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Georgetown, Guyana (Credible Sources) Former Finance Minister Winston Jordan dissected President Irfaan Ali’s recently announced economic measures during an appearance on In The Ring with host Sherod Duncan. While Jordan acknowledged the positive intent behind the initiatives, he raised critical concerns about the nominal versus real impact of salary increases, the challenges posed by inflation, and what he described as an overheating economy.
Jordan began by commending the government for negotiating increases in allowances and wages, noting, “Public servants have been starved of these adjustments for nearly three decades.” However, he cautioned that these nominal gains might fail to translate into real improvements in workers’ lives, especially at the lower end of the income scale. “A 10% increase for a worker earning $86,150 is just $8,615 extra per month,” he explained, adding that such increments are quickly eroded by inflation, particularly during the holiday season when prices typically spike.
Jordan highlighted that the cumulative 35% increase in wages over four years pales in comparison to inflationary pressures. He explained that with annual inflation rates hovering around 3.5% since 2020, real wage growth for public servants effectively stagnates. “By the time you factor in inflation, workers are often worse off than before,” he argued. Jordan further criticized the government for failing to outline a long-term strategy to make wages competitive, particularly in light of Guyana’s burgeoning oil economy.
Jordan expressed concerns about the broader economic implications of the government’s fiscal policy. He warned that injecting significant funds into the economy without addressing structural inefficiencies could lead to overheating, driving up inflation even further. “The government must recognize that throwing money into the system without systemic reforms creates a vicious cycle of rising costs and stagnant living standards,” he said.
Jordan emphasized the need for a comprehensive wages policy, tied to public sector reforms and performance-based incentives. He criticized the across-the-board increases for failing to address disparities between high and low earners, stating, “These flat increases widen the income gap and fail to reward performance or competence.”
He also pointed out inefficiencies in the public service, highlighting the prevalence of contract workers and outdated systems. “Without modernizing the public sector and aligning wages with required skills and performance, these increases will only scratch the surface of deeper systemic issues,” he remarked.
Despite his criticisms, Jordan acknowledged steps like the introduction of housing and risk allowances, adjustments to salary scales, and qualification-based incentives. However, he questioned their sufficiency in attracting and retaining talent in critical sectors like education and healthcare. He argued that measures such as a $15,000 monthly allowance for ACCA-qualified accountants and a $22,000 allowance for master’s degree holders are insufficient to counteract private sector and international competition.
Jordan stressed the need for bold and targeted action to address wage stagnation and inflation. “Guyana’s workers deserve more than nominal increases—they deserve a plan that offers real value and long-term stability,” he said.
