FROM time to time in the last several years, many prescriptions have been proffered as to how to leaven up the Guyana economy into sustained prosperity. The overwhelming majority of such prescriptions have been made by academic economists who have had little experience of the actualities of business. These prescriptions have generally never gotten off the ground.

Last week at the launching of the Georgetown Chamber of Commerce and Industry (GCCI)’s business magazine, Executive Chairman of Demerara Distillers Ltd (DDL) Mr Komal Samaroo was asked to give the feature address and he chose to speak on how the country could reduce its balance of payments deficit, which has been growing and how to move towards an economy where self-sustaining growth would be the norm. Mr Samaroo mentioned that an infrastructure of optimism is necessary for any economic or business venture to be successful, since pessimism generates negative energy.

His mentor Dr Yesu Persaud always saw the silver lining in every dark cloud and it was that silver lining he always actualised. He therefore emphasised to his audience that Guyana’s future has never been brighter and this notion should inform business folk, as well as those who are responsible for the state’s economic and financial work. Mr Samaroo mentioned that Guyana, like most Third World countries, had traded mostly in commodities such as gold or bauxite or sugar. The prices of commodities are fixed by the international markets and influenced by demand and supply. He gave a salutary and timely reminder that the upcoming gas and oil exports will be no different in essence from the other commodity exports.

“In my view”, said Mr Samaroo, “this is a very vulnerable position to be in, and the nation’s prosperity could swing like a pendulum, as we have seen in some countries in the Region that depended solely on commodities.” This concept has to be fully assimilated, both intellectually and emotionally, by all those who are responsible for the economic well-being of the country, so that a national strategy to avoid the commodity trap could be formulated. Mr Samaroo implied that a major element in the strategy to avoid the commodity trap is expanding manufacturing and the export markets, both regionally and internationally.

He did not spend time to speak about how new manufacturing and export industries could be established. He took these as a given, as well as the present export industries. What he focused upon was how manufacturing and industries could be made more efficient and productive, satisfying the requirements of the export markets and how such markets could be expanded. In this regard, we will quote Mr Samaroo: “The international market place is very competitive, complex and constantly evolving, requiring in-depth knowledge and updated information if one is to be successful, particularly if you move higher up the value chain with branded products. Very often we need to re-educate ourselves….Compliance with international standards and best practices is also a key, especially at production level.

These were critical prerequisites for manufacturers to get into the global supply chain of major companies. The traceability and documentation of adherence to international standards of safety, quality, environment, business ethics and social practices are all areas of regular audits from suppliers. The production systems must meet international standards at all times, and this requires a high level of technical competence and discipline of the management of manufacturing companies.”

Mr Samaroo then went on to use the experiences of his own company, Demerara Distillers Ltd, to illustrate that it was not insuperable for local manufacturers and exporters to achieve required standards and secure foreign export markets. Within the body of his presentation, he mentioned two challenges facing manufacturers: the first was sloth and unhelpfulness of the bureaucracy, a problem which could be overcome once there is the will. The other was that the education system has to be improved to produce people who are fully equipped with the skillsets to manage business in this technological age.

We have no doubt that expanding and diversifying our manufacturing industries with resultant expansion of regional and international trade is the surest way for Guyana to achieve sustained growth and prosperity.