— IDB says of Guyana’s business environment during Coalition gov’t (2015-2019)
— points to Coalition’s ‘particularly poor’ performances in areas of infrastructure, innovation, government institutions and technology readiness

ECONOMIC development in Guyana during 2015-2019, the period of the Coalition government, was hindered by a business environment that was uncompetitive and mired with bureaucratic constraints, according to the Inter-American Development Bank (IDB).

Though not the main focus of the IDB’s report titled: Analysis of Agricultural Policies in Guyana (2015-2019), the state of the country’s business environment within the period under review was still highlighted by the international financial institution.

Citing information from the World Economic Forum’s Global Competitive Report (2015), the IDB said that the country had ranked 121 out of 140 and has since then not met the minimum requirements to be surveyed.

“Specifically [during the period under review], the country performed particularly poorly on the parameters of infrastructure, innovation, government institutions, and technology readiness,” the financial institution said.

The country, according to multiple reports, has since made significant strides in those areas as a result of interventions and investments made by the People’s Progressive Party/Civic (PPP/C) government since its election to office in 2020.

The IDB in its report also acknowledged that since 2020, the non-oil sector, construction and public investment have increased rapidly.

For the public sector alone, the government has allocated the largest portion of its milestone $552.9 billion 2022 Budget to the Ministry of Public works. A total of $96.1 billion has been allocated to the ministry, which is responsible for the country’s infrastructure.

This, according to reports, is in addition to billions of dollars being spent to develop housing infrastructure, and proposed plans to build a new Demerara Harbour Bridge, a bridge across the Corentyne River, new four-lane highways and other transformative projects.

Another positive indication in the area of business and infrastructural development is the significant interest being expressed by both local and international investors, some of whom have even gone a step further to construct hotels, fabrication facilities, shore bases, condos and modern office complexes, among other things.

“Our economy is becoming stronger; it is rebounding from the two-year-long effects of the coronavirus pandemic. Businesses, both local and foreign, are capitalising on the unfolding opportunities, and in the process, generating jobs and providing incomes for our citizens,” President, Dr Irfaan Ali had said.

Based on the IDB’s report, however, the prospects and conditions from 2015-2019 — under the A Partnership for National Unity + Alliance For Change (APNU+AFC) — were seemingly not as favourable, as the World Bank’s Doing Business 2019 report ranked Guyana 136 out of 190, down 10 places from 126 it had achieved in 2018, but slightly better than 137 in 2016. The report highlighted difficulties in obtaining construction permits, getting electricity, trading across borders, and resolving insolvency in Guyana.

Although not referring directly to the doing-business report, President Ali had said in 2021 that the government is working on the modernisation of institutional and legislative infrastructure to help establish a single-window approval system for permitting.

Senior Minister in the Office of the President with Responsibility for Finance, Dr Ashni Singh, had said too that the government strongly, unshakably, unflinchingly and unapologetically believes in the role of the private sector in the future of Guyana and is committed to ensuring a rapidly growing and a highly competitive, world-class, diversified economy in Guyana.

Minister Singh had said that the government sees the private sector as a highly valued and cherished partner in national development, and with renewed and increased interest in the local economy, Guyana has an opportunity to assess its systems and create processes which are business-friendly and encouraging for not just international investors, but locals as well.

The government has already committed to building a “modern” Guyana with world-class infrastructure that improves connectivity and unlocks the vast potential of the economy.

Its intention is to create an enabling environment for business development through a seven-point plan which includes preserving the rule of law and democracy; improving the ease of doing business; enhancing national competitiveness; facilitating trade and investment; and supporting small businesses.