The rule of law – what the forestry industry could do in a levelled business environment in Guyana

By Janette Bulkan

In three earlier articles in this series on distortions in the rule of law in the forest sector in Guyana (Stabroek News, 12 and 30 January, and 06 February 2012), non-application or selective application of laws, policies and administrative procedures were shown to make it possible for timber log traders to maximize personal incomes by avoiding national policies for in-country processing and value addition.  These practices mean non-compliance with the requirement in the National Constitution 1980/2003 that natural resources should be applied for the benefit of the nation rather than for personal profit.  Avoiding the national policies also leaves the forest sector as an enclave economy for Asian factories, where skills are developed and used and employment is generated in Asia instead of in Guyana.  Timber decking which is finished in the USA could be entirely produced in Guyana.  Furniture and flooring made in China with Guyanese timber and exported to the European Union and North America could be entirely produced in Guyana.  The Private Sector Commission’s argument that Guyana cannot compete in markets in developed countries because of tariff barriers is shown to be absurd by the success of the Chinese exporters in these markets with products based on Guyanese timbers.  In addition, there are several arrangements for products from CARICOM countries to enter Northern markets with no or reduced trade barriers.

Suppose that the Guyana Forestry Commission and the Guyana Revenue Authority were to cease their discriminatory and selective practices and actually apply the laws and regulations and national policies as written.  Suppose that the