POLITICAL WILL NEEDED

Jul 05, 2017 Editorial, Features / Columnists

Since independence, successive governments have stated that our economic growth and survival are dependent on our ability to diversify the economy. It has been said many times that a nation that cannot feed itself cannot claim to be truly independent.
Guyana is almost totally dependent on its own food supply. We have the potential to not only feed ourselves but also to export food to our neighbours in the Caribbean and the rest of the world. Agriculture, including food processing, must be a prime initiative in diversifying our economy.
In a changing world, our survival and growth are linked to our ability to adapt, predict and prepare for the future. Diversification of the economy is urgently needed because of our heavy dependence on foreign products and services. Following the Yom Kippur war in 1973, oil price had increased fivefold and the nation’s economy like most in the rest of the world tumbled.
Subsequently, the price of oil reduced and our economy improved. Since then, our governments had promised to diversify the economy but words were not matched with action.
Today, despite the increase of production and price for gold, the economy continues to struggle due largely to the decline of price on the world market for sugar and rice.
This has prompted the Minister of Finance to call on the private sector; the proverbial engine of growth to join with the government to diversify the economy.
The Minister stated that diversification of the economy is the number one priority for the country and the government.However, the diversifying process could be a long and arduous task.
It would take political will and leaders with vision and a commitment to do so. It would involve several diversification boards with people who have real-life experiences and expertise in economic planning and development to shorten the learning curve. Given the current state of the country, we cannot allow the economy to limp along with ineffective policies to diversify it.
Guyana needs an indigenous and multifaceted model of development to expand its economy. But it inherited from Britain a neo-imperialist economic model of development that is viewed as a patch-work development model premised on the theory that “one fits all. The British felt that the model was suitable to advance development in all of the newly independent countries despite their diverse and distinct socio-economic and cultural roots.
Instead, it made the former colonies producers of raw materials and consumers of manufactured goods.
A careful look at prior plans to diversify the economy by previous administrations shows that little emphasis was placed on the issue. Diversification cannot have a narrow outlook.
Guyana needs a diversification strategy that is focused on the manufacturing sector, the new technologically-based sector and agriculture, fishing, mining and small-business sectors.
The manufacturing sector has not held its own and has hardly penetrated foreign markets. The new technologically-based sector is in its infancy and agriculture has declined significantly. Agriculture remains in the doldrums with generally reduced production levels and little agro-processing.
The small business sector is shrinking for lack of foreign investment while mining, boosted by high levels of production has increased substantially. A successful fishing industry needs to have the availability of fish in our waters. The reality is that fish stocks are on the wane and have been so for a number of years.
The success of our nation is directly linked to our ability to provide a better quality of life for all and that is directly linked to our economic survival. Our survival is dependent on our ability to diversify the economy.

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