However, one of the dilemmas the government has found itself in is finding the financial resources to meet this demand for more roads across the country because of the high costs of building large stretches of high-quality roadways.

Nevertheless, the government, ever cognisant of the importance of road networks and infrastructure to economic development, has made great efforts at improving and expanding them, and had it not been for financial constraints, much more work in this area would have been done. In addition, when this government came into in office in 1992, the entire road network in this country was in a state of virtual collapse, but, through Herculean efforts, most of Guyana’s major roads have been refurbished and, in some cases, expanded and modernised as well.

The transport sector is an important component of the economy, impacting on development and the welfare of populations. When transport systems are efficient, they provide economic and social opportunities and benefits that result in positive multiplier effects, such as better accessibility to markets and additional investments. When transport systems are deficient, in terms of capacity or reliability, they can have an economic cost, such as reduced or missed opportunities. Transport also carries an important social and environmental load, which cannot be neglected. Thus, from a general standpoint, the economic impacts of transportation can be direct and indirect:

* Direct impacts relate to accessibility-change, where transport enables access to larger markets, which saves time and cuts costs.

* Indirect impacts relate to the economic multiplier effect, where the price of commodities or services drop and/or their variety increases.

The impacts of transportation are not always intended, and can have unforeseen consequences, such as congestion on roadways. Mobility is one of the most fundamental and important characteristics of economic activity, as it satisfies the basic need of going from one location to the other, a need shared by passengers, freight and information transfers. All economies and regions do not share the same level of mobility as most are in a different stage in the transition. Economies that possess greater mobility are often those with better opportunities to develop than those suffering from scarce mobility.

Reduced mobility impedes development, while greater mobility is a catalyst for development. Mobility is thus a reliable indicator of development.

Providing this mobility is an industry that offers services to its customers, employs people and pays wages, invests capital and generates income. The economic importance of the transportation industry can thus be assessed from a macroeconomic and microeconomic perspective.

* At the macroeconomic level (the importance of transportation for a whole economy), transportation and the mobility it confers are linked to a level of output, employment and income within a national economy. In many developed countries, transportation accounts for between 6% and 12% of the GDP.

* At the microeconomic level (the importance of transportation for specific parts of the economy) transportation is linked to producer, consumer and production costs. The importance of specific transport activities and infrastructure can thus be assessed for each sector of the economy. Transportation accounts, on average, for between 10% and 15% of household expenditures, while it accounts around 4% of the costs of each unit of output in manufacturing, but this figure varies greatly according to sub-sectors.

Transportation links together the factors of production in a complex web of relationships between producers and consumers. The outcome is commonly a more efficient division of production by an exploitation of geographical comparative advantages, as well as the means to develop economies of scale and scope. The productivity of space, capital and labour is thus enhanced with the efficiency of distribution. It is acknowledged that economic growth is increasingly linked with transport developments, namely infrastructures, but also managerial expertise crucial for logistics. The following impacts can be assessed:

* Networks. Setting of routes enabling new or existing interactions between economic entities.

* Performance. Improvements in cost and time attributes for existing passenger and freight movements.

* Reliability. Improvement in the time performance, notably in terms of punctuality, as well as reduced loss or damage.

* Market size. Access to a wider market base where economies of scale in production, distribution and consumption can be improved.

* Productivity. Increases in productivity from the access to a larger and more diverse base of inputs (raw materials, parts, energy or labour), and broader markets for diverse outputs (intermediate and finished goods).

Transportation and Economic Development
Transportation developments that have taken place since the beginning of the industrial revolution have been linked to growing economic opportunities. At each stage of human societal development, a particular transport mode has been developed or adapted. However, throughout history, it has been observed that no single mode of transport has been solely responsible for economic growth. Instead, modes have been linked with the function and the geography in which growth was taking place. For instance, major flows of international migration that occurred since the 18th century were linked with the expansion of international and continental transport systems that radically shaped emerging economies, such as in North America and Australia. Transport has played a catalystic role in these migrations, transforming the economic and social geography of many nations. Concomitantly, transportation has been a tool of territorial control and exploitation, particularly during the colonial era, where resource-based transport systems supported the extraction of commodities in the developing world and forwarded them to the industrializing nations of the time.

While some regions benefit from the development of transport systems, others are often marginalized by a set of conditions in which inadequate transportation play a role. Transport, by itself, is not a sufficient condition for development: However, the lack of transport infrastructures can be seen as a constraining factor to development. Investment in transport infrastructures is thus seen as a tool of regional development, particularly in developing countries, and for the road sector. The relationship between transportation and economic development is thus difficult to formally establish and has been debated for many years. Its complexity lies in the variety of possible impacts:

* Timing of the development varies as the impacts of transportation can precede, occur during, or take place after economic development. The lag, concomitant, and lead impacts make it difficult to separate the specific contributions of transport to development. Each case study appears to be specific to a set of timing circumstances that are difficult to replicate elsewhere.

* Types of impacts vary considerably. The spectrum of impacts range from the positive, through the permissive, to the negative. In some cases transportation impacts can promote, in others they may hinder economic development in a region. In many cases, few, if any, direct linkages could be clearly established.

Cycles of economic development provide a revealing conceptual perspective about how transport systems evolve in time and space, as they include the timing and the nature of the transport impact on economic development. In periods of recession, which commonly follow periods of expansion, transportation activities may experience a setback, namely in terms of lower demand and a scarcity of capital investment. Transport, as a technology, typically follows a path of experimentation, introduction, adoption and diffusion and, finally, obsolescence, each of which has an impact on the rate of economic development. In addition, transport modes and infrastructures are depreciating assets that constantly require maintenance and upgrades. At some point, their useful lifespan is exceeded and the vehicle must be retired, or the infrastructure rebuilt. (Source: Transport and Economic Development by Dr. Jean-Paul Rodrigue).

Against this background the proposal put forward by South African-based road construction company, ROMIX, to build roads in Guyana, using a cheaper and less time-consuming technology, provides an exciting prospect for road network development in Guyana.

According to the company, the existing layer is ripped up with a machine equipped with a rake; the scarred soil is with Solid Fix Polymer (SFP); compact the mixture with a pneumatic roller; cover it with asphalt, and it is good for between 15 and 20 years, with minimal maintenance.

The company is currently involved in doing a demonstration of the road construction technology at Mabura, and if it is found to be successful and reliable then Guyana could be well on its way to solving the problem of road development and accelerated access to many of the areas rich in natural resources.

In addition, the problem of upgrading the Georgetown/Lethem road, which is a key to unlocking Guyana’s trade and agricultural potential, could be solved, thereby helping to advance the economic development process.