Those expanded relations with the East were timely

Oct 08, 2008 Features / Columnists

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The word on the lips of the analysts is that the entire world would be affected by the crisis currently gripping the United States. Loan banks have collapsed and many people are now jobless. Companies are bracing for the worst; families are wondering whether they would be able to keep their homes and those who had plans for their children to attend college must now review those plans.

This ripple from the collapse is being felt around the world because most of the economies around the world are tied to that of the United States. Currencies are measured alongside the US dollar and precious metals and oil are also valued in US dollars; such is the power of that country.

It was not always like that but after 1945, that country’s economy really took off and with it the rest of the world because many countries saw the need to become allied with the United States since it had played a major role in rescuing the world from what was seen as an unholy attack by Adolf Hitler.

Japan was a case in point and today that country is one of the richest in the world with an economy so great that its power can be felt all over the world. Japanese products predominate in almost every country, and every country rushes to do business with Japan.

In Guyana, almost all of the motor vehicles are of Japanese make and design.
But it was not always like that because Japan was on the other side of the war that the United States fought with the rest of Europe and North Africa. Japan sided with Hitler.

When the Guyana Government decided to look for economic partners other than the United States and the rest of the western world, there were many who cast blame at it for seeking to take Guyana along what they say was the path of underdevelopment. But the government has always been forced to look at the global trends and it saw the growth in other quarters of the world.

China, with the fastest growing economy in the world, could help Guyana develop its economy and with its large population, could be one of the best markets that Guyana could hope to penetrate. 

Timber and bauxite are in demand in China and this country has timber in abundant quantities but a paucity of skills to harvest the quantities demanded by markets like China, notwithstanding the pressures by the environmentalists to preserve the forests which they see as the lungs of the earth, is a problem.

It is not that Guyana ever failed to recognize the importance of China.  Nearly four decades ago when the rest of the world felt that China was pariah, Guyana established diplomatic relationship with that country.

That act is not being forgotten by the Chinese and they have contributed significantly to this country, first by offering contracts that were far beyond the scope of anything this country was offered by anyone else.

The most recent offer stands on grounds at Liliendaal and the government is grateful and there is more being done at Skeldon. Guyana therefore decided to expand trade and other relations with the Chinese.

Today that decision is becoming more meaningful, especially when one considers what is happening with the established trading partners.

A shrewd government also looked to India, another large country with a large economy. This has placed Guyana in a position to avoid in some measure the fallout that is likely to be felt following what is happening in the United States.

The government was aware that alliances needed to be formed with many countries and blocs in keeping with the principles of non alignment.

Those critics who saw the move to the East—India and China—must now recognize that a government that cares always keeps thinking about the likely effects of placing one’s eggs in one basket. No one should seek to blame the government for looking beyond the narrow borders.

It is the same with the move to establish formidable links with the countries to the South, among them Brazil and Venezuela. Only good could come to the people of Guyana and because of these measures the government should be given credit. These trading links will mean a lot in the coming days when the European Union seeks to pressure this country into signing an agreement that could hurt this country.

People, therefore, should not rush to blame the government when it takes decisions that in the long run prove to be wise. Instead, people should form a partnership with the government and seek explanations for certain actions that they may not understand at the time.

Guyana will survive and even come out ahead after this crisis that has hit traditional trading partners and full credit must go to the government.

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