Economic Growth Policies in Guyana: A Call to Action

Jul 23, 2025 Letters

Dear Editor,

Kaieteur News – During elections, the Guyanese electorate eagerly anticipates hearing the economic policies proposed by the political parties vying for their votes. Over the past week, the People’s Progressive Party (PPP) has revealed three significant economic policies aimed at maintaining growth in the country. So far, the People’s National Congress (PNC)/A Partnership for National Unity (APNU) and We Invest in Nationhood (WIN) have not disclosed a detailed plan or provided vague answers regarding their intentions. Each party has a responsibility to clearly explain how they plan to sustain and improve Guyana’s growth path.

President Irfaan Ali made a surprise announcement at a public meeting in Albion, Corentyne in which he stated that if elected for a second term, his government will establish a USD $200 million fund dedicated to the development of small and midsized enterprises (SMEs). This promise holds significant economic implications for Guyanese citizens across the nation, as it would provide essential resources for entrepreneurs in both urban and hinterland areas. Given that entrepreneurship is a key driver of economic growth and development, this fund represents a viable strategy for ensuring that Guyanese households can benefit from the nation’s impressive growth.

For Guyanese SMEs to thrive, access to capital is essential. Funding remains one of the primary challenges these businesses face. According to the World Bank, approximately 70% of SMEs in developing countries struggle to obtain the necessary financing for growth. The proposed fund could help alleviate this barrier, empowering local entrepreneurs to launch new ventures or expand existing ones. Additionally, research indicates that every dollar invested in entrepreneurship development can yield a return of $2.30 in economic output over time. In the context of Guyana’s economic landscape, this fund could spur job creation and enhance overall productivity. Moreover, its intended reach across diverse communities can help address regional disparities where entrepreneurial activities are limited, thereby promoting more balanced economic development nationwide.

In another significant announcement, Vice President Bharrat Jagdeo revealed that the government will allocate an additional GY$ 7373 billion in 2025 capital spending for the construction of essential infrastructure including roads, schools, hospitals, clinics, and bridges, particularly in hinterland communities. According to the IMF, every dollar spent on infrastructure typically generates a multiplier effect of 1.5 to 2 times the initial investment, contributing to GDP growth. This means that the GY 737 billion earmarked for infrastructure could potentially lead to an increase of between GY$1.1 1.1trillion and GY$1.47 trillion in economic activity. Infrastructure projects not only create direct jobs during the construction phase but also stimulate job growth in related sectors, such as transportation and services, once they are completed. Research shows that significant infrastructure investments can create 20 to 30 jobs for every GY$1 million spent.

In another policy move, Attorney General Anil Nandlall announced that Guyana is nearing the finalization of a comprehensive migration policy. This policy is a crucial step towards ensuring that the country has the necessary resources and talents to continue its development efforts, especially in sectors facing skill shortages, such as oil and gas, as the economy diversifies. By implementing a structured migration framework, Guyana can attract skilled individuals from abroad while also providing pathways for Guyanese expatriates to return home. This will not only enable them to contribute to Guyana’s economic success but also help fill existing skill gaps. According to the International Organization for Migration, countries can see a 20% increase in GDP for every 1% rise in skilled migrants.

These initiatives, if effectively executed, can enable Guyanese households and businesses to fully harness the benefits of economic growth fully, paving the way for a resilient and prosperous future for the nation.

Sincerely,

Dr. Tilokie Arnold Depoo

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Dr. Tilokie Arnold Depoo, economic growth, Election, People's National Congress, We Invest in Nationhood

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