The PNC needs to rethink its strategies to remain relevant

Dec 23, 2016 Letters

Dear Editor,
As someone who was instrumental in engineering the formation and victory of the PNCR-led administration, I have over the term of the new government had cause for reflection on its conduct and the policy positions it has adopted. This has reached the stage where at times I almost feel I have to apologize to Guyanese, particularly those who suffered tremendously at the hands of the current administration, but I recognize that we were all in this together -the former government had more than overstayed its welcome after devastating the lives of many Guyanese and making corruption a system of government unto itself.
Contemplated that the economy needed time to adjust, that in its first year or two the new government would need some latitude to sort itself out and make a few administrative decisions to guide its policy framework. It is now appropriate to seriously take stock of what has transpired and the direction in which the country is going. The PNCR-led administration seems intent on continuing to perpetuate the myth that it was principally responsible for the Coalition’s victory at the last election, that it had developed all the right policies and had developed the original strategy of linking with the AFC to beat the PPP.
This is being accomplished by not incorporating individuals like me who highlighted the systematic corruption within the PPP and pointed out their failures in responding to the needs of Guyanese during their reign, who articulated a broad economic policy framework from which to draw, and who actually engaged both parties for the formation of the Coalition. The fallacy of the first issue is evident in the vast disparity between the commitments to investment, job creation and good governance on the campaign trail and what currently obtains.
Letters to the press have already pointed out that job creation and investment, among other things, have been buried in the administration’s national policy phrase of a Green Economy, and the commitment to good governance has been replaced by the scandalous bond deal and the reckless chaos that continue to prevail at City Hall. What is worse is that the very individuals responsible for these affairs find themselves incorporated into the central executive of the PNCR itself, clearly sending the message that the PNCR itself has taken responsibility for the bond deal and what is going on at City Hall.
To rub salt in its political wounds, the mayor has been returned for another year of her three-year term after some behind-the-scenes political pressure. Prior to this, was the Budget 2017 about which many sections of the country is much in arms. The budget is an entire issue all by itself, but in a nutshell, as has been pointed out, the restructuring of VAT as presented will undoubtedly cause inflation, something which Guyana has battled to keep in check since the early 1990s. Further, these represent permanent increases in prices, the type economies could do well without; they being a result of deliberate government policy.
While it is recognized that many businesses, particularly professionals such as doctors and lawyers, do not pay their fair share of taxes, applying VAT on water and electricity, which are primary inputs into the production of virtually all goods and services, deserves revisiting since businesses will very likely pass much of the upfront cost of the tax on to an already overtaxed, low-income population. Quite frankly, the budget is counterintuitive, since it raises costs of businesses, makes our goods and services more uncompetitive, and by taxing an overtaxed population, reduces real incomes, which in turn reduces consumption, and thus growth. The addition of parking meter fees will further reduce growth prospects. To rectify this, Finance just needs to retain the old VAT structure and reduce expenditure by the corresponding amount of lost revenue.
Craig Sylvester

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