CARL Greenidge, addressing Parliament during his penultimate Budget presentation, declared the country “bankrupt”.Greenidge, who was the Minister of Finance in the PNC Administration, played an integral role in the mismanagement of the country which led to wiping out of the entire middle class, according to former IMF advisor Asgar Ally.

Ally, in a recent interview with this newspaper, revealed that the Guyanese economy became so bankrupt in 1990 that the PNC Administration was forced to go to the IMF, which later advised them to cut the budget and devalue the dollar, but they didn’t manage the fiscal affairs (sensibly) and the deficit widened, making them unable to pay the debts.
Therefore, he noted, there was no alternative, because the country was bankrupt and the IMF called the shots. Ally said this led to the wipeout of the entire middle class, as people who were working for reasonable salaries were working for nothing because of the devaluation and inflation.

British High Commissioner to Guyana, James Quinn, speaking at the recent launch of the sixth edition of the Guyana Business Magazine, said Guyana – currently graphed as a lower middle income country, is set to overtake Belize and move into the upper middle income category, which he lauded as a significant development.

However, he warned that while Guyana has enjoyed nine years of consecutive growth, it should not become complacent, while noting the importance of this country to continue on the upward trajectory, creating more wealth and encouraging more investment into the country.

Various heads of international bodies have lauded the sound fiscal management that has catalysed the country’s economy from subterranean levels to a consistent growth pattern, despite global financial meltdowns and other deleterious factors, such as a destructive and obstructive Opposition that has, to a great extent, stymied social development and economic growth during the Tenth Parliament.
Ally also told the Chronicle that Guyana remains a leading light in the Caribbean, enjoying sustained economic growth of five per cent over the past decade.
But he noted that for the development to continue, Guyana has to move away from the “pulling down” political culture to one of “pulling up” pointing out that development is not about any political party, but the people of the country.
According to Ally, it is time the deep political hatred which is manifest in the political Opposition come to an end, and both the Government and the Opposition find a way to work together, so that decisions are made in the best interest of the people.

Ally, who was once Deputy Governor of the Bank of Jamaica, was brought to Guyana when the PPP/C emerged victorious at the polls in 1992.
He recalled at the time that all the international financial institutions, from the World Bank to the IMF, had stopped lending to Guyana. All the financial programmes, he said, had been suspended until free and fair elections were held.

This, he said, reversed when the PPP/C was returned to power. In its first year in office, the economy grew 8.5 per cent and the following year 5.5 per cent.

But problems began to develop in the international community and Guyana was affected. It did not stop Guyana from pressing on. However, through strident advocacy by Dr. Cheddi Jagan, Guyana was able to benefit from debt write-offs through the Paris Club agreement and from the commercial banks.

Guyana was also taken off the list of Heavily Indebted Poor Countries (HIPC).
On assuming office in 1992, Ally, who also served as President of the National Investment Bank of Jamaica, said the PPP/C focused on building a strong economic base. This, he said, coupled with prudent management set the stage for the rapid and sustained economic growth Guyana enjoys today.

And the former IMF advisor said the current outlook indicates that growth of the economy will continue and accelerate.

The Donald Ramotar Administration has based his governance on continuity of the projects and programmes of the former administration, because, while governmental constructs may change under a PPP/C banner, the Manifesto is the yardstick guiding the administration of the Government; and the Manifesto of respective PPP/C Governments are all premised on one theme: The enhancement and escalation of social development as well as a stable and sustained economic growth.

Guyanese who are cognisant of the inherent dangers of a change of Government after elections, in a few days’ time, are hoping that continuance of this growth trajectory is enabled with the elected Government of 2015.