Building stadium, airport should not trump citizens’ welfare

Apr 15, 2022 News

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– economist reminds govt. of high cost of living, health care, minimum wage issues

By Zena Henry

Kaieteur News – Guyana has already tapped into oil profits earned from its offshore oil developments which contributed to the largest national budget in the country’s history. Large sums of money have been budgeted for several infrastructural projects, but some stakeholders and civil society members continue to insist that these investments should not precede the wellbeing of citizens.

Economist, Ramon Gaskin told the Kaieteur News that there are several areas, some dealing with life and death situations that the government should address before spending on major investments that do not directly and immediately improve the quality of citizens’ lives. Gaskin expressed concern that Guyanese are still burdened by the meagre $44, 200 minimum wage which the government has not yet approved despite the awful effects felt by the globally influenced high cost of living. Gaskin pointed to the lack of attention being paid to free education at the University of Guyana despite this requirement being in the Constitution. He highlighted the need for subsidizing basic food items and even the need for price control on those primary items that have seen huge price increases due to external influences.
Gaskin was especially concerned about what he noticed was an increase in the establishment of private health institutions to which he said government was delegating services instead of itself investing the funds to reduce cost paid by citizens.
Gaskin said it is appalling that all these multi-million and multi-billion dollar infrastructural projects are coming on stream, while the government has failed to improve the minimum wage which its labour ministry and workers’ unions had agreed to during tripartite discussions in 2019. He opined that the government has instead embarked on projects that will benefit a small few. For example, in Berbice where the President recently announced a number of projects, these he said will not ease the pressures of the region, which was severely impacted by the reduction of the sugar industry.
The government announced the construction of a stadium, modern hotels, municipal airport and a private hospital, “but none of these will address the matters that these people are currently facing,” Gaskin said. Additionally, the fish industry in that region which had saved many of the retrenched sugar workers is also facing difficulty as a result of difficult licencing requirements to access fishing grounds.
To cushion unemployment issues, the government has nonetheless promised 3,000 part-time jobs that will pay $40,000 monthly for three days work weekly. They have also promised produce diversification in the sugar belt region to focus on hemp and shrimp production.
As it relates to health, Gaskin said that instead of expanding its services, the government seems to be delegating its responsibility to private institutions. Just over a day ago, Vice-President, Dr. Bharrat Jagdeo, again in Berbice said government is interested in offering financial support for heart patients to undergo life-saving surgery which cost around some G$3M. As it relates to kidney failure and life-saving dialysis treatment, the government announced that it will give each patient $600,000 per annum for treatment.
“But what logic is this if you have your own medical facility but handing out these services to private people.” Gaskin questioned. He said that Guyana has the funds to expand and provide these lifesaving services. The economist pointed to the development of another dialysis facility belonging to known private persons on the East Coast of Demerara, and a private hospital being built by a known company in Leonora, Essequibo and south Georgetown and highlighted an unhealthy connection between those private persons and the government. The need to place price control on basic food items should also be of interest to the government to promote easy access to food items.
Attorney at Law and chartered accountant Christopher Ram also believes that the government should be doing more to immediately and directly benefit citizens. He told Kaieteur News in an invited comment that despite the physical infrastructure, they should at least deal with the important social infrastructure. To be fair, Ram posited, the government has embarked on some socially related developments, but these are not being developed at the same rate as infrastructural development.
Ram insisted that, “people have a right to a living wage and that is non-negotiable.” He said however, this right begins with the government making it clear to the private sector that the current minimum wage is unacceptable. He said, “It is unacceptable that in this day and age, with the fastest growing economy that we are well below the minimum wage of less performing countries in the world.” Ram said he is also unwilling to accept any talk that increasing workers’ pay will increase inflation since there is no evidence to prove this.

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