RECENTLY, Guyanese have been complaining about the recent hike in the prices of basic commodities.
They called on the authorities to do something about the steadily climbing prices.
Some of the goods and services affected by these high prices include greens, flour, fertilizer, shipping and freight costs, oil, gasoline, and kerosene oil, to name a few.
This development has forced Guyanese farmers, businesses, customers, and consumers to take to the streets in demonstrations for some intervention to occur.
Meanwhile, the main political opportunist, the APNU+AFC has sought to use the sporadic protests and the rising cost of living to blame the PPP Government. They say it is tantamount to poor economic oversight and management of the economy. Staying true to form, the APNU+AFC believes that the PPP Government should increase the salaries of public servants. It wants the ruling PPP Government to find a solution to the concerns about the cost of living and inflationary rates in society.
Firstly, Guyanese are right with their concerns about the rising cost of living and prices for basic food items and commodities. They are equally right to expect some action from the PPP Government to deal with the threats of inflation and steep increases in the cost of living.
But this situation is not the government’s fault.
It is also not a result of their financial and economic strategy for the country. It is purely the faults of demand and supply functions of the markets, international shortages in the supply chains, COVID-19 pandemic-related production issues globally, and the ongoing Russian -Ukrainian war. So, the cost of living and inflation are imported into the economy.
The sooner Guyanese at home realise this, the better they are going to be able to deal with it and its consequences.
Secondly, the PPP Government has put aside $5B in the National Budget to respond to the rising cost of living concerns. As a result, the Head of State, President, Dr. Irfaan Ali, has already instructed the Senior Minister with the responsibility of Finance, Dr. Ashni Singh, to come up with measures to ease the burden on consumers.
The entire Cabinet will be coming up with ways to tackle the cost of living this week, be it through another direct cash grant to Guyanese or direct subsidies on specific items. Therefore, soon the public will know how and what government plans to do to tackle this economic issue which is creating so much concern.
After all, one may explore putting the prices and costs for basic commodities, goods, and services at pre-pandemic levels. Such a move would drive the cost of living down and avoid imported inflation from going up.
However, this move would not solve and control the rising cost of living concerns of the public apart from creating price stability temporarily.
Thirdly, the government measures for tackling the cost of living should not be aimed at market interference and price controls. It must not get too involved in the dynamic of supply and demand. The PPP Government must avoid this economic temptation and utilise every opportunity available to mitigate and insulate the population from the rise in the cost of living.
It is expected that there will be freedom of the market system and non-regulation of the prices that traditionally served the PPP and its economic policy well up until this point. This dilemma is temporary and will pass but requires careful management.
Finally, the APNU+AFC is not being responsible and progressive with its suggestions to the government in dealing with these concerns about the cost of living.
The politicians are busy getting the people and protestors riled up and angry with the government for no apparent reason.
They are just playing the politics of opportunism and convenience with the lavish promises made to the public daily.
Government cannot raise the salaries of public sector workers at this point and time. It will not help with the rising cost of living and inflation would sky-rocket if the government is not careful.
Also, the money from the oil and gas sectors should be spent on things that would improve the human development and infrastructure of the country. It should be spent not on mitigating the cost of living.
Now that Guyana is doing far better economically and financially, the PPP Government must do all that it can do to deal with the consequences that the rising cost of living and inflation rate will bring.