It is time to rein in spending

Feb 26, 2023 Letters

Dear Editor,

It was recently reported that Pakistan has declared bankruptcy. Such news will have a global impact that will be felt for years to come. A significant level of demand will be offline, which will negatively impact global markets for key commodities including oil. Combined with the war in Ukraine, the rising tensions between the United States and China, and the high levels of global inflation, these factors make it urgently important to be extremely cautious with the financing available to and the financial health of the country.

The oil earnings forecast close to the upper end of the range for Guyana over the next 20 years is the equivalent of what the Fortune 1 Company in the world makes in 1 year. The retail giant Walmart has also faced a significant increase in cost of goods sold and a net income level that is only 3 times that of our nation’s budget.

That’s correct; the pace of spending in Guyana is not at a level that can keep up with its earnings. Guyana is spending a third of what Walmart earns in profit in a year, while having to wait 20 years to obtain the annual revenue of the company. A future financial crisis will not be avoided if the country doesn’t rein in spending and focus its efforts on increasing earnings from its investments to a level that is above inflation.

Also, the longer the country is exposed to the financial downside of a major oil spill the probability and risk of a financial collapse becomes even higher. It is imperative that the current gaps in the production agreement are fixed; the risky production levels that are above the recommended rates are lowered; and the aggressive budget outlay is curtailed as soon as possible!

At the end of all of our nation’s efforts, the minimum that should be achieved are the following:

Improved security from rising sea levels and the negative effects of climate change
Improved economic solvency resulting in an improved standard of living for our citizens

We must not lose sight of these two key objectives, and we must ensure that we take the most secure path towards achieving them.

Sincerely,

Mr. Jamil Changlee

Chairman

The Cooperative Republicans of Guyana

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Chairman, China, Guyana, Mr. Jamil Changlee, United States

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