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Is Guyana’s manufacturing sector dying? Pt. 3 …Absence of policy led to importation of ridiculous products – Chris Ram
By Kiana Wilburg
The importation of some absurd products into local markets is exactly what happens when there is no
Chartered Accountant, Chris Ram
strong manufacturing policy to guide the sector. This is according to Chartered Accountant, Christopher Ram.
The auditor reflected on some of the ridiculous products being imported into Guyana’s markets. He recalled that Kaieteur News had carried on Monday and Wednesday, two publications which focused on just a few of the items that are being imported from various countries. Some of these include; coconut water and tamarind candy balls from Thailand, packaged roti and puri from Suriname, water from Trinidad and Tobago, and sugarcane juice from Canada.
Ram said it is clear that the local manufacturing sector is just not focusing on the making of these products.
He even added that Guyana, which boasts of a self-sufficient livestock sector, is engaged in the importation of pig tail from New Zealand.
“But I think this is all grounded in the absence of a strong manufacturing policy. And compounding this issue is the fact that we are encouraging all these traders to come here without any regard for our Investment Act,” expressed Ram.
He said that he can understand that Guyana may be expected to adhere to certain trade obligations under the Caribbean Single Market and Economy (CSME) movement.
Ram noted that CSME is an arrangement among the CARICOM States for the creation of a single enlarged economic space through the removal of restrictions resulting in the free movement of goods, services, people, capital and technology.
But be that as it may, the auditor stressed that having an environment where products from all other countries can be allowed to flood the local markets is simply shortsighted on Guyana’s part.
“Surely agro-industrial production ought to be part of any national policy that we are going to have in the future. But I wish to note that there was a time where we used to have quite viable industries. I remember seeing our canning factories and our own pasteurization plants. Where are those things today? Where is our policy?”
While Ram emphasized that there is the need for a strong manufacturing policy, he said that this is just part of the problem that is affecting the sector.
“For me, a lack of a policy is part of the problem that is affecting us. But honestly, the people that we have in the sector just want to be ‘buy and sellers’. We have mostly traders. Even our major manufacturing entities now, they are getting into ‘other things’”
Ram said that when it comes to the policy, provisions must be made to stimulate the manufacturing sector in such a way that it does not see the granting of unreasonably large concessions.
He then turned his attention to the statistics on the manufacturing sector.
Over the years, the sector’s performance has been trapped in the 10 to 23 percent growth rate performance. Numerous financial analysts have bemoaned the fact that the sector is actually being heavily supported by rice and sugar production. It has also been contended that given the aforementioned, the real performance of the sector is often masked.
Finance Minister, Winston Jordan during his presentation of the 2016 budget, also acknowledged that the manufacturing sector achieved a growth rate of 5.3 percent, which was basically driven by growth in the sugar and rice industries, as well as other manufacturing.
The economist asserted that the manufacturing sector is projected to decline by 0.7 percent, as a consequence of the scaling back of rice production.
In his 2015 budget, Jordan had said that the Manufacturing Sector grew by 10.7 percent, thanks to improved performances of rice, sugar and other light manufacturing. He had said at the time that this sector continues to hold the promise of massive expansion and robust growth, and this can be realized when downstream activities, especially in the forestry sector, are implemented.
With that in mind, Ram said, “The processing of cane and paddy are counted as part of manufacturing and it is always useful to disaggregate that when looking at the contribution of this sector to the overall economy”.
He said, too, that in the quest to formulate a policy to guide the sector, it is going to require of the population to be prepared to support local industry and in turn, local manufacturing industry must be committed to providing quality products at an affordable price.
To be continued …
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