DIVERSIFICATION NEEDED FOR ECONOMIC SURVIVAL

May 21, 2016 Editorial, Features / Columnists

Given the collapse of the sugar industry, the falling prices for rice and problems associated with the gold industry, it is time for the government to think seriously about the long-touted need for diversification of the economy, especially the agriculture sector which remains relevant today. Food production for self-use, local consumption and especially for export will always be important for foreign currency earnings.
Diversification of the economy and the future of agriculture production lie within the myriad of new technologies and the manpower skills available.
In fact, any increase in food production depends on modern technology and skilled manpower. Land is not an issue in Guyana. The country has more than enough land available for all categories of agriculture production.
However, the talk about diversification by successive governments only resurfaces whenever the economy enters a phase of negative growth rate and the need to create new foreign exchange income streams.
The government has to stop the never-ending quibbling over what state the country is in and who caused it. With the economy struggling and few good paying jobs available, now is not the time for the people to focus on their differences, race and other issues but to remember that before they became politically involved, they were first and foremost Guyanese. This is the time for the people to be resilient and show their entrepreneurial spirit.
There is nothing inherently wrong with diversification. It is primarily about creating new export goods and services that will be globally competitive. Competitiveness is about the use of knowledge, inventiveness and innovation.
The goal is for the government to direct expenditure into economically viable projects and development avenues, starting with manufacturing and agriculture. Diversification is urgently needed to make full use of all available resources, especially labor, greater access to international markets, greater investments and more financing opportunities, especially for small and medium-sized enterprise
Guyana has all the necessary elements to make it a successful country in every sector of the economy. In agriculture, there are excellent skills, exceptional entrepreneurs as food producers, and near perfect weather but the government has to harness them.
However, effective management and visionary and transformative leadership are lacking in the agriculture sector. The economy needs experienced and qualified personnel who understand the development fundamentals of agriculture projects. But it is lacking in this area.
A wise Guyanese once said that if you want to plan for a year; plant rice. If you want to plan for ten years; plant coconut trees, but if you want to plan for 100 years, educate the people. Education, including technical-vocational education, along with other critical elements is the key to human and sustainable development.
Education and careful planning by the government are needed to build a quality workforce and create new businesses which will generate income and create decent paying jobs.
Diversification also calls for the building of a new embryonic private sector that is adaptable and understands the value of knowledge and innovation in building export capacity. Diversification of the economy should be grounded in the creation of micro and small agro-businesses using new technologies, along with a framework for training. In this way, the persons who are trained at the taxpayers’ expense will not be lost to non-agriculture jobs or eventually migrated to other countries which could be another financial drain on the country.
This is achievable but it needs very careful planning, execution, monitoring and evaluation. It should not be left to the private sector given its history of its failure to evolve towards becoming innovative exporters.
The immediate requirement is for the government through the Ministry of Business to conduct a rigorous exercise that examines the global current and future demands/needs and the country’s ability to be competitive and profitable in meeting some of these.
The government ought to know that diversification is necessary for the long-term survival of the economy and the country.

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DIVERSIFICATION NEEDED FOR ECONOMIC SURVIVAL

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