Exiting the structural adjustment programme

IT should not be seen as credit to Guyana for having the longest Structural Adjustment Programme (SAP) in the world. This programme, which started under the Desmond Hoyte administration in 1989, has seen our economic plans determined by the World Bank and International Monetary Fund. In fact, the decisions as to how the State can pay government workers is determined in Washington not Georgetown.

President David Granger in his address to the Guyana Trades Union Congress’ 4th Triennial Conference last Thursday reiterated to the workers and nation that his administration is pursuing a green economy. What this is confirming is the Government’s intent to bring an end to a programme that has outlived its usefulness.

The green economy as adumbrated internationally speaks of a policy that is premised on three pillars- Sustainable Development, Environment and Labour Policies. The GTUC’s conference theme, “Labour Policies- a prerequisite in the creation of a green economy” suggests from the trade union’s focus and the president’s address that a synergy is being established between the two stakeholders in pursuit of this economic model. This augurs well for national growth and development.

Whereas the SAP measures growth and development using the Gross Domestic Product, the green economy measures same using the Human Development Index with the ultimate aim of eliminating poverty.

Moving from one model to the other where the measurement tools are dissimilar means that the time has come for bold decision-making in abandoning the SAP. Equally, it requires bold decision-making in putting the structures in place for the realisation of the green economy.

In the Social Partner relationship, where the other partner is the employer, though this group has yet to speak out definitively on the green economy, Government could invite the business sector/employers and Labour to start the process. The meeting of minds will give the three partners opportunity to crystallise what the green economy means for Guyana and the role each stakeholder has to play in ensuring the benefits to be derived for all.

A mechanism available to the Government is to work towards the Social Compact/Contract which President Granger, since during his leadership in the Opposition, has been trying to steer the nation towards as an important tool in development. On the 10th June, 2015 in his address to the opening of the 11th Parliament he offered commitment that “We will wage war against poverty under a social compact characterised by an inclusionary process. Such an approach would boost national confidence and allow for the mobilisation of the material and human resources needed for the tasks at hand.” In an address to the Rotary Club in February this year, the president reiterated the interest in the nation pursuing this compact.

In the circumstances where a social compact is deemed essential to the war against poverty, the Government may see utility in advancing the process to invite the other stakeholders for engagement. The approach in working towards a compact stands to realise two goals: creating the green economy and reducing poverty, while the second will be the development of an indigenous programme that will bring an end to the SAP.

50 years of independence must see Guyanese not only engaging in merriment, having broken the yoke of bondage of far distance power, but by now should have realised greater economic independence. Being in the SAP, while it came as a result of shifting economic focus in response to economic downturn-that was influenced by internal and external factors and forces- it was never intended to have an independent nation tied to the dictates of foreign financial forces.

There is nothing wrong with Guyana that cannot be made right by Guyanese in the presence of determination and application of ingenuity.

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