The Georgetown Chamber of Commerce and Industry (GCCI) has launched a media campaign in defence of the PPP regime, telling Guyanese to “fear not” that they will be left out of oil-funded development. Arguing that oil development will naturally lead to development in other sectors.
Contrastingly, there have been sharp reductions in most sectors of Guyana’s economy over the past year. In her address to parliament during the recent budget debate, Shadow Minister of Finance Juretha Fernandes was keen to point out sharp contractions in many non-oil sectors: 34% reduction in sugar production, 20% reduction in rice production, 3.8% reduction in Bauxite, 14.8% reduction in gold production, and more in 2021 alone. Owing to the poor performance in all non-oil sectors, she pointed out that the non-oil GDP at the end of 2021 was still smaller than the non-oil GDP of 2019.
Rapid growth in a single export sector has repeatedly led to the dreaded “Dutch disease” where growth in one sector leads to a contraction in all other economic sectors in countries that don’t take careful action to safeguard those sectors. Both the proven economic science and the statistical facts of the performance of all non-oil sectors in Guyana stand in stark opposition to the wide-eyed assessment of GCCI spokesperson, Richard Rambarran.
In her assessment, PPP’s commitment to policies Shadow Minister Fernandes describes as “trickle-down economics” continues to fail in the much-needed task of stimulating the non-oil economy.
More, In The Ring.
