Today’s article could be described as another unorthodox piece of literature by this columnist. The inspiration to author this piece is the materialisation of an assessment/prediction made by this column in one of its earlier editions in May 2017, on the subject of the sugar industry/Guyana Sugar Corporation (GuySuCo). It is with a deep feeling of despondency after having read in the very first week of this New Year, 2018, that two dismissed sugar workers committed suicide (featured in Guyana Times on January 3, 2018). Incidentally, one of the deceased victims was personally known to the author of this column.
Last year, a series of articles were featured on the economic and social consequences of downsizing the sugar industry/GuySuCo. For ease of reference, in the very first article written on the subject published on May 28, 2017, hereunder stated is an extract.
“The decision to close more estates – has compounded the issue by stimulating an increased level of protestation by sugar workers and other supporting members of the citizenry. These occurrences, once materialised, will lead to thousands of ordinary Guyanese becoming unemployed and severe adverse consequences visiting the economy of sugar-producing communities. The socio-economic fabric of those communities will deteriorate; the poor will grow poorer – poverty will be on the rise; crime will increase; hopelessness will be pervasive; and if I am to borrow another consequence put forward by a prominent political commentator in his blog, suicidal tendencies, or the rate of suicide, will increase. This scenario will almost certainly weaken, and thus devastate the social and economic strata of the country’s economy.” The full article can be found here https://guyanatimesgy.com/downsizing-the-sugar-industry-the-economic-and-social-impacts-on-guyanas-economy-part-i/ and all the others as well.
Interestingly, on the Budget 2018 series featured under this column, it was argued in one of those editions that it (the budget) contained too much of ‘bluff and fluff’. The Administration, however, definitely did not bluff on this one – when they warned that they will close down more sugar estates despite being cognisant of the devastating and catastrophic consequences that such a direction would plunge this country and a wide cross-section of its population into. The unemployment of some 4000/5700 sugar workers would affect – adversely some 80,000 dependents – especially since there is no alternative plan for these people.
The underlying problem with which GuySuCo has found itself in today is largely on account of two critical elements; (1) GuySuCo has never undertaken any radical strategic change. It retained the old model of management since in the days of Booker Tate; and (2) it was, and still is, heavily politicised. Recognising that the management never developed and implement any major strategic change amidst all the challenges over the years; the entire Board and executive management should have been replaced with top-notch, high-level professionals who are competent change agents, to turn the industry around.
In light of these developments, it appears as though that the governing policymakers are heavily reliant and comforted on the notion of promised oil that will begin to bring in revenue for the Government in 2020. While the petroleum sector will add some $60-$80 billion annually to Government revenue which is currently about $177 billion, this would not guarantee any form of financial rescue and/or financial security to these unemployed persons.
Moreover, it was most disheartening that these thousands of workers could not even get a cent from there severance pay for the last Christmas season. How then, could the Administration tout and boast of a good life and it is a caring Government? When in fact, its actions and policies are literally leading to people ending their lives, having drowned in a sea of hopelessness and despair.
The way things seem, inequality will widen, the rich will get richer, the poor will grow poorer, and other people from other countries will ‘milk’ the larger chunk of the benefits from Guyana’s petroleum sector – particularly the Trinidadians. Trinidad and Tobago’s economy is deteriorating as we speak, having suffered from Dutch Disease; so they will flock this country and enrich themselves and by extension remitting the profits to their homeland – in the end, Guyana’s capital and resources – some of it if not most of it – will be diverted beyond its borders inter alia exploiting Guyana’s regulatory and legislative weaknesses.
Only recently, a certain group of Trinidadians with questionable characters, came into this country and conducted a large financial transaction that would only enrich them and their home country being the ultimate economic beneficiary. Then there was another controversial appointment of a Trinidadian in a high-level Executive post with a local financial institution – who was allegedly involved in a matter of insider trading currently being investigated by Trinidadian authorities, according to the Trinidadian press.
Finally, as a special message to the jobless sugar workers; in life there will always be challenging circumstances, hurdles, trials, tribulations and all kinds of difficulties that would suppress you. Yet, mankind needs to understand that they need to be strong, enduring, and move on in life regardless of what life throws at you. Progress steadfastly and overcome, towards achieving your goals, objectives and purpose in life. Persevere and never give up; suicide is not an option and it is not a solution.
The author is the holder of a MSc Degree in Business Management, with concentration in Global Finance, Financial Markets, Institutions and Banking from a UK university of international standing.
