President Bharrat Jagdeo has dismissed the country’s recent low ranking for economic freedom, while he disclosed a plan to invite researchers here to dispel fictions about the situation on the ground.
“I am not too bothered with a conservative right-wing body’s ranking of our country,” he told a press briefing on Monday, reacting to the findings of the Wall Street Journal/Heritage Foundation 2009 Index of Economic Freedom that gave Guyana an economic freedom score of 48.4, ranking it 155 of the 183 nations that were surveyed. “I feel we have one of the freest economies in this part of the world, more than many countries in the region,” the President said.
In this year’s ranking, the country’s overall score is 0.4 of a point lower than last year because improvements in four of the 10 economic freedoms were offset by a large decline in the government size score. Guyana did not rank strongly in any category of economic freedom and was only slightly above the world average in labour freedom on the Index, which said although macroeconomic and financial-sector stability has been maintained, the average economic growth over the past five years was only about 1%. It concluded that an “oversized” government is the largest challenge to the country’s development.
The Index grouped Guyana among economically “re-pressed” nations, and ranked it below Haiti at 27 of the 29 countries surveyed in the South and Central America/Caribbean region Only Cuba and Venezuela were ranked lower in the region.
Jagdeo, however, laughed off the Heritage Foundation as a “conservative” body that promotes western interests. He accused the body of being susceptible to influence and said that if an American investor has experienced difficulties the country could be marked down.
The President also criticised researchers who compile various international indices for having “a serial way” of repeating their findings. “I plan to bring quite a few people who do these indices… so that we could then go through what is fact and fiction,” Jagdeo said. He noted that most of the information used to compile the findings is anecdotal since no one from the Heritage Foundation has visited Guyana. Further, he pointed out that two of contributors to the Index are accountant Christopher Ram and someone from the Ram and McRae accounting firm and he questioned why no one from any other accounting firm was consulted.
Jagdeo also said that unlike many countries in the region, Guyana does not have foreign exchange controls, restrictions on foreign investment in any sectors, restrictions on repatriation of capital or an alien’s land holding act to prevent foreign nationals from holding land.
According to the Index, Guyanese face substantial constraints on their overall economic freedom. It said property rights are protected only erratically under the weak rule of law and that corruption is a problem in all areas of government. It identified the biggest barrier to development as Guyana’s oversized government, noting that expenditures exceed half of GDP. It added that significant restrictions on foreign investment have been addressed only marginally, and these restrictions, combined with an inefficient bureaucracy, substantially limit investment and business freedom.
Scores are computed based on 10 broad factors of economic freedom, using statistics from organizations like the World Bank, the IMF and the Economist Intelligence Unit. Equal weighting is given to Business Freedom, Trade Freedom, Monetary Freedom, the Freedom from Government, Fiscal Freedom, Property Rights, Investment Freedom, Financial Freedom, Freedom from Corruption and Labour Freedom. Each indicator is graded on a scale of zero to one hundred, with the latter representing the maximum freedom. A country’s overall score is based on an average derived from the total score.
The President right, why give us 155th place, when they could have given us the 183rd position. These Foreign Organizations always try to rate us Higher than we are.
“The Lower we are, is the more assistance we get to come up the ladder”
then the assistance will be put to waste…hahahaha.
President rejects Heritage Foundation ranking
why not wait until the people you bring to refute this then put out your report?
Sorry, but the truth hurts. Now, what are you going to do to shed the fat from your “oversized government” and improve the country’s economic standing in the global community?
well.. right or wrong there are the reports the prospective investors will look at before investing.
Instead of being so defensive it would make sense to try to put things in place to move up the list.
When you fail a test, you don’t blame the test! You find out where you were lacking and make the adjustments for the makeup exam.
Still hard to swallow being ranked below Haiti. The place where people are eating mud pies.
geeteerebel
I did not look up the list, but are you telling me that GT is behind Haiti? I pray that’s not the case my friend
I deal with Haitians almost daily and they are certainly in a worst situation than Gt (worst being an understatement)
If what you say is true, then it may be as I have suspected for quite some time now…………….. that the reality of the economic condition in Guyana is being masked by the millions of US dollars coming into the country via remittances.
May God help Guyana
It is a problem of perception. If the perception of those who use the EFI is that Guyana is not a secure investment, then foreign investment slows and so does the growth of the economy. This will further reduce the GDP and increase the percentage of it made up by the Government. Hence an ongoing problem.
More importantly, in looking at the report it is clear that there are other areas where improvement needs to occur, in order to further boost foreign investment. The perception and realities of corruption need to be addressed as well as the integrity and effectiveness of the legal system. This should be a top priority for the Guyana Bar Association (GBA).
Definately it has to be rejected, Guyana has a far better ranking.
Those naysayers loves the rateings, are content.
To Mr Jagdeo and his friends,if you are comparing things(in this case countries) using the same measuring tools all perceived biases are eliminated once you rank the population under consideration.Any statistician will tell you that the final product by this method is true and accurate.
For example, a 190 lbs man standing on a scale with a +5lbs error will weight 195lbs,a 200lb man on the same scale 205lbs,a 210lbs man 215lbs.Even if you compare their real weight or their “error weight” the first man is the lightest of the three men and their respective difference in weight is 10 lbs by any measure.Jagdeo is arguing that changing the scale could indicate the second man is the heaviest or weight spread could be different.
How smart is Jagdeo?
Jones, here is the problem with Guyanese. Everything they read from the Western World they assumed that it is a fact. For example, Columbus discovered the West Indies. Do you really believed Columbus discovered the West Indies? Now to your argument, a scale is a scale is a scale anyday anytime but how how the object is position on the scale can give to a different weight. If you follow American politics you will know Jagdeo is correct Heritage foundation is a conservation think tank and their conclusion will flow from a conservative perspective. For example when they wrote about big government it means all public sector employees. That is how government size is measured.
well you dont expect the president of guyana to admit to his govt’s shortfalls and incompetence, the deception which prevails are intended to fool some but not us who really knows that what these people are saying is true.
tiger
do you really believe these local conservatives hog wash?
for you to talk about incompetence and shortfalls then see what the UN said about guyana in 91…one of the poorest countries in the western hemisphere.the next report out of the UN was that Gayana is a middle class country…they can fool you but can not fool all…where would you rank US at present?
why was US not ranked in that sham report…were they afraid of retaliation had they ranked US…i thought US is a democracy with all its freedom with free speech….
The President is right as long as Heritage Foundation did not visit Guyana and was given information by Christopher Ram,,the report will be a biased report,,,
The President could reject all he wants. The proof is in the pudding!
The issue should be how to raise the standard of living for the Guyanese masses.
Come come Mr. President what are your plans?
Change only comes when we as individuals, communities, and countries acknowledge that we have work to do and only then can we progress and move forward. When we are in denial of our issues we stay in the same dysfunctional cycles. Can’t take constructive feedback – but rather perceives it as criticism. Good luck with bringing change to Guyana.