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Reply to "Amaila Falls Hydropower Project now highly unlikely"

TK posted:
ba$eman posted:
TK posted:

Of course, Amailia is necessary in the long run, but it is a matter of sequencing and optimal timing. Anyone with a good understanding of microeconomics and project analysis would have seen the risk early, even before the engineers formalize it. This is was so obvious. I keep saying Jagdeo needs to overhaul Accrebre college. It needs to be less ideological and more nationalistic. BTW, before some people start yapping about manufacturing, just take a moment to observe that Guyana once manufactured refrigerators, stoves, small SUV (tapir), small and medium-sized ships, garments, tires, radios, consumer products like toothpaste, etc, as well as having a variety of first-rate food processing capabilities WITHOUT HYDROELECTRICITY.

All of these were within a "planned economic" model of the PNC.  They existed because of heavy subsidies from the Govt.  Furthermore, the world has changed quite a lot from back then.  If I remember, the Brits were still a big auto producer back then.  Furthermore, back then, Guyana still had a reliable power source, which was not being reinvested, thus the eventual collapse.  All these PNC initiatives were done at the expense of the underlying economic backbone, all of which eventually gave way under the weight of these non-viable enterprises.

However, let me add, I do believe some of the initiatives were actually good and should have been taken up by the PPP Govt. I believe the downstream food and beverage industry were areas of natural competitive advantage the PPP should have explored.

Many of these companies you mentioned went under because they were not viable under their own weight.  Durable goods are levied with high duties and yet locals such as GRL, GRECO, glass, cotton, etc, were never resuscitated by privates.  They were just not sustainable even with the GoG granting duty-free concession on capital equipment!

TK, you are a professional economist and should get over your hatred for BJ and the PPP and be a bit more objective and truthful regarding the successes and failings of both the PPP and PNC.  Just remember, Guyana went bankrupt under the PNC model!

 

Actually, none of those companies were started after independence. They were pre-independence companies. Many start leaving because of Cooperative Socialism. The ERP was the final straw.

Nonsense, GRL was built in Soesdyke in the 70's, I saw it constructed as a school boy.  The glass factory was built by the Chinese on the Linden highway in the 70's.  The Tapir was built by Ainlim, in the 70's.  I did a school tour of GRECO on the East Coast in the 70's when it was just set up.  I agree ship-building (FIL) was pre-independence, but that was a victim of the industrial economics.

All those initiatives were kicked off after Guyana became a republic when the PNC tried to industrialize Guyana.  This was a good thought, but not all were ever viable.  They bled the existing economic engines and everything collapsed.

All these Guy-brands surfaced in the 70's!

FM
Last edited by Former Member
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