|
Getting your Trinity Audio player ready...
|
Georgetown, Guyana (Credible Sources) Former Finance Minister Winston Jordan offered a detailed analysis President Irfaan Ali’s latest economic measures during his appearance on In The Ring with host Sherod Duncan. Jordan commended the government for its efforts but argued that the measures fall short of addressing the structural challenges facing public servants in an economy gripped by inflation and systemic inefficiencies.
Jordan explained that the cumulative 35% increase in wages over four years, while significant on paper, struggles to outpace inflationary pressures. With annual inflation rates averaging 3.5% since 2020, he noted that real wage growth remains stagnant. “By the time you factor in inflation, workers are often worse off than before,” Jordan said. He criticized the lack of a long-term strategy to make public sector wages competitive, particularly in an oil-rich economy where global and private-sector opportunities consistently lure away skilled workers.
Adding to constructive criticism, Jordan accused the government of hypocrisy for retaining the 50% ministerial salary increases introduced by the previous administration—an increase the PPP had vowed to reverse. “They not only kept the increases but are now enjoying additional raises themselves,” he pointed out, emphasizing the stark disparity between ordinary workers’ modest pay increases and the significant gains enjoyed by government officials. This, he argued, only deepens economic inequality and undermines public trust.
President Ali’s recent announcements included retroactive salary hikes of 10% for 2024 and 8% for 2025, allowances tied to professional qualifications, and adjustments to salary scales to address long-standing issues like debunching. Additional benefits, such as housing and risk allowances, were also introduced. While Jordan acknowledged these efforts as a step in the right direction, he characterized them as fragmented and insufficient to address deeper systemic problems.
Inflation, Jordan stressed, remains a relentless force undermining the value of these increases. A year-long Stabroek News series chronicled the struggles of ordinary Guyanese grappling with soaring prices for essentials. Sugar prices surged from $80/lb to $240-$300/lb, cooking oil costs doubled or even tripled, and gasoline reached $3,000/gallon in some areas. Pensioners, farmers, and single parents described mounting difficulties in affording basic necessities. “The cost of living is very hard in Guyana,” one pensioner said, while a farmer lamented, “$5,000 can’t buy a lot of items from the shop.”
These stories underscore the urgency of implementing comprehensive interventions Jordan argues for. He warned that without a concerted effort to tackle inflation and align wages with living costs, public servants may see little relief. Even new qualification-based allowances, such as $15,000 monthly for ACCA holders and $22,000 for those with master’s degrees, he claimed, fail to make public sector positions attractive compared to private and international opportunities.
Jordan sounded a call for bold, structural reforms, including a comprehensive wages policy and modernization of the public service. He criticized flat wage increases for rewarding both excellence and mediocrity equally, urging the government to prioritize performance-based incentives and skills development. “Without a clear plan to modernize the public service and align wages with performance and market conditions, these measures are little more than short-term relief,” he said. Jordan stressed that meaningful change requires a system that values workers and provides them with real opportunities for growth and stability.
