Innovation, transparency and investment risk in the Guyana economy

LUCAS STOCK INDEX LSI In week three of June 2012, the Lucas Stock Index (LSI) rose 0.59 per cent. The stocks of six of the nine companies in the index were active this week making it one of the more active trading periods in the year. The strong showing by Banks DIH (DIH) helped the index to register the marginal gain since the other stocks either showed no gain or lost value. Demerara Bank Limited (DBL) and Demerara Distillers Limited (DDL) lost 3.23 and 5 per cent respectively while Caribbean Container Inc (CCI), Demerara Tobacco Company (DTC) and Republic Bank Limited (RBL) remained unchanged from the previous week. As a result, the index continues to exceed the yield of the 364-day Treasury Bills by more than 12 percentage points.

Watchwords

In the 2012 budget presentation, the government talked about changing the way in which Guyanese would be educated, the manner in which business would be done, the way in which government services would be delivered and the way jobs would be created.  These are goals that the government hopes to achieve some time in the future by eventually spending about $6 billion to create an enabling framework with the use of communication technology.  Part of this process involves installing a high-speed fibre optic network from Lethem to Providence which will be used to deliver government services to the people of Guyana.  When completed, the network would represent a major innovation in the method by which some government services are to be undertaken.  The question at the back of many minds is will the new and different way of doing business lead to better governance?  Answers to a question of that nature always default to issues of transparency and accountability.  Therefore, it ought to come as no surprise if Guyanese expect the innovation referred to above to result in transparent and better governance, their watchwords for curbing corrupt practices and rejecting the discourtesy and unhelpfulness of some public servants.

Continuous revelation

There is a burning desire in Guyana to see the government operate differently and with greater openness.  The continuous revelation that several contracts signed by the previous administration were fraught with difficulties or were not publicly disclosed to Guyanese continues to raise eyebrows.  In the case of contracts already known to the public, it appears as if the details of many of the deals are still to be disclosed.  Guyanese are increasingly becoming uncomfortable with the embarrassing revelation of transactions that violate the trust that they had placed in the previous administration to conduct the affairs of the country with fidelity.    The discomfort exists despite the availability to Guyanese of consumer comforts such as computers, cell phones, internet service,