International aid will not create economic sustainability

Dear Editor,

Globalisation is one of the age-old concepts that has been used to explain a number of today’s international issues. Proponents of globalisation have argued for its benefits, particularly in the areas of resource mobilisation and economic development. There are countless examples of countries and cities attaining economic advancement due to the easy flow of goods, services and labour, amongst others.

Of recent we are faced with some of the ills of globalisation. Contrarily enough, some of these same issues that now pose a challenge were once perceived as positives of a globally integrated world. One of the most pressing issues is the free movement of labour. It is debatable that the free movement of skilled labour would have contributed a great lot to building some of the most economically developed nations.

Nevertheless, it is for two important reasons that free movement contributes to economic development of both the host and home countries and cities. Migrant workers often remit significant portions of their wages to their home countries. This in turn is converted into consumption demand in these countries. The added benefit is that these workers also boost the demand in the host countries which also adds to tax revenues. Some of the most prominent concerns host countries/cities have with migrant workers are their effects on the economic and social fabric of their societies. An influx of these workers could create extreme pressure on host governments particularly in the areas of health and social services provision. It is this concern that has permeated European society with its recent upsurge in migrants.

The migration and refugee crisis in Europe has caused in excess of a million persons inclusive of women and children to be displaced in what appears to be a short period of time.

Countries like Guyana and its neighbouring counterparts, though not directly affected by these displaced citizens will share the brunt of this issue. Already, there are international organisations which are cutting back on their aid to developing countries. This is by no means an attempt to stymie progress in the smaller countries but an effort to safeguard its own citizens, who are competing for the same social services as the migrants and refugees.

This means that funds once directed to official donor aid will be kept in host nations to address the emerging issues they now face at home. Therefore, in view of these current global circumstances, it is important to promote economic sustainability nationally and even at the urban level. It is for this reason that the Mayor and City Council (M&CC) is pushing for Georgetown to become economically viable by implementing certain projects to encourage residents and businesses to be self-sustaining.

The premise of this thrust is based on the fact that the developed world is cutting back on the amount of donor aid. Thus, there is need for more stable revenue sources. This is why the council is encouraging residents to honour their civic responsibilities and pay all outstanding rates and taxes. It is this same revenue that the council needs to rehabilitate and improve city infrastructure and boost its service delivery. Once these revenues are appropriately invested it will lead to an environment that encourages and enables private entrepreneurship and opportunities for sustainable sources of income for all residents.

The fact remains that international aid alone cannot and will not create economic sustainability ‒ whether nationally or at the municipal level. It is becoming more and more pertinent that any country or city seeking economic sustainability must look beyond the dependency of aid and venture out into paths that will lead to the accomplishment of this goal. The council in its thrust to make Georgetown a green city is well aware of the challenges and is taking proactive steps to ensure our city does not get left behind.

Yours faithfully,

Royston King

Town Clerk

City of Georgetown