Capitalising on the Caribbean Craze

By Peter R. Ramsaroop

Guyana, a developing country, is by default a much-desired commodity in the more commercialised countries of the world. This statement might sound a bit outlandish; nonetheless, as far-fetched as it may sound, Guyana has exactly what so many big spenders earnestly desire.

The natural resources and culture of the Caribbean have become hot commodities in the Western World. It is difficult to find an urban music release that is not sporting a catchy Caribbean beat and all of the major store-chains are carrying decorative pieces made of bamboo or multiple woods. This is the music we have enjoyed since we were children and the decorations that have donned our homes in classic natural beauty.

The familiar surroundings of palm trees and bountiful flora that we take for granted is exactly the type of soothing environment hungrily sought by the rich and affluent. Even the fruit that grows in our yards and the food we cook every day is a craze for those who have some extra spending money in their pockets.

There is an incredible amount money just waiting to be poured into our country.

If we are so desirable, why is it that very few tourists actually choose to spend their money here in Guyana ? Why is it that we are not exporting more of our own products to gratify the insatiable thirst for Caribbean and South American goods? The experts say we do not know how to market Guyana .

Sometimes it feels like we're beating a dead horse when it comes to the economy. To no avail, we tell the government over and over to lighten the burden on imports and exports.

Yet another year is almost over and we find ourselves once again in the negative numbers concerning economic growth. They say they have lots of red tape and if the private sector gives them the vision, they will cut it. The rhetoric goes on and on, but at the end of the day, we are declining.

If we examine our neighbours who generally proffer the same natural resources and culture as Guyana the contrast is nothing short of shocking. For example, the International Monetary Fund (IMF) released a report in August on the economic condition of Barbados .

This report found that Barbados , which has redefined itself to be heavily dependent on tourism and financial services, is indeed thriving economically.

In fact, Barbados has the lowest poverty rate in the Caribbean and according to the IMF report, “Social indicators compare favourably in both a regional and global context; in 2004, for example, Barbados was ranked 29th among 177 countries on the United Nations Development Programme's Human Development Index.” Conversely, Guyana came in at a dismal 104.

So what is the difference between Guyana and Barbados ? Our neighbour is not without its' own economic woes. Consider this quote from the IMF report, “The economy - especially the tourism and financial services sectors - suffered a sharp recession in 2001-02 following the September 11th attacks and the global slowdown. In response to the deterioration in the external environment, the government implemented a public investment programme to help revive economic activity.”

If we examine this statement closely, the key words to note are “the government implemented.” It is clear that Barbados has a proactive government that is quick to shore up weak economic areas to limit the overall national impact and to buoy the areas producing static or promising results.

What was the result of this Bajan foresight? According to the IMF report, “A strong economic recovery appears to have taken hold in 2004. Real GDP growth in 2004 is estimated at 4.4 percent, led by a recovery in tourism, construction and communications.” It should be noted that a number of the construction projects in Barbados are vacation homes being built for foreigners.

These same foreigners will return regularly to spend their money in the Bajan economy. Of a significant note to the readers, Barbados is the size of Hogg Island , one of our over three hundred islands in Guyana .

By comparison, Guyana 's economy continues to worsen. This year's poor standings can be blamed on the flood, though we probably received more than enough foreign aid to take care of the rebuilding efforts and more.

In fact, there are probably several factors that could act as agents of blame but when we reach the bottom line it is a lack of government foresight and capable economic strategies that hold Guyana back from the same type of thriving economy that our neighbours enjoy.

The combination of ineffective, long-term policies and a severe deficiency of vision by the government continue to stifle substantive fiscal growth for Guyana .

Another one of our close neighbours is also making marked progress economically. According to a Secretariat report released in September by the World Trade Organisation (WTO), Trinidad and Tobago – with a rank of 54 on the UN Human Development survey - has capitalised on its trade capabilities and natural beauty to achieve measurable economic progress.

This report maintains that, “Since its last review in 1998, trade has played a crucial role in supporting Trinidad and Tobago 's rapid economic growth. The country's rich natural endowments, its attractiveness as an investment destination and favourable developments in world markets, especially in the hydrocarbons sector, have produced a strong increase in GDP growth and per capita income.”

These islands we are contrasting to Guyana have comparatively the same natural abilities (some we are afraid to develop internally, such as oil) and resources that we do; therefore, the difference between our flagging economy and their thriving economy can only be attributed to governance.

We have the best rum in the world, yet it gets only regional recognition in sales. Our music and culture is as rich as any other Caribbean neighbour, yet Barbados and Jamaica have artists topping the international charts.

One would be hard-pressed to find a more beautiful country than Guyana , yet billions of dollars in tourism are being spent in all of our neighbouring countries - and we get but a trickle.

It makes no sense to continue down this unproductive road. The ongoing economic decline is a direct result of an unfriendly investment climate and years of inaction in relation to the strategic planning for growth. We cannot sit on our hands and expect for progress to be delivered to our doorsteps. We have to go out and get it.

What we need is an infusion of life sparked by a sound economic strategy by the public sector that allows the private sector to be that engine of positive growth as we all talk about. It is too much to ask for a proactive government at this point, since that boat has long since sailed on that opportunity.

However, it is not too much to ask for a welcoming investment climate and open harbours and borders to stimulate the economy. Or is the government boat still tied to the dock?

If we shift our thinking and begin capitalising on our own natural resources and culture, the IMF and WTO could be writing glowing reports about Guyana too. If we do nothing, like we have been doing for decades, we will be reading about the continued progress of our neighbours and still wishing it was Guyana.