– Minister Singh calls for maintenance of macroeconomic stability
STAKEHOLDERS from a wide cross-section of civil society and government gathered at the Guyana International Conference Centre (GICC) Saturday for another round of consultation on the Poverty Reduction Strategy Paper (PRSP) 2011-2015, which points to low-carbon growth as one of its key pillars. The consultations, which have been ongoing since 2001, are crucial aspects of the PRSP which describe a country’s macroeconomic, structural, and social policies in support of growth and poverty reduction, as well as associated external financing needs and major sources of financing.
Minister of Finance Dr Ashni Singh, who delivered remarks at Saturday’s deliberations, said significant achievements have been made since Guyana began crafting its PRSP, particularly in the initial period.
“I undoubtedly arrive at the conclusion that Guyana’s first Poverty Reduction Strategy, which dates back to 2001, has been the subject of diligent and indeed successful implementation… one has only to look at the various priority pillars that were identified in that Poverty Reduction Strategy… to conclude that much indeed has been achieved,” Minister Singh said.
The 2001 PRSP had set priorities in the social sector for improving access and quality of services in the education, health, water and housing sectors, and designing and implementing programmes that will reduce poverty in regions where extreme or absolute poverty is high, or the depth of economic depression requires government intervention.
Topping the list of key pillars of the 2011-2015 PRSP is broad-based, low-carbon led job creation.
The Low Carbon Development Strategy (LCDS) model evolved out of President Bharrat Jagdeo’s Initiative on Avoided Deforestation launched in December 2008, and seeks to build and expand on the economic and social reforms achieved over the past two decades, while aiding in the fight against climate change, by putting Guyana onto a low carbon development path.
The strategy is based on the premise that Guyana’s pristine rainforest is a priceless asset that the world badly needs in its climate change mitigation fight, and can deploy strategically to combat climate change, without affecting national development or its sovereignty over the forests.
The strategy, which has endured a productive period of countrywide consultations, has allowed the Government to identify priority projects which it is optimistic will translate into reality this year, with the US$70M forest-based carbon incentive already secured through a partnership deal with the Government of Norway.

The projects include the Amaila Falls Hydropower Project (AFHP), improved information communication technology infrastructure, funding for community development projects in the hinterland, and construction of a world-class Centre for Biodiversity.
Speaking to stakeholders minutes before they separated into group discussions, Minister Singh explained that the LCDS combines the promotion of sound environmental and investment policies to catalyze economic progress.
He pointed to the promotion of cleaner and cheaper energy from the impending hydropower project and the numerous hinterland communities that will be connected to the national grid, the thousands who are employed in call centres, the 72 schools which are to be outfitted with computer laboratories and the One Laptop Per Family (OLPF) Project.
Minister Singh gave the assertion that significant progress has been made “in a quantified and demonstrable manner”, turning his attention to achieving the targets of the Millennium Development Goals (MDGs) on nutrition and its conformity with the country’s national strategy for food security, universal primary and secondary education, and reduction of child mortality.

Macroeconomic stability was the ingredient which Minister Singh said was key to the progress made and implored the protection of such stability if Guyana is to continue on the progressive path.
He made reference to the period of volatility in the global financial environment which has today left many countries in recovery and deep austerity, noting that Guyana’s economy maintained its stability as a result of resilience.
“I believe that it should be a matter of national satisfaction that our economy has demonstrated the kind of resilience that it has demonstrated,” Minister Singh said, pointing to the uninterrupted positive growth that has been achieved since the post 2005 flood period, the accumulation of external reserves, stability of exchange rate, the steady downward trend of interest rates and fiscal deficit, and the containment of inflation.
“I believe that these facts… point both to a policy framework and a policy environment that are conducive to promoting growth protecting stability… and also to private agents in the economy, both investors and household agents,” Minister Singh said.
PRSP Consultant Dr Coby Frimpong, representatives of the LCDS multi-stakeholder committee and the National Competitiveness Council were among those participating in Saturday’s activity, and were encouraged by Prime Minister Samuel Hinds to understand the importance of meeting and reviewing the course of Guyana’s development, with the poverty reduction strategy in mind, and to look at the things that can be done better.
“We have been doing reasonably well, we have been averaging growth rates at four percent over a time when there was much turmoil in the world at large,” the Prime Minister stated. He noted that the achieved figure is an average one. However, if one were to examine in detail the various sectors, then more growth would be seen.
PM Hinds emphasised that focus needs to be placed on sustaining and increasing Guyana’s growth rate.
“The investment made in society is a harmonising one which seeks to keep citizens together, since this is essential for continued rapid growth,” he said. (GINA)