Linden and Region Ten – the future of manufacturing

By Peter R. Ramsaroop, MBA
When you want fuh swim river, you gat fuh plunge inside fuss. (You can only succeed at a venture by plunging into it whole-heartedly.) – Guyanese Proverb
Overview

Linden and Region Ten have been crudely neglected by the PPP government.  Also, some of the problems the region faces today date back to the decision to nationalise the bauxite industry in the mid-1970s. There was never any major policy to modernise and diversify Linden and Region Ten. By the mid-1970s nationalisation of bauxite and sugar placed tremendous pressure on Guyana to manage these industries and simultaneously diversify and transform the economy.

Although certain new buildings have been constructed, in the case of the new hospital for instance, there are little staff and resources to maintain the facility.   Region Ten had major factories in its time such as the multinational Alcan Cooperation. This was a very prosperous community supporting the families of some 8,000 workers. But commodity export prices are ultimately subjected to major fluctuations and when bauxite prices dropped so did Region Ten’s prosperity. The modernisation and diversification of the region should have started since the mid-1970s. Today the region is still marking time and this deficiency is something, we will have to pursue with vigour, care and professionalism.

In the past, along with the bauxite industry, there was also an expansion of agricultural production in this region.  In Moblissa, for example there was production of tobacco and also LIDCO was established into a thriving dairy farm. Charcoal burning also gained prominence along with more traditional industries such as forestry and mining. Commercial aquarium fishing is done at Rockstone and Malali. I have written in previous columns on the Bauxite industry and the need for proper investment and movement towards a smelter plant.

Developing the region Hydropower

The development of multiple small hydropower plants is necessary to stimulate direct investment in this area and Guyana as a whole. A proposed area for hydroelectric power development is at Tiger Hill which is situated about 69 km upstream of Linden. The dam site is 4,100 km, the annual average inflow and rain fall supports this as a key site. An estimated 56MW capacity is projected (Japan International 1989 and validated by the German study 2003).

Key areas in Region Ten to benefit include Linden, Rockstone, and Ituni.  Interestingly, these areas were also part of a German study that supports a pilot area of major development.


Manufacturing

One industry that can be expanded is interlocking clay bricks and roofing tiles with readily available materials. It requires low startup costs (materials 20% clay, 70% sand, 5% or 10% and cement); open zinc shed factory and dry stacking of interlocking bricks after mortar foundation is laid down. (See http://www.hydraform.com). Industries like this can boost areas such as Kwakwani.

This region could also sustain a vibrant furniture manufacturing industry.    Then there is prefab housing, a much needed industry especially with the rebuilding of housing after disasters around the world. The region could provide the basis for prefab housing components. This can be tied to the push for housing development.

Services

Given that this area is above sea level and would not be adversely affected by floods resulting from climate change, Linden would be an ideal spot to concentrate financial services. Financial industries are known to create significant wealth once properly regulated. Banking, insurance, financial advice, fund management are things that could be shifted to Linden. The region can become the hinterland financial centre of Guyana. The area could also be the stepping-off point for important eco-tourist destinations.

Conclusion

We need a new big city inland. It is a good idea to start seeing Linden as the second city and eventually the main one. The road to Brazil will ensure that Linden becomes a vibrant town and thus we must start this project immediately. The region must be diversified into a manufacturing hub. It could become the hinterland financial centre. Services and manufacturing are important planks in the quest to modernize and transform the Guyana economy. There is no doubt in my mind that Region Ten could lead that drive!

As the AFC wrote in a recent policy paper, all the above immediate impact projects would be implemented in the context of a comprehensive review of the tax system with the goal of reducing VAT, increasing the personal income tax threshold, reducing business taxes and making provisions for family deductions and write-offs for renewable energy investments by companies and households among other things.

Solidarity breeds patriotism and patriotism breeds optimism and hope. When we as a people, in cooperation with a competent government, put aside our petty differences and focus on the future of this country we will realise the Guyana we have desired for so long. It is also then that we will have a Guyana our children will want to proudly live in for the rest of their lives. A unified and optimistic nation is a successful nation. It’s time for Guyana to be unified, optimistic and successful. Together we will make it happen.

Until next time,

“Roop”

Send comments to peter.ramsaroop@gmail.com