Irfaan Ali urges push towards Foreign Direct Investment
Irfaan Ali
Irfaan Ali

-President says economic diplomacy will take time

By Ravin Singh
ONE of the main drivers of economic growth, which Guyana has not been able to exploit, is Foreign Direct Investment (FDI), Opposition spokesman on Finance, Irfaan Ali, has said. Speaking to this publication following the 37th Sitting of the 11th Parliament on Thursday, Ali noted that the Government must find measures to create wealth and generate growth in the economy. In this regard, he underscored the role of FDI, and investment in the productive sector. Both of these measures, he said, have the potential to expand an economy which is either stagnant or has been recording low growth rates.
And while there has been a global shift from the productive to the manufacturing sector, Ali suggested that growth of the productive sector will stimulate the growth of the manufacturing sector. As such, investment by the Government in the productive sector becomes critical in stimulating growth of the economy.
Further, he related that “the manufacturing sector can only grow if we do something about the cost of energy.”
“So you have to be competitive in the energy portfolio if you going to have that shift from the productive to the manufacturing sector.”
And while the Government has adjusted the role of its foreign services to push economic diplomacy, given the changing dynamics of the world economy, President David Granger last week explained that economic diplomacy will take time to be achieved.
The Head of State was at the time speaking to reporters on his weekly television show, The Public Interest, which was subsequently aired on the state-owned National Communications Network (NCN).
The President noted that the process of economic diplomacy has not gone as quickly as he would have liked, given the slowness in the appointment and installation of diplomats.
“Some ambassadors have not taken up their positions as yet. That process has gone relatively slow,” he said.
Nevertheless, President Granger sought to assert that economic diplomacy remains very important to Guyana, and all efforts will be made to lobby investors.
“We want to sell more rice, rum and timber. At present, everyone knows that the economy is still reliant on the six sisters: sugar, rice, bauxite, gold, timber and fish. And we expect that the Foreign Service, particularly the diplomats, will be selling more. That is the job of our diplomats, to sell our products,” he said.
And with the coalition Government recently observing its first year in executive office, the President noted that a year is still a bit too early for economic diplomacy to be fully operationalised, but this will be achieved in years to come.
He also commented on the dynamics of markets in these foreign countries, explaining that the existing markets have to be tied up, since players will have to disengage from their previous suppliers and engage with reliable local suppliers.
“And this process is taking place” he said, adding that “We would like to renew or continue the rice deal with Venezuela, but it is up to them, but sometimes they don’t see eye to eye with us.”
Last year, Guyana lost its rice market in Venezuela after the Spanish-speaking country, amidst acrimonious relations with Guyana, refused to renew a five-year-old agreement.

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