Rapid development: taming foreign investment interests

Dear Editor,
While we often think of economic growth as good news, it can also happen too rapidly. In light of this, I refer to an article: “Gov’t working to ‘tame’ investment interests” published in the July 4th, 2021 edition of the Guyana Chronicle, in which His Excellency Dr. Irfaan Ali pointed out “the importance of strategizing outside investments coming to Guyana.”
He reasoned that, “…when you are managing an economy like this, you have to be mindful of the consequences of overheating; you have to be mindful of the consequences of having the investments itself creating shortages.” At this juncture, I wish to commend His Excellency Dr. Irfaan Ali for asserting to this reality and to highlight what is currently occurring in Guyana.
Over the last few months, we have seen raw material shortages escalate, resulting in excessive price increases for every conceivable commodity. This is especially true for construction materials, where we have seen steel prices rise, wood prices rise, nail prices rise, cement prices rise, and, most significantly, the troubling surge in food prices has also become quite worrisome. This tendency has gotten out of hand for the small man, and even medium-sized enterprises like mine, who are struggling to source and purchase materials for minor repairs and construction. Furthermore, the COVID-19 pandemic has impacted the costs locally and exacerbated prices from foreign goods and materials, as well as shipping costs, which have quadrupled in certain cases.
I can attest that the widespread scarcity of vital basic materials and resources, as well as rising commodities where demand significantly outnumbers supply, is becoming increasingly burdensome. This is unfair to us, the consumers. Worse, we all know that if things settle down, these industrialists, businesspeople, importers, and others who were granted pricing power will be reluctant to return to normal pricing.
For one thing, the exorbitant prices placed on basic items as a result of shortages make us feel as if we are being punished. This trend may also have significant psychological consequences, such as persons finding it difficult to sustain themselves.
At this juncture, I wish to make it pellucid that while I admire Guyana’s economic growth and look forward to its future, I am concerned that too many investments from outside companies may render us in a catastrophic situation. I worry that our economy may reach the limits of its capacity to meet all of the demands from individuals and companies. However, I am relieved to note President Ali’s words when he ascertains that the, “investment interests are being thoroughly examined by Vice-President Dr. Bharrat Jagdeo,” and that, “the Cabinet has taken a conscious decision to expend local funds to kick-start key projects that are important for Guyana’s development.”

In light of the foregoing, I, Hajji Dr. Roshan Khan am confident that this time around, Guyanese will not get the short end of the stick. I am certain and patient that our policies pertaining to foreign investors into our country would favor the lives of the common Guyanese. In fact, I am certain that our foresighted government would not act as hastily as the previous one did when they signed away our oil resources without providing Guyana and Guyanese with the same benefits that Suriname provided to its citizens. The APNU+AFC truly sent us to hell. We presently lack adequate insurance for oil spills, such that a single spill can wipe away the little bit of money we earn for every third shipment of oil. As a result of this, I believe the government should take severe action.
I urge His Excellency Dr. Irfaan Ali and Dr. Bharrat Jagdeo to work steadfastly on this with Guyana first in mind! We need investors but we need investors with a conscious where it will be a win-win situation for all of us.
Sincerely,
Roshan Khan Snr.