There are many lessons to learn from the Swiss

Mar 01, 2023 Letters

Dear Editor,

The conservative Swiss economy has done exceptionally well during the current financial crisis that has hurt world markets with double digit inflationary pressures.

There are many lessons the current administration can learn from taking a close look at what has been working well in the Swiss economy. Due to the Swiss’ import exposure they have pursued a strong currency policy, which has made their currency a safe haven for investors. At less than 4% inflation, which is the highest level it has been at in decades, their currency has gained buying power vs. the US dollar and the Euro whose inflation rates are significantly higher.

Our peg to the US dollar has served us well for decades, but we must now consider increasing our exposure to Swiss Francs in our currency reserves, and we must pursue a Swiss Franc peg as we increase our GDP per capita and shift our economic model to one of value added products. This brings me to the second key element of the Swiss economy. They have created many successful luxury brands that are resilient to price pressures. These value added products remove the risks associated with a highly dependent commodity market. Guyana must also seize the opportunity to produce high value items such as jewelry instead of exporting the diamonds and gold at the commodity level. Similar to the training in welding that is being pushed in support of the oil industry, we need to also create courses in jewelry design and jewelry making so as the extract more value from our gold and diamond resources.

His Excellency has charted a course for home ownership and food security. There is however an opportunity to further strengthen the Guyanese Family. Making available larger lots with adjacent agricultural land will allow families to not only produce items for an area of focused exports where we can attain a competitive advantage, but it will also allow each family to provide land upon which future generations may build and strengthen their family’s legacy. The production of organic food products is a ripe opportunity that Guyana is well positioned to take advantage of due to the large amounts of virgin land and clean water available for agriculture. We must commit ourselves to its pursuit. Strength of commitment is also needed to ensure we have institutions that embrace honesty and integrity in its daily business.

This, comrades, is the most important element in any strategy we pursue to build a strong economy. Corruption and corrupt officials must be removed from the Guyanese way of dealing with each other, and once removed it should never be given the opportunity to take root again in our society. Unless this is done, the true value of our products will not be achieved. Business relationships are built on trust and without it, even if you have the best products whether it be for ecotourism or for the export market, buyers and investors will look elsewhere to do business. The eradication of corruption also goes hand in hand with zero tolerance for crime. By achieving best in class personal safety levels for our citizens, our country will also attract high net worth immigrants whose presence will help sustain our economy and help the country regain a global reputation for hospitality and a high quality of life.

Our national development strategy would benefit from incorporating these fundamental elements of economic development, which if successfully pursued will provide a stronger financial foundation for all Guyanese.

Best regards,

Mr. Jamil Changlee

Chairman

The Cooperative Republicans of Guyana

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