We need to move beyond this caretaker/narrow vision Govt.

Feb 14, 2010 AFC Column, Features / Columnists

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“Budgets must have a vision that is long-term and transformative. They must not be a mere outline of taxation and spending by the PPP Government.”
The PPP/C has presented its 17th National Budget and once again we are certain that it will not meet the much needed political and developmental agenda and pathway for 2010 and beyond. Any budget for Guyana must portray the belief that we really can make this country successful.
There must be a radical change in the way the rule of law is administered, decisions must be made in a timely and efficient manner, and how the resources of the state are managed for the benefit of all Guyanese.
The right framework for moving Guyana forward also requires that we amend the constitution to force budget decisions to be inclusive and make the budget debate a process that actually impacts government policy and not just an empty charade where opposition MPs get to make speeches but the government just goes ahead and does whatever the Finance Minister proposes in his speech.
The resolution of our many problems and the sustainable development of the country can only come through meaningful consultations and genuine inclusiveness in our decision-making processes.
The repudiation of the Government’s LCDS in Bartica a few days ago is a demonstration of how not to approach the people’s needs and concerns. The AFC will include the people all of the way. Only then will we start to see optimism and hope spring forth for the future of Guyana. We have to go forward on a low carbon path. Many countries recognize this. However the changes and adaptations necessary require that the people be consulted in a meaningful way as accustomed practices would have to be adjusted.
You cannot implement policies which impact negatively on citizens’ accustomed means of livelihood without consulting them on transitional mechanisms and getting their input.
We must realize there is a lot more than caretaking that needs to be done to improve our economy and create jobs, which will then provide hope and opportunities for our people. Our vision for Guyana clearly focuses on the long-term.
We must jettison the aid, grant-driven, and “beg my neighbour” policies which the PPP/C rely on for our development. We must realign foreign policy with an economic agenda for empowering all Guyanese.
The political and economic agenda for 2010 and beyond must portray the understanding that we really can make this country successful by harnessing our most underutilized resource: the Guyanese people. There must be a radical change in the way the rule of law is administered.
As we are focused on the Budget, a priority has to be a return to prudent and lawful management of state funds. There are rules which the Finance Minister must follow. The AFC MPs are going to use Parliament and its committees to try and rein in the illegal use of state funds by the government.
The AFC is of the view that the National Development Strategy (NDS) has a core and broad set of policy proposals that were prepared by distinguished Guyanese. We agree that the economic policy proposals embodied in the NDS are worthy of implementation.
However, we recognize that the NDS would need some updating, especially as it relates to incorporating elements of what we call the green economy (renewable energy, energy conservation, ethanol production, low impact mining).
As the NDS is also quite wide in its scope, we intend to prioritize our policy proposals to achieve high sustained economic progress for all Guyanese. We would like to develop Guyana within one generation as was done in South Korea, Malaysia, Singapore and Taiwan. This is a highly realistic objective and we are confident our policy proposals can achieve this fundamental objective of economic transformation.
Underlying Principles of AFC’s policy Blueprint
(i) The AFC’s vision is to see Guyana produce goods and services that are valuable at home and in global markets. In other words, our goods and services must be at the high end of the global hierarchy of products.
(ii) The demand for Guyana’s goods and services must increase, at least proportionately, when Guyanese income, CARICOM income and world income increase.
(iii) The percentage of high value added activities in total economic activity must increase. In other words, the AFC’s policy framework aims at changing Guyana from a producer of raw sugar, rice and bauxite
(iv) The economic policy framework and new industries must never be to the detriment of any specific ethnic group. All ethnic groups must benefit.
(v) Our economic policies are to be implemented in such a manner so as to promote sustainable development and environmentally friendly production activities.
(vi) Public-private partnerships would be utilized where appropriate.
(vii) Policies and proposals would be realistic and economically viable to achieve a per capita GDP of at least US$8000 in one generation.
(viii) Our policies are aimed at moving the economy from being dependent on aid and consumption oriented remittances to the generation of internal economic growth and wealth and encouragement of investment oriented remittances and foreign direct investment.
(ix) The AFC envisions a broad interpretation of improvement in the lives of Guyanese. The AFC does not see meeting economic targets such as the largest ever tax payments based on the excessive VAT as the only measure of how well regular Guyanese are doing, as is the vision of the PPP.
How does the high VAT translate into acceptable salaries for teachers and police ranks? That is an economic target we want to discuss.
(x) The AFC’s economic policies are aimed at enhancing the productivity of our people, firms and industries. We realize that the only way to increase the incomes – and hence welfare – of Guyanese in the long-term is through the enhanced productivity of labour and capital.
(xi) We seek to promote a caring relationship, shared responsibility, and joint social purpose between labour (and their unions) and investors.
(xii) We support the entry of foreign firms and investment which would form linkages with domestic businesses, transfer technology and information, and utilize domestic components as far as possible.
(xiii) Infrastructure developments must be linked to our development vision.
The AFC proposes that renewable energy, eco-tourism, agro-industrial processing and information and communications technologies (ICT) must be the main thrust of production activities. The government is talking this talk but they are waiting on uncertain funds from other countries. Renewable energy, for example, could be funded by foreign investors.
We can encourage Guyanese homeowners to install solar panels on their roofs by passing a net metering law so that GPL has to buy excess power using renewable energy produced by homeowners.
Therefore, the AFC proposes the following policies as part of a renewable energy economic package. The AFC believes that Guyana’s energy needs should me met with a portfolio of renewable energy sources rather than a single energy source (the PPP’s silver bullet approach).
(i) AFC proposes a Renewable Energy Industrial Expansion Act (REIEA). The Act would specifically mandate that Guyana immediately move to an ethanol blend of 10% by 2013 in gasoline and an 85% blend by 2025. GuySuCo and foreign investors would be able to take full advantage of this market opening.
(ii) As part of the REIEA, all bagasse would be converted into energy for use by the sugar industry and sale to the national grid.
The AFC proposes that hydroelectricity investment should be coupled with an aluminum smelter to add tremendous value to Guyana’s bauxite industry.
The various hydroelectric plants and other renewable energy installations (wind and solar power especially) could also claim carbon credits.
The party also proffers a national bio-diesel policy. This would revitalize the coconut industry and bring larger acreage under cultivation.
In addition to bio-diesel, coconut is suited to agro-industrial processing such as bottled or canned coconut milk, brooms, ornaments, bottled or canned coconut water, cooking oil, etc. In addition, increasing the acreage under coconut cultivation could pave the way for carbon credit claims since coconut trees absorb carbon from the environment.
Immediate Infrastructure Needs
(i) Completion of the four-lane highway from Georgetown to the existing Soesdyke/Linden Highway. This must be a first-rate road with extra turning-off lanes.
The recent East Bank four-lane highway is really not four lanes as the left lane is used by vehicles to exit and make stops. The rationale for this new highway is improved traffic flow along this main corridor.
(ii) A paved two-lane road from Parika to Makouria and Anarika; and a paved two-lane road from Patentia to Kamuni. Completing these roads will open up large areas for agriculture and also make it easier for farmers to transport their goods to processing plants and markets.
(iii) A deep water harbour at the mouth of the Essequibo River
(iv) The paving of the Road to Brazil. This would be linked towns such a Lethem and Linden being upgraded into major commercial zones. Linden must be made into a manufacturing hub. We see manufacturing of furniture, refrigerators, glass, bricks, etc.
(v) An appropriately sized hydroelectric plant at Tiger Hill to feed an aluminum smelter and the manufacturing industries, and other power needs based on construction of an appropriate electricity grid.
All the above immediate impact projects would be implemented in the context of a comprehensive review of the tax system with the goal among other things of reducing VAT, increasing the personal income tax threshold, reducing business taxes and making provisions for family deductions and write offs for renewable energy investments by companies and households.
Solidarity breeds patriotism and patriotism breeds optimism and hope. When we as a people, in cooperation with a competent government, put aside our petty differences and focus on the future of this country we will actualize the Guyana we have desired for so long.
It is also then that we will have a Guyana our children will want to proudly live in for the rest of their lives.
A unified and optimistic nation is a successful nation. It’s time for Guyana to be unified, optimistic and successful. “Together we will make it happen”.

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