Could ways be found to save bauxite and sugar?

Apr 22, 2018 Eye on Guyana with Lincoln Lewis, Features / Columnists

---

 

This country’s history proves bauxite and sugar reigned at particular periods. Sugar was considered king, one of the primary crops, a source of wealth, employment and economic opportunities. Bauxite too ruled the roost, was the leading technological institution, providing support to national and regional institutions, including the Wage Bill for public servants.
These two industries, considered Guyana’s productive sector, are presently at crossroads. And this is not because their products are without value – which is a reality we must face -but the challenge to make them viable in the marketplace.
Whereas there exists the perception that all emphasis for future development is being placed on the discovery of oil and natural gas, it would not be overemphasising the point reminding this nation what we’re being repeatedly told by experts. A country’s development cannot rely on only oil and gas, it requires multifaceted approaches and the sustainable exploitation of all its resources – human, natural and capital.
I’m conscious as I prepare this article that all the answers to bauxite and sugar’s problems are not known to me. The same can be said for all of us. Realisation of this makes it even more important to place a premium on the amalgamation of diverse opinions, visions, talents and skills in determining a way forward.
The bauxite industry is presently being challenged with the disrespect shown for universal acceptable principles, the Rule of Law, and want for a national position on the exploitation of this resource to the development of this nation.
Notably, the disreputable Bauxite Company of Guyana Incorporated (BCGI) – a subsidiary of Russian Aluminum (RUSAL) – is presently feeling the effect of sanctions the United States placed on Russia. Sanctions will inevitably impact the company, where the People of Guyana – via the Government of Guyana – have a 10 percent, and to whom the resource ultimately belongs. Last Friday, the media reported that Oldendorff, RUSAL’s shipping partner, is winding down its operation to leave.
We have before us a situation where it should not be ruled out that BCGI may declare force majeure, which means the operation can be closed and workers sent home. Brainstorming as to the potential must therefore begin with the view of devising alternative(s) to keep the operation opened.
History can serve as lessons. In 1991 Reynolds Metal Company (RMT) began operation at the Aroaima location. RMT was taken over by ALCOA. When ALCOA left, the Government put together a team to manage the Aroaima Bauxite Company (ABC) until a contract was developed with RUSAL, leading to the establishment of BCGI.
Of import, while the ABC operation changed hands it was never closed, thereby remaining competitive in the marketplace, providing continuous employment, economic opportunities and contribution to the Gross Domestic Product (GDP). Equally, as we take note of our experience, we should be wary of Jamaica’s. Earlier in this decade when RUSAL’s operations were closed, on the pretext of a business decision, that company locked down strategic bauxite reserves and plants. That decision caused Jamaican workers to be sent home, the country’s resource unexploited, bringing with it adverse socio-economic consequences.
Sugar’s future is also in jeopardy. Though not hindered by sanctions, solutions too must be found. Following what is taking place in the industry, given its implications for workers, etc., it would remiss not to note and speak to what can safely be considered glimmers of hope.
The placing of the Guyana Sugar Corporation (GuySuCo) under the stewardship of NICIL thus far is proving to be a wise decision of the government. There’s evidently a programme in place which is focusing on creating opportunities, which means that our most vital resource – i.e. people – will be productively engaged.
Under the management of the Special Projects Unit (SPU) GuySuCo has thus far re-opened factories and put mechanisms in place for financing independent of the Consolidated Fund. Re-opening the factories will contribute to meeting demands for the market for sugar and its by-products. Further, the decision positively impacts employment, helping to mitigate against socio-economic fallout in the affected communities.
It is not lost on society that there seems to a turf war within the Coalition for the control of GuySuCo. Frankly at this juncture, given past failures, this should not be the driving factor, but the end result in showing that something positive was done with the industry. Very rarely Guyanese see the political forces agreeing on any issue – the new management of GuySuCo under the SPU has been one such.
Former president Donald Ramotar and GAWU – considered the PPP/C’s industrial arm -have called for the SPU to be given an opportunity to work and the union has looked at its performance in a positive light. Wisdom dictates the course should remain and the formula strengthened. Where the SPU’s successes can be measured, its work needs to be replicated in other beleaguered state institutions.
It is being said by the government we are pursuing a Green Economy. A green economy places a premium on human development (i.e. fundamental rights and freedoms) and the sustainable management of resources in a healthy environment (i.e. mitigating the negatives of climate change).
If development is looked at using the Green Economy model or the GDP, both measurements value prudent money management. This cannot come without ensuring our people are given opportunities, productively engaged, their rights and freedoms respected, and having in place a developmental programme.
Undoubtedly we have the capacity to save bauxite and sugar. The only hindrance is ego. Here is where it’s urged the employment of the late Clarence Ellis’ advice that we put aside the egos and let the we-goes come to the fore. All are affected – directly and indirectly – in any decision or absence thereof on issues of national character. The productive sector is no exception.

---

---