THE VICIOUS CYCLE OF POVERTY

May 22, 2018 Editorial

Guest Editorial
Guyana continues to experience high levels of poverty and unemployment. There have been increased calls for the government to start a consultation process with the private sector and other stakeholders to lessen the impact of poverty. The leaders must recognize that the poor are suffering and must develop and implement policies to bolster the economy and create jobs.
While the production of gold has increased five-fold in the last few years, the production of rice, sugar and bauxite, the mainstay of the country’s economy, continues to decrease steadily. The result is that the country is being forced to borrow from international financial institutions at excessively high interest rates in order to compensate for the shortfall in revenue.
However, the rise in the price and production of gold has not so far alleviated the situation. It is no secret that the rich are getting richer and the poor are becoming poorer by the day, due to the fact that the country’s resources are not being distributed equitably among the population. It is estimated that ten percent of the wealthy population utilize more than 60 percent of the country’s resources, which leaves 40 percent for the remaining 90 percent of the population who are in most cases poor.
Several attempts by successive governments to correct the problem have not succeeded. The truth is corruption, inefficiency, poor controls and incompetency are responsible for the distribution of the nation’s valued possessions. There were other discrepancies such as moneys allocated for the social programmes being diverted to provide other services.
Data obtained from the then Ministry of Social Services showed that governments have spent billions of dollars each year on social programmes, yet poverty continues to rise, due to the fact that these social programmes are not reaching the persons who are the most vulnerable. For one reason, the system is flawed and no one in government, past and present, seems to be able to correct it. For another, it is not just a matter of the State’s social programmes being in a state of malaise but the authorities have failed to stimulate the economy, leading to sustainable jobs and a more evenly spread standard of living.
While most of the social programmes were introduced with good intentions, they have clearly not benefited the poor, which suggests that the government alone cannot solve the issue of poverty. Government’s dismal performance in this area in the past is proof that it does not have the skilled manpower to perform this function successfully. There are clear limits as to what the government through its social programmes can achieve. The private sector, the church and other non-governmental organizations need to make a concerted effort to be socially engaged in these areas.
The country’s tax revenue has increased substantially, but we reiterate that unless the benefits are distributed in a way that is equitable and sustainable, then it will amount to nothing more than a flash in a pan. A more meaningful approach by all stakeholders is needed to help the poor and downtrodden. Giving handouts has not worked. The saying that “give a person a fish, and you will have to feed him or her continually, but teach him or her to fish, and he or she will feed themselves for a lifetime” holds true in this case.
This by no means suggests that the government should not help the less fortunate; rather, a system must be developed to make them as independent as possible and to some extent stem the vicious cycle of poverty. It must reduce the cost of living, improve education and ensure that the country’s resources benefit all in society and help them reach their full potential.

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

Latest News