A LITTLE HELP FROM FRIENDS

Jan 26, 2011 Features / Columnists, Peeping Tom

When you think about big business in Guyana, certain firms spring to mind and certain names, the backbone of those businesses, are thought of. Those individuals are considered business geniuses in Guyana for their companies have survived in harsh economic times.
For that ability these pioneers of industry and commerce in Guyana have become household names. They are well-known and respected but they will eventually have to give way to the rising band of economic entrepreneurs whose ability to out-compete these old stagers has left many stupefied.
The new entrants are not just dazzling in their sudden rise, but they are also creating waves by the amount of wealth that they can potentially generate from a simple deal.
The secret of that success is as mysterious as the rise to wealth of the members of the new economic oligarchs, who are slowly but surely making inroads into some of the major businesses in Guyana and who are eventually going to corner major sectors of this economy and leave the old economic guard wondering where did it all go wrong.
The old economic guard are still counting their billions. They are still making money. But for how long before the new oligarchy, so stinkingly rich, so awash with funds, begin to make inroads into their markets and products, and force the old oligarchy into retirement. There are some companies that are being affected. Their markets have dwindled because of the emergence of new companies and the preferences that they are being shown.
The old economic guard are not complaining. Not yet. They feel that they can survive; that there will be something for everyone simply because the economy is enlarging.
There is not a slice for everyone when it comes to the economic pie. The new economic oligarchs are the embodiments of capitalists. They are driven by economic greed and are doing what is necessary to satiate their appetite for profits.
They are not cautious. They are aggressive, representing a new breed of businessmen in Guyana, and a new way of doing things, including having more than a little help from friends.
And they have friends in the right places. The new oligarchs are heavily supported by powerful political forces in Guyana and with that sort of backing and the benefits that come with friendship with the ruling elite, then it is only a matter of time before the new economic oligarchy takes almost total control of the economy of Guyana.
This new oligarchy has amazing abilities. They are finding ways to make money from almost anything. Take for example, the government’s housing programme. Now the government is selling land to remigrants at a fantastic price. Lots it is said are going as high as US$30,000 which is six million dollars.
Not too far away, there are private developers who are selling land for ten million dollars per lot. And with this comes gated communities. So why should a person returning home from overseas to live pay six million dollars per lot when with a few millions more he can enjoy the comforts of a high-end, secure, gated exclusive community.
It is the private developers who benefit from the high cost per lots being charged to remigrants. Instead of paying these high costs, the remigrants prefer to simply go and settle in one of the many private schemes. What we have therefore is a situation in which the policies of the government end by driving remigrants to the private developers?
What we are witnessing in Guyana is the fading away of the old economic class of family-styled businesses, as well as those which for decades had thrived on protection and lack of competition. This class is being replaced by a new bunch, who understand the importance of having the right connections but equally also appreciate that in a capitalist market it is the survival of the fittest.
Within the next five years in Guyana, a new generation of businesses will emerge that will force some of the older established firms to go out of existence. These firms are going to corner the Guyanese market and make millions for their owners who will smile all the way to the bank, and all because of a little help from friends.

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