Opportunities for ‘green economies’ are proven – Dr. Jagdeo

EMERGING economies, stemming from the response to climate change, are proven and these need to be mainstreamed into plans for economic sustainability by developing countries.This was according to former President, Dr. Bharrat Jagdeo, during his address to representatives of the diplomatic corps and prominent stakeholders of the private sector at the Guyana Manufacturing and Services Association (GMSA) business dinner on Friday night at the Princess Hotel’s conference room.

During the session, held under the theme ‘A green economy – Opportunities for the private sector in Guyana,’ Dr. Jagdeo explained that the “catastrophic” consequences of climate change necessitate a review in the planning process of development of countries and bemoaned the lack of concrete action to address this problem.
He highlighted how a single natural disaster can “wipe out” more than half of a country’s Gross Domestic Product (GDP), resources that would be difficult to re-accumulate in a short space of time.
The former Head of State added that countries face the additional challenge of debt servicing commitments, which could “suck the life out of their” economies.
He said: “Today because we have addressed that variable, the size of the debt is about 40 per cent of the GDP, one of the lowest in this Region and we use four per cent of revenue to service that debt… this variable is getting worse every single day and so even without addressing climate-related challenges, those countries have seen a significant loss in welfare and future prospects.”
To this end, Dr. Jagdeo stressed that action must be taken now to align climate change response to the economic plans of developing country; otherwise these countries will suffer in the long-term.

NEW SECTORS
The former President added that climate change response, which includes mitigation and adaptation initiatives, must be used as an opportunity to build new sectors. “There is a new spurt of growth, this can come from the green sector,” he said.
According to him, for this to be effective people need to define the problem, understand the irreversible consequences of the impact of climate change, know what has to be done and plan to maximise on the opportunities that exist.
Dr. Jagdeo highlighted six new sectors where these opportunities are present, which include, hydro-power, solar energy and wind energy. “We have to continue to invest early,” he said, adding that developing countries can take the lead in this regard.
On this note, he stated that Guyana cannot be oblivious to the opportunities and must advance in this area, particularly since investments have already been made in hydropower, via the Amaila Falls Hydro Project (AFHP).
Slated to be this nation’s most ambitious undertaking, the AFHP is touted to be able to provide Guyanese with a cheaper, reliable and sustainable electricity supply. It involves the construction of a hydropower plant in the area of West-Central Guyana, where the Amaila and Kuribrong Rivers meet. Electricity produced there would be delivered to Georgetown and Guyana’s second largest town, Linden. The AFHP is anticipated to result in substantial savings to the nation’s coffers, particularly in terms of foreign exchange and the purchase of heavy fuel oil. Additionally, the potential benefits of a more stable and reliable source of energy through the advancement of hydroelectricity was also targeted by the International Monetary Fund (IMF), last December, as an area for continued focus.
“Guyana can do this,” he stressed.
The former President also highlighted the advantages of having a green growth model, which aligns Guyana’s economic progress with sustainable development objectives that provide opportunities for using financial resources better to meet development needs and reducing the vulnerability of socioeconomic systems to environmental change and resource constraints.
The widely lauded Low Carbon Development Strategy (LCDS) is Guyana’s green-growth model.
“The Region has now run out of steam, it has continued to cling hopelessly to sectors that have plateaued and are sunset industries with the hope that somehow there will be some divine movement and the new wealth created for the new generation of people in this Region will come from those sectors and it’s not going to happen,” Dr. Jagdeo said, reiterating that there are opportunities that can be taken advantage of.

(By Vanessa Narine)