The Jagdeo-Ramotar approach to private enterprise

Former President Jagdeo has carved out his own method of promoting private enterprise. The strategy has largely been adopted by current President Ramotar. Both men had strong Marxist-Leninist upbringing. This socialization is quite evident in the manner in which they go about promoting private investments in Guyana. On the surface, they appear to be strong proponents of a private sector led economy where economic activities are guided by free private markets and firms. However, if we delve deeper we would see the Freedom House hand instead of the invisible hand of markets driving private investments. The Freedom House hand, which appears pro-business on the surface, involves significant control of who can invest and in which sectors. Mr Jagdeo made it clear a few years ago that he is promoting a new private sector. He was dead serious and indeed his approach includes punishing the old private sector as he builds up the new one using the resources of taxpayers.

Even the Private Sector Commission appears to be pro-Jagdeo and pro-PPP these days. So much so that it appears like the Marxist-Leninist PPP has become the pro-business party, while the opposition looks mainly like the party of negativism and budget cuts. Instead of crafting a new social, political and economic vision for the country, the opposition is now the party of many nays. It is not that active opposition is not needed, but to overcome the incumbency advantage positive alternatives have to be given as much as the nays. Although my sample of observation of young people – some of mixed ethnicities – in Guyana is cursory at best, it suggests some of them (very likely your swing voters) are coming around to accepting the PPP as the party of young professionals. Let us try to understand why the Jagdeo-Ramotar (hereafter the JR) method versus the opposition’s way could be turning some middle voters to accepting the status quo.

Firstly, the entire edifice of the JR approach is to produce so-called symbols of development. These symbols, when combined with the ample new hang out spots that emerged owing to the underground economy, provide powerful visuals in favour of the government. The PPP and Jagdeo prefer a “development” programme that is premised on drinking, partying, gambling and 20-20 cricket. Tertiary education will take a