–says former Jamaican PM
–urges gov’t to ensure local businesses are not disadvantaged

GUYANA is on the cusp of transformation, and is set to take-off with the advent of the oil and gas sector, but Former Prime Minister of Jamaica, Portia Simpson-Miller believes that Government must look at meaningful economic reform in order to create an inclusive and transparent system.

Simpson-Miller, who was Jamaica’s first female Head of State, spoke about the need for economic reform during her address to members of the Georgetown Chamber of Commerce and Industry (GCCI) at the organisation’s 130th Annual Awards Ceremony and Gala Dinner at the Marriott Hotel on Thursday evening.

“Your country is poised to embark on an exciting path to high levels of economic growth and huge development… It will happen through significant private, foreign and local investments in your economy, but major adjustments will have to be made as a nation,” said the former Prime Minister.

As Guyana moves ahead, the country will need to look at addressing things such as inflation, Simpson-Miller said, adding that those issues will be tackled through fiscal and monetary policies.

The former Head of State of Jamaica told businessmen and women: “Fiscal and monetary policies are necessary in ensuring that prices remain low and stable, and since inflation is the greatest tax on the poor, low inflation is the best gift any Government can give to its people and private sector.”

In examining fiscal and monetary policies, Simpson-Miller said it is imperative for Government to achieve stability in the foreign exchange market, since it is important for reducing inflationary pressures in the economy.

This, she said, will also enable businesses, especially those that import, to be better able to plan their transactions in a stable and predictable environment.
“We have had to deal with the challenges of shortage of foreign exchange and high levels of inflation, however, as a people and as a régime, we are not defined by that history; we have also been conscious of the fact that we are a resilient people, and if we are to combine our strengths, we will succeed… Together we are stronger, and as a people and as a Caribbean family, we have too much to lose,” said the former prime minister.

She said Guyana and the rest of the Caribbean share a common heritage, but each country has its own challenges and advantages; advantages she advised the Government to exploit to the fullest. But in doing so, she warned, the Government must be wary of external shocks, since the Caribbean economies are dependent on the export of commodities.
Government, she said, must look at implementing changes and creating the necessary legislation in order to avoid those shocks. In doing so, Simpson-Miller advised that Government should also collaborate with businesses and train local companies to participate in development.

“As your economy moves, it is vital that local businesses are not disadvantaged in participating and prospering,” said the former Prime Minister, noting that it is also important for there to be accountability and transparency.

President of the GCCI, Nicholas Boyer also believes it is important for there to be broad-based and inclusive growth. In order to achieve inclusive growth, he said, there must be structural reforms; structural changes he believes must include the implementation of a local-content policy and legislation, a Sovereign Wealth Fund that is non-partisan, and reductions in energy costs so that business owners can innovate and expand their operations.

Boyer said there have been significant investments by local and foreign businesses over the years and even recently, despite the current political climate. He said the GCCI will continue to work towards assisting local businesses to develop capacity.

He said that with the help of the Caribbean Development Bank (CDB), GCCI will soon launch a US$134,000 project, which aims to improve the standards of agro-processors.
The GCCI was established under the name “The Chamber of Commerce of the City of Georgetown” in the year 1889.