Latest update April 15th, 2025 7:12 AM
May 07, 2010 Features / Columnists, Peeping Tom
Based on reports in the media, there are attempts to cap the number of mining concessions any one person can have. But why only cap mining concessions? What about limiting the number of State lands and divested properties that any one person can have?
Right now there are serious concerns about the movement of State resources into the hands of private individuals. There are concerns that a small group of persons are gobbling up the country and given the smallness of the economy this has eventually led to the creation of a more powerful oligarchic class such as the ones that used to and still exist in many places in Latin America.
The miners see the capping of mining concessions as a prelude towards reallocating larger concessions to medium and large scale miners. They feel that instead of the caps helping small miners, what is going to emerge is increased concessions to large and medium scale miners.
The miners ought to realize that even in the absence of caps on mining concessions, there is going to come a time when it will be difficult for small miners to operate.
The widespread use of mercury in the mining sector presents an environmental nightmare. The banning of the use of mercury in the mining industry is inevitable. Thus alternatives will have to be found to extract the gold. The alternative right now is cyanide and this cannot be used on small scale. It can only be used for medium and large scale mining and this is why perhaps the miners are suspicious about the alleged intention of the government to cap the number of mining concessions that any one person can have.
But if miners are worried about this move, there are other groups in Guyana who ought to be deeply troubled by the resource allocations in other sectors of the economy, particularly those relating to land and the divestment of State properties.
In a small society when wealth becomes concentrated in the hands of a small group of persons, there are real dangers that a wealthy oligarchy can develop that will lord over the broad masses of people. While the focus remains on the political elite and the policies that they are pursuing, very little attention seems to be paid to the economic elite that are reaping benefits and filling their pockets because of their close affiliation with the political elite.
The political elite are merely an instrument of the economic elite that stay behind the scenes and dictate what has to be done to secure their interests. The political elite absorb the criticisms on behalf of the economic elite which regardless of the circumstances of Guyana has never failed to thrive.
The membership of the political elite can change. Different faces can be brought on board. But no sooner does a new member emerge this person is wooed by the powerful economic elite which uses its wealth to dazzle the new and vulnerable members of the political elite.
While the population is busy criticizing the government, the economic elite are making their deals behind the scene, securing and furthering their interests while remaining insulated from public scrutiny, leaving their political friends to absorb the criticisms that come its way.
At times it is necessary for some sections of the economic elite to be bypassed. But they are not worried because they know that the cake has to be shared around and that eventually they will get their slice. So they remain silent at what many may perceive as deals that would be to their detriment. They do not rock the boat because they do not wish their boats to be rocked when their time comes to share in the gravy.
Thus, while it is commendable that bad deals should be criticized and that the political elite that make these deals should receive their fair share of criticism for not securing the public interests, sight must never be lost of the powerful economic elite that are working behind the scenes.
The economic elite have in recent times been securing tremendous advantages in key sectors of the economy. A small segment of the elite has in particular been benefitting immeasurably. Thus when one learns about the capping of mining concessions for miners, without learning of similar moves to limit the amount of other resources enjoyed by other members of the economic elite, it must be questioned just why limits are being placed only on the number of mining concessions any one individual can have.
What about the amount of State properties any one person can own? What about prohibitions on the resale of mining concessions that have not been worked? What about the resale of State lands for an exorbitant sum? What about limits on selective tendering in the procurement of medical supplies for the health sector? What about limits on fiscal concessions offered to friends of the administration? How about linking such concessions to verifiable production and employment targets?
And how about limiting the involvement of NICIL in the award of road-building contracts? What is that? I can’t hear you. Neither it seems can the political elite!
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