore never be the topic of intelligent discourse. I guess Randy Persaud can rightfully claim that Guyana has the second highest number of millionaires per capita after Zimbabwe since a millionaire is one who has assets that total a million or more. Maybe a better yardstick would be the rate of retention of your middle class in the homeland.
Dennis, excellent response to the good doctor but you do realize that spinners and PPP apologist such as the doctor and Reddy etc. will continue to do what they do, which is to deceive the masses. The only thing I can liken Randy Persaud’s fiction about the growing middle class is the phrase that was coined by the first president Bush, “voodoo economics.”
Maybe he meant a “going” middle class as in they’re going to any other country rather than stay and suffer in Guyana under the PPP’s criminalized state.
A response full of assumptions. For example: “Quite honestly I have little interest in the assumed growth of the so called middle class in Guyana when corruption in government is evidently at an alarming rate; Poor Guyanese continue to suffer police brutality and extra-judicial killings; and the judicial system and other institutions are subverted by political bosses and their consigliore.” Where is the evidence.
The author conveniently ingnores the fact that there has been a vibrant construction sector, sugar and rice production increase, DDL and Banks recording record profits, increase in banks, and many other business who have invested since 1992. These are some of the industries and businesses that make up the middle class. Many of which were on the road to extinction prior to 1992. Remember the days of no soft drinks because there was no foreign currency to buy concentrate? Remember the days of no bread. Well now there are dozens of bakeries and these owners are part of the middle class. But even choosing to narrowly define the middle class would not change the truth.
Keep in mind that if you are going to measure the growth or contraction of the middle class you have to have a reference point. I suggest we use 1992 as the reference point and let Wiggins and Dr. Persaud compare using the same definition. The data is available.
Guyana is a small country and in many ways still underdeveloped due to many reasons. A hostile and destructive oppositon is one of them. The middle class is in its infancy. They will continue to grow. In the days prior to 1992 the only middle class were those who were bribe takers, smugglers, narco-trafickers and those who were dependant on the largesse of the PNC. I am sure there are those who miss the good old days of the PNC in office and would like to return to those “glorious days” if only to satisfy ethnic pride. As such they would distort facts and data to arrive at preconceived conclusions.
UN-Truth, you asked where is the evidence in the caption you used from Wiggins’ letter. I’ll give you only one, but since you’re blind and unable to tell the truth you wouldn’t know. Just look at today’s Stabroek and yesterday’s Kaieteur and you’ll see the article about the 15 year old that was tortured by the police while in their custody. Want more proof? Even torture you can’t acknowledge? The police are not a private company/entity; it is run by the government.
You talk about the author conveniently ignoring facts… you conveniently ignore facts as well. If thing were so great in the sugar sector, why are the workers on strike (without the union calling for a strike. Stop being a PPP apologist and give them credit for what they get right but also acknowledge when they’re wrong.
Never knew we even had an opposition
I gy if u have a donkey cart u are middle class pure and simple
We spent a lot of time, in fact wasted, discussing stolen book by someone. Something that was done too many years ago. Now we are discussing growth of middle class. Its relative maybe one can just draw a curve. But what is the importance when the gap between thew rich and the poor is widening rapidly.When jobs are not available for an increasing number of persons.
I remember that in the line of Rodney and Cheddi we were speaking of working class and capitalist class but i guess some of you would say I am another ideologue but I believe that this debate is necessary. Whether we have a small, and or growing middle class is not relevant.
I do believe Guyana has MIDDLE CLASS. I see them every day on this blog. They have USA, CANADIAN, ENGLISH and other flags by their false names.
Colin2nice like you are a “see far man”?
Banks Beer and DDL is prospering because the classes are drowning their sorrows in booze from foreign remittances
Banks are profitable because it is safer to put your money in a vault or lose it from bandits
Construction is propering from money laundering
Foreign currency to buy bread and soft drink concentrate was available but those items were banned by burnham
Randy was talking about the cocaine economy budday.