CONNECT: Guyana’s poor – Brazil’s rich

Aug 03, 2008 Features / Columnists

Peter R. Ramsaroop, MBA, Chairman,
Vision Guyana
INTRODUCTION:

Brazil is the number one global producer of five key products, including coffee and orange juice.

It is also the number two producer of soybeans and kidney beans and the number three producer of corn and the number four producer of cocoa. It is the second largest producer of beef and has the second largest herd in the world as well.

Brazil produces more than 32 percent of the world’s global production of oranges and is the top exporter of concentrated juice, of which it produces 90 percent. Brazil is also the leader in Ethanol production.

Paving the road from Guyana to Brazil would present both countries with an amazing set of opportunities to generate significant economic activity and create domestic wealth.

Our growth can only be fuelled by a combination of market-friendly economic policies and advances in agronomy that have brought formerly unusable tropical lands into production and increased productivity levels.

The Cabinet has yet to propose an economic plan for our nation because they are so caught up in pushing legislation through Parliament to cover up bad decisions in relation to concessions.

Brazil is in the top ten of wealthy countries and Guyana, next door, is in the top ten of the poorest countries.

Wake up YOU politicians who have been entrusted to create the right policies for our economic growth; wake up and take the drive to Brazil, wake up and pass the correct legislations that will create a friendly investment climate and stop being afraid of immigrants. They can’t vote until they become citizens, so you will not lose power right away.

THE DRIVE:

This last week I drove from Georgetown to Lethem and then to Boa Vista in Brazil. It took over fourteen hours to drive to Lethem from Linden and less than two hours to get to Boa Vista.

The roads were in bad shape, bridges had floated away, very deep holes that saw trucks get stuck.
If the road was paved it would have taken about five hours to drive to Lethem from Linden.

This is beautiful land in the heart of our country; many of us would rush to move if we had the infrastructure necessary such as electricity, roads and water. Some like me would move there even without all of that.

I would recommend every reader of this column to take the trip; you would be amazed that this is Guyana and not Colorado or Texas.

The bridge that Brazil built to Guyana is completed and a masterpiece of construction. From anywhere in Brazil you can drive to get to this bridge on excellent roads, but as soon as you come over to our side in Guyana, you will think you are in the 1940s, where all you see is red dust roads.

Brazil has spent millions of its tax payers’ money to build the bridge to Guyana, yet our government has spent none of our tax dollars to even pave an inch of the road.

WHAT IS IN IT FOR US?

Linking Guyana to Brazil by building the long awaited paved highway could initiate the first step of several dramatic developments including a deep-water harbour, a Free Enterprise Zone and other infrastructure elements necessary for Guyana’s economic landscape to be transformed to a trans-shipment hub to North America and Caricom.

Brazil has already created export free zones in their border towns, but we are yet to look at our options in the Rupununi region.

Where then does “We” Guyana place in the hunt for global capital and the jobs that may follow and how can Guyana become competitive in an increasingly fierce battle for foreign investment?

With all of Guyana’s resources, what are the necessary prerequisites to eradicate poverty in the face of so much “potential”?

Furthermore, as economic activity grows over the years and new villages are formed, other financial opportunities will naturally become available.

Immediate jobs created by this project would include construction jobs needed for the building of this major highway and transportation job for drivers of large 24-wheeler trucks.

Those trucks which would be coming with goods for shipment out of our harbours or economic free zones, another aspect that must also be part of this initiative, will then go back full with our products.

Customs and immigration jobs would also be created to manage border traffic and to collect appropriate fees from vehicles.

Border management jobs would be created since we must open up the country thereby necessitating the strategic management of Guyana’s borders against drug trafficking and smuggling.

Guyanese could become owners of transportation companies instead of driving minibuses. Computer related jobs would serve as the backbone of a sophisticated, well-run freight hauling and logistics management industry.

There would also be a need for hospitality management and service related jobs associated with increased economic activity along the roads such as gas stations, hotels, motels, restaurants, entertainment, etc.

INVESTING IN OUR FUTURE

For Guyana to transform its economy it has to become a transshipment point for Brazil and Eastern Venezuela.

From an international relations perspective, it means special relationships with Brazil, Venezuela, Suriname and French Guiana. Cross-border development is vital for Guyana’s growth and future economic expansion.

Guyana’s public policy and civil society climate can work together to attract investment by being good investment partners, by international promotion and by building the people’s skills through training.

Guyana has, for too long, been a victim of a stunted economic system due, in large part, to the very types of behaviour exhibited by our politicians’ intervention into the private sector. Protectionism will not strengthen this country’s failing economy; it will only further inhibit growth.

An open arm economic policy could thrust Guyana into a position to compete on a global level and, in the process, pull the country out of this encumbering poverty.

CONCLUSION:

From this discussion it is clear that Guyana has opportunities and obstacles. The availability of raw materials, labour and the possibility of regional integration are clear opportunities.

Political stability and policies that create a climate conducive to investment sadly are currently less clearly positive.

This would also have a tremendously positive impact on Guyana’s agricultural sector and would create the opportunity for Guyana to open its vast rural lands to expand its exports to markets Brazil has already created.

This is what our Minister of Agriculture should be focusing on, not just for everyone to grow more food, but grow key produce that can be exported to larger markets. This is where you and me will get our returns and create wealth.

All of us growing more food with the little seeds given to us from the Ministry will not improve our economy; we must learn to do things in large quantities and concentrate on following the market, in which Brazil has already proven that they can export US$150B of agriculture products to North America.

A railway for freight would also create additional commercial synergies, efficiencies and profits. Global trade seems to be following the trend of competing regional trading blocs.

Brazil is clearly the leading economy in South America and the engine of its mighty economy could be the driver to sustainable economic development in Guyana and CARICOM, as well as in other South American countries, thereby easily positioning the continent to be the go-to region for agriculture, oil and much more for the next century.

To see a full realisation of the abundant possibilities that are just around the corner, it is time to connect Guyana and Brazil and to work together for the best possible return on the continent’s potential.
Guyana and Brazil…Potential meets Opportunity.

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Website: www.visionguyana.com