Let’s all agree on one thing. There need to be more job creation in Guyana and also in the wider World. Even though the USA is one of the most properous countries in the World, 9.6% of its population is unemployed and 10% is in poverty (that is over 30m people). In Guyana, 11% of the population is classed as unemployed. So, there needs to be more job creation in a poor country like Guyana and also in the wider world.
Guyanese are getting richer. Over the last 10 years Guyana’s GDP per capita has increased from some US$800 to over US$2500. That is an increase of over 300% in 10 years.
This increase in wealth did not come from the drugs trade as Mr Lincoln Lewis seems to believe in his letter, “We, the people, have to take our country back from the lawless” (Kaieteur News, 14/09/2011) in which he states “It is not “development” when 60 percent of the GDP comes from drugs (Professor Clive Thomas, et al)”.
My personal belief is that Professor CLive Thomas did not know where the development (growth of Guyana economy) was coming from as he did not understand the real importance of REMITTANCE. And, 60% is a high figure. It suggests that US$1200m is from illicit drugs. The real figure may be less than 1%.
In any event, people have no business getting involved in the illicit drugs trade.
The VAT at 16%, which replaced the Consumption Tax at 30%, is not “draconian” as Mr Lewis suggests.
In the UK VAT is 17.5%. I shudder to think what it is in the USA (they probably have a different name for this, Sales Tax).
Everyone wants tax reduction but not many people want the Domestic Debt to increase to fund this reduction.
Spending cuts to fund a reduction in VAT at 16% will just put Guyana back in the pre-1992 days of no, or little, infrastructural development.
I agree that there needs to be better management of goverment contracts so that Guyanese get better value for money. But, this does not neccessarily mean government spending would be reduced. All that would happen is that there would be more contracts to keep the same level of government spending. Keeping a high level of government spending in difficult times (World Recession) can help to generate growth leading to more job creation. This is what President Barack Obama is doing in America, leading to a US$1000bn budget deficit.
Mr Lewis, THERE NEEDS TO BE COSTINGS IN THE NDS (National Development Strategy) for it to have real significance. Saying you want to buy a car without knowing how much it costs is wishful thinking.