‘Econ’ students hail investment drive in Guyana

THERE has been an evident investment thrust in Guyana, attributed largely to the country’s burgeoning oil-and-gas sector, and Economics majors at the University of Guyana (UG) affirm that this is good for the local economy.

In a recent interview with the Guyana Chronicle, UG student Govindra Raghubansi posited that the investments being made in Guyana illustrate that there is high investor confidence, and this allows the country to record economic growth, even as numerous other countries are plagued by economic downturns resulting from the COVID-19 pandemic.

“Investment will generate other economic benefits such as jobs, both directly and indirectly, and the investments, whether local or foreign, would bring capital,” Raghubansi said, adding: “Over time, these skills (brought by foreign investors) could be passed down to the local talent and the local population.”

Though he acknowledged that there is much more scope for locals to get involved in Guyana’s economic development, he opined that the relief given through the 2020 Emergency Budget was a “start in the right direction” to create opportunities for local investors and entrepreneurs to kick-start their own ventures.

HOTEL DEVELOPMENT

Over the past few weeks, hotel development has been a hot topic locally, following the announcement of billions of dollars in investments for new hotels. These were frugal investments, according to Raghubansi, since the country has a growing demand for accommodation, due to its recognised tourism sector and nascent oil-and-gas sector.

“We need the hotels because we are a budding tourism and oil country as well, and we will be having a lot of Foreign Direct Investments (FDI). And as these multinationals grow, they would obviously require more accommodation for their workers,” the student explained.

He also reasoned that as Guyana continues to develop, Guyanese themselves will begin to seek out “finer things”, and they, too, would demand such luxury accommodation.

His colleague, Yasmin Fazil, also explained that tourism is one of the most viable tax-raising alternatives for oil-producing nations, as shown in other, more developed oil-producing countries. And considerable investment in the infrastructure for tourism, such as the construction of hotels, would help to boost the local economy’s revenues and capacity for a sizable inflow of visitors.

She also emphasised that tourism is a more sustainable industry, as opposed to the finite oil-and-gas resources.

“I think that we would’ve learnt from (other oil-producing countries) that we can’t keep our focus just on the oil,” Fazil lamented. “We have seen countries focused on getting revenue from the oil alone and they have failed,” she said.

Raghubansi also posited that efforts should be made to develop the rice and mining sectors in Guyana, since these have been sectors which have augured well for the country. He also suggested that careful consideration be given to positioning the country to satisfy gaps which exist in the global market, such as the hemp industry or bamboo farming.

‘WELL-BEING PARAMOUNT’

Miko McIntosh, another Economics major, however emphasised, “The oil-and-gas sector plays an important role in our economy, in terms of achieving overall economic growth, but what I always say is that growth is not development.”

He highlighted that it is important to focus on providing a better quality of life for the citizens of a country, since productivity and economic growth may not automatically translate into gains for people’s well-being.

He advocated for a much broader approach to development, an approach that is aimed at harnessing natural wealth in order to provide a better quality of life for Guyanese.

McIntosh’s sentiments were shared recently by Vice-President Bharrat Jagdeo. Though the International Monetary Fund (IMF) projected a positive growth rate of Guyana’s Gross Domestic Product (GDP), Jagdeo stated that the government is keener on improving the well-being of Guyanese.

Greater well-being for Guyanese, he explained, includes increasing employment, ensuring that individuals have greater disposable income, and that there are direct interventions, such as the COVID-19 cash grant geared at providing relief.

“That is why we have focused heavily, in this 2020 Emergency Budget, on restarting the economy through a series of concessions to reduce costs to the Private Sector, and to also leave more money in people’s pockets through lower taxes, and to spend more directly on welfare,” the Vice-President told this newspaper.