Partnerships provide missing links needed to improve investment climate
-Lauds government’s contribution
CHAIRMAN OF the Private Sector Commission (PSC), Mr. Ramesh Dookhoo, contends that the partnership between the Government of Guyana, the private sector, and civil society has delivered the previously missing links needed to improve the local investment climate.
“Over the recent years, the partnership between the Government of Guyana, the Private Sector, and Civil Society has delivered the previously missing links in the regulatory and business environment that would make both foreign and local investment have security that private investment is welcome and well protected in Guyana,” he said.
Dookhoo was speaking at the Pegasus on Thursday during the PSC’s 19th Annual General Meeting (AGM), where he pointed out that the stakeholder partnership has built the regulatory framework for private business and investment to re-emerge to even greater confidence.
“Guyana’s new position in the international community has enhanced its stature through programmes such as the LCDS-Low Carbon Development Strategy. The economy has experienced growth when the rest of the world declined in the recent recession…investors from all the major developed countries continue to show interest in business opportunities in Guyana at an increasing rate,” he said.
The PSC Chairman stressed that the hard work undertaken by partnering stakeholders over the years in improving the business environment has created this renewed interest in Guyana as an investment destination.

Stability

Dookhoo touched on the concern of stability, and explained that the issues of macroeconomic stability and political stability are in some senses inextricably linked, since the macro-economic framework is managed by the government of the day, and political stability is in large part a consequence of how we as a democratic society choose our government.
According to him, it is in this context that the PSC has worked hard to engage not only the current administration, but the contenders for political office also, and to contribute to issues of governance, security, and stability.
“We hope that through the interactions they (the political leaders) had with us will each seek to present a clear vision for development that supports the efforts for sustained private sector growth,” he said.
The PSC Chairman stated that the private sector is concerned that political instability around our elections is bad for business in the short term, as many shut their doors and is also bad for business in the long term, as it affects our image and credibility as a destination for investment.
“Our goal is not just to keep businessmen’s doors open at any cost but rather to ensure that we conduct our political process with maturity securing all interests at every level. We are working with stakeholders and donor agencies to make even greater contributions in this area over the remaining period between now and the next general election,” he posited.
He referenced the fact that many development agencies recognize that stability in exchange rates and inflation provides a solid premise for business to forecast prices and returns in the future.
Dookhoo pointed out that Guyana has continued to receive commendation from the International Monetary Fund (IMF) for prudent macro-economic policies.
“Over 1999 to 2010 inflation has averaged 6 per cent and the exchange rate has remained broadly stable.  It is important for us to note that these congratulations are based on the fact that macro-economic stability is a key foundation of business confidence in an economy. For these prudent policies, we commend the Government of Guyana,” he said.

The NCS

The PSC Chairman stated that stakeholder partnership, expressly with the current administration, grew stronger with the hosting of the May 2006 Presidential Summit on Private Sector Development.
“We have had several more of these summits since then, with another expected in June 2011,” he said.
Dookhoo noted that the National Competitiveness Strategy (NSC) is an outcome of the May 2006 Summit and has outlined a strategy for diversifying Guyana’s economy – including the identification of new sectors such as tourism, agro-processing and information technology.
“These new sectors are skill intensive, they require more technical competence than the old pillars of our economy, and they require foreign partnerships to access and penetrate overseas markets,” the PSC Chairman said.
He added that the success of the NSC has supported massive new investments taking place in mining, telecommunications, and services.
However, Dookhoo maintained that there is still more work to be done and a bigger push in investment rates is still needed.
To date, Guyana’s investors include conglomerates from China, Russia, Canada, Jamaica-Digicel, the United States of America and Mexico, among others.