In the interest of making Guyana a recognized investment destination, the implementation unit of the National Competitiveness Strategy is tackling the core issues which hamper local businesses.
However the unit is constrained by inadequate resources and to avoid overtaxing the government, it is turning to the Caribbean Development Bank (CDB) for financial assistance to establish and operationalise the local competition commission.
The unit was established in 2006 and has pursued a number of initiatives to date, including the implementation of a set of recommendations by the revenue authority for improvement in the process of clearing imported goods.
Director of the unit Cecil Rajana lauded the body for embracing the recommendations of its public-private sector dialogue body on trade transactions which is chaired by Chris Fernandes.
Doing Business report
Focusing on the recommendations, Bobby Gossai, an economist attached to the unit explained that an investigation was launched by the unit after Guyana was ranked at number 105 out of 181 countries in the World Bank’s Doing Business report.
The bank tested how countries are able to better export and import and Guyana ranked poorly. As a result, he said, the unit carried out an investigation and found that the bank’s analysis was not far from the truth in some areas. He said trade transactions were looked at from the customs side and the shipper’s side as well as the side of the licensed agency.
Out of the investigations a report was done on the core issue of the extended time it took for items to be cleared from the wharves. The Fernandes-chaired body look-ed at the key elements affecting daily business and what needed to be addressed in the short, medium and long term.
Rajana said most of the businessmen pointed fingers at customs, adding that out of 85 recommendations, 54 were for customs. However he said he was heartened that there has since been action from the revenue authority based on the recommendations.
Another sub–index in the World Bank report, Gossai said, was the issue of access to finance and getting credit.
Credit Bureau
He disclosed that at the end of 2007 the unit worked on legislation for the establishment of a credit bureau and draft legislation to this effect is currently with the Ministries of Legal Affairs and Finance and should be presented in the National Assembly for approval by yearend.
Once this step is taken, a credit bureau will be realized by one of the private financial institutions.
Guyana Manufacturing and Services Association Head, Ramesh Dookhoo represented the Private Sector Commission at Thursday’s briefing and pointed to the establishment of a securities council. He said too that many pieces of legislation were being examined with a view to harmonizing standards which are easy to follow.
Consultant Jonathan Said revealed that a fund has also been launched to assist small and medium-sized firms that are seeking to make the leap from domestic to export markets.
The body is also looking to intervene in the road transport network and shipping linkages in the interest of fostering efficient interconnected business networks.
Further it is also moving to develop a study for dredging the mouth of the Demerara River because of the shallowness of that part of the river where it is comparatively more expensive to ship to and from Georgetown than from other Caribbean states.
