Jagdeo should be the least to criticize the economic policies of others

Nov 13, 2023 Peeping Tom

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Kaieteur News – Jagdeo says that he has not seen a workable, sensible economic idea from the Opposition in decades. Is it that he does not see any useful side, or is it that he is politically blind and deaf to accepting anything which emanates from outside of his party? To say that the Opposition has not produced any sound economic policies in decades is either pure ignorance or unbridled arrogance.

In a healthy democracy, constructive dialogue between political parties is essential for the formulation of effective policies that serve the interests of the entire nation. Dismissing the Opposition’s contributions without due consideration may hinder the development of comprehensive and inclusive economic strategies.

Jagdeo’s undeniable influence over the economic course of the country amplifies the significance of his recent statement. His recent statement rings the death knell for inclusive policies. By insisting that he has not seen any viable economic ideas from the Opposition in decades, Jagdeo not only dismisses any meaningful role for the Opposition in potential contributions in contributing to the shaping of Budget 2023.

There is only one course of action now available to the Opposition. It should take a principled stance and withdraw from further participation in the consultations for the Opposition. The Opposition should not allow itself to be used as window-dressing and for creating the illusion that the Budget is as a result of a consultative process.

Given some criticisms he made at an event at State House some time ago, in relation to submissions by the private sector and labour, both stakeholders should not participate in any consultations unless they receive iron-clad guarantees that the development of the Budget will be a tri-partite process involving the government, the private sector and labour.

It is imperative for the private sector to resist becoming a mere handmaiden to the PPP/C government, refraining from hastily applauding the annual budget despite the routine rejection of many of its substantive proposals. Rather than lending unbridled support, the private sector should critically assess the budgetary measures, ensuring that their interests and suggestions are adequately considered. This stance emphasizes the need for a more reciprocal relationship between the private sector and the government, where the former is not just a passive recipient but an active participant in the economic decision-making process. The call for discernment and a more discerning approach underscores the importance of fostering a collaborative environment that values the diverse perspectives and contributions of the private sector in shaping economic policies that benefit both parties and the nation at large.

Similarly, the Federation of Independent Trade Unions of Guyana should demand a process aimed at achieving a living wage for workers rather than hastily applauding incremental increases in wages and salaries. By demanding a more holistic approach to wage policies, the Federation seeks to ensure that the economic policies put forth by the government align with the long-term interests and prosperity of the working class.

Ironically, while claiming that the PNC had no workable and sensible economic policies in decades, it is the PPP/C which has been copycatting the APNU+AFC’s policies. So intellectually bankrupt is the PPP/C that it could not in 11 months come up with a suite of measures to address the cost-of-living crisis even though it set aside 5 billion dollars in the budget for this purpose. So, what did it do? It copycatted a bonus payment which the APNU+AFC had made during its first three years in office. The APNU+AFC had paid public servants a bonus. Repeating this is the best the PPP/C and Jagdeo could come up with to spend the G$5B which has been languishing in the Consolidated Fund since the passage of the Budget.

The PPP/C ‘s tax policies are myopic. It is guided by the no new taxes mantra. The PPP/C has failed to implement any enlightened tax reforms measures. While it was harshly critical of the APNU+AFC for imposing heavy taxation on citizens, it was under the APNU+AFC that both income tax and corporation tax reforms were undertaken. In November 2018 (2019 Budget), the APNU reduced the corporation tax for small businesses to 25% on taxable profits; it also reduced taxes on manufacturing from 30% to 27.5% and then to 25%, property tax rates were also reduced by a quarter of a percentage point; the threshold of capital gains tax was increased.

The Low Carbon Development Strategy was exposed for being nothing but a financing mechanism. After the PPP/C returned to office, it copycatted elements of the APNU+AFC Green State Development Strategy by revising the new strategy to include environmental services, water resources management, climate, biodiversity, and marine economy. Even so, what the PPP/C ended up with was an environmental plan rather than a national development plan.

Jagdeo therefore has no moral authority to accuse anyone of not having a workable and sensible economic idea. His economic record was a disaster. Between 1998 and 2004, economic growth averaged a pitiful 0.6%. Had it not been for rebasing to 2006, Guyana’s economic growth would have tanked under Jagdeo. He therefore should cease passing judgment on other because for every finger that he points at others, there are three pointing back at him.

 

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• economic policies, Jagdeo, Opposition in decades, private sector and labour, the APNU+AFC’s

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