THE performance of the Guyana economy was described as inspirational to regional counterparts by the Caribbean Development Bank’s President Dr. William Warren Smith.
In an interview shared with Finance Minister Dr. Ashni Singh last evening on the National Communications Network (NCN), the top regional banking official said that with a few notable exceptions, such as Guyana, the state of the Caribbean’s economy is “not good”.
He said that generally those countries that have managed their fiscal affairs well, and also have had the good fortune of being producers of commodities are the ones that are doing well, economically.
“That is the story of Guyana and I like to talk about the Guyana story because it is inspirational”.
The CDB president said that those countries having a difficult time have an opportunity to look at Guyana “which has travelled a very difficult road over a very long time”.
He noted that successive Guyanese Governments have made tough decisions and stayed the course. “There has been a consistency of policy over a very long time and what you’ve seen today is the culmination of that vision, that tenacity to do the right things”.
Guyana has laid the groundwork to attract massive investment and is attractive to foreign direct investment and its economic climate is good, the CDB president stated, and “well endowed” with natural resources. Other Caribbean countries without Guyana’s resources, Dr Smith said, can still make their way with what they have, whether, its education or the “sun, sea and sand”. He explained that while regional states with primarily service type industries are the most challenged economically, it doesn’t mean that their future is dim. “What it means is that they need to learn from the experiences of Guyana and look at other countries in the world which have learnt the lessons of good fiscal and debt management. Build on that infrastructure and take the opportunity to make their way in the world.”
A number of countries are now taking the tough steps needed to “put their houses in order,” according to Dr. Smith. He gave the example of St Kitts and Nevis which had one of the highest debt to GDP ratios in the Caribbean, if not the world. This country took the tough decisions needed and is in the process of recovering its economic strength, he said. Grenada and Jamaica are on the same path, economically, he further added.
The economic downturns resulted from the international recession which gained momentum from 2008, it was explained. Some nations have paid the price for not being as prudent as they should have, but the lessons have been learnt he added.
“One of the reasons why the CDB is here, is that when the countries go through difficult times, that is when we need to step up to the plate”.
The regional financial institution is going to continue to work with Caribbean countries, Dr. Smith said, along with developmental partners to ensure that there is “a good story at the end of the day”.
For Guyana’s Finance Minister, Dr. Ashni Singh, Guyana is inextricably linked, economically to the Caribbean and neighbouring countries. The nature of today’s world is one of inter-connectedness and inter-relatedness and “what happens in the rest of the world feeds into the regional and domestic economies”.
Echoing the words of the CDB president, the finance minister said that tough decisions had to be made and stuck with. He noted that while Guyana has been helped by the rising global prices for some of its commodities, Government has had to work hard to ensure that the economy is diversified to avoid over dependence on one sector. He explained that it sometimes called for making hard decisions that were not popular in the short – term, but necessary in the long- term to ensure Guyana’s future prosperity.
Guyana takes its role on the regional stage very seriously, the finance minister said, and the prosperity of the Caribbean will mean greater prosperity for Guyana and its citizens.
According to Dr Singh, Guyana remains firmly committed to the Rregion’s integration pledging that, “We will continue to work very closely with our Caribbean partners, towards the objective of a greater Caribbean prosperity. We believe Guyana has a role to play, so does every other Caribbean country.”
He noted that each territory has unique attributes and opportunities for regional members to take advantage of investment openings, with an eye towards markets in Suriname, Brazil and to a lesser extent, Venezuela. These he said, provide “ripe opportunities in real life, integration at work, so to speak. I believe the more examples we see, the greater will these redound to Guyana… for the rest of the region. We believe the CDB has a role to play in achieving a more prosperous Caribbean as a whole”.
The CDB is being hosted in Guyana for its annual Board of Directors Meeting, from May 28 to 29, at the Guyana International Conference Centre.
The Government of Guyana, with support from the CDB, has been bettering the lives of thousands of Guyanese through building infrastructure such as roads and stellings, as well as ensuring training for youths in ICT through the Basic Needs Trust Fund (BNTF).
(GINA)
