Economy grew 2% – Jagdeo

In his New Year’s address to the nation, Jagdeo also announced new projects in the areas of infrastructural development, health and education, including an $800M country-wide school-feeding programme and the computerisation of all secondary schools. Referring to the challenges of the last year, he said it has given hope that the vision of a “united, free, prosperous and humane” Guyana could be realised in the face of adversity.

Jagdeo noted that the year began with the world reeling from the greatest economic crisis since the financial collapse of the 1930’s, and as a result economies of the region suffered severe effects, particularly in the tourism and the financial sectors. “Guyana too was not spared,” he said, while citing the collapse of CLICO across the region, reduced remittances and weaker commodity markets as adversely affecting the economy. “These blows could not have come at a more inopportune time for the local economy, which this year suffered the full impact of the price cuts in sugar revenues by the European Union,” he added. Jagdeo also reported “below expected” performance in the sugar and bauxite sectors.

Nevertheless, he said preliminary indications are that the economy registered a positive growth rate of about 2% in 2009. He added that this was achieved while improving and expanding social services and within a framework of sustained macroeconomic stability.

Jagdeo reminded of the threat posed by climate change and reiterated that the Low Carbon Development Strategy (LCDS) provides a necessary framework for the country to continue to adapt to climate change without compromising its quest for accelerated transformative development. He commended all stakeholders, including the parliamentary opposition, for supporting the LCDS, saying he was appreciative of the recognition that such a strategy is necessary for Guyana, even in the absence at a binding global treaty on emissions cuts.

Noting that the LCDS would allow for opportunities to earn from preserving and trading forest carbon, Jagdeo said Guyana has already laid the groundwork for such financial flows. As a result of a pact with Norway, Guyana could earn up to US$250M over the next five years through performance-based payments, while aiming to sustainably utilise its forests resources through mining, forestry and other activities. Jagdeo said this was “just the beginning,” adding that the outcome of UN Climate Change Conference in Copenhagen “will not affect these financial flows.” He also pledged to continue to work for a global, binding treaty that will provide “even greater predictable long-term financial incentives” for forest-rich countries.

New projects

Meanwhile, the President also used his address to outline several “focal points” of government’s developmental agenda for the new year, to consolidate and build on gains. In the social sector, he said emphasis will continue to be placed on improving quality of service, value for money and greater accountability to the public. In the education sector, he announced that special attention will be paid to science and technology, and the expansion of technical and vocational education. Further, he said the government is working on a major project to computerise all secondary schools in Guyana.

Jagdeo, saying sustained concentration within the classroom maximises learning and that good nutrition plays an important role in improving concentration, disclosed that government will be spending some $800M on a countrywide school-feeding programme. “This is all part of our efforts to improve performance within our educational system,” he noted.

Addressing the health sector, he said all new hospitals will be made operational, while audits, including clinical audits, will be introduced for all public health institutions. Additionally, he said all public hospitals will be required to enter into a service contract with the Ministry of Health, where they will be held accountable for the provision of quantifiable and verifiable standards of health care deliverables. Further, the quality of service provided by all medical service providers, both private and public, will be reviewed to ensure conformity with the Health Facilities Licensing Act, he added.

Jagdeo said government would also continue to invest heavily in physical infrastructure, noting that an extensive coastal and hinterland roads programme is already in preparation. The electricity sector-which he admitted has been the source of considerable dissatisfaction recently-will see the start of a major upgrade to its transmission and distribution network, he said, while efforts continue to reduce losses and improve quality-of-service in the sector. He mentioned too that construction of the Hope Canal will begin; that there will also be “concrete steps” to increase the availability and reliability and reduce the cost of bandwidth within the telecommunication sector-a reference to the Guyana-Suriname US$60M submarine cable; and the allocation of an additional 6,000 house lots even as more attention would be paid to updating and effectively enforcing building codes.

According to Jagdeo, this year the government will also build on the work that it has done to protect and serve the most vulnerable in the society and he noted landmark protection of children legislation recently enacted. He said there are plans to bring into law the remaining elements of the comprehensive legislative framework, including in the areas of childcare and development services, custody, contact, guardianship and maintenance, and sexual offences. Further, he said government would also further roll out its national foster care programme and strengthen the childcare and protection agency. “These initiatives, taken together with our policy on domestic violence and our training programmes for single parents and vulnerable youth which will benefit some 4,000 persons this year, will help to ensure that more Guyanese are empowered to live a more fulfilling life,” he observed.

Jagdeo sought to assure citizens that government will continue to work for greater social, political and economic progress. “You the people are, however, protagonists in the developmental process,” he reminded. In this regard, he challenged the citizenry to work assiduously over the next year towards the achievement of the national goals. “I am confident that with your proven fortitude, skill and determination, and the deep love you hold for your homeland, we can ensure that in 2010 our country becomes even more united, democratic and prosperous,” he said.