A possible benefit of the US economic decline

Dec 28, 2008 Peeping Tom

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As I reflect on 2008 and previous years and look towards 2009 and the next decade, I realize even more Guyanese everywhere cannot any longer take the economic stagnation of our dear land. I will present a case study here for our Government and Diaspora to consider.
INTRODUCTION:
Development of Guyana will not come primarily from U.N aid programs, foreign loans and other foreign aid. These programs by their natures only induce the recipient to follow a welfare mentality of perpetual begging.
For proof, survey all the countries that have been recipients of U.N aid programs, IMF Loans and World Bank loans and you will see that an overwhelming majority of them are still in a state of mediocrity and mendicancy (with the economic meltdown, these funds will automatically dwindle).
Why? Nature has ordained that development does not come about through charity but through industry and self determination.
The Bible recognizes this, that’s why the only charity that was allowed was individual to individual charity via the gleaning of fields. Non usurious loans were given to the poor, but when the poor could not pay back they were sold into slavery to work off their debt. Even the poor man’s cloak was allowed to be taken as collateral with the stipulation that it be returned to him before nightfall. The end goal of such a system is that everyone is forced to work and eke out a living based on ethics, industriousness, innovation and thrift. The very threat of being sold into slavery over debt default forced the ancients to be future oriented, less hedonistic, frugal and more enterprising. Surveying the scriptures, one cannot find a welfare state based on the constant begging and indebtedness.
THE DEPENDENCE MINDSET:
The Government of Guyana thinks that glory and prosperity will come from our begging for remittances from family abroad, donor organizations and foreign countries. This is a mentality of failure that must be expunged. For Guyana to start its developmental ascendancy it must tap into the expertise, entrepreneurship and the capital of Guyanese everywhere. It must be truly independent in spirit, and tap into its own. Jesus gave the parable of the servant that buried his talent into the ground and later on made the poignant statement that many of us Biblically literate Guyanese seem to gloss over, “For whosoever hath, to him shall be given, and he shall have more abundance: but whosoever hath not, from him shall be taken away even that he hath.”
Guyana’s economy eerily mirrors this parable. The little that we have, we do not use, and this little is taken away from us in the form of migration of our skilled citizens, etc. Even the remittances that are sent to Guyana to ease our burdens are then used to purchase foreign products, thereby resulting in the dollars making an about turn towards North America after merely spending about three weeks in Guyana.
BUILDING OF A NEW CITY:
Anywhere but the coastal plains
I have always envisioned a city around the international airport. This is high ground, fertile soil with hills and water. In North America, one pays high dollars for such real estate. My intention here is to state an avenue for Guyanese to build a solid foundation for Guyana’s economic advancement. This avenue is clearly the overseas Guyanese that are about to retire in North America and Europe. Most of these Guyanese will either retire in Florida, Georgia, Arizona, Costa Rica or Panama. My question is why should these places be privy to having the wealth of Guyanese retirees spent in them? Retirement living is a big industry and it makes up a large part of the economy in Florida and Arizona.
My contention is that we as Guyanese under the leadership of the Government need to make Guyana the primary retirement place for overseas based Guyanese. This would stimulate the economy and bring in hard foreign exchange.
Creating communities in new areas where electricity, water and modern healthcare system is in place is a must. The issuing of land with a year to build, private partnerships in building of homes for Guyanese to retire, golf courses, healthcare facilities, etc, will spawn an industry of its own.
All this will be done without any donor help. We know until we solve our security issues in our nation, improve our investment climate and install a friendlier government this case study is null and void.
CASE STUDY:
Let us use a hypothetical example of 10,000 Guyanese retirees returning to Guyana from North America. The social security (Government Pension) to be collected from each retiree would be about $850 per month with a pension of an extra $1,000 per month. This is a conservative estimate. Doing the math 10,000 x ($850+$1000) = US$18,500,000. This translates to $18,500,000 US per month coming into Guyana. (Please keep in mind that this is a conservative estimation). Per year this would be US$222,000,000.00. If we moderately assume that we have a maximum number of retirees of 50,000 this would easily give our local economy US$92,500,000 per month or US$1,110,000,000 per year in foreign exchange. Remember this is a conservative estimation and it doesn’t take into consideration the life insurance policies and other assets that will likely to be transferred into Guyana’s economy when the retirees actually come home. Now I humbly ask: will the Guyana economy be better off with an extra billion US dollars or worse off? It is understood that there are also many other factors involved such as sale of houses, stock plans, etc.
An extra billion dollars in Guyana’s economy will greatly boost economic activity and start us on a path of development unseen before in her history.
The tax base will be enlarged and tax revenues for the government will increase, and this can be put towards the building of roads, highways and water infrastructure to facilitate further economic expansion. Additionally, with increased commerce, there will be more incentives for workers to move into the private sector instead of over burdening the public sector. Also skilled workers would have a reason to remain in Guyana since opportunities will be greatly increased.
CONCLUSION:
What the Government of Guyana needs to do to make this a reality is create a Ministry of Economic Development, among other duties, to cater for overseas Guyanese retirees since this market is much easier to get than the objective global tourist.
Of course certain infrastructure needs to be in place such as proper security, healthcare, and a reputable international bank, which could facilitate proper global security transactions quickly as they relate to brokerage accounts (many retirees are millionaires and when they want to sell shares quickly they must be able to do so pronto).
But these things can be and ought to be put in place by our Government. It is simply a matter of providing the right incentives along with the invitation. Healthcare will be the most prominent, and this involves having qualified physicians and well stocked pharmacies, but all these costs can be and will be met by the influx of foreign currency that the retirees will bring.
Until next time “Roop”.

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