Reducing poverty in Guyana

Jan 10, 2025 Letters

Dear Editor,

Absolute poverty is measured by determining a household’s ability to cover basic needs such as food, clothing and shelter. Once the annual cost of the basics is determined in Guyana, the government can set a minimum wage for the country. Hopefully this will be outlined in the near future by the government of Guyana.

This figure will then impact the cost of labour for every sector. In order to maintain the viability of each sector, the government with the aid of the private sector, must determine what it will take for each sector to remain competitive and profitable. If we take the sugar industry as an example, there is currently an opportunity to address this issue. This exercise will lead to the need for the identification of markets where demand has supply shortfalls over the long term.

Once the markets are identified, it is then necessary for the government to develop its trade policies, establish trade agreements and work on opening up markets for our country’s products and services. This exercise usually leads to the need for value-added products and services to cover the minimum cost of goods, which is directly impacted by the minimum labour bill that has been placed on every sector due to the minimum wage requirements.

To help reduce cost and maintain competitiveness, the government must also undertake initiatives that reduce the cost of inputs such as energy, water and transportation. In addition, as the entry into markets for value-added products and services occurs, the need for added skill development in the workforce increases. The government must also support this by ensuring that the education system is adequately developed in the areas of increasing demand where focus will be placed.

To also maintain competitiveness in these markets where we choose to compete, it is essential that the services needed to attract and retain talent are in place. This includes the health sector and areas such as law and order and fire safety. This means that the government must also develop these services to a level that is competitive with the other countries that are competing for the same talent. All of this must be done at a reasonable cost, where the minimum wage is maintained at a level that keeps pace with inflation and the cost of additional services needed, and sector viability and competitiveness is sustainable.

Many countries have approached the opportunity to reduce poverty in a variety of ways, but at the core of the solution are the resources that a country has and the market needs for what they can do with those resources. Given Guyana’s current size and the limited resources available, especially our Human Resources, CRG recommends that we focus our efforts on markets for value-added products and services that are safe for people and the environment where low volume and high profitability can be achieved.

Competing in a safe market will help us reduce the risk exposure that some of the leading economies are experiencing. The economic wealth obtained at the individual level becomes vulnerable when medical and healthcare costs increase. Therefore, we must choose wisely where we decide to focus our country’s development in order to maintain the health and prosperity of our citizens while also eliminating poverty.

Best regards,

Mr. Jamil Changlee

(Reducing poverty in Guyana)

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economic wealth, Government of Guyana, Human Resources, Private Sector, transportation

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