By Kurt Campbell
[www.inewsguyana.com] – Director (Economics Department) of the Caribbean Development Bank Dr. Justin Ram has recommended that the Guyana Government reduces its concentration on its extractive sector and reinvest more in all sections of the economy to ensure sustained economic growth.
Dr. Ram said these actions must be taken to avert any possibilities of Guyana falling prey to the Dutch Disease. The Dutch disease is the apparent relationship between the increase in exploitation of natural resources and a decline in the manufacturing or agricultural sector.
He said Guyana through a very robust agenda has managed to reverse years of economic stagnation, noting that the reforms in this regard have been very successful and urged the Private Sector to assume the lead position in advocating for growth.
Dr. Ram was at the time making a presentation at the Georgetown Chamber of Commerce and Industry (GCCI) 124th Annual Gala and Awards Ceremony on Wednesday (December 4) at the Pegasus, Georgetown.
He posited that based on the current trajectory, Guyana would achieve its Millennium Development Goals (MDG) by the stipulated date (2015) in education, gender and environment.
According to him despite these achievements, Guyana’s economy still faces challenges and has a long way to go while urging that the country build on its efforts.
He pointed to the help the CDB has given to Guyana over the years to strengthen its social, infrastructural and economic standing.
“Substantial progress has been made, but the journey is far from over.”
He recalled assistance in areas of capacity building in Technical Vocational and Education Training (TVET) among others.
Dr. Ram pointed out however, that there still remains poor access to and cost of credit and an absence of research development along with a reduction in a skilled labor force and the existence of bureaucratic strategies.
He further observed that the high cost of power supply along with high taxes continues to be a deterrent to investment.
He recommends that the country look to force greater internal and external collaboration as it seeks to move the economy forward.