A KEY element of free-market driven national development is promoting business growth, both in smaller enterprises and large corporations. This is because businesses act as a driver of economic growth, and while this is not the only important development measure, a robust growth rate generally indicates that economic conditions are improving in the local economy.

Progress in Guyana’s rum industry as recently demonstrated by DDL’s new rum-ageing facility, is thus an indicator of national development that Guyanese can certainly be optimistic about. This $340 Million facility represents a sizeable investment which points to that company’s firm belief in the lasting profitability of the rum industry.
It is no wonder, given such positive sentiments, that DDL’s proposed acquisition of a sugar estate at Enmore continues to progress. Such an acquisition would at base ensure not only that Guyanese continue to enjoy rum, but also potentially allow DDL to both expand operations and cut costs. Such business growth, which can hopefully extend to other firms in the industry as well, will also generate both tax revenue and new jobs, spreading these gains throughout the economy.

What is interesting to note about this particular situation, however, is that it is likely to lead to an unprofitable industry being converted into a profitable one without government subsidisation or significant intervention. DDL’s privatised estate is likely to be run very efficiently, due to the private enterprise’s focus on profitability and this same focus will guide the estate’s output to their most productive use, rum.
Who knows, maybe as DDL grows, it may look to take ownership of more than one estate and if Banks DIH performs similarly with its rum products, it could follow suit. This may even lead to expanded cane production and the reopening of some estates in the distant future, but in a way much different to GUYSUCO’s long-standing, loss-bearing approach.
Admittedly, there will continue to be much more needed to help sugar communities through this transition period, but at the very least we can see some of the positive elements that privatisation sometimes brings to industries. Will this be the case with other firms that attempt to purchase and restructure estates? DDL and the rum industry may be a unique case, but principles which emphasise profitability are a good start as the sugar industry attempts to get back on its feet.

To keep Guyana growing, we must thus look to support our businesses — both large and small — but this does not always mean government intervention. Finding ways to let the free market solve national development challenges is not always the answer, but that does not mean it cannot sometimes be the right solution. Perhaps DDL’s takeover of the sugar estate at Enmore will yield a guide that serves us well locally. One way or another, however, it at least seems Guyanese can look forward to the rum industry continuing to prosper for the foreseeable future.