Dear Editor,
The installation of the current government in 2015 represented a break from the many violations of the former PPP administration of the fundamental ideas which underpin Guyana’s democracy. However, the handling of a few major issues, and recent policies adopted in the 2017 budget have caused a fair measure of angst in society, so much so that concern has been raised about the political strength of the coalition government going into the next elections. Earlier claims of corruption aside, the level of consultations in preparation for the Budget 2017, its articulated policies, and recent attempts to influence exchange rates suggest that government’s thrust of economic management is clearly out of sync with expectations.
What is clear to many Guyanese is that a return to government by the PPP in its current form will be a retrograde step. Yet, what is also undesirable is that the present scheme of things should become the norm going forward. In this regard, the coalition government may wish to, among other things, engage major stakeholders more productively to devise successful policies which yield better results for the population. From a political perspective, the level of discord raised regarding the treatment of the vendors around the Stabroek Market area, the sugar industry, the 2017 Budget and the current parking meter controversy, cannot be ignored, and these issues need to be addressed as a matter of urgency to improve government’s image and relations with major stakeholders and the wider population.
The following are among the issues and proposals that need to be revisited with some priority: 1) the VAT proposals in the 2017 Budget; 2) the sore issues in the sugar industry; 3) engagement of the private sector as a partner in the modelling of plans for economic development; 4) the establishment of a council of economic advisors charged with providing greater depth and perspective on policies for growth; 5) greater political consideration of the outcome of decisions affecting the major stakeholders.
Much has been written about the unhealthy and burdensome effects of the VAT policies in the 2017 Budget. What seems an absolute certainty is that while these policies may very likely generate the revenues projected, they will also prove to be the undoing of the coalition at the next national election scheduled for 2020. It is strongly recommended that the VAT policies in the 2017 Budget be scrapped as soon as possible, and appropriate adjustments to the budget be adopted to maintain the level of the fiscal deficit, if this is desired.
The handling of the issues within the sugar industry has evolved into a political challenge for the coalition. Regardless of whether or not the issues should be politicized, the fact is they have been for quite some time. While the dispatch of the former CEO of GuySuCo was long overdue, the current arrangements whereby sugar workers continue to feel neglected and unrewarded is exacting severe political costs.
It is important to government that a positive, productive partnership be established and maintained with the private sector. Success in this area naturally hinges on the attitude and capacity of the government officials responsible for developing and maintaining this relationship in the first instance, and the need to disregard the perceived politics of the private sector’s representative bodies as a basis for establishing and maintaining these productive relationships. The private sector will most probably engage government on policies supporting investment, employment creation and cost reductions. In respect of taxes, government may consider being more proactive in minimizing tax avoidance and evasion through the GRA directly, versus the unfair implementation of measures similar to the proposed VAT changes as a means of recouping underpaid taxes from the population.
In companies as well as government, matters of critical importance, instead of being entrusted to any single individual, are normally handled by oversight bodies such as governing boards, commissions, councils, committees, etc. The management of Guyana’s economy, as a matter of national importance, cannot be exposed to the risks associated with the oversight of a single person. In this regard, the President should consider appointing a board of economic advisors entrusted with guiding and advising on the budget process while keeping him engaged and informed on the expected outcomes their policy recommendations are likely to realize. They will also be responsible for charting a larger economic policy framework to support the vision for Guyana’s economic development.
The adoption of strategies and policies critical to social and economic issues such as sugar and VAT probably require greater consideration of the political implications for decisions made. This can definitely improve the nation’s opinion of government.
Yours faithfully,
Craig Sylvester
