FINANCE Minister Dr. Ashni Singh maintains that the story of Guyana’s economic progress over the last eight years has been replicated in the successes of individual Guyanese persons across the country.He said: “This story (of economic improvement) has been replicated everywhere in thousands of Guyanese homes….(There are) people who are acquiring education, getting jobs, accumulating savings, becoming a home owner, buying their own means of transportation, growing their small businesses, accessing loans… It is a story that represents improvement.”

He noted, however, that this reality requires a conducive environment in which it can be fostered, and real and sustained effort at individual and national levels.

“We recognize how inextricably linked economic growth is to the well-being of our people. An economy that is growing is an economy that is creating jobs, an economy that is improving income and improving lives. We are working hard to ensure a policy framework for sustained economic growth,” the minister said.

In the last two years, he said, Guyana has seen not only growth in the Gross Domestic Product (GDP), but growth in all the correlating factors of economic growth.

“We see strong foreign direct investment, we see a strong private sector, and we see all of our other key macroeconomic fundamentals remaining on a favourable trajectory…all pointing to growth,” he said.

Dr Singh said this achievement has, by no stretch of the imagination, been “accidental”.
He said: “There is no doubt in my mind (that) if one were to make an analysis of the economic performance of the last two years, the inescapable conclusion of that analysis (would be) that our economy has performed outstandingly.

“Looking at recent economic performance in the Caribbean region, there can be no doubt at all that the achievement of real growth in our GDP of a five per cent — not only in the last two years, but in the last eight years — has been an absolutely outstanding achievement.”

He reiterated his confidence that the circumstances of the people of Guyana have been improving steadily. Dr Singh said: “Guyana has emerged as the envy (of the Caribbean region) in the areas of housing and ownership…. No one in Guyana can dispute that over 100,000 lots have been distributed…. Every year, another 5000 or 6000 (persons) are becoming owners of property, and their lives are improving.

“If you look at the story of jobs being created, we realize the investor confidence…. It has taken us a long time to regain investor confidence, and we are at a point where investor confidence is at the highest it has ever been, political circumstances notwithstanding.”
He lauded the contribution of the private sector and other stakeholders working within the environment that Government is working to strengthen and improve to foster greater economic successes.

DISPARAGING COMMENTS
On that note, Dr Singh lashed out at the “disparaging” comments coming from the political Opposition. He acknowledged the references made in the Opposition quarters to the recent report from the World Bank that addressed Guyana’s per capita GDP. According to him, the lack of objectively in considering the report is disconcerting.

“The World Bank study is a tabulation of per capita GDP…. It is no secret that it (Guyana’s per capita GDP) is lower than some countries. It is something that has been known for a long time,” Dr Singh said.

However, he made it clear that this statistic must be considered in the wider context. The minister explained that while, 20 years ago, Guyana’s GDP was on par with Haiti’s, of note should also be the rapid growth and steady progress in raising the per capita GDP in the last 20 years.

He charged that the lack of objectivity and the narrow considerations that were the basis of the “disparaging” comments are an indictment on hard working Guyanese people who have contributed to Guyana’s economic success.

“We have an unfortunate circumstance in that those competing for political space are selective and not as objective as they should be,” Singh stressed.
He added that the current Administration’s focus is on improving the per capita GDP through better education, more jobs, and increased output – all aimed at improving the livelihoods of Guyanese across the nation.

“This is the surest way to grow the economy,” the minister said.

PROPER AUTHORITY
As it relates to pronouncements on Guyana’s economic performance, Dr Singh said the “authoritative institution” for monitoring economic performance is the International Monetary Fund (IMF).

He pointed out that in addition to underscoring the areas where work still needs to be done, the IMF report arrived at favourable conclusions on Guyana’s performance.
“Our political detractors ignore the report, but that report exists,” the minister said. “If you were to compare what the IMF is saying about us and comparable countries, you will see favourable conditions take on even greater significance.”

The report, released in December, 2013, stated that Guyana’s “strong macroeconomic performance” has contributed to a reduction in both public debt levels and sustained poverty reduction, according to a report from the Executive Board of the International Monetary Fund (IMF). The report said: “The Directors commended the authorities for the progress (achieved) so far in poverty reduction.”

The IMF called for the current Administration to build on existing efforts to ensure a more even distribution of the benefits from economic growth. “In this regard, efforts to lower the cost of energy, address skill mismatches, and improve the business environment represent important policy initiatives,” the report said.

The IMF also underscored the need for steps to be taken to increase productivity in traditional sectors, such as agriculture and mining, which should also be part of a strategy to foster more inclusive growth.

The report also noted that the economy had experienced seven years of uninterrupted growth averaging about four percent annually. It said: “The key pillars of the macroeconomic resurgence have been sustained reforms, in particular the implementation of VAT, favourable commodity prices, significant inflows of foreign direct investment (FDI) and debt relief under the Heavily Indebted Poor Countries Initiative (HIPC) and Multilateral Debt Relief Initiative (MDRI) initiatives.

“Real economic activity expanded by 4.8 percent in 2012 on the back of broad-based growth in agriculture, manufacturing, construction, mining and other services. Twelve-month inflation remained low at 3.4 percent, notwithstanding higher energy and food prices.”

Considering the pronouncements of the IMF, Singh said, the last two years have not been without their challenges, particularly in the current political environment.
He said: “The current Administration has had to deal with the unprecedented situation where the Executive does not have a majority in the Legislature, and this political reality has proven to be a test of the constitutional and legislative framework, and a stern test to the work of the Legislature and how it affects the work of the Executive.

“It is not a reality that daunts us, it is a reality that exists, and one we have to contend with. We are unprepared to let it affect our work in growing and developing Guyana,” the Finance Minister said.

Dr Singh made it clear that Guyana’s thrust in the direction of growth and development will continue to reflect its commitment to the people of Guyana in 2014.
Written By Vanessa Narine