Guyana must strengthen its economic diplomacy

Apr 13, 2014 APNU Column, Features / Columnists

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The Ministry of Foreign Affairs must strengthen this country’s economic diplomacy. Economic diplomacy is the vehicle by which Guyana can effectively collaborate with its continental and regional neighbours to achieve our domestic developmental policies.
Economic diplomacy means the use of trade and economic strategies and influence to consolidate the correct political climate. This can facilitate peace and security, promote international trade and investments and develop international telecommunications, energy and transport networks, among other things.
It should therefore be a policy priority in order to support Guyana’s economic development. The annual national budget, therefore, should demonstrate Guyana’s capacity to strengthen its foreign economic diplomacy in order to boost its domestic economy.
BRAZIL
The Guyana Chronicle (March 3, 2014) reported, “High Level Suriname meeting examines enhancing exports to Brazil.” Brazil, Guyana’s southern neighbour, is an acknowledged economic powerhouse in Latin America.
Our relationship with Brazil must be taken into account in our domestic policy. Brazil’s economy is the largest of the Latin American nations and the second largest in the western hemisphere. Brazil, according to the World Economic Forum, was the top country in upward evolution of competitiveness in 2009. It gained eight positions among other countries, overcoming Russia for the first time and partially closing the competitiveness gap with India and China among the BRIC economies.  Brazil has the second largest industrial sector in the Americas. Guyana should seek to exploit all avenues of trade with Brazil.
Caribbean Export (the Regional Trade Promotion and Facilitation Agency) commissioned a study which detailed an immediate set of actions aimed at addressing the less than stellar performance of firms based in Guyana and Suriname in the Brazilian market.
The Report noted that Guyana and Suriname are not adequately exploiting trade opportunities either between themselves or with Brazil and the report found that the Partial Scope Agreements between Brazil and the two countries do not cover most of the countries’ most competitive exports.
The Report also found that infrastructural limitations, such as energy costs and road networks inhibit trade. Some of the recommendations of the Troika Trade Assessment Plan include the establishment of trade desks in the Suriname Business Forum and the Private Sector Commission of Guyana to provide training for export-ready firms and trade and market intelligence and trade show support, including the subsidizing of airfare and accommodation for export-ready firms.
THE CARIBBEAN
The Caribbean is also an essential zone for Guyana’s economic expansion. The Caribbean Single Market and Economy promises to be of tremendous benefit to peoples and businesses throughout CARICOM.
The free movement of people creates an avenue for the region to share skills whilst simultaneously facilitating those seeking improved standards of living and better employment prospects away from their domestic spheres. Businesses also have access to a much bigger market than their national markets would allow, and therefore, the potential to generate additional revenue and increased profits.
The region can share its expertise, technology and resources to greater effect. The annual budget should have made provision to strengthen our capacity to compete or co-operate within CARICOM.
Guyana is not exploiting its Caribbean markets sufficiently. Agreements between Guyana and Barbados in the areas of agriculture, fisheries, education, tourism, security and investments and civil aviation are commendable, but greater collaboration should be pursued with more of our Caribbean neighbours.
The Caribbean Single Market and Economy is about people. If there is no public “buy–in”, efforts and resources expended thus far towards the implementation of the CSME could very well prove to be futile.
CARICOM is capable of advancing our national interest. This is set out in Article 4 of the Revised Treaty of Chaguaramas; “co-ordination of foreign policies (that is presenting a united front in its relations with countries outside the grouping).” Through coordination of regional foreign policy, we can increase our influence in international affairs. Meetings and discussions are not to be confused with operationalizing this critical function of regional integration.
ECONOMIC DIPLOMACY
There needs to be within the Foreign Affairs Ministry, therefore, a robust Economic Diplomacy Department. It should have responsibility for interfacing with Guyana’s diplomatic missions abroad, the business entities and the other institutions with economic or commercial duties. There is urgent need for Commercial and Economic Attachés to be appointed in our embassies in Paramaribo (Suriname), Caracas (Venezuela) and Brasilia (Brazil) immediately.
APNU believes that there is urgent need to rethink and to establish coordinated foreign policy. It is time for the Department of Government and International Affairs at the University of Guyana, the Foreign Service Institute and the Department for International Cooperation to begin collaborating on a conceptual template for a sustained co-ordinated regional economic foreign policy.
This year’s budgetary allocation for the Ministry of Foreign Affairs is inadequate.  Advancing Guyana’s interests is not a task for the Government alone, let alone the Ministry of Foreign Affairs. It is a task that requires a new inclusionary approach – an approach which requires dialogue and understanding among Government, business and the rest of the community. At every stage of our dialogue, the public needs to be informed.
If Guyana’s foreign policy is to succeed, it must aim to mobilize the understanding and support of all Guyana. If there is to be a better Guyana, we have to institute policies that would ensure that we build a strong economy through robust international economic relations.

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