Latest update December 4th, 2024 2:40 AM
Create jobs through public infrastructure investments and small businesses, not ‘make-work’ gifting
DEAR EDITOR,
I have argued in previous letters, in support of other similar positions, that Guyana has lost thousands of jobs under the APNU+AFC administration due to bad policies/programs. To date, there has been no serious effort by the government to reverse that trend. There appears, however, only a sham attempt, through ‘make-work’ jobs, more akin to the ‘scabs’ that were cutting canes during the sugar strikes of the late 1970s.
I take the informed view that this is anemic to national development, and that correcting the job-loss malady requires concerted efforts by the government to craft job creation strategies that promote healthy national economic growth through public infrastructure investment; foreign investment, and supportive environment for small businesses, among others.
In a previous letter, I advocated for government to devise plans for utilizing a significant portion of the windfall oil money on several public infrastructural projects – bridges, highways, high-speed rail and deep-water harbour – which would not only create thousands of jobs at varying levels, but would also re-position Guyana as a major international player vis-à-vis the south-south hub for air and sea services that would easily link Brazil and other continental economies to African markets across the Atlantic. A University of Massachusetts study found that the most effective government spending in the US was on these types of projects, and that for every $1 billion, almost 20,000 jobs were created.
Guyana must not fall prey to the Dutch Disease. At the moment, everyone’s interest, both local and foreign, seems glued to the potential of ‘big-money’ opportunities of the oil and gas sector. This can lead to overdependence on this sector to provide the magical answer to Guyana’s current economic woes.
In my view, there should be an equal governmental interest in attracting other foreign investment with a view to broaden the national economic base in areas such as small industries, and by extension, hydropower to supply cheap and reliant electricity, telecommunication and related high tech fields, and agriculture/food processing.
I note with interest GO-Invest’s presence but apparent ineffective role at the recent Houston, Texas conference. Further, its role in attracting foreign investment is questionable. This institution needs some kind of ‘viagra’ to increase its potency.
Finally, the government needs to encourage/provide a supportive environment for local small businesses through expansive monetary and fiscal policies which would also increase economic/employment opportunities for Guyanese.
To such ends, reduced interest-rate policies should be re-introduced to encourage/push commercial banks to offer business loans to start-ups. Similarly, reduced payroll taxes and other tax-holiday benefits should be introduced/re-introduced to encourage/help these small businesses to get off the ground. In fact, small businesses growth and sustainability provide a very potent means of creating and maximizing wealth for those in the lower echelons of society.
In a nutshell, Guyana’s job creation strategies should promote healthy economic growth through investment in public infrastructure; foreign investment, and small business supportive environment.
‘Make-work’ jobs, while providing gains for mostly political comrades, provide little financial benefits to the economy. In fact, at a conference in Georgetown, Trinidadian Economist, Dr. Roger Hosein, cautioned against using oil revenue to create “make-work jobs”.
Yours sincerely,
Ronald Singh
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