The world is beckoning to Guyana

Aug 04, 2011 Editorial

Trade is the lifeline for any economy. The country that trades the most is the one with the most successful economy. It was trade that transformed the world into a global village. Guyana relies on trade especially since its economy is still rooted in the production of primary products—rice, sugar, bauxite, lumber and fish. There are gold and diamond but these can hold their own in any condition and are not therefore seen as basic primary products.
This country has been reliant on trade from the time the first people settled. During the colonial era it was more or less the dumping ground for excess products from the Mother Country. In turn the Mother Country extracted all that was precious. Today, the new rulers feel that the country should be compensated for the rape and the exploitation of both its people and its resources.
Be all that as it may, the world relies on trade and here Guyana must ensure that it carves its niche. Guyana was left behind because the brains it produced always left to serve other countries. In fact, in the pre-independence days the education was geared for the Mother Country. People left the basic education classes in Guyana and were aptly qualified for the universities overseas.
Not much has changed except that the political leaders are bent on securing the best possible offers from the materials this country produce. Indeed, the country cannot call the shots because the leading powers always have options. That is why the focus is on those countries that would offer a better deal than operated as a result of the traditional trading patterns.
Indeed, it would seem that the entire world is seeking to change the status quo when it comes to trading. Already there are signs that the balance of power and the balance of trade are shifting. China, India and the countries called the Asian giants have all emerged as major trading blocs.
India and China have large populations that guarantee excellent markets for producer countries. Such is the size of these markets that many large producers have shifted their operations to these countries for two main reasons. One of these is the fact that goods produced there are sold readily. The other is that the cost of production is so much lower that the goods are cheaper and are therefore more competitive on the international market.
Guyana has been looking at this trend and has begun to shift its attention to these major countries. For one, these countries are mounting a challenge to the traditional powers so they readily count small countries like those in the Caribbean. We export what little we can and import the cheaper goods that these new major powers produce. We gain all around.
But this business is more than accommodating cheaper goods. It is also about attracting the skills that these countries have in abundance and so develop the local industry.
But until we in this small country can hike our production, we must look to markets in which we can gain even more money for what we produce. Gone are the days when the major trading partners dictated what they would pay for what we produce. Only recently the European Union slashed the price for the sugar it imported from countries like Guyana.
Guyana, when the European Union slashed the price it paid for sugar, decided to court other markets. These were not many but for every tonne this country sold elsewhere it was able to recover some of the money it lost.
The policymakers are now advising that we turn our attention to Brazil with an equally large market. We have goods that Brazil currently imports from further afield. The problem we have is that we do not produce in the quantities that could make an impact.
Economists say that Guyana is capable of much more than it produces but that because of the absence of market, people produce just enough to ensure that there is no waste of labour and material. The focus of the government should be on getting people to hike their output. The markets are there.

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