Govt fails to handle economic downturn – former Minister

By Alexis Rodney

There is so much the new David Granger-led A Partnership for National Unity/Alliance for Change (APNU/AFC) Government has to do in order to reform Guyana’s economy, which has taken a steep downturn following the May 11 General and Regional Elections.

Former PPP/C Government Minister, Irfaan Ali

This is according to former Minister of Housing and Water Irfaan Ali, who said that unless Government moves to newer and improved means of sprucing up the economy, the situation will not see any improvement.
According to him, “It is no secret that things have slowed down tremendously and investors are playing the waiting game. Unless there is clarity on the economic front, investors would not be positively inclined to spend. Even at the household level persons are holding on to cash as they themselves are insecure about the future”, Ali told this publication.
Ali said the secret to a booming economy could be found in the various regions.
“The question is what Government can do to stimulate the economy in the Region, how can we mobilize private capital to create the opportunities to stimulate or examine alternatives”.
According to him, Regions Six (East Berbice Corentyne) has tremendous potential in becoming the logistic hub of the country. He said the deep water harbour and its connection with Lethem and Brazil is good for the economy.
“Where has this project gone? Why has the sting and excitement over this transformative investment in Region Six disappeared? Is this project on the backburner? Are we still pursuing this as a major platform for our transformative agenda” If so why are we not talking about it and promoting it. I hope this too is not looked at as a PPP vision that would be shelved”.
He said while the initiative was conceptualized under the PPP/C, the question is whether or not it is good for Guyana.
Ali spoke too of the PPP/C’s conceptualization of a bridge across the Corentyne River. He said it is unclear whether the new Government is still continuing the project and if so, asked why isn’t it aggressively pursuing the supportive physical and institutional infrastructure?
“Here I am not only talking about the access road to the new proposed bridge site but also the changes in our legislative and tax system that would allow for the development of a free economic zone and transshipment point. The development of a modern agricultural, packaging and processing facility that would see quality organic products shipped to Europe. This is what would create the excitement and ignite investment in new opportunities outside of the traditional. Unfortunately we seem not focused on what is needed and where the opportunities exist”.
He said the development of a modern housing sector around the free economic zone would see tremendous demand especially from Guyanese in Suriname who may want to return home.
“We cannot wait. Government has to boldly embrace this vision if we are to create new opportunities for the people of Region 6. Whilst these were some of the ideas of the PPP/C it belongs to Guyana and it is in our interest that we pursue it”, he said.
He continued that if these things are not pursued, “then things will become very tight in Region Six.
He continued: “You would see contraction, retraction and economic ruins all of which can be avoided with decisive action.”
Further, Ali posited that there is absolutely nothing that Government could say to motivate a rice farming household to spend.
“So in Regions Two, Three, Five and Six things look gloomy. Of course this outlook is supported by farmers saying they will not go back to the crop. What are the economic alternatives? What incentives are being designed to examine any possible alternative? With sugar still experiencing major problems and the outlook in terms of price is not encouraging, serious times are indeed ahead”.