Latest update November 26th, 2024 1:00 AM
Financial crisis could lead to more state regulations
– Donald Ramotar
The financial crisis that rocked the world in recent times has been blamed on the widespread unregulated private sector in the U.S., particularly after 2000, according to the People’s Progressive Party’s executive organ, as was reported to the media by the party’s General Secretary Donald Ramotar.
Donald Ramotar
He announced this during a recent press briefing at Freedom House, the party headquarters, and said that what is clear is that the neo-liberal model which took hold in the world in the early 1980s has failed, and the financial crisis represents the final confirmation.
“Indeed, all the ideologues who in the past advocated that the state should stay out of the economy and allow the free market to operate in an unfettered way have now resorted to the state to prevent further disasters.”
According to Ramotar, it is clear that the removal of state regulations in the financial market since the year 2000 was one of the main contributory factors to the recent crisis, in that the unregulated development of the economic sector led to massive speculation, greed, and the eventual collapse of many important financial institutions.
“This crisis can also spread to the productive sector of the economy. Already, we are seeing that thousands of workers are being put on the bread line…Many analysts believe that the worst is still to come.”
He noted also that while Guyana’s economy at the moment is not seriously affected, in this highly dependent world, it will have an impact on us.
One area that appears to be at risk, said Ramotar, is that of remittances “which the statistics show are significant during the year…Moreover, if credits become restricted, then some projects could be affected.”
He added also that it is believed that if the crisis leads to a contraction of demand, it could lead to falling commodity prices.
“That, too, can have an impact on our economy, since we depend heavily on exports of our commodities, due to our small internal market.”
When asked whether Guyana could see increased state regulation of the private sector in the future, to ensure that there is no meltdown in Guyana, Ramotar said that, as it is now, all state regulations have not been disbanded.
As it relates to an increase, then it would have to be dealt with on a case-by-case basis.
He posited that if the crisis worsens then the situation will have to be assessed. (Gary Eleazar)
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