| -“But Guyana’s best days are ahead…” Guyana has a relatively small population,Cheap NFL Jerseys Wholesale, landmass and an economy that is vulnerable to international fluctuations in demand and prices. But at the other end of the spectrum, one would recognize that it is a nation that has good development potential, says Finance Minister, Winston Jordan.Finance Minister,Cheap Jerseys USA, Winston JordanBut hovering like a dark cloud over that potential, are high poverty and unemployment.Jordan surmised that when one takes a candid look at Guyana’s position, it is clear that, “We are constrained by a dependent and uncompetitive economy that is highly exposed and vulnerable to external and environmental shocks, changes in terms of trade,Cheap NFL Jerseys China, and foreign investment flows.”He noted that overtime; this can result in major hurdles to sustained growth and poverty reduction.But the picture is not as worrying as it may seem, especially when compared to the country’s ability and potential to surpass these economic hindrances and vulnerabilities. He insists that Guyana’s best days are ahead “if we are energetic, fearless, imaginative, and wise.”He made these remarks as he delivered the feature address at the dinner and award ceremony of the Guyana Manufacturing and Services Association (GMSA).There, he spoke at length about the less than impressive state of the manufacturing industry and challenged those present to do much more. He said that businessmen must break away from the mindset of chasing after a quick dollar by any means. He bemoaned this sort of attitude from those within the sector as he alluded to the fact that it kills development and innovativeness.The Finance Minister said,Wholesale Jerseys, “We have to be the initiators of policies, projects and programmes that aim to harness the creative potential of our private sector into the reality of sustainable development of our country. We must release the productive force and entrepreneurial spirit of individuals, companies and groups.”Jordan said that Guyana has an abundance of natural resources, including fertile agriculture lands; vast areas of tropical hardwood forests of various ecosystems; a multitude of plant and animal species, copious fish and shrimp grounds, both in its numerous rivers and in the Atlantic Ocean; and a wide variety of minerals, including gold, diamonds, a range of semi-precious stones, bauxite and manganese.He said that these provide real opportunities for private sector development, sometimes on their own, in partnership with foreign and local investors, and/or in partnership with the government.Because of its many rivers and close to 365 days of sunshine, Guyana’s potential for renewable energy sources, including hydropower, is immense, Jordan said.“Why does Guyana find itself in today’s paradox of being one of the poorest countries in CARICOM and the Western Hemisphere, while sitting on a treasure trove of national endowments and riches? Why is our growth rate so anaemic?”“Why is our unemployment rate hovering between 10 and 20 percent, as suggested by some reports, with even higher rates in hinterland and rural areas, and in communities such as Linden? Why is our savings rate so low, at just about five percent of Gross Domestic Product (GDP)? Why is our poverty rate over 36 percent (2006 estimate)?”The Finance Minister said that principally, as a result of high gold prices, which fuelled an upsurge in gold production; and a special arrangement, under Petro Caribe, which allowed for a premium price to be paid for over 100,000 tons of rice and paddy, the economy averaged in excess of four percent growth up to 2013.However, by 2014, growth had slipped under four percent and was under one percent in the first half of this year.While the fiscal deficit remains manageable, he said that Guyana’s debt situation, at over 65 percent of GDP, would be a challenge to the public sector’s ability to provide the necessary infrastructure and other facilities and services.He said that the World Bank is unflattering in its assessment of doing business in Guyana. According to the Doing Business indicators,Wholesale World Cup Jerseys, Guyana’s overall rank is 123; cost of starting a business (percent of income per capita) is 11.5 percent; it takes an average of 195 days to deal with construction permits; 442.9 percent of income per capita goes into getting electricity; it takes an average of 75 days to register a property; and the total tax rate is 32 percent of profit.Jordan stressed that there is vast room for improvement, “if we want to encourage our private sector to make a meaningful contribution to economic growth and the reduction of poverty.”He noted too that the nation must be keenly alert to the vulnerabilities and challenges which the economy faces.He said that the business sector represents an engine of growth and employment in this country. However, Jordan said that this sector faces obstacles, including access to finance.By mid-year 2015, Jordan noted, too, that the forestry, sugar, rice, and fisheries sub sectors had all been affected by environmental factors, resulting in lower economic activities and, by implication, lower growth in the nation’s GDP, export activities and balance of payments.“We operate in a competitive world, where countries produce similar products and often, much more efficiently than we do. Guyana’s economy still depends heavily on the production and export of primary commodities,” the Minister said.He added, “We have vulnerabilities due to export and import concentration. If there are global price and demand changes, these shocks are felt throughout the economy, including our balance of payments.“Yet repeated budget speeches of the past administration point to the ‘resilience to the economy’, while failing to acknowledge and recognize that the economy’s characteristics have changed little in the last 50 years.”Jordan said that encouragingly, the data for private sector credit for the third quarter have shown growth, indicative of an improvement in private sector outlook.He said that one must also keep in perspective that Guyana’s economy is producing, in many cases, with aged machinery and aged production processes.Jordan said that he firmly believes that Guyana, with the correct rebalancing of the economy, and with strategic interventions both by the Government and the Private sector, will achieve the “potential” about which we keep hearing.He said that this is a very attainable ideal as President David Granger, has called for Guyana to become a “green economy”.He recalled that the President reaffirmed this call on the international stage when, on September 25,China Jerseys NFL Wholesale, last, he signed the 2030 Agenda for Sustainable Development at the United Nations with over 190 other World Leaders. He said that it which will serve as Guyana’s blueprint for sustainable green development.He said that the manufacturing and business sectors must, take the leadership role to transform Guyana into a resilient nation of high growth, in which all citizens benefit. |
