What is Guyana doing wrong economically?

Dear Editor,

The Minister of Finance, Mr Winston Jordan has confirmed this week’s information that both he and I knew since the end of February 2018, ie that the Guyanese economy is in trouble. A growth rate of 2.1% for 2017 was announced.

There is clearly a lesson this Granger regime refuses to learn from the rest of the world.  But let us not even go to Asia, let us reflect on Africa. That continent failed in their lost decades between 1970 to 2000.   However, today the World Bank projected that Africa will grow by some 3.6% in 2019, 3.3% in 2018, compared to 2.5% in 2017.  Guyana, on the other hand, is projected to be moving in the opposite direction with a forecast growth rate of 1.1% in 2019, 1.8% in 2018 on the back of a 2.1% growth in 2017.  Guyana looks set to expect zero growth by 2020 if this policy paralysis of Mr Jordan continues.

What can Mr Jordan learn from Africa?

1. Manage the economy better.  With policy stars like President Paul Kagame in Rwanda in power, their positive policy influence is infecting the continent.  Every African leader wants to be the next Paul Kagame who uses drones to deliver medical supplies and blood to remote hospitals in the mountains in hours, when in the past the same operation took days by land. In Rwanda, which is growing by almost 7%, their government has actively reduced their fiscal deficit as a percentage of GDP in 2017 and it is set to reduce further in 2018.

2. Investors need stability.  An increasing number of African leaders are becoming global dealmakers who offer international investors fiscal stability.  The change in leadership in South Africa happened to weed out the corrupt one only to replace him with a professional business magnate.  Their billionaire President Cyril Ramaphosa is a private sector man who is on a mission to grow his nation’s private sector as a means of putting his people to work.

3. Competent debt management. Africa is extremely careful about how they are managing their debt. Even a basket case like Zimbabwe has signed on to this mission.  President Mnangagwa was successful in getting China to write off all of its debt owed to that country in exchange for favoured access to some of the mineral wealth. What it did was positively change the cash flow dynamics with the stroke of a pen.

4. Africa is getting rid of loss-making non-exporting public enterprises.  Ethiopia is a clear example of this success story where all loss-making non-exporting public enterprises were privatized.  The immediate impact was that the economy took off to a growth rate of 8.1% in 2017.

5. Africa got on board with the telecoms revolution.  In 2000, Africa had 11 million phone lines; today it has over 800 million mobile lines with a penetration rate of some 74%.  Kenya was a global trendsetter with a technology called mobile money.  When the Americans were waking up to the payment of bills on smartphones, that technology was already 10 years old in Kenya by way of a platform called M-PESA (meaning money in Swahili). In Kenya, there was an almost 80% penetration of the population by 2017 creating some half a billion dollars in “person-to-person” transactions.

6. Africa is making a serious attempt to invest more in education.  But their focus is on the people first, then buildings.  Their mission is to cultivate a cadre of teachers who are better remunerated who can own the system rather than leave it to the politicians.

7. Africa got serious at reducing conflicts.  The African Union made it very clear that democracy must be respected which has resulted in some important democratic transitions happening across the continent.

So what is Guyana doing wrong?

Yours faithfully,

Sasenarine Singh

Comments  

Jagan ignored CLR James’s formulation on the politics of race and class

Dear Editor, In his column, ‘Cheddi Jagan on the WI Federation: CLR James on Cheddi Jagan’ (SN April 25) former long-term PPP executive, Ralph Ramkarran wrote: “Divided societies like Guyana suffer from a phenomenon whereby historic events which, when they occurred, gave rise to allegations of ethnic bias, never seem to go away.

Do our present leaders foresee a modern Guyana?

Dear Editor, Back in 1990, the PNC government sold our only telecommunications company to a foreign entity and granted them a monopoly for forty years.

The authorities should regularly service traffic lights

Dear Editor, With reference to my last letter of concern published in your SN on April 20th, titled ‘Does the GPF have a section responsible for traffic lights?’ It is sad to say there was yet another accident at the Camp Street and Brickdam junction with two cars last Saturday, 21st April.

Jagan said no mud-slinging in Mirror

Dear Editor, I recall, in the ‘70s, Dr Cheddi Jagan calling on contributors to the Mirror newspaper to avoid what he termed “mud-slinging”.

Your browser is out-of-date!

Update your browser to view this website correctly.

We built stabroeknews.com using new technology. This makes our website faster, more feature rich and easier to use for 95% of our readers.
Unfortunately, your browser does not support some of these technologies. Click the button below and choose a modern browser to receive our intended user experience.

Update my browser now

×