How the PPPC in under-developing the hinterland

May 04, 2014 APNU Column, Features / Columnists

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The People’s Progressive Party Civic -PPPC – administration likes to boast of economic growth. A Partnership for National Unity has been visiting communities across our country for the past 26 months and the question has always been: “Where is the development?
The income and wealth disparity continues to widen dangerously within society. The poor are being left behind and their ranks are swelling. Budget 2014 failed to present a vision to correct the structural imbalance of the economy and to show the way to the ‘Good Life’ to which all Guyanese are entitled.
Guyana’s economy is highly dependent on just two industries – gold and rice – with gold accounting for 47% and rice 17.5% of total 2013 exports. Together, these two industries account for two-thirds of all exports. This reliance is not expected to change in 2014. The PPPC administration’s projections, show gold exports remaining at 47% and rice marginally less at 16%, again representing almost two-thirds of total exports. Yet the PPPC speaks of “transforming the economy” and of “progress made through diversification”.
The PPPC administration has injected $9.7 Billion into the sugar industry over the past two years and in 2014 a further $6 Billion subsidy was given to GuySuCo.  APNU has previously expressed its concern at the massive transfers to GuySuCo, as well as GPL, in the absence of bi-partisan agreement on appropriate reform proposals. In the meantime the industry produces less and less, and last year exported a mere US$112 Million or less than 20% of gold exports; GuySuCo’s projections for this year show the industry earning even less – US$103.3 Million.
The figures for the rice industry give cause for even more concern. Sales under the Petro Caribe arrangement for the period July 2011 to January 2014 totaled US $336.5 Million, which represents 77% of total rice exports in 2012 and 2013. Given current events and political instability in Venezuela, no one can be certain that these arrangements will remain in place in the long-term. In the absence of available markets, the potential for dislocation and disruption to this industry is real.
So, while the PPPC boasts of economic growth, macro-economic stability and diversification, the economy has a structural imbalance.
It took the PPPC 12 years for Local Government legislation to be enacted to allow for a Local Government Commission to come into being. It finally happened in Aug 2013 with passage of the relevant Bill which received Presidential assent in early Nov 2013. The Act is waiting on a Commencement Order from the Minister of Local Government for its operationalisation. Even though it has been 13 years since the Constitution dictated that we have this body, the Minister is unmoved and apparently unconcerned.
Budget 2014 makes no mention of funding for this important Constitutional entity designed to professionalize and de-politicize the management of communities. Instead the Budget speaks of bypassing the statutory responsibility of local government bodies and for central government to spearhead the cleaning up of communities.
How is the central government’s under-development of the regions causing hardship for our people? Using the Potaro-Siparuni Region as an example, in 2012 $8 Million was approved under Line Item 2402200; $5 Million was to purchase a truck to be used for health services and to take drugs into the region. Two years on and there is no evidence of this truck and the Health Committee of the RDC has not been given any information. Why this is so?
In the 2012 Budget money was approved for teachers’ quarters at Paramakatoi. An APNU team recently visited Paramakatoi and residents there complained about the incomplete state of the teacher’s quarters and the effects on students not having trained teachers at the secondary school.  Again in 2013 Budget, $12 Million was voted for an ambulance for the Mahdia Hospital. This ambulance is yet to arrive. There is clearly no urgency. A vehicle was bought in 2013 ostensibly for the regional education sector. This vehicle is being used by the regional engineer and not for the budgeted purpose.
Even something as basic as the supply of pure water is not being delivered to residents in many parts of the region, owing to insensitivity and incompetence on the part of the PPPC administration and its appointed officers, while the elected officials are shut out from their lawful role of administering the region’s affairs.
The most galling problem concerns electricity supply to Mahdia, the administrative centre of the region and where residents presently receive a maximum of 12 hrs daily and have to pay $100/kw/h. In Budget 2014, the sum of $208 Million is allotted for power supply in Mahdia, Mathews Ridge and Linden.  It is yet to be determined how much of this is designated for Mahdia.
What is certain is that it will represent a Band Aid when a Win-Win as well as a permanent solution is already there – the Tumatumari Hydro-electric Plant. A test run in 2012 established this plant to be functional. While the government has entered into a contract with an investor who has the know-how, for lease of this facility, the contractor has so far been unable to raise the financing for the full rehabilitation of the power plant and to run the transmission line to Mahdia, mainly due to the unavailability of development capital locally.
Given the importance of electricity and the presence of this facility in the region, there can be no valid reason why the PPPC could not have found a way to make the facility operational by way of a simple equity contribution to benefit thousands of persons by fostering development as well as job-creation.  It is estimated that a mere $30 Million would have been sufficient as an equity contribution.
Guyana is a large country and it cannot be effectively of efficiently managed from the centre in the absence of meaningful engagement with the 10 Regional Governments.

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