Latest update December 23rd, 2024 3:40 AM
Heavy dependence on certain sectors leaves economy with worrying vulnerability – Dr. Thomas
Respected local economist, Dr. Clive Thomas believes that the nation’s heavy dependence on certain traditional
Economist,
Dr. Clive Thomas
sectors is perhaps one of its biggest economic weaknesses.
In a recent interview, Dr. Thomas stated, “One of the most worrying vulnerabilities is the narrow base of the economy. We are too reliant on a few crops and products like sugar, rice, gold and bauxite and if anything serious happens to any one of them, this country can find itself in a financial disaster. We are already seeing signs of that. Just look at what is going on with the sugar industry and the financial repercussions incurred because of mismanagement.”
The economist said that such dependence has its roots in Guyana’s pre-independence period. He stressed that since then, the traditional sectors were heavily relied on and the situation has not changed years later.
He stressed that it is imperative for the new administration to make moves towards diversifying the nation’s foreign exchange earners.
He added, “We have not diversified the economy or made any real effort towards moving it away from certain fundamental limitations. In fact, we are even worse off because way back then we employed a lot of labour in these sectors but what has been happening over time is that all these sectors are downsizing the labour force. Poor governance has also contributed to the worrying financial situation the country is in too.”
The economist noted that the public service several years ago employed about 50 to 60,000 workers. Today, he opined that based on his analysis, it now employs about less than half of that.
He said that this is evident in the sugar sector. Dr. Thomas noted that the sugar sector used to employ about 30 000 Guyanese but today, it is about less than half of this.
Dr. Thomas emphasized that the disquieting challenges facing certain sectors like sugar should be enough evidence to compel government to make serious moves toward developing other frontiers for the country’s continued economic stability.
He believes that one of Guyana’s best but still underutilized sectors is eco-tourism. He opined that with proper development programmes and careful management, it could transform into a rich, service providing industry.
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