Sooner a democratic Govt installed, better – EU Ambassador

The sooner a democratically elected Government and political stability are in place in Guyana, the sooner the European Union (EU) can focus on providing the next level of funding for Guyana to fight the coronavirus (COVID-19).

This was explained by EU Ambassador to Guyana, Fernando Ponz-Canto, in a recent interview in sections of the media. According to him, the EU is already providing short term support to Guyana regardless.
“We’re doing some reprogramming, to see how the money we have already committed can be refocused and a part of it [used] to do things that are responding to the COVID pandemic,” he said.
“But you have to distinguish between the short, medium and long term effects. For the short term effects, we have a humanitarian office already active everywhere. And this doesn’t depend on the political situation.”
However, he noted that political stability and a democratically installed Government would greatly assist in having the EU provide additional assistance.
According to him, it is the heavy-duty, long term assistance to Guyana that the EU needs to partner with a stable Government.
“For the longer-term effects, which are going to be very important, we have our development cooperation. And this is something that we do in partnership with governments.”
“So I think that the sooner we have an installed, democratic Government, fully functional, the sooner we will be able to advance with this process,” the diplomat said.
As of Tuesday, Guyana had 113 cases of COVID-19, an increase of over a dozen cases in just a few days. Already, there is talk of a complete lockdown, something that is likely to have a detrimental effect on the economy.
Owing to its oil sector, Guyana has been pegged as one of the few countries in the hemisphere that will see positive economic growth for 2020. In fact, this growth is likely to be in double digits.
However, the World Bank had recently flagged Guyana’s incomplete March 2, General and Regional Elections as one of the key risks to the country’s transformation projected from expected windfalls from its nascent oil and gas industry
The World Bank had also projected that in the wake of the COVID-19 pandemic, the world will see a drastic reduction in remittances, with the Caribbean being hit with its sharpest decline in remittances in recent history.
Remittance, the act of overseas-based family members sending home money, plays a big role in the local economy. The Bank of Guyana reported US$327.9 million in remittances for 2018. This amount was US$317.2 million in 2017 and US$264.6 million in 2016.
However, with the coronavirus pandemic, countries around the world have implemented stay-at-home policies. Staying at home and social distancing has been a two-edged sword, reducing the spread of coronavirus but also bringing economies to a halt.
There have also been layoffs, including in the United States from where Guyana gets much of its remittances.
As if dealing with the potential of an economic contraction and reduction in remittances owing to coronavirus was not enough, Guyana also faces the risk of remittances and the economy being curtailed due to sanctions.
This is the bleak reality if foreign Governments make good on their warnings should Guyana not conclude its elections in a timely and democratic fashion.
It has already been over two months of controversy, and a credible winner of the 2020 General and Regional Elections is yet to be declared. While a recount is ongoing, parties and stakeholders have complained that each day seemingly brings new challenges.