The “Roop” Column – Money and Security

Jun 22, 2008 Features / Columnists

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– Need jobs, jobs and jobs to solve crime

Peter R. Ramsaroop, MBA, Chairman Vision Guyana

INTRODUCTION:
There was finally a meeting between the President and Opposition Leader in the past week. The after effects from both sides were surprisingly very soft and loving, but lack any concrete plans to address the critical issues facing our nation as it relates to the economic recession and security.

In macroeconomics, a recession is a decline in a country’s gross domestic product (GDP), or negative real economic growth.  An alternative, less accepted definition of recession is a downward trend in the rate of actual GDP growth.  A recession more ambiguously is “a significant decline in economic activity spread across the economy, lasting more than a few months.”

A recession may involve simultaneous declines in coincident measures of overall economic activity such as employment, investment, and corporate profits. Recessions may be associated with sharply rising prices (inflation) in a process known as stagflation.  

As I mentioned many times before, although the minimum public sector wages were increased over the years, the purchasing power to the consumer has been reduced, due to the high inflation rate of over 13 %. When VAT is taken into account, along with significant increase in food items, the impact is even greater.

Every day we see on NCN TV how minimum wages have increased over the last 15 years from $3,000 to $28,000, but we never see the other side of the coin which shows that the purchasing power of that same dollar has decreased significantly over the last 15 years. 

USA’s Newspaper columnist Sidney J. Harris distinguished the terms this way: “a recession is when your neighbor loses his job; a depression is when you lose your job.”

Proposed Short Term Economic Plan
GUYANA’S TAX REDUCTION to spur Economic Activities

a.  I believe in the supply-side economics which suggest tax cuts to promote business capital investment. Tax Cuts to existing and new businesses for an expansion in economic activities.

b.  Tax cuts to individuals, will enable more purchases, preferably to buy local products.

c. I have called for this before, G$10,000: Government Rebate Cheque to ALL persons on the lowest level of taxable earnings, and below, with a TIN (Tax Identification Number). (Government collected over 40% more VAT revenues than they projected)

d. A significant reduction in income tax and VAT.  Specifically a reduction of VAT to 7% which will equal the real need of the Government.

e.  In addition, an increase of the tax threshold to $50,000 which will deflect the significant rise in inflation.

2. PUBLIC PRIVATE PARTNERSHIP (P3)

a. Develop a public private partnership (P3) to pursue real opportunities where people can have jobs.  This should include micro loans to citizens for business ventures.  Concentrate on depressed communities initially.

3.  SECURITY:
1.  Create and enhance an Intelligence Rapid Deployment Unit in our Police Force

2.  PAY, PAY, PAY, better, – Use VAT excess money, create incentives for citizens to want to join the forces, with representation from all of Guyana’s all races.

3.  Train the Force to be Professional and Fair – What has happened to our Justice System? Where are our search warrants before breaking down of doors or destroying properties, or bringing suspects in for questioning?

4.  Develop a true forensic laboratory where scientific tests are done on ballistics, not just “oh that is from 1976 or it was from a gun used to kill someone else.”

5.  The court system must be utilized by the police forces to obtain warrants and the police must prove just cause prior to searching or arresting citizens.

What will happen when NEW MONEY is infused in the Economy?
Every dollar spent can have a multiplier effect of at least ten times, which will create more business transactions, with more revenues, and more taxes to be paid to GRA.

In a true free market economy, citizens, entrepreneurs, and businesses, are the key drivers to economic progress, with very little interference from Elected Governments. All Guyanese need our elected leaders to actively pursue free market economic policies, to enable ALL to achieve an improved quality of life. I believe all of this can be done but with a social conscience. Diversification of our industries will create new jobs for our citizens.

CONCLUSION:
This country’s leadership has been forfeited for the sake of the party and leaders have succumbed to the tantalizing seduction of power.  However, experience and influence do not equate to good leadership. Likewise, leadership need not be the equivalent of brash leadership. Leaders are capable of adhering to their convictions over party expectations. This is the type of leadership we need in Guyana.

We need bold leaders from all walks of life who are qualified and optimistic men and women with the courage of their convictions and the vision to lead our nation to greatness. The anaemic state of the current leadership is obvious in so many ways, but it is more than obvious how faint-hearted they really are when considering the state of our national security.

We need a total mobilization of Guyanese at all levels of our communities in Guyana and the Diaspora without any party affiliations, who can help create jobs in Guyana, and lead without fear or Favour. Guyana needs a “Government of laws”, not one of “Whims and Fancies of our Elected Leaders.” 

We need to get over the political bickering; we need to get on with the business of solving the nation’s security and economic problems: Let’s get on with running the business of our country and get over the pettiness of our politics. Together we can win for our today children.

Email: Peter.ramsaroop@gmail.com    www.visionguyana.com

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