The private sector is stepping out of its comfort zone

Aug 27, 2016 Features / Columnists, Peeping Tom

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The decision of the Guyana Manufacturing and Services Association (GMSA) to invite the former President of Guyana and Opposition Leader, Mr. Bharrat Jagdeo to address its annual luncheon is a noteworthy development.
Private sector associations have always stayed clear of being publicly close to opposition personalities, out of fear that this would anger the government and attract its ire.  The private sector in Guyana, historically, has ingratiated itself with the ruling elite.
In the run-up to the 2015 general and regional elections, we saw moves by the private sector to engage with a wider range of views and actors.  They invited both the then opposition parties and the then ruling party to address them.
The then opposition parties were given opportunities never before enjoyed. It marked either a phase of political maturity on the part of Guyana’s private sector organizations or to secure a form of political insurance in the event of a democratic regime change.
It is interesting that the GMSA, this year, did not invite the Minister of Finance to address its annual luncheon. It instead invited the Leader of the Opposition.  Why invite the Leader of the Opposition and not the Minister of Finance?
There are obviously concerns within the manufacturing sector about the commercial slowdown in the economy, the lack of foreign investment and the contraction of almost all the major sectors of the economy, including manufacturing.
The GMSA is obviously worried about the future of the manufacturing and services sectors in Guyana. The contraction of agriculture, construction and forestry does not bode well for the economy of Guyana. The GMSA is concerned about the future prospects of the economy and its membership.
The traditional approach in the past would have been for private sector organizations to invite the Minister of Finance or the President to address them and, in so doing, to provide policy assurances that steps will be taken to address the concerns of the business community.
The GMSA opted instead to go a course that no private sector association has ever gone. They invited the Leader of the Opposition to address them.
It shows the level of anxiety, and even desperation, within the local private sector that instead of the Minister of Finance it should be the Leader of the Opposition who was invited to give an economic forecast and to propose solutions.
The Minister of Finance is the person to implement measures to reverse some of the adverse trends in the economy. But the GMSA obviously felt that they needed a better diagnosis and prognosis than what the government was likely to offer. And as such they invited the person whom they felt was responsible for Guyana’s ‘economic miracle’. Notwithstanding the fact that his party was booted out of office, they wanted to hear what he had to say.
The manufacturing sector has some issues with the government over the rolling back of concessions that they enjoyed, and which the government annulled, because it was that these were in violation of the Caricom agreement. The government has indicated, also, a tightening up with steel imports.
The government has made these alterations without any reaching out formally to the private sector. Nothing will upset the private sector more than feeling they are slighted. The attitude of the government towards the concerns of the private sector may have factored into the decision to invite Mr. Jagdeo to address them.
The most important factor, however, would seem to be the fear and worry by the private sector at the slowdown in business activity within the economy, notwithstanding that gold will ensure a healthy economic growth this year
There has not been, thus far, any critique of the former President’s presentation. This is surprising in a country in which there are so many experts on every subject under the sun.  It is as if what he said made sense.
The government has not responded to his presentation. The Ministry of Finance has generally been mum when it comes to responding to criticisms of the economy. It did respond to the criticism by the former President, at another forum, that the government had no plan. It asked about the PPPC’s plan when it was in office.
Other than this, the Ministry of Finance has only sought to defend its record so far in government, including through some suspect analysis in its mid-year review for 2016.
The private sector is not waiting on the government to offer solutions. It seems to have lost confidence in the ability of the government to address its immediate and major concerns. The private sector is looking for answers elsewhere, and who best to call on than the man they call “The Boss.”
The problem is that he really cannot help if the government is not listening or it has its own ideas as to the solutions to the problems being encountered within the economy. The GMSA should bring in some experts to study the economy and propose solutions, because the government is not likely to give much currency to what Mr. Jagdeo says.

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