Showing posts with label Guyana. Show all posts
Showing posts with label Guyana. Show all posts

Sunday, May 23, 2010

What does it all mean for Guyana?

This week speaks volumes of a turning point in the History of the Caribbean as several noted and questionable acts have occurred and as people prepare to take to polling stations to stay or remove governments.

In JAMAICA:
A state of emergency was issued for a month by the Bruce Golding administration. This action followed a 2 PM Cabinet meeting.

The genesis is the US request to extradite Christopher Dudus Coke.

In recent weeks, we saw PM Golding being forced to review his moves and even think about the leadership of his country when news broke that he sought legal help to address the extradition.

After he signed the extradition order-Tivoli Gardens and Denham City were on a shut down by criminal gangs opposing the extradition of Dudus.

What followed is unprecedented violence in Jamaica as gangs sought to protect Dudus.
Police stations burns, police cars hijacked, Kingston Airport shut down, Hospitals come under gun fire, citizens had to be evacuated and gun violence in Kingston and other parts of Jamaica.

A State of Emergency was issued at a time the United States Embassy Officials in Jamaica and Dudus lawyers are trying to get him out of the country. Dudus have reportedly waived his right to stand trial in Jamaica and wishes to be flown directly to the US.

This is one telling tale.


In Trinidad
Tomorrow, Monday, Trinidadians will turn out in their thousands to polling stations in Trinidad and Tobago to vote.

The UNM-COP grouping seems a likely winner- as Trinidadians seek a change from the Patrick Manning led PNM.

In recent years corruption had plagued the Manning government as Trinidad, the richest Caribbean Country battled a plunging economy. The UNM also a tarnished record on that topic as well but with the emergence of a promising candidate Kamla Persad-Bissessar the elections is one to keep a close eye on.


Suriname
And on Tuesday, Surinamese would take a trip to the poll.

The calls are in for the infamous Desi Bouterse of the National Democratic Party as some are suggested that the incumbent Ronald Venetiaan of the National Party of Suriname is out.


All of these events could see a change in the landscape of politics in this Region, so keep an eye on them.

Wednesday, April 28, 2010

Guyana plunges to the bottom - again

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.

Sunday, April 25, 2010

The stink of corruption!

Finally someone woke up and smelled the stink of corruption. Hats off to Desmond Trotman and his lawyers. I vote the "citizen of Guyana" award to Desmond!

Well known WPA Activist Desmond Trotman has sued the government for not paying the Lotto Funds into the Consolidated Fund- we all know and as stated in the media these monies were being spent without the necessary Parliamentary Approval. Well parliament be damned, spent without even any care for accountability!

When King Jagdeo on his Cabinet Outreaches would give away a $50 million here and a $20 million there. These exclude the millions prepaid for pipes, pharmaceuticals, rooms at hotels, Limo at Miami, etc.

Even the PNC (which has denounced this act many many times) could not muster up the courage and will to take this matter to court-we wonder about the many lawyers in that party - maybe they are all beneficiaries of the lotto-unaccounted-free-flowing-money.

The Audit Office of Guyana has reported this illegal act many times in multiple reports. In its just recent report of the 2008 accounts, the Auditor General (which is co-headed by the wife of the Finance Minister) said:

“The Contingencies Fund continued to be abused with amounts totaling $670.343 million drawn from the Fund being utilized to meet expenditure that DID NOT meet the ELIGIBILITY criteria as defined in the ACT”

Page 12 of the AG’s 2008 report also states that Expenditure in respect to services which by law are directly chargeable to the Consolidated Fund DO NOT form part of the voted provisions approved by the National Assembly.

These expenditures include:
1. Repayment and servicing of Public Debt
2. Emoluments of holders of Constitutional Offices
3. Pensions and gratuities of Public Officers

The Financial Management Act spells out how and why exactly monies should be extracted from the Consolidated Fund.

Finance Minister Dr. Ashni Singh in this case must show that “urgent, unavoidable and unforeseen NEED for the expenditure has arisen”, for which NO money can be reallocated as provided for under the FMA- or for which no money has been allocated for, or for which the sum allocated is not sufficient.

When the Minister does the above, this is to be tabled in the National Assembly. According to the 2008 AG Report more than 80 advances totaling more than $4 billion were drawn from the fund.

Of course, by the end of 2008, the Ministry of Finance could not account for more than 17 of those advances totaling more than $1 billion.

The Auditor General Deodat Sharma in his report said that his previous reports “highlighted the continual abuse of this fund”. The report listed several instances where monies were taken from the Fund showing wanton abuse. These included:

1.More than $200 million to the Public Works Ministry for support to the Transport and Harbour Department

2. More than $180,000 million to the Guyana Defense Force

3. More than $77 million to the Finance Ministry for Consultancy

4. More than $72 million to the Home Affairs Ministry for Carifesta expenses

These are only a few sums that were captured by the AG Office for 2008. One can only wonder what took place in 2009!

We congratulate Desmond Trotman for the long awaited move as we await the outcome of this court matter.

We take this opportunity to caution Desmond, Ram and Fitzpatrick - look our for nasty 'letter' on your wife (or wives), girlfriends, cars, any duty free if you ever had, any tax free if you ever had, any fetish if you ever had....and of course even if you didn't have, they will now get dirty.

Saturday, March 27, 2010

Guyana features in Poker News

Guyana Opens First Casino, But Locals Barred from Gambling

The Princess Hotel in Guyana officially opened the country's first casino last week, but because of a law passed in 2007, Guyanese residents are forbidden from playing there. The Gambling Prevention Act restricted Guyanese gambling after several religious leaders and politicians led an anti-gambling crusade. For now, the only people who can gamble at the casino's 300 slot machines and 11 gaming tables are international ecotourists and the many Brazilians the casino hopes will travel there to gamble.

The government decided to grant limited casino licenses to hotels with a minimum of 150 guest rooms as a way to accelerate the growth of the country's young tourism industry. Guyanese President Bharrat Jagdeo denounced the hypocrisy of opening a casino where only foreigners are welcome, saying that freedom of choice should outweigh antigambling concerns. “For me, this is something that I find distasteful. I believe that Guyanese should enjoy all of the choices in the country… our society is a moderate one…there was opposition, but we will give people choices,” Jagdeo said.

The Princess Hotel is owned by Turkish hotel group Princess Group, which owns 14 hotels internationally. The company, which bought the hotel for $15 million in 2008, is exploring legal loopholes that would allow Guyanese residents to gamble at the casino as long as they are guests of the hotel. In addition to slots and table games, the casino plans to host poker tournament satellites in the future.

Legalized Gambling illegal to Guyanese - Imran Khan

Legalized Gambling illegal to Guyanese
By Imran Khan

Freedom is not worth having if it does not connote freedom to err. It passes my comprehension how human beings, be they ever so experienced and able, can delight in depriving other human beings of that precious right – Mohandas Karamchand Gandhi

Following comments made by President Bharrat Jagdeo at the formal opening of the Princess Casino there has been a reheating of the debate on the virtues of casino/gambling legislation in Guyana. The President finds himself in some difficulty with regard to what appears to be an about face on the issue given his most recent comments and has been copping some criticism.

There is merit in most of the criticisms I have seen, however I have found that a narrow view is being mostly propagated (perhaps for political and other convenience) when there is a critical larger issue which needs to be ventilated.

The point of conditional and thus discriminatory casino/gambling legislation, in my opinion, takes a U-Turn from basic human equality – an essential facet of life now, apparently, taken much for granted to the point where it is treated with scant regard by even our National Assembly.

In my mind the issue is a simple one which can be a sorted through by asking a basic question. “How can an individual – regardless of who he or she is – have a legally protected right to partake in an activity in MY country which legally I, as a citizen of said country, am debarred from participating in?”

I am not a gambler and I may never visit a casino in Guyana or anywhere else, however I take offense to any law which prevents me from participating in an activity which foreigners are allowed to freely partake in. There can be no moral justification of it in what we all consider – perhaps to varying degrees – to be a democracy. The freedom of choice has been withdrawn from locals while foreigners have that option.

I have agonized over this to find some way of accepting that it can be. I am unable to find even an iota of sense or good judgment in it.

My view is that gambling should either be made legal and permissible for all in Guyana (whether Guyanese or not) or it should be an illegal activity for all. Legislation which discriminates on the basis of nationality reverses hundreds of years of social advancement.

It cannot be legal for some and illegal for others. Surely we have not forgotten times when there were restaurants for some, washrooms for some and when the front of the bus was only for some among other discriminatory practices.

The contention that government should allow vices for foreigners in our land whilst ‘protecting’ its citizenry from these vices is a flagrantly dangerous one as it is grounded in false logic and flawed thinking.

It is, in fact, the bedrock of hypocrisy.

The legislation as it now stands allows a loophole which defeats the presumed intention of the law. A local can very well enter and partake in the activities of the casino if they are a guest of the hotel. Therefore there is no real protection of the citizenry against the vice. It is in fact a worsening of the vice.

Whereupon a Guyanese wishing to gamble could have just walked into the casino and so do, they now have to expend additional financial resources to book a room to qualify themselves to gamble. For persons who are intent on gambling this is not a deterrent, it is a mere inconvenience. Addicts will find a way of overcoming the hurdles and the current design of the law aids them in so doing.

Also for government to take the role of – based on the construct and operations of our Parliament – unilaterally determine what is good and what is not for citizenry and enshrine same in law is to set a scandalously treacherous precedent – the perils of which, through unkind experience, I am sure most are all only too familiar with.

What next? Exclusive dining options for foreigners? Special airport transportation services only for foreigners?

The precedent has been set.

Wednesday, March 24, 2010

Boycott looms for Guyana's 1st elections since '94

Boycott looms for Guyana's 1st elections since '94
(Associated Press)


GEORGETOWN, Guyana — Opposition leaders in this South American country threatened Thursday to boycott the first municipal elections in 16 years over a plan to give a government-dominated commission control over local affairs.

The government says the proposed seven-member commission would reduce the central government's power over cities, but critics note that the government would still appoint a majority of its members.

"We can't agree with this and are not prepared to work with this," said Oscar Clarke, general secretary of the main opposition People's National Congress.

Clarke said his party might boycott planned April elections if the government doesn't agree to give local governments greater control over their own affairs, such as helping decide how to allocate funds.

He complained that the current system gives the central government power to fire and hire key city staffers, as well as to withhold funds for municipalities and neighborhood councils.

The government has proposed the commission plan to parliament as an alternative.

Vishnu Persaud, Guyana electoral commission spokesman, said officials are planning elections for a still-unset date in mid-April to choose mayors and councilors of six towns and 65 rural districts.

Guyana has not elected mayors, district and village leaders since 1994, largely due to continuing disputes about how to update voter registration lists.

Disputes over voting lists also prompted delays in several recent presidential elections.

Plans to hold municipal elections last year were scrapped because officials said new voter cards based on updated lists were not yet ready and a redistricting project had not been completed.

Presidential and general elections are scheduled to be held next year.

Copyright © 2010 The Associated Press. All rights reserved.

Wednesday, March 10, 2010

Guyana's faux pas - data vs power

Wikipedia says:
"The electricity sector in Guyana is dominated by Guyana Power and Light (GPL), the state-owned vertically integrated utility. Although the country has a large potential for hydroelectric and bagasse-fueled power generation, most of its 226 MW of installed capacity correspond to inefficient thermoelectric diesel-engine driven generators."

Wikipedia also notes that Guyana's blackout (power outage) is the highest incidence in Latin America and the Caribbean.

The most incisive statement is that,"Electricity prices in Guyana are the third highest in the Caribbean." The rates range between US$0.25cents for residences and US$0.35cents for businesses (kWh). See GPL site.

The promise of cheaper power has been echoed for more than 30 years by several governments and now seems only a comfort to fools. It has been years since we have been told of Hydro Electricity and how such a venture would save us of billions of dollars we already spend each year on our fuel bill. For instance, our petroleum import bill for 2007 was almost 40% of our GDP. Not much has changed since then has it?

However, the Government of Guyana is now throwing more than US$37million behind bringing another fibre optic cable, a cable which benefits are still to be calculated.

In 2008 the President of Synergy Holdings Inc. (Makeshwar Motilall) spoke of bringing the Amaila Falls Hydro Project to a working state as he calculated an investment in this project at $400 million. Since 2002 we hve heard that the Hydro project has been slated to begin year after year. In 2006 Mr. Motilall was quoted as saying that the financial closing and ground breaking for this project were targeting for 2007 with December 15 2010 as the latest commence of work date. This 100 mega watt station is said to aid in the development of large scale industries and domestic consumption.

But has the government changed its course of direction in pursuing hydro power? Since the Memorandum of Understanding has been signed between the government and Synergy Holdings Inc, the Company has repeatedly been quoted in the local press as saying it is awaiting financial closure.

As noted above, The government has now quickly secured more than US$37 million to bring a competing fibre optic cable to promote e-governance and break the Guyana Telephone and Telegraphy Company monopoly. While the President has said that his cable will be used for egovernenace, his Ministers and the PPP MPs have insisted (even in Parliament) that their cable will be competitive.

At the same time, the telephone company (GT&T) has said that it was/is investing US$60 million on a new undersea cable.

So, while the Government is finding US$37 million for a data cable, it is hard pressed to find a Lesser amount for hydro electricity?

Why are they investing in something that others are investing in when they cannot supply basic power? What will the GoG's customers pay for bandwidth prices and will the GoG be regulated?

Also, what will power up the customers' data customers?

There is more to this data cable deal than can be explained by economics, politics or by the lame excuse that they want to bring data prices down by their (GoG) own cable.

Monday, March 1, 2010

Berbicians - lots more to come



The picture on the left is a replica of how Berbice was from Sunday 9 am to Monday 5pm.
Blackout.

Calls to the GPL offices explained nothing - they claimed a maintenance that was not 'fixed' properly.

Berbice will continue to enjoy blackout!

Friday, February 26, 2010

Great investment for Guyanese Taxpayers

HURRAH!



HERE IS A LIST OF EXPENSES YOUR TAXES WOULD HELP WITH NEXT COUPLE OF YEARS:

The President’s Benefits Bill of 2009

1. Water, electricity and telephone bills

2. Personal and household staff, clerical and technical staff

3. Medical attendance, medical treatment/reimbursement of medical expenses

4. Full time personal security/guard service for home

5. Motor vehicle, owned and maintained by the State

6. Toll Free road transportation locally

7. Annual vacation allowance equivalent to the cost of 2 first class tickets

8. Tax exemption status

Sunday, November 29, 2009

Digicel's copyristmas

Christmas in the air. Digicel telecoms giant has announced it disappointing, puny copyristmas promotion.

Are we mistaken or is the Digicel Christmas program an replica of last year's GT&T promotion..... Lets see:
- They have an on-screen counter.... same as GT&T had last year? Same counters, same approach, same thing.... just packaged a little different. Wonderful copying Digicel! This is disappointing and disgusting! AND the most embarassing thing is that when they (Live on TV) call THEIR OWN SUBSCRIBERS the call goes to voice mail IMMEDIATELY. That is the experience everyday - 50% of the calls I place goes to voice mail!

On top of it all, the entire cash giveaways sounds just like..... GT&T's cash booth promotion last year!!!

Come on digicel, get better. your copyristmas sucks!
Until I see better, I am going blue!

Saturday, July 4, 2009

PNC falling apart

The PNCR is falling apart at its seams every day. Corbin seems happy with his 300,000 salary plus driver plus security and lifelong pension. He is not going to budge!

Who is the loser?
Norton? Definitely NOT!

The BIG loser is GUYANA!

We believe that PNC's disorganized state and its ridiculous pursuit of its role as OPPOSITION is the cause for Guyana descent into the runaway corruption of the current Government.

Guyana ends up losing again!

Saturday, June 27, 2009

Guyana Government cannot account for BILLION$

What is happening in Guyana? Has the PPP Government literally robbed Guyana of billions of dollar$ per year? Can we petition the international agencies as Cheddie did to track these millions of US Dollars?

Look at the accounts of the Government for 2007. Billions of Guyanese dollars cannot be accounted for. Assume the minimum amount of US$100 million is unaccounted for (stolen) in 2007... now multiply that by the number of years PPP is in Government.

Who will help Guyana? Is this country now totally lost?

The Auditor General report for 2007 shows numerous deficiencies and DELIBERATE falsification of accounts.
- Grants received by the Government not recorded. Therefore there is no trace of where the monies have gone or whose bank account deposited into.
- Contingencies Fund abused to pay expenses that do not qualify for such funding.
- $3.1B were drawn from the Fund by way of 115 advances and as at 31 December 2007, sixty-four of these advances totaling $1.459B remained outstanding.
- PLUS over 600 million in liabilities still on the books – add 600m to the 1.459 billion = 2.1 BILLION DOLLARS.
- Understatements in other areas.
- Consolidated Fund overdrawn by 47 BILLION dollars.
- 42 Inactive bank accounts
- The 42 inactive accounts had overdrafts of 686 MILLION dollars
- BILLION of DOLLARS used by the Government in 2007 and cannot be accounted for

Worth repeating: BILLION DOLLARS cannot be accounted for – 100 MILLION US DOLLARS?

Isn't Minister Ashni Singh a qualified Accountant? Well done Ashni!

God help Guyana.

Tuesday, June 23, 2009

Clico-Knight

A knight in shining armour. Singing-Knights.

Typical scandal except that in Guyana these scandal-makers face no charges or consequences and retain top positions in national boards.

Here is a top executive of a company - sets up a side-company to funnel monies into. Assists in bleeding the original company dry.

And, the knight still a part of the sugar board?

Monday, June 22, 2009

How crowded is Guyana?

Guyana is a crowded country. The emigrant population is creating problems for the Government as the challenge for distribution of land remains a tough one.

The Government is cognizant of this fact - that is why they give out very small houselots. Land given out by the Government can only accommodate a regular size house and maybe an outhouse. Government caters for the outhouse because there is an environmental plan for a non-sewage Guyana in the future. The Hope canal will either spread everything or wash into the ocean after flooding its banks annually.

An analysis of the population density of Guyana gives the proof of how crowded this country is. With 215,000 km2 and 700,000 people we have only 0.3 of km2 per person!So really, this country is too crowded.

No wonder people are leaving in droves. Nothing to do with economic problems or crime or any such negative! There's just not enough land around for everyone!

Sunday, June 21, 2009

Are Guyanese so nice?

A few years ago, the Elephant Man called every Guyanese a thief. No apologies from him.
Now, Digicel is bringing him again to Guyana.

Are we such an insensitive nation that those who call us thieves, those who insult our nation, would be foisted on us?

Do we now lack the guts or the moral fortitude to say no to any of this?

And Digicel - is this what you do to Guyana?

Tuesday, June 16, 2009

How crowded is Guyana?

Guyana is a crowded country. The emigrant population is creating problems for the Government as the challenge for distribution of land remains a tough one.

The Government is cognizant of this fact - that is why they give out very small houselots. Land given out by the Government can only accommodate a regular size house and maybe an outhouse. Government caters for the outhouse because there is an environmental plan for a non-sewage Guyana in the future. The Hope canal will either spread everything or wash into the ocean after flooding its banks annually.

An analysis of the population density of Guyana gives the proof of how crowded this country is. With 215,000 km2 and 700,000 people we have only 0.3 of km2 per person!So really, this country is too crowded.

No wonder people are leaving in droves. Nothing to do with economic problems or crime or any such negative! There's just not enough land around for everyone!

Monday, June 15, 2009

Thesis: Donkey-cart Economy


The following is extracted from a letter-writer (Tarron Khemraj) to Kaieteur news
And, the pic is taken from another Blog

The donkey-cart economy has the following characteristics:

1. The production of goods that are at the low end of the global hierarchy of products. In other words, we produce things that people really can do without. Our products are not as special as we would like to believe; not even in CARICOM, let alone the world.

2. Given number 1, it means the income elasticity of demand for the country’s primary exports is small. Meaning as world income (and CARICOM’s income) increases the demand for the country’s products will not rise accordingly. Sugar, for example, is clearly a product that fits the production profile of donkey-cart cart economy. Let’s face it, there is a finite amount of sugar the rich can consume (as a matter of fact, the rich might consume less sugar and sugar-related products as it is one way to stay slim). On the other hand, as the world gets richer we all consume more energy. Therefore, a superior strategy to save the Demerara estates would be ethanol and of course the bi-product of baggasse.

Furthermore, the Jagdeo Administration’s REDD strategy and low carbon development strategy are too narrow and are not likely to impact directly on job creation and industrial development. In addition to the REDD, what the country needs is to develop a bio-energy industrial base with cane sugar as a feedstock for this industrialization. However, the low carbon development strategy should be seen as only one policy measure in a portfolio of industrial policies necessary to raise the welfare of the masses.

3. The production structure of the donkey-cart economy is mainly in the form of low productivity goods and petty services. For instance, immediately after Mr. Hoyte’s ERP the country

stopped producing soaps, toothpaste and similar small consumer items and left it to the local importer in the name of liberalization. The country also destroyed its local plywood making firm and replaced it with a foreign multinational. In a donkey-cart economy it is never a good idea to destroy your manufacturing base no matter how inefficient and trivial it might seem. You have to work with the capitalist class in a industrial policy framework to make the manufacturing base superior.

4. The production structure is made up of products that allow little room for learning by doing, innovation and technological change – the critical ingredients for long-term growth in per capita GDP and higher living standards.

5. Remittances prop up private consumption and create a false sense of success among government officials and the masses.

6. Remittances and underground economic activities indirectly feed foreign exchange into the domestic foreign exchange market from which the central bank (BOG) buys to accumulate foreign reserves (a required target under the IMF’s financial programming). Thus, remittances help to maintain the IMF/WB’s much touted macroeconomic stability (there have been several pro-government letter writers promoting macroeconomic stability as a great achievement). Therefore, a donkey-cart economy can be stable with relatively low inflation (owing to exchange rate stability) as is the case with Guyana. But this notion of macroeconomic stability is narrow, short-term in focus, and does not imply a success on the production/supply side of the economy. This point will take a full academic paper to explicate.

7. The donkey-cart economy imports most of what it consumes. Thus remittances are mobilized by economic actors and are used to make payments for imports of even basic consumer items (some of which we stop producing after the ERP). Therefore, unlike what some IMF/WB literature have argued and have been cited in the local media (see Dr. Prem Misir in SN 02-06-09), remittances are highly unlikely to lead to productive domestic investments in the Guyana context.

8. The donkey-cart economy exports most of its skilled and educated workforce. According to the OECD, Guyana exports 83% of its skilled population (the highest percentage among developing economies). Hence, there is the depreciation of the human capital base, which is a critical ingredient for long-term growth and development. Furthermore, the depreciation of the human capital base also involves the downgrading of the entrepreneurial and risk taking base. Of course, the contribution of human capital to growth (of high quality) is well explicated by endogenous growth theory. Moreover, Guyana is not India and is unlikely to earn the touted brain gain (as Dr. Misir has assumed) as in the Indian case.

9. The government significantly depends on foreign aid and finance from IMF/WB/IDB and bi-lateral aid donors. Even small projects depend on these sources of financing. For instance, the CARICOM building and the Convention Centre were built by grants (with aid-tying I am sure).

10. The government depends on IMF/WB for policy advice and analysis.