Youth and job creation in Guyana

Apr 09, 2017 Letters

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Dear Editor,
Our Youth are complaining about the lack of job creation by new APNU+AFC government. Indeed all governments in developing states need to create an enabling environment for job creation and create some jobs. However, the bulk of jobs have to be created by the Private Sector as they are indeed the “engine of growth”. Our Youth should remember and understand that Guysuco exemplifies the view that the Government should create jobs and subsidize failed business enterprises. Clearly, Guysuco with G$77 billion in debt, a need for another G$45 billion to modernize its equipment and a cost structure that is twice the price of the market, is hopefully not what our Youth are demanding of this new Government.
Incidentally, Guysuco has received over G$100 Billion from the government over the last 5 years and G$32 billion over the last 22 months with another G$9 billion by year end. I hope that our Youth also appreciate that this may explain why the University of Guyana did not receive the G$5 Billion it requested but received just over G$3 billion and why there is little money for Youth Job creation or why several taxes are now being imposed, leading to protests and potential strikes. Remember that GAWU is still shouting about an increase in salary from Guysuco when current salaries are more that the sale of sugar by Guysuco.
Indeed, although this will not comfort many of our young people who need jobs, it should be known the APNU+AFC government inherited a deeply corrupt and criminal economy. While this made the economy seem to be more robust, it was illicit funds that generated the appearance of progress. The APNU+AFC government inherited a drug and money laundering driven economy as well as a huge underground economy that five studies have shown is almost 60% of GDP. Remittances are also down 20% from the 26% GDP it once represented because of the situation in the USA. Construction is down along with other services because of the drop in global gold prices. Sugar is broke. Rice is also in trouble because again our cost structure is too high to be competitive and rice is owned 100% by the private sector.
The Government is partly responsible for the blame it is receiving. Guyanese have all been told, over and over again, and by the Private Sector itself, that the Private Sector is “the engine of growth”. This implies the Private Sector is the main source of job creation. But what is the record of both the Government and the Private Sector in job creation over the last 25 years?
In July 1996, over 20 years ago, the Guyana 21 Plan was proposed by Stanley Ming, Khads Khan and myself, as a very viable blueprint for Guyana’s sustainable economic development. A road to Brazil, a deep water harbor and a Free Enterprise Zone were among 16 projects presented to the then PPP Government.
Dr. CheddiJagan liked the plan but it got nowhere because Ming and I were Co-Founders of the Reform Group and Khads Khan a member of the PNC. A few years later and after Cheddi Jagan’s death, and during the early days of the Presidency of Bharrat Jagdeo, a detailed Guyana 21 Plan was presented and discussed in the newspapers. This Plan indicated 100,000 jobs would be created if implemented. The Plan included 3 new communities along the Road to Brazil that were necessary to sustain economic activity along the Road and included job creation for customs and law enforcement officers, restaurants, gas stations, banks, schools, farmers along the newly opened agricultural lands adjacent to the roads to Brazil, a hospital with doctors, nurses and other staffs, mechanics, transportation suppliers, construction workers etc.
The then President, Jagdeo immediately in the newspapers claimed this Plan was a dream and indicated he himself had a Plan to create 100,000 jobs. Of course, he was playing to his racial constituency and as all can see, this was pure politics as very few jobs were created by him and his Government. The 100,000 jobs Jagdeo claimed he would create was a political lie. Of course, the Guyana 21 Plan was deemed to be “voodoo economics” by Dr. Luncheon, the Head of the Presidential Secretariat.
If the Guyana 21 Plan had been implemented not only would those jobs have been created but the Guyana Venezuela controversy would also have been given a different diplomatic and international context because the road to Brazil would have passed through that same landmass Venezuela wrongfully claims and of course Brazil has always supported Guyana’s sovereignty over this land.
Our young people should know that the last PPP/C Government did not create many jobs over their 23 years of their rule. Yet, this new APNU+AFC government is being blamed for not creating jobs over its 23 month existence. What are the true facts?
According to published World Bank studies, during the PPP/C reign of the last 23 years, Guyana became the country with the highest migration of tertiary graduates. There were no jobs for them. Yet, the PPP/C government was not blamed. If one were to check the number of new jobs through NIS and other mechanisms, it would show very few jobs were added during the PPP’s reign. Of course jobs were created in the Private Sector. Guyana Goldfields (800-1000 jobs); Giftland Mall; Princess Hotel, several hotels and tourism services the hospitality industry. In addition, high gold prices resulted in many small miners, many off the books, and unknown to the GRA, hence no taxes were paid, were also employed. The aircraft industry also flourished because of high gold prices. More later
Eric Philips

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