The business community has nothing to fear from the forthcoming elections

Oct 06, 2019 APNU Column, Features / Columnists

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(Excerpts from an address by HE David Granger President of the Cooperative Republic of Guyana at the business luncheon hosted by the Guyana Manufacturing and Service Association on 2019-09-19)
Political stability
My Government recognizes the importance of political stability to enhancing the business environment. Political stability promotes increased investments; reduces risk and the cost of doing business and boosts investor and consumer confidence.
My Government will not condone violations of the law which endanger public order and public security. There is no political unrest in Guyana. The business community need not fear political violence or social unrest.
My Government will do everything necessary to ensure political stability. The business community has nothing to fear from the forthcoming elections. I am committed to ensuring a safe and secure environment for businesses, communities and citizens in the process leading to, during and after elections.
My Government will respect the democratic will of the people. Anything contrary would be abhorrent to the values to which I subscribe.
My Government assures the business community of its resolve to ensuring credible general and regional elections at the earliest time possible.
Economic development
The manufacturing and services sectors have been making significant contributions to national development. The two sectors, combined, constituted more than 60 per cent of our Gross Domestic Product in 2018. These sectors have expanded the economy over the past four years.
The highest rate of growth rate over this period was recorded last year at 4.1 per cent. Economic growth for the first half of 2019 was 4 per cent and it is anticipated that national output will increase by 4.5 per cent by year end.
Tax policies have been tailored to incentivize the competitiveness of the manufacturing sector. The corporate tax rate was reduced from 30 per cent to 25 per cent and tax waivers were provided for green energy investments.
The Mid-Year Report 2019 paints a positive picture of manufacturing and services.
∙ The manufacturing sector expanded by 3.6 per cent in the first half of 2019. It is anticipated to record an annual growth rate, this year, of 3.7 per cent.
∙ The services sector is estimated to have grown by 4.6 per cent between January-June 2019, the highest rate of growth since 2011.
∙ Trade – wholesale and retail – grew by 5.9 per cent; transportation and storage by 5.5 per cent; financial and insurance transactions by 4.1 per cent; rental of dwellings by 5.9 per cent; and other services by 10 per cent.
Indicators suggest expansion of business activity. Private sector credit increased by 5.7 per cent for the first half of 2019 compared with the same period last year. Credit to the mining and quarrying sector increased by 6 per cent; credit to the manufacturing sector increased by 0.5 per cent and credit to the services sector increased by 7.2 per cent.
The Inter-Ministerial Round Table, consisting of Government and the Guyana Manufacturing and Services Association, was established in 2017. Its work has been fruitful. Cooperation is taking place between the Government and the GMSA to facilitate agro-processing development and ease of doing business. The Roundtable’s work has resulted in achievements including:
∙ increasing the Common External Tariff on imported pinewood which posed a threat to local producers;
∙ initiating an inventory of the forests to aid the forest sector better allocate forest resources to producers;
∙ improving trade facilitation at the ports;
∙ moving towards the development of a consolidated stockyard for dimensioned lumber to better improve timber sales; and
∙ addressing constraints to fair access to external markets by our agro-processors.
The economy is being rebalanced to become more competitive and resilient. It is being prepared and primed for rapid economic transformation.
Decade of Development
My Government is looking to the future. Guyana is entering a new phase of economic development. The advent of petroleum production, next year, will result in sustained expansion of the economy. Petroleum revenues will be prudently managed to ensure sustained benefits to all sectors of the economy. “A rising tide lifts all boats”.
We will launch a Decade of Development: 2020-2029. The ‘Decade’ will witness the emergence of a world-class education system aimed at ensuring that the best skills are available for economic development. The ‘Decade’ will include 10 major sectors of development, inter alia:
 Education reform, accessible information technology and social cohesion;
 Economic expansion, diversification, restructuring, value-added manufacturing and food security;
 Energy security and transition to renewable and clean sources of energy;
 Environmentally sustainable management of natural resources;
 Empowerment of regional and local communities;
 Eradication of extreme poverty, homelessness, and destitution;
 Infrastructural expansion, aviation and riverine transport and hinterland development;
 Internationally competitive trade and investment;
 National and border security, human safety and international relations; and
 Institutional strengthening and constitutional reform for good governance.
The ‘Decade’ will place emphasis on education. Investment in education represents a large share of national Budget (17.5 percent), and 6.3 per cent of GDP.
My Government will expand expenditure on education during the decade of development. We shall focus, increasingly, on graduating better trained teachers who could impart more critical thinking skills to children.
The public education system and curriculum will be modernised to reflect recent research and address advancements in pedagogy and learning for children.
My Government will improve access to education. The Public Education and Transport Service (PETS) will be expanded to provide more boats, buses and bicycles to ensure that children attend school. The school-feeding programme will be expanded.
The public education will be reshaped to emphasise science, technology, engineering and mathematics (STEM) without deemphasizing the humanities.
The objectives of the ‘Decade’ are aligned to the Green State Development Strategy; Vision 2040 (GSDS) and to the Sustainable Development Agenda and its 17 Sustainable Development Goals (SDGs).
The ‘Decade’ will yield increased business opportunities, including for the manufacturing and services sectors. The ‘Decade’ will ensure an enabling environment which would allow our local businesses to capitalize on these opportunities. We envisage a future of thriving businesses and globally-competitive manufacturing and services sectors.
The ‘Decade’ will accelerate the process of the renewal of regional development which commenced with the establishment of four new capital towns at Bartica, Lethem, Mabaruma and Mahdia and the holding of local government elections in 2016 and 2018.
These capital towns are expected to become drivers of the economic and social development of our regions, allowing for increased business opportunities and the improved access to public services.
The ‘Decade’ will promote sound environmental management of our natural resources. It will witness greater emphasis on preserving and protecting our environment for the benefit of future generations.
The ‘Decade’ will reduce youth unemployment. It will expand initiatives such as the Guyana Youth Corps, the Hinterland Entrepreneurship Youth Service (HEYS) and the Sustainable Livelihoods and Entrepreneurial Development (SLED) which are serving as incubators of youth entrepreneurship and skills-development.
The Green State Development Strategy has identified a pivotal role for manufacturing and services in our future economic development.
The economy will be realigned along increased diversification and a low-carbon pathway. Emphasis will be placed on building a competitive manufacturing base and moving production away from primary production towards more value-added production of goods and services.
Guyana’s future is bright. It is on the right path. It is moving forward. It will progress more rapidly in the Decade of Development 2020-2029.
The private sector, an engine of growth and an agent of national development, is expected to play an integral role in ensuring that the next 10 years are part of an era of unsurpassed and irreversible prosperity for all of our citizens.

(The views expressed in this article are those of the author and do not necessarily reflect the opinions of this newspaper)

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