Guyana - Government Priorities

• Why Guyana? • Background • Economy • Government Priorities

Although Guyana enjoys exciting opportunities for trade, investment and economic growth, it faces a number of challenges affecting its ability to realize this potential. Some challenges are unique to Guyana, while others are common to countries at its stage of development. In recent years, adverse weather conditions have placed additional strain on the country’s physical infrastructure. Despite a high literacy rate, shortages in the availability of certain management and technical skills affect the country’s ability to operate within a competitive environment. This is due in part to emigration of professionals to the Caribbean, Europe and North America. Limited financial and human resources affect the Government’s institutional capacity to implement legislation, policies and administrative procedures and to address critical development concerns. Segments within the business community—including those in key sectors of opportunity—lack the current capacity to successfully compete in today’s global economy. Poverty is an issue, especially in rural areas. Concerns over crime and political tensions, as well as exaggerated pessimism among some stakeholders, contribute to negative perceptions.

	National Development Strategy (NDS)
	National Development Strategy website

National Development Strategy
These challenges do not go unnoticed by Guyana’s leadership. Guyana’s government, private sector and development partners have stated their common objective to do what is necessary to build upon past progress and achieve sustainable economic development. In addition to its continued implementation of policies to maintain macroeconomic stability (see discussion on economy above), the Government is implementing Guyana’s National Development Strategy (NDS). The NDS is designed to achieve a number of key overall development objectives. These include: 1) attaining the highest rates of economic growth possible; 2) diversifying the economy; 3) eliminating poverty in Guyana; 4) attaining an equitable geographic distribution of economic activity; and 5) achieving geographical unity. The strategy outlines a five-pronged approach to achieve these objectives:

1. Sound macroeconomic policies and economic management, coupled with creating incentives for private sector development:

• Reforming the tax system to broaden the tax base and make it more efficient and equitable. This includes the introduction of the VAT in 2007.
• Enabling and encouraging more investment in economically depressed areas through initiatives such as the Linden Economic Advancement Program (LEAP).
• Formulating a clear investment strategy to improve the investment climate and attract investment. This includes strengthening GO-Invest’s ability to serve as Guyana’s primary investment promotion and facilitation agency.
• Enhancing the efficiency of the country’s revenue collection agencies and those institutions that are charged with procurements and other forms of expenditure, as well as their monitoring.
• Developing trade promotion activities to generate increased exports.

2. Improvements in the transport infrastructure:

• Strengthening the road network throughout Guyana, including the rehabilitation and modernization of coastal roads, the placement of bridges along vital corridors, and over the long term, construction of two deep-water harbors in the Berbice and Demerara rivers. This is coupled with improved land linkages with neighboring trade partners, with a road and bridge link to Brazil being the first priority.
• Strengthening the capacity and security of both the Cheddi Jagan International Airport at Timehri, as well as supporting the private sector to develop the Ogle Aerodrome adjacent to Georgetown to improve passenger and cargo access to and from destinations abroad.

3. Strengthening social services through which poverty can be eradicated and productivity improved. This is achieved through programs in education, health and low-income housing.

4. Enhancing the role of ICT in the modernization of Guyana:

• Expanding the population’s access to landline and wireless telephones and internet
• Increasing ICT usage to improve productivity in both government and business
• Using ICT as a means to develop services exports (e.g. call centers).

5. Improving inclusiveness, accountability and transparency of central, regional and local governments.

	National Competitiveness Strategy (NCS)
	National Competitiveness Strategy and National Competitiveness Strategy Action Plan on the Presidential Summit on Private Sector Development website

National Competitiveness Strategy
One important step initiated by the Government is the development of a National Competitiveness Strategy (NCS), which builds upon the foundations set out in the NDS. The process involves a comprehensive and participatory analysis of critical issues impacting Guyana’s competitiveness, and a series of public-private consultations designed to develop an action program focused on :

• Improving the Environment for Private Sector Investment, with a focus on investment promotion, reducing red tape, and improving competition and consumer protection.
• Strengthening Competitiveness for Export Development, focusing on export promotion, trade, policy, infrastructure, business development services, access to finance and skills development.
• Action plans for fast-track development and enhanced competitiveness of high-potential sectors.
• Enhancing Public/ Private Cooperation, with a focus on enhancing the private sector’s involvement in the development of economic, trade, investment and business-related policies and initiatives focused on enhancing Guyana’s competitiveness.

Within the context of the NCS, the Government is taking steps to enhance competitiveness through three mutually supporting components:

• Core Policies or economy wide measures which cut across most sectors of the economy. These include macroeconomic policy, competition policy, taxation policy, and trade policy, as well as measures related to education and training, technology and standards, finance, investment promotion, infrastructure, export promotion, red tape, and strengthening the legal system.
• Sector Policies that address sector specific particular obstacles and opportunities.
• Strategic Sub-Sector Polices targeting dynamic sectors with the greatest opportunities for growth and diversification.

Although it is too soon for the results of the competitiveness strategy to be born out, the renewed government and private sector focus on competitiveness issues, and a mutual commitment to address these issues will lead to ongoing improvements in the structure of the economy, thus enhancing the ability investors to take advantage of the opportunities Guyana has to offer.

Senior representatives of the Government and the private sector have indicated that the NCS consultation process has significantly improved the quality of the dialogue between the public and private sectors in Guyana.