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THE NEW MINISTRY
There is at present an unmatched global demand for raw materials. India and China are consuming resources at a rapid rate and will need to continue to do so to sustain their impressive economic growth rates.
Both India and China are expanding into new areas of the world, and this accounts for increased Chinese and Indian aid to countries outside of Asia. This expansion has triggered fears within the G7 that China in particular can emerge as a global economic power capable of matching the more developed economies.
In order to encourage the slowdown of Chinese growth and expansion there have been calls for China to reduce its environmental emissions, another way of asking that country to cut back on its manufacturing and production. When that call was ignored, there were accusations that China is floating its currency and thus undermining the rest of the world.
The ultimate goal of the demands by western nations is to slow the expansion of China and India. But these two emerging powers, along with Brazil, are having none of the restraints that the West wants to impose. They are rightfully demanding their place in the sun since they feel that it is their turn to shine. India, China and Brazil are intensifying their investments in other parts of the world.
Guyana with its large untapped natural resources has benefited tremendously over the last few years from investments from both India and China and is poised to do so in the future. The Chinese are laying the basis for increased investment in Guyana by offering very generous assistance.
The Chinese funded and built the Skeldon Sugar Factory; they are funding the One Laptop Per Family Project; they are likely to have a major stake in the Marriott hotel to be built in Georgetown; they are also likely to be one of the principal investors in hydroelectricity generation and they have already shown an interest in funding the expansion of Guyana’s main airport.
A number of Indian companies are also lining up investments in Guyana. The Indian government provided generous concessions to this country’s government in order to establish the National Stadium; an Indian firm won the right to construct a sugar packaging facility at Enmore; and a major Indian furniture manufacturing firm has secured rights, including from private firms, to Guyana’s timber.
The increased demand for raw material globally has led to higher commodity prices, including gold, which is at its highest level ever. There is also increased demand for bauxite, timber and oil reserves.
For a long time, Guyana was unable to do much with its natural resources because of the high cost of extraction and low global commodity prices. But with the surge in demand and prices, it is better for Guyana to simply sell its resources now rather than wait, as was done in the past, for the investments that will add value to them. Guyana is already exporting a large volume of its timber and gold, and major exports of bauxite are expected this year. The Canadians with their expertise in mining are also making huge investments in the mining industry alongside that of the Brazilians.
The natural resource sector of the economy is therefore poised for an economic take-off and it is to the credit of the new president of Guyana, Mr. Donald Ramotar, that he has the foresight to recognize what is taking place and thus took the decision to create a new and important ministry, the Ministry of Natural Resources.
This ministry is going to be the most important ministry and since protection of the environment is an integral aspect of the exploitation of Guyana’s natural resource strategy, it was very wise of the president to link the environment with this new ministry.
The allocation of this ministry to Mr. Robert Persaud represents a vote of confidence in the former Minister of Agriculture. He is now entrusted with overseeing the formation and coordination of the sectors that will be critical to Guyana’s immediate future.
As Minister of Agriculture he would have been responsible for the forestry sector. But other natural resource sectors fell under another minister. With the creation of the new ministry all the natural resource sectors, including mining and forestry, will now come under the control of Mr. Persaud, and having all these sectors under a single ministry will assist in ensuring better coordination and increased investment.
The Ministry of Natural Resources is a powerful ministry and the person who heads it holds one of the most important portfolios in the country.
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