World-wide analysis has been done to show the economic rating of Guyana and the Caribbean-American Forum has headlined "Guyana plunges to bottom of recent economic freedom ratings"
"According to the compilation released this week, Haiti is placed at 147 on the overall list, with Guyana at 155 and scored 48.4, making its economy the 155th freest in the 2009 Index of 183 economies examined." The Forum commented.
We quote extensively from the "2010 Index of economic Freedoms" as follows:
World Rank: 153 Regional Rank: 27 of 29 (Guyana)
Guyana’s economic freedom score is 48.4, making its economy the 153rd freest in the 2010 Index. Its overall score remains the same as last year because improvements in three of the 10 economic freedoms were offset by declines in investment freedom and property rights. Guyana is ranked 27th out of 29 countries in the South and Central America/Caribbean region, and its overall score is well below the world and regional averages.
Guyana does not perform well in any of the 10 economic freedoms and is slightly above the world average only in labor freedom and monetary freedom. Average economic growth over the past five years has been only about 3 percent, lagging behind other developing countries.
Long-standing constraints on overall economic freedom include property rights protected only erratically under the weak rule of law and widespread corruption in all areas of government. The biggest barrier to development is Guyana’s oversized government, with expenditures that often exceed half of GDP. Significant restrictions on foreign investment, combined with an inefficient bureaucracy, substantially depress the entrepreneurial environment.
Guyana is one of the poorest countries in the Western Hemisphere, and its state-dominated economy, dependent mainly on agriculture and mining, has been stagnant for many years. Violent crime and drug trafficking are serious concerns.
Business Freedom 63.4
Despite some progress, the overall freedom to conduct a business remains restricted by Guyana’s regulatory environment. Starting a business takes about the world average of 35 days. Obtaining a business license requires less than the world average of 18 procedures, but closing a business can be costly.
Trade Freedom 71.3
Guyana’s weighted average tariff rate was 6.9 percent in 2008. Import restrictions, import taxes, import-licensing requirements for a relatively large number of products, burdensome standards and regulations, inefficient customs administration, weak intellectual property rights enforcement, inadequate infrastructure, and corruption add to the cost of trade. Fifteen points were deducted from Guyana’s trade freedom score to account for non-tariff barriers.
Fiscal Freedom 55.9
Guyana has relatively high tax rates. The top income tax rate is 33.3 percent, and the top corporate tax rate is 45 percent. Other taxes include a property tax and a value-added tax (VAT). Excise taxes on fuel were temporarily suspended in 2008. In the most recent year, overall tax revenue as a percentage of GDP was 35.7 percent.
Government Spending 26.2
Total government expenditures, including consumption and transfer payments, are high. Privatization of state-owned enterprises has achieved mixed results. Poor management of public expenditures has led to persistent fiscal deficits. In the most recent year, government spending equaled 49.6 percent of GDP.
Investment Freedom 30.0
Guyana has been moving toward a more welcoming environment for foreign investors, but major foreign investments receive intense political scrutiny in an economy still dominated by the state.
Financial Freedom 40.0
Guyana’s underdeveloped financial system remains plagued by inefficiency and a poor institutional framework. High credit costs and scarce access to financing remain barriers to more dynamic entrepreneurial activity. The percentage of loans that are considered non-performing is a relatively high 14 percent.
Freedom From Corruption 26.0
There is extensive corruption at every level of law enforcement and government. Public officials are required to disclose their assets to an Integrity Commission before assuming office, but the commission had not been constituted as of mid-2009. Widespread corruption undermines poverty-reduction efforts by international aid donors and discourages foreign investors.
The CAF noted, "The size of the Jagdeo government was also slammed, being deemed the biggest barrier to development since expenditures exceed the gross domestic product (GDP)."
Of course the two doctors (Ashni and Jagdeo) can only spin doctor their way through his one. Expect full Prem-Misirable and Randyitis to be in the papers for the next weeks, doing articles for the non-selling chronicle and sending those articles as letters to the other media...spin! Spin Doctors.