Making the private sector the engine of sustainable growth
The ideas we have proposed in the paper justifying Unity and Human Development (UHD), can be downloaded at http://bit.ly/18odYmG. We welcome criticisms and comments. Here is another of the principles in which we argue that the private sector is the engine of sustainable long-term economic growth.
It is often said that the private sector is the engine of growth. For this to become a reality, several bottlenecks and constraints facing the private sector must be removed. First, the high cost of energy has to be reduced through a portfolio of energy mixes and the modernization of the electrical grid system. Cost permitting, a smart grid system should be implemented. Tax incentives can be used for families to establish solar roofs. These families can therefore sell surplus electricity to the smart grid. Second, infrastructure and road networks must be built and maintained properly. Third, the University of Guyana and other tertiary institutions have to perform Guyana-specific research and training of the workforce. Fourth, financing constraints, including those engendered by money laundering, must be eased.
One possibility would be to develop the bond and stock markets that are complemented by a state development bank and micro-finance facilities. Fifth, laws must be put in place to ensure that the state’s purchases from the private sector are fair and equitable (for instance, through the implementation of the constitutionally mandated Public Procurement Commission). Sixth, the assets of private investors, and property rights generally, must be secured robustly. There must be no risk of expropriation by bandits or the state. Finally, political capture and oligarchic relations between the government and a few favoured individuals must become something of the past.