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FM
Former Member
The Destruction of the Nation’s Productivity
By TARRON KHEMRAJ |
DAILY, FEATURES | WEDNESDAY, JUNE 22, 2011

I support the basic idea of Mr Rajendra Rampersaud’s letter on total factor productivity (SN June 15). I cannot argue against Mr Rampersaud’s letter, except to note that I have some technical differences with respect to what can determine per capita income growth in the early stages of a country’s development. Indeed, growth can result from natural resource extraction in the short-term without any significant technological and managerial progress, which TFP growth implies. However, in the long-term, as my friend Rajendra argued, income growth results mainly from higher quality restructuring of the economy. In other words, economic progress will eventually stagnate for any society which follows the strategy of extracting raw materials and selling to the rest of the world. Should Mr Ramotar win this election, I hope Rajendra would be hammering home this point to the new President because of how fundamental it is. This type of discussion has been sorely lacking in the PPP since 1992. I went to Accabre in 1992 and not a single lecturer, from Dr Cheddi Jagan to Dr Henry Jeffrey, mentioned this point.

I have made the exact point raised by Mr Rampersaud several times in previous Development Watch columns and letters to the press (for example see my letter on science policy SN, July 8, 2009). In my recent academic paper “Elected Oligarchy and Economic Underdevelopment: The Case of Guyana”, I argued that one of the channels through which the Jagdeo oligarchy retards economic progress is the destruction of the nation’s TFP.

So what is TFP? It is an aggregative measurement of how efficiently an economy or society is utilizing its natural resources, its people (or human capital), investing in physical capital (roads, bridges, power plants, IT capacity, factories, ports, etc), educating its people and maintaining the rule of law. TFP is therefore a measurement of how efficient the society is at employing its assets and resources. It signals technological progress and public and private management capabilities. Education, engineering, mathematics, the sciences, the arts, democratic freedoms, finance and the rule of law are all fundamental to TFP growth in the long-term. It is TFP growth which allows a nation to circumvent the natural resource curse. As is generally acknowledged in the literature, Trinidad and Tobago and Norway are the two countries which have escaped the oil resource curse. Botswana has also done quite well with diamonds. Otherwise it is difficult to find other countries which have achieved a relatively high level of development with only natural resources. I shudder to think what will happen to Guyana if the present Jagdeo oligarchy finds oil.

My friend Rajendra wants us to decipher some of the root causes for the negative TFP growth Guyana has experienced over the decades and particularly during the Jagdeo years. I believe I have given several of these constraints in my Development Watch columns and in my oligarchy paper which I can email to anyone who would like an updated version. However, I would like to use this space to outline some of the things I believe are responsible for stifling Guyana’s economic progress. I do not believe this list is exhaustive and there must be other constraints I hope other Guyanese will identify.

The first constraint would be the sub-optimal investments in physical capital. This includes the GuySuCo Skeldon factory, the one lap top project (versus placing IT departments in High Schools and community centres), the Fip Motilall fiasco (thus diluting a perfectly good idea to have a hydroelectric project), and the proposed government investment in a Marriott brand hotel. Why must the government subsidize a foreign hotel brand when many Guyanese private investors have taken on this risk by themselves? Why not use the money for other industries? I have nothing against a Marriott coming to Guyana, but it must be done fully by private investors.

Those who do not accept my position on the hydroelectric project ought to take a look at the signals coming from Banks DIH and DDL. These two great Guyanese corporations have signalled no confidence in the government’s hydro project implementation by investing heavily in their internal power generation. This should never have to occur since these two corporations pay taxes and they ought to have received better services. This cannot be good for the nation’s production efficiency when firms need to provide their own services that should be provided by the state. Of course, several analysts have already noted that the Berbice floating bridge of the year 2009 was not the best choice of project. The price to cross the bridge is also a signal that the World Bank’s proposal to make the ferry service faster would have been better at this moment in Guyana’s history.

The second is the stifling of private investors who are considered unfriendly to the government. The independent press has reported cases of favouritism where a law in Parliament was passed for one businessman, yet another businessman was in a public war of words with the President (I have documented these in my “Elected Oligarchy” paper and earlier columns). Once some investors are favoured while others are penalized we are limiting management capacity and setting the stage for limited TFP growth. I have explained several times how this oligarchy evolved in the past twelve years. Essentially, one person was able to use the Marxist-Leninist method of Democratic Centralism to consolidate power by selecting like-minded leaders. These like-minded leaders are then offered to the nation in free and fair elections. Once these PPP leaders enjoy a taste of the mildly tinkered 1980 Burnham Constitution we can expect a particular public management structure – which aims to place business formation and natural resources in the hands of a selected few – to get embedded in the society. I believe this structure has been harmful to the nation’s efficiency and now the distribution of wealth.

Third, given the entrenched ethnic voting patterns, there will be a feeling of alienation and marginalization within the group which did not win the election. Each of the main ethnic group is vying to install its own societal control system. In the old PNC days we had party paramountcy, while today be have elected an oligarchy which is born out of the internal party Machiavellian cut-throat struggles and which promotes the interests of selected family and friends while maintaining the masses at just about subsistence level. But we all shoot ourselves in the feet at the end of the day as the productivity of the nation is diminished. Furthermore, once there is alienation, real or perceived, the nation is at best destroying and underutilizing its human capital. It is also now well documented that diverse opinions in management and science leads to innovation and superior technical change. Unfortunately, the present system in Guyana does not allow for this type of change. In my opinion there are two ways to circumvent this constraint: (i) elect multi-ethnic political party which then possesses the legitimacy to form a multi-ethnic government; and (ii) constitutional reform that allows for the latter.

The acute shortage of human capital or skilled labour is the fourth constraint of TFP growth. As a matter of fact, they reinforce each other in a kind of adverse circular causation. Limited skills reinforce low TFP growth which in turn reinforce limited growth – hence opportunities for skilled labour. As the World Bank’s migration data show, Guyana is the highest exporter of skilled workers – 89% migrate. This shortage adversely affects every aspect of the society.

There are few skilled workers to implement and monitor policies for the state, fewer investors, fewer scientists and engineers, fewer teachers and doctors. Civil society also takes a beating as there are fewer people to challenge the President’s policies.

There are also fewer ground soldiers to run a robust political campaign. There are other constraints – like limited financial sector development – which I will not get into now; but I hope Guyanese will identify more and seriously ponder how to mitigate them.

Send comments and criticisms to:

tarronkhemraj@gmail.com

Source

Replies sorted oldest to newest

quote:
Originally posted by Ramakant_p:
The contents of this article was written already by ten different members of the opposition..

Just because you cannot get you little head around an array of economic dependencies and complexities does not mean others cannot. These are key pillars for sustained economic growth, a subject-matter which the man TK is an expert at. Now, try to digest without popping an artery.
FM
quote:
Originally posted by baseman:
quote:
Originally posted by Ramakant_p:
The contents of this article was written already by ten different members of the opposition..

Just because you cannot get you little head around an array of economic dependencies and complexities does not mean others cannot. These are key pillars for sustained economic growth, a subject-matter which the man TK is an expert at. Now, try to digest without popping an artery.
And TK's got tenure now too.

Anyone knows what's up with Dr Randy Persaud now? From what I understand, because of his little escapade in NY, he cannot get tenure nor his citizenship...
FM
quote:
Originally posted by ball:
He still around that thing in NY is no big deal he still saying that the people in Guyana stupid and he more smart than all of zhem
lol he prapah smart.
FM
quote:
Originally posted by Zen:
Is he writing about "Constraints" or "Destruction" of the Nation’s Productivity?
They have different meanings.
the constraints ie the oligarchic expression of our democracy does indeed destroy our productive capacity. If shuts out one half of the population from a sense of being involved in their nations development. It breeds resentment and generates the sense of marginalization ( actually it is by definition marginalization when one group alone makes all the decisions) An example is the beal deal, the oil concessions, the berbice river bridge the Stadium, the grant of our money to Buddy and recently the Indian furniture company deal that give away 4% of our state lands. These decisions are not for the PPP do construct in secrecy. They to be debated in parliament. If they have the votes to pass anything why the secrecy?
FM
quote:
Originally posted by Ramakant_p:
The contents of this article was written already by ten different members of the opposition..



See dat? They shoulda listened and taken heed the first nine times.
cain
quote:
Originally posted by baseman:
quote:
Originally posted by Ramakant_p:
The contents of this article was written already by ten different members of the opposition..

Just because you cannot get you little head around an array of economic dependencies and complexities does not mean others cannot. These are key pillars for sustained economic growth, a subject-matter which the man TK is an expert at. Now, try to digest without popping an artery.


TK is not an expert. His ideas are all from text that he read..
FM
quote:
Originally posted by Ramakant_p:
quote:
Originally posted by baseman:
quote:
Originally posted by Ramakant_p:
The contents of this article was written already by ten different members of the opposition..

Just because you cannot get you little head around an array of economic dependencies and complexities does not mean others cannot. These are key pillars for sustained economic growth, a subject-matter which the man TK is an expert at. Now, try to digest without popping an artery.


TK is not an expert. His ideas are all from text that he read..


And you get your education from the rum bokkle labels... yippie

Rama tell us after leaving the Customs job in Guyana, what sort of academic advancement you made since?
Mitwah
quote:
Originally posted by Ramakant_p:
quote:
Originally posted by baseman:
Just because you cannot get you little head around an array of economic dependencies and complexities does not mean others cannot. These are key pillars for sustained economic growth, a subject-matter which the man TK is an expert at. Now, try to digest without popping an artery.


TK is not an expert. His ideas are all from text that he read..

And yours pop our the rum bottle, right!!!
FM
quote:
Those who do not accept my position on the hydroelectric project ought to take a look at the signals coming from Banks DIH and DDL. These two great Guyanese corporations have signalled no confidence in the government’s hydro project implementation by investing heavily in their internal power generation.


Well the access road is not done. Hydro project in jeopardy.
T
Maybe you like to read SHIT whole Day. The man is an IDIOT trying to be an Economist.
quote:
Originally posted by Rahmah bin Jabr:
quote:
Originally posted by Nehru:
More SHIT writing again. Is deh Belly Wuk THE FC geting.


Big Grin - Yet another insightful post for GNI's village idiot. Bhai, tek yu medication.
Nehru
I am me and will ALWAYS be me. I am jnot here to FOOL the Guyanese Peoples in order to attain POWER AND WEALTH.!!
quote:
Originally posted by Rahmah bin Jabr:
quote:
Originally posted by Nehru:
Maybe you like to read SHIT whole Day. The man is an IDIOT trying to be an Economist.


And what are your trying to be - Buggarat's concubine?
Nehru
quote:
Originally posted by Rahmah bin Jabr:
quote:
Originally posted by Nehru:
Maybe you like to read SHIT whole Day. The man is an IDIOT trying to be an Economist.


And what are your trying to be - Buggarat's concubine?

Bin jabr mitwa, if you’re a pig, I will refuse your free poke
FM
quote:
Originally posted by Dave Matrix:
quote:
Originally posted by Rahmah bin Jabr:
quote:
Originally posted by Nehru:
Maybe you like to read SHIT whole Day. The man is an IDIOT trying to be an Economist.


And what are your trying to be - Buggarat's concubine?

Bin jabr mitwa, if you’re a pig, I will refuse your free poke


Why don't you just continue daubing your grandparents battam house in Enterprise.

Even your mother refused to raise you. Reflect on that. coffee
FM
quote:
Originally posted by Rahmah bin Jabr:
quote:
Originally posted by Dave Matrix:
quote:
Originally posted by Rahmah bin Jabr:
quote:
Originally posted by Nehru:
Maybe you like to read SHIT whole Day. The man is an IDIOT trying to be an Economist.


And what are your trying to be - Buggarat's concubine?

Bin jabr mitwa, if you’re a pig, I will refuse your free poke


Why don't you just continue daubing your grandparents battam house in Enterprise.

Even your mother refused to raise you. Reflect on that. coffee

Mitwa, tell the guys about your famous story at birth…when you were born, you confuse the neighbors and the midwife to an extent that initially they had you upside down…you’re a$$ look like your face and in many respect even better.

lol
FM
quote:
Originally posted by Dave Matrix:
quote:
Originally posted by Rahmah bin Jabr:
quote:
Originally posted by Dave Matrix:
quote:
Originally posted by Rahmah bin Jabr:
quote:
Originally posted by Nehru:
Maybe you like to read SHIT whole Day. The man is an IDIOT trying to be an Economist.


And what are your trying to be - Buggarat's concubine?

Bin jabr mitwa, if you’re a pig, I will refuse your free poke


Why don't you just continue daubing your grandparents battam house in Enterprise.

Even your mother refused to raise you. Reflect on that. coffee

Mitwa, tell the guys about your famous story at birth…when you were born, you confuse the neighbors and the midwife to an extent that initially they had you upside down…you’re a$$ look like your face and in many respect even better.

lol


Dave, you are revealing the true cause of your headaches since childhood, you slipped off the midwife's hands and bang you head on the cowdung floor. lol
Tola
quote:
Originally posted by Tola:
quote:
Originally posted by Dave Matrix:
quote:
Originally posted by Rahmah bin Jabr:
quote:
Originally posted by Dave Matrix:
quote:
Originally posted by Rahmah bin Jabr:
quote:
Originally posted by Nehru:
Maybe you like to read SHIT whole Day. The man is an IDIOT trying to be an Economist.


And what are your trying to be - Buggarat's concubine?

Bin jabr mitwa, if you’re a pig, I will refuse your free poke


Why don't you just continue daubing your grandparents battam house in Enterprise.

Even your mother refused to raise you. Reflect on that. coffee

Mitwa, tell the guys about your famous story at birth…when you were born, you confuse the neighbors and the midwife to an extent that initially they had you upside down…you’re a$$ look like your face and in many respect even better.

lol


Dave, you are revealing the true cause of your headaches since childhood, you slipped off the midwife's hands and bang you head on the cowdung floor. lol

Tola, why don’t you make good and proper usage of your legal rights and stop being a burden to our society….go in a voluntary coma and do it in a damn hurry. Tola, on the eve of your coma, invite all the AFC goons to farewell party-show them that there is a easy way out. lol
FM
quote:
Originally posted by Dave Matrix:
quote:
Originally posted by Tola:
quote:
Originally posted by Dave Matrix:
quote:
Originally posted by Rahmah bin Jabr:
quote:
Originally posted by Dave Matrix:
quote:
Originally posted by Rahmah bin Jabr:
quote:
Originally posted by Nehru:
Maybe you like to read SHIT whole Day. The man is an IDIOT trying to be an Economist.


And what are your trying to be - Buggarat's concubine?

Bin jabr mitwa, if you’re a pig, I will refuse your free poke


Why don't you just continue daubing your grandparents battam house in Enterprise.

Even your mother refused to raise you. Reflect on that. coffee

Mitwa, tell the guys about your famous story at birth…when you were born, you confuse the neighbors and the midwife to an extent that initially they had you upside down…you’re a$$ look like your face and in many respect even better.

lol


Dave, you are revealing the true cause of your headaches since childhood, you slipped off the midwife's hands and bang you head on the cowdung floor. lol

Tola, why don’t you make good and proper usage of your legal rights and stop being a burden to our society….go in a voluntary coma and do it in a damn hurry. Tola, on the eve of your coma, invite all the AFC goons to farewell party-show them that there is a easy way out. lol


Stepped on a nerve Dave ?
Tola
quote:
Originally posted by Dave Matrix:
quote:
Originally posted by Rahmah bin Jabr:
quote:
Originally posted by Dave Matrix:
quote:
Originally posted by Rahmah bin Jabr:
quote:
Originally posted by Nehru:
Maybe you like to read SHIT whole Day. The man is an IDIOT trying to be an Economist.


And what are your trying to be - Buggarat's concubine?

Bin jabr mitwa, if you’re a pig, I will refuse your free poke


Why don't you just continue daubing your grandparents battam house in Enterprise.

Even your mother refused to raise you. Reflect on that. coffee

Mitwa, tell the guys about your famous story at birth…when you were born, you confuse the neighbors and the midwife to an extent that initially they had you upside down…you’re a$$ look like your face and in many respect even better.

lol


Forget Mits Null. I am Rahmah bin Jabr and for the second time I assert that YOUR MOTHER ABANDONED YOU. Do you deny this? A simple YES/No will suffice coolie.
FM
quote:
Originally posted by Rahmah bin Jabr:
quote:
Originally posted by Dave Matrix:
quote:
Originally posted by Rahmah bin Jabr:
quote:
Originally posted by Dave Matrix:
quote:
Originally posted by Rahmah bin Jabr:
quote:
Originally posted by Nehru:
Maybe you like to read SHIT whole Day. The man is an IDIOT trying to be an Economist.


And what are your trying to be - Buggarat's concubine?

Bin jabr mitwa, if you’re a pig, I will refuse your free poke


Why don't you just continue daubing your grandparents battam house in Enterprise.

Even your mother refused to raise you. Reflect on that. coffee

Mitwa, tell the guys about your famous story at birth…when you were born, you confuse the neighbors and the midwife to an extent that initially they had you upside down…you’re a$$ look like your face and in many respect even better.

lol


Forget Mits Null. I am Rahmah bin Jabr and for the second time I assert that YOUR MOTHER ABANDONED YOU. Do you deny this? A simple YES/No will suffice coolie.


Actually, I must thank your mother for the wonderful hospitality she rendered to me all these years…..she indeed filled the void.
FM
quote:
Originally posted by Rahmah bin Jabr:
Sorry Null, I am not your father. My mother is not your grandmother. coffee



Apparently when Mitwa was creating an account on GNI he also created one for his damaged afterbirth. So he can have multiple handles.
FM

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