(Final of 3 parts on the PPP in office)

Arguably, political conditions and high levels of crime have been a deterrent to new investments – even though conditions are actually better than they are made out to be by forces opposed to the government. It must be emphasized – at the risk of appearing partisan – that forces opposed to the government have succeeded in distorting reality in Guyana. One major weakness that has continued to surface is the country's limited implementation capacity, largely due to a dearth of technical skills. This has been aggravated by weak governance and

flawed program design that for much of the PPP/C's term in power has not taken into account the country's comparative advantage in specific sectors. While readily accessible program funding has played an important role in improved economic conditions, its relatively easy availability has also had a negative impact to the extent that it has hindered the development of robust domestic policy formulation processes.
Up until a few years ago, the PPP/C highlighted a poverty alleviation strategy, which was a pre-condition for enhanced debt relief from international financial institutions. Although questionable official statistics indicate that poverty has been declining over the past decade, it remains a pervasive problem.
Incidentally, per capita income has climbed appreciably over the past decade, although this indicator only provides a broad measurement of overall living standards and is not representative of an improvement in the well being of the population at large. In fact, visible evidence indicates that conditions may have worsened and that the rich-poor gap has widened, distorting the reality of an average increase in per capita income.
The lopsided distribution of wealth has often been attributed to corruption which according to some sources has become an acceptable norm in Guyana – although the government claims to have a zero tolerance policy for corruption. Incidentally, as the money economy grows in Guyana, incidences of corruption seem to have increased.
Corruption has been closely linked to Guyana's rapid emergence as a narco state and a major transshipment point for illegal drugs heading to North America and Europe. In addition, the growth of the underground economy, which threatens the size of the real economy, has also been linked to corruption, while the lack of transparency adds to the perception of its pervasiveness. Incidentally, the underground economy is comparable in size to the real economy.
Although the government has committed to supporting local industries, the freedom to import foreign goods – though preferred by consumers – has turned out to be detrimental to the economy. This can be discerned from the country's deteriorating trade deficit.
To make matters worse, the continuing preference for foreign goods has stifled the growth of local industries but the government has done little to curtail this problem, in spite of its pronouncements of support for the development of local industries. This, combined with poor access to credit, the high cost of capital, and a weak legal/regulatory framework, has resulted in an underdeveloped manufacturing sector. In addition, there is yet to emerge a formal plan to promote local industries, taking cognizance of local resources. Barring developments in agro-processing, though still in its infancy – most initiatives are ad hoc in nature
Conversely, export promotion initiatives are yet to make a significant impact, in spite of the efforts of institutions such as GOINVEST. One area of focus has been the export of non-traditional products, which has been increasing. However, this venture can turn out to be a zero sum game for the government unless the necessary measures are put in place to reduce imports of non-essential goods, especially food.
Ironically, while the country has sought to tap the North American and European export markets for items such as fresh fruits and vegetables, imports of comparable foreign items have picked up significantly, highlighting the population's preference for foreign foods over local substitutes.
Recognizing the vulnerability of the country's traditional economic base, the government has been pursuing a more sensible approach to diversification by sticking to areas in which it has a core competency and some degree of comparative advantage. However, the inherent problem is that without a defined direction, the government's pursuits have been as fickle as the country's tropical weather.
One important aspect of diversification that has not been emphasized is the potential to build around established industries – such as rice and sugar, taking into account the availability of inputs - although sugar has been a beneficiary of "unrealized" modernization initiatives.
It is important to recognize that backward and forward linkages between the base and satellite industries can provide a competitive advantage and offer greater control over the growth of the offshoot of the traditional industries. Such a strategy would also be beneficial because the country would be able to maximize the use of its existing skills in established industries. On the other hand, if the principal inputs for a specific target segment are imported, then control over output and cost of production can be limited – based on supply and prices of raw materials. Initiatives in this area are fragmented and require a roadmap to achieve success.
However, the agricultural sector, the backbone of the economy and the sector with the most diversifiable potential has gained increased attention in recent years after more than a decade of neglect by the government. Yet the sector is plagued by problems. Poor drainage and irrigation has persistently caused severe flooding throughout the agricultural belt, resulting in severe losses for farmers. The lack of adequate processing facilities, a weak marketing infrastructure and poor pricing structure have resulted in waste and spoilage of agricultural produce. Shortage of equipment, poor access roads, inadequate extension services, and inefficient land distribution policies add to the problems faced by the sector – although there have been some improvements in these areas recently.
Ever since the PPP/Civic came to power, it has attempted to promote eco-tourism, an area in which Guyana has tremendous potential. However, success has been limited, largely due to weak infrastructure, lack of proper planning, inadequate promotion and unstable political conditions. In this sector, there appears to be a deliberate attempt to "overplay" small successes, giving the impression that tourism is successful.
Although economic development initiatives have been largely successful, there has been a lack of consistency in the rhetoric about development. This, combined with weak implementation capacity and insufficient funding, has left the country in an impoverished state relative to its real potential.
While the government constantly refers to its "shrewd management of the economy" budgets that do not balance, rising deficits, deteriorating trade conditions, relatively higher debt levels (in spite of debt forgiveness), increasing dependency on the "begging bowl" and inconsistent production in the major sectors are certainly indicative of mismanagement. The problem is: the country has been unable to generate self-sustaining revenues.
At the end of the day, in spite of its weaknesses and limitations, the PPP/Civic has done a superior job compared to the previous PNC administration and has been the lesser of the two "evils" that have ruled Guyana; "evil", only because that is the way the government is often perceived.

 

Georgetown — Canadian based mineral exploration company Guyana Goldfields Inc. (GGI) has signed a memorandum of understanding (MOU) on October 5, last for the mineral agreement (MA) and mining licence with the government of Guyana for the 100-per-cent-owned Aurora gold project located in Guyana, South America.
The MOU sets out the key terms of the MA. It is a comprehensive agreement that outlines the fiscal terms and conditions for the development and mining of the Aurora gold project. Significant among the terms of the MOU are: mining royalty of 5 per cent on gold sales at a price of gold of $1,000 (U.S.) per ounce or less; mining royalty of 8 per cent on gold sales at a price of gold over $1,000 (U.S.) per ounce; corporate income tax rate of 30 per cent. A mineral agreement and mining licence, and all relevant permits and approvals are to be issued within 45 days of signing the MOU.
According to a company release the MA is the final step in obtaining the mining licence since the company has already received its environmental permit in September, 2010. The mineral agreement signals the commitment of the government of Guyana and the company to the development of the Aurora gold project, the release noted. This watershed agreement is an important milestone for GGI as it will allow the advancement of the mine development project under a clear and stable fiscal and royalty regime, the release stated.
Patrick Sheridan, chief executive officer, said: "We are pleased to have concluded extensive negotiations with the Guyanese government on the fiscal terms included in the memorandum of understanding for this historic mineral agreement and look forward to obtaining our mining licence in order to build and operate the Aurora gold project. We have agreed upon fair and reasonable terms for the future success of the Aurora mine."
This landmark agreement, which strikes a fair and reasonable balance of taxation and royalties for gold mining, reaffirms GGI's view that Guyana is open for business, the release added.
Sam Hinds, Prime Minister and Minister of Mines in Guyana, stated: "The government welcomes and fully supports all investment, foreign and local, in the mining sector and are pleased that we have come to a fiscal agreement in order for the long-awaited development of the Aurora project to begin. We look forward to working alongside GGI as they move towards production."
Up until now, Guyana Goldfields has conducted off-site infrastructure construction work in preparation for the development and construction of the Aurora gold project. Upon obtaining the mining licence, the company plans to initiate the construction of the on-site infrastructures including a new camp, airstrip, river dike and completing road access to the site, which will be followed by the construction of the mining facilities.

 

Georgetown — A joint project between Guyana and Brazil to map the geology and geo-diversity of an unexplored section of the rainforest on the Guyana/Brazil border is currently under way. A team of geologists from both countries will be involved in the project and the findings are expected to be released around May of next year.
The aim of the Brazil/Guyana Border Geological and Geo-diversity Mapping project is to correlate the geological makeup of the Guyana side of the border with that of Brazil so as to unify the updated information on a newly-produced map of South America. Another objective of the project is to compile information about areas of the border where people have been mining gold and diamonds to determine the mineral potential of those areas, digitize that information, and establish whether those zones extend across the border.
The project had been agreed upon in 2009 at a meeting held in Georgetown between President Bharrat Jagdeo and then President of Brazil, Luiz Inacio 'Lula' da Silva.
Dr. Serge Nadeau, consulting geologist of the Guyana Geology and Mines Commission (GGMC) will be leading the Guyana team which comprises other GGMC geologists Jimmy Reece, Randy Ault and Deokumar Lachman.
This field project involves investigative work on remote areas at the Guyana/Suriname/Brazil tripartite junction to the east, and the Guyana/Venezuela/Brazil tripartite junction to the west, along the 1000-kilometre border area, and is expected to last for six weeks. From the data collected the geologists will be able to compile a map showing the variety of geological elements, including rocks, minerals, soils, rivers and creeks, faults (cracks in the earth's surface) and landscapes in that pristine area as well as depicting their age and tectonic evolution over time.
Rock samples collected will be sent for chemical analysis at laboratories in Canada, and for age dating at laboratories in China.

 

Georgetown — Crime Chief Seelall Persaud, who was mandated to investigate the allegations made by Assistant Commissioner Steve Merai that some senior officers of the Force, including the Personal Assistant to the Commissioner, were closely linked to known drug dealers, has completed his report on the investigations and submitted it to the Minister of Home Affairs.
Clement Rohee, Home Affairs Minister, indicated last Thursday that he had received the report on the investigations and will be studying it over the next few days.
Merai had alleged that the officers were so closely linked to persons in the drug underworld that they were even driving expensive vehicles that belonged to the drug dealers. However, the officers, in their defence had claimed that they had borrowed the vehicles since theirs were undergoing repairs but were unaware that the owners of the vehicles they were driving were drug dealers. One of the officers has since resigned from the Force.
Merai during his verbal exchanges with Commissioner of Police Henry Greene had also revealed that certain elements of the Tactical Services Unit (TSU), namely the 'Black Clothes' anti-crime squads, were linked to certain drug blocks in the city and its environs. The Assistant Commissioner, who is currently the Commander of the Berbice Division, had explained to the Commissioner that he was in receipt of information that some of the squads were engaged in busting certain drug dealers and using the proceeds to enrich drug blocks that they are in association with, according to a Kaieteur News report.
Kaieteur News reported that Merai provided the meeting with the names of two TSU ranks who are said to be involved in this practice. However, he had initially declined to cooperate with local investigators, citing a lack of confidence. This prompted Commissioner Greene to officially write to him, requesting that he provide evidence to support his allegations.
Merai had already indicated that he was not too comfortable with providing evidence to Crime Chief Seelall Persaud and head of the police Office of Professional Responsibility Mohamed Jameer, both of whom he had accused of initially turning a blind eye on the matter. However he later relented and cooperated with investigators on the issue.

Georgetown — Five men armed with guns attacked and robbed two salespersons of Edward Beharry Co. Ltd last Friday while they were distributing cigarettes in the Wismar area, Linden.
According to reports at around 12:55 PM at One Mile, Wismar, salesman Richard Alves, 55, and porter Michael Pooran, 19, were distributing cigarettes to a shop when they were held up by the men who were armed with handguns. The armed men escaped with an undisclosed sum of cash and a cheque for $270,000.
So far no one has been arrested.
Meanwhile at around 11:00 am the same day at Bushy Park, Mahaicony, East Coast Demerara, businessman Bissoondyal of Leonora, West Coast Demerara was shot and injured in an attempted robbery. Police said Bissoondyal was driving a motor lorry with three male employees in the tray, when he stopped along the roadway to quench his thirst.
"While doing so he was confronted by a man who was armed with a firearm and who demanded cash. During this time a motor car approached from the opposite direction and a man armed with a cutlass joined the man with the firearm," Guyana Police Force spokesman, Ivelaw Whittaker said in a statement. Bissoondyal resisted and was shot to his right leg.
The two perpetrators entered the motor vehicle and escaped, police added. Bissoondyal is receiving medical treatment at the Mahaicony Hospital.

 

Georgetown — Three children were killed when their father, John Blanchard, 31, went on a chopping spree last week Tuesday. Two of the children, Belika Blanchard, 9, and Daniel Blanchard, 5, died the same day while the third child, Joy Blanchard, 7, succumbed to her injuries last Saturday at the Georgetown Public Hospital where she was admitted in a critical condition. The children were allegedly fatally chopped about their bodies by Blanchard at their Soesdyke home.
John Blanchard was charged last Friday with the murders of Belika and Daniel and remanded to prison until November 1 by Chief Magistrate, Priya Sewnarine-Beharry.
According to reports John Blanchard, a boiled-corn vendor, told investigators that his wife, Onicka Blanchard, had left their home at Dr. Charles New Housing Scheme, Soesdyke, East Bank Demerara, to work in Mahdia and had refused to return home. He seems to have premeditated his actions as he told the investigators that he had informed his wife of his plans to kill the children if she does not return and she gave him the green light to do so.

 

Georgetown — The father of 21-year-old, Nadia Satrohan, who has been reported missing for over two weeks, fears that she has been kidnapped.
According Kaieteur News (KN) her father, Laury Vieira, said he received a phone call last Saturday at around 2:00 pm informing him that his daughter was seen on October 4 being forced into a white 212 Toyota car at the Georgetown Seawall.
Vieira said that it is almost a month now since he last spoke to his daughter which was just days before her birthday on September 10. He said that none of the woman's relatives or friends have heard from her since.
Nadia Satrohan, who is said to be a resident of 528 Tuschen, West Coast Demerara, was last seen leaving her home with a parcel in her hand, according to neighbours.
Vieira said that it is very unlike his daughter would stay away for such a long time without contacting the family.
He added that Nadia was previously involved in a rocky relationship with a young man whom he believes may have an idea of his daughter's whereabouts but he has been unable to make contact with the man. He said when he went to visit Satrohan's former friend he was informed that the man had moved out of the apartment almost three weeks ago which is one week prior to when Nadia went missing.

 

Georgetown — The reputed husband of Hansranee Sewdat, 39, of Number 48 Village, Corentyne was detained by police after the woman's body was discovered in her home last Friday afternoon.
Police state that the body bore a wound to the throat. The discovery was made by the woman's reputed husband, Roy Persaud and his eight-year-old daughter from a previous relationship. Hansranee had lived with Persaud for the past 12 years. According to reports, the body was lying near a sliding door at the entrance of the house. Kaieteur News reported that there was hardly any blood near the corpse and that the house was not ransacked.
Police have held Roy Persaud, a popular rice farmer who is in his late 70s, in connection with his wife's death. They have also reportedly removed a chopper, an X-Rated magazine and a piece of cloth in a plastic bag from the scene.
It is alleged that Persaud and his daughter had last seen Sewdatt alive earlier that day before leaving to go to sell paddy.

 

Georgetown — Raimundo Santos Freitas Barbosa, 51, a Brazilian man, appeared at the Georgetown Magistrates' Court last Friday to answer the indictable charge of murder of his wife, Barbara Delgato.
The prosecution told the court that the Brazilian couple had shared a husband and wife relationship. The prosecution said that on October 5 last, Barbosa went to the mining camp at Piari Puruni Backdam where his now deceased wife was and for reasons so far unknown, he picked up a piece of wood and beat the woman about her body causing injuries which led to her death. Barbosa then escaped and was subsequently apprehended in Georgetown where the allegations were put to him.

 

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