Dear Editor,
It was with immense disbelief that I witnessed the most recent tirades by Comrade Ali. His remarks regarding foreign investors and regional opportunities were quite revealing. He stated that if Guyana was “not good enough for you (international companies) to manufacture and produce your goods by investing in our economy then we are not good enough to consume their goods too”. Not only does this statement show the true nature of his deep-rooted communist leaning beliefs, but it also confirms his lack of understanding of global trade and business. Unfortunately, his arrogance and inexperience may cost our nation the goodwill being shown by the leading economies towards our little country. Furthermore, Comrade Ali also stated that he was willing to have Guyana go it alone without regional partners.
This will ultimately render Caricom useless. These are reminders of parts of Comrade Burnham’s philosophy that led to the economic collapse of our nation. There is a lot of competition within the region and only via mutually beneficial trade agreements can this be resolved with a win-win solution. Our comrade must be cautious and not try to take regional leadership in every lucrative sector. The push back will be enormous and the restricted access being faced in regional markets is a symptom of this pushback.
Of more concern is whether Comrade Ali will peacefully relinquish power at the next general elections or will he try to hold onto it to further his lacklustre economic agenda. Either way his influence over Guyana’s reputation within the global economic system is turning into a hindrance to sustainable and reliable economic development. The time has come for the senior leaders within the PPP to reel in our comrade before he further creates an investment climate that isolates Guyana as it did during the Burnham years.
Consider the approach being suggested by our comrade. If international businesses were required to manufacture wherever they sell they would firstly only pick the largest consumer markets available where demand for their goods justified the investment. An important consideration that Comrade Ali should have been advised on before making such a demand, which unfortunately will be viewed by global companies as both arrogant and a deterrent to further entering Guyana’s market.
As a nation, we must keep our situation in a realistic light. We are rapidly growing off a very small economic base, our economy is minuscule compared to the annual revenue of each of the Fortune 500 companies, and our GDP is less than more than half of the nations in the world. The reality is that we need investors more than they need us. Arrogance, angry tirades, and an investment strategy that leads to economic isolation will only result in the downfall of our nation’s economy and hinder long term lasting prosperity.
CRG suggests focusing on creating an attractive investment climate by providing competitive tax incentives, increasing the availability of skilled labour and professionals, establishing strong intellectual property rights, and providing favourable trade conditions for investors. These “must haves” will also need to be accompanied by a strong law and order system that creates a safe investment environment which helps improve our country risk rating and improve our sovereign credit rating. Currently, our nation has a U.S. level 3 travel advisory due to violent crime. Any opportunity to gain a favourable trade status and additional foreign direct investment should be embraced and not arrogantly demanded. Our comrade would benefit from a strong dose of humility and diplomacy. Not long-ago banks left our shores due to money laundering and corruption concerns.
Comrade, fix these substantial fundamental problems within our economy before raising your expectations for investment. The reality is that the investment environment in Guyana is not the most attractive when compared to more lucrative and safer alternatives. Improve our nation’s competitiveness & attractiveness, and then we can truly reap the benefits of our evolving economic growth. The senior leaders of the party need to provide our comrade with a qualified presidential advisor who can guide him through the remainder of his term in office before things spiral out of control.