A SHARE FOR EVERYONE

Aug 08, 2010 Features / Columnists, Peeping Tom

Guyana has always been a poor country. But its main problem has always been less its poverty than its inequality.
Even in the difficult period when the supermarket shelves were empty, when shortages of basic food items were acute, this did not lead to widespread instability because the dominance of the State in the economy helped to dwarf and conceal the gap that existed between the small, rich elite and the masses.
Today the neo-liberal model of development has created an oligarchic class that is cornering large sections of the economy. And as wealth creation more than egalitarianism becomes the motive for economic decision-making, as the new oligarchy extends its reach into large sections of the economy, and as the political links of this oligarchy become known, it is going to produce a great deal of discontent, and drive frustrations that not even increased handouts will be able to appease.
Therein lies the danger of the misguided economic model that is being pursued by the present ruling administration. The economy needs to grow, yes. Guyana has been a poor country for too long and fell so far behind that it is now impossible, for example, for Guyana to ever catch up in terms of per capita income with some of the other countries of the Caribbean.
Growth is necessary to increase the size of the economic pie. But how this pie is divided is far more important.
When we were even poorer, the economic elite were a small grouping that kept a low profile. Now that the economy is growing we are witnessing the rise of a small, powerful and politically well backed new oligarchy that is reaping tremendous benefits. And they are very visible consorting with the political elite whose policies have created opportunities galore for this oligarchy.
Wealth creation is the economic mantra, but this wealth creation is spawning greater inequalities. It is good to speak about creating wealth but it is far better for this wealth to be distributed more fairly. It is fine to speak about a home for everyone, but that is a misguided objective which if taken to the limit, will create problems for many families who depend on rentals for their livelihoods. There needs to be a balance, because right now house rents are collapsing in Guyana.
It is fine also to aim for a computer in every home. But it would be much better – instead of giving away 90,000 laptops to poor households (this figure flies in the face of official data which indicates that poverty is not this high) – for economic policies that would allow these households to make the choice as to whether they wish to have a computer and to be able to afford to purchase their own computers.
Economic rationality would dictate that instead of giving a man fish we should teach the man to fish and then let him decide whether he wants to eat fish.
Computers should not be distributed willy-nilly. It would be much better to distribute jobs willy-nilly rather than handouts. But where are the steady jobs?
What happens when the laptop of a poor family crashes? Where will that family find the money to repair the computer? Why not, instead of pouring billions of dollars into this venture, concentrate on creating sustainable and stable employment for the people so that they can purchase their own computers?
Who benefits from the distribution of free computers? The poor will benefit, but the main beneficiaries will be the rich who will have to supply these computers and who will gain from the provision of bandwidth services. The poor are just cogs in the wheel that grinds out wealth for the oligarchy.
This is why it is not too late for the government to backpedal on its decision to sell the shares in the Guyana Telephone and Telegraph Company. These shares should not be sold en bloc. This will only benefit the rich who will make a double killing. They will gain a source of windfall dividends and they will also benefit when the proceeds of the sale of the shares are placed into the ICT sector. They win by obtaining the shares and then win when the money which they used to buy the shares is put to use by the government. It could not get any better for the rich.
The government should reverse itself. It should break up these shares and sell them to the workers of Guyana, if there is a need indeed for these shares to be sold. All the workers of Guyana should be allowed the opportunity to own a share in the telephone company.
If it is the objective of the government for everyone to own their own home and laptop, then what is wrong with every worker having a share in the telephone company?

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