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Guyana's economic contraction

THE EDITOR, Sir:

I SHOULD like to quote from an article written by University of Guyana lecturer and noted Guyanese political commentator Mr Freddie Kissoon entitled The Coming Year, which was posted on the commentary pages of the news and current affairs web site Guyanacaribbeanpolitics.com on April 22, 2001. In describing his prognosis for social and economic conditions in Guyana in the coming years, Mr Kissoon stated the following:

"Make no mistake, have no doubt, don't fool yourself, the coming years are going to be hard. Poverty, unemployment, social services cutback, curtailment of state expenditure, human resources depletion and a rising US dollar are the reality we will have to live with in the years ahead. The relation between the state and the trade unions is going to be a fascinating one. One suspects that an unprecedented occurrence will take place in the negotiations.

"For the first time maybe anywhere in the world, a government is going to be quite willing to open its books and show the trade unions that look, we don't have the funds to pay you, show us where we can get it and we will give you it".

In the past, Freddie Kissoon has proved that he has impeccable sources of information and his prognoses invariably are grounded in hard fact. For these reasons, I think that his words of alarm should be taken very seriously. Just one month ago the governing PPP was campaigning on the theme "Vote PPP/C and let prosperity continue". Now we know that the Guyanese economy contracted by nearly two per cent in 2000 and the prospect is that decline will continue into the foreseeable future.

If, as Kissoon says, the Guyana economy is in such bad shape that unemployment will rise, social services will have to be cut back and there will be curtailment of state expenditure, how does President Jagdeo justify the extravagance of 21 Ministers in his new government? Surely in an impoverished country like Guyana, this number is excessive. In light of the poor performance of the economy since 1998 and the very worrying revelations by Mr Kissoon, how are we to interpret the PPP campaign slogan?

What do the multilateral lending agencies, who profess so much concern for the welfare of people in highly indebted poor countries such as Guyana have to say about this? In 1992 they were pushing for a total of between nine and 12 Ministries. Is it that they have had a change of heart, or are they, for reasons unknown, now willing to indulge the PPP in its extravagance?

I am etc.,

SEAN AARON

E-mail:

Seanaaron2001@hotmail.com

Amity Lodge,

Christ Church, Barbados

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