MANY would agree that the Christmas season this year could have been a strenuous period rather than one filled with enjoyment and relaxation for Guyanese, had it not been for the government’s policy interventions that effectively cushioned the impacts of increasing global economic challenges.

Guyana, unlike many other countries regionally and internationally, has managed to effectively manoeuvre its way through a turbulent global economic environment created by the COVID-19 pandemic, the war in Ukraine, severe natural disasters and other challenges.

Although statistics show that the country has been successful in maintaining positive economic growth and in mitigating price constraints, the effects of the ensuing challenges have still been felt in some ways, and this is evidenced by the Inter-American Development Bank’s (IDB)’s recent report, which states that Guyana recorded historically high levels of inflation.

In its report titled, “Headwinds Facing Post-Pandemic Recovery in the Caribbean,” the IDB said that Guyana’s inflation rate has been above historical levels since mid-June 2021, due to a challenging global context driven by high energy prices and disrupted supply chains.

Importantly, however, the IDB commended the People’s Progressive Party/Civic (PPP/C) administration for its response to this situation.

The government’s policy responses such as the creation of and, higher inflows into the Natural Resources Fund; its efforts at strengthening food security and promotion of the Vision 2025 by 25 policy initiative, which seeks to reduce extra-CARICOM food imports by 25 per cent by 2025, and its organising of investment forums to promote technological improvements in agriculture and foreign direct investment were commended.

The administration implemented a number of programmes at the micro level to support the productive sectors and vulnerable communities.

In January, the excise duty on petroleum was decreased from 20 per cent to 10 per cent; in March, it was further decreased to 0 per cent. Public utility rates for services such as electricity and water have stayed constant, and the government is covering rising operational expenses.

Additionally, US$4.8 million was allotted for the purchase and distribution of fertiliser to farmers in order to lower operational expenses, and US$3.8 million was given out to households in rural interior and riverain areas in the form of one-off cash grants.

The increase in public assistance which benefits approximately 18,000 persons and the increase in old age pension, which benefits approximately 65,000 senior citizens was also commended in the IDB report.

There has also been an increase in the national minimum wage, as well as consistent salary increases for public servants over the past two years.

To supplement the seven per cent (2021) and eight per cent (2022) salary increases, the government has also announced several adjustments to the salaries of various categories of public servants.

Effective January 1, 2023, with regard to health sector workers, the salary adjustment to the tune of $1.5 billion will benefit over 5,000 health care professionals, while an estimated 8,000 members of the disciplined services will benefit from their salary adjustments which will increase their disposable incomes by over $1 billion, annually.

President Ali has highlighted that his government’s focus is on a holistic plan of improving workers’ lives with salary increases being one aspect of the benefits that will be provided.

Those are only some of the initiatives that the government has rolled out over the past two years. And while some sections of the population refuse to accept the reality that Guyana has advanced significantly, evidence shows that the government has responded effectively to global challenges and has an agenda that is focused on the development of all Guyanese.