Government has thrown away the text book

Apr 06, 2017 Features / Columnists, Letters

Dear Editor,
The International Monetary Fund (IMF) in a statement issued following the conclusion of a recent visit to Guyana advised our Government in addressing the sugar industry to be “…mindful of the large social impact and providing a safety net to protect those affected by that process”. These are significant words from the institution and a strong urging to our Government. Similar sentiments were also expressed by the Trade Unions representing the industry’s workers and the opposition – PPP/C.
The IMF in arriving at its conclusion would have obviously borne in mind the huge employment, direct and indirect, sustained by sugar; the effects on taxation and our social security scheme; the reduction in foreign exchange earnings, and the other social issues that would engulf the communities. The obviousness of such factors makes me wonder what the Government is bearing in mind it is making its decision on sugar.
It is unfortunate despite the sound advice the Government is receiving, it is going headlong into a rushed and ill-considered strategy to minimize the industry. Worse yet, the policy is being pursued in the absence of any discussion and consideration of the massive social upheaval that would take place as a result of this clear misadventure by the Administration. The Government in shunning sugar and the other traditional industries, is widely seen as placing its proverbial eggs in the oil basket. This has to be the most absurd decision of them all. Oil still has many unknowns and to place our faith wholly and solely on an oil windfall is like shooting into the dark.
There has been no sincere attempt, as far as I am aware, to evaluate in a scientific manner the industry’s issues and possibilities. As I pointed out in my last letter, the industry’s recovery is not by any means a stretch. Production levels at around 300,000 tonnes, based on the lowest contemporary price, would allow the industry to break even. And, profitability is assured in a vertically integrated industry producing electricity, refined sugar, packaged sugar, alcohol, ethanol, etc.
At this time, when our economic candle is flickering, why it is that our Government is advocating that we abandon an industry which has served our people and our country well, and one which has so much potentiality and replacing it with one we know very little of? Politics and not economics seem to have taken precedent.
Across the world we see countries not abandoning their traditional industries when new endeavours come along. It is foolhardy to engage in such policymaking. A wider economic base makes a country stronger and more resilient to economic shocks. It seems our Administration has thrown away the text books. As the IMF said the economy is growing unevenly and rather than correcting that disequilibrium we are pursuing policies to exacerbate it.
Patricia Persaud

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