Saturday, November 17, 2007

Business Perspective - The Need for Economic Education

http://www.stabroeknews.com/index.pl/article?id=56533303

Business Perspective
The Need for Economic Education
This column explores initiatives to improve the business climate of our
nation and make Guyana Open for Business a reality. Peter R. Ramsaroop,
MBA Chairman, RoopGroup
Stabroek News, Friday, November 16th 2007


Stabroek Friday Business supplement is the only such publication in
Guyana. For many of us in the business community, this is a key
information tool on the business and economic climate of companies and
the nation as a whole.

Recently I had the opportunity to participate in a University of Guyana
student's forum on the Value Added Tax (VAT). Many of the students
referred to this publication for the information they were using. Many
also expressed interest in being exposed to more free-market thinking
and how Guyana can implement such economic policies. In speaking with
many of these students after, they wanted to understand more about the
rate at which our economy was growing, the burdensome tax system, and
the purchasing power of the dollar. I have concentrated my recent
columns on these subjects. In addition, many questions came up on our
current industries such as sugar and the impact on our economy given
the recent European decision and the environmental issue that is
gaining international attention as it relates to the harvesting of our
forest and what impact it will have on our economy when it is fully
exposed.

How will the sugar industry affect our economy? Note the following
facts that must be addressed in the near future. World prices are down
from 14 to 10 cents per pound. Refined sugar is down from US $575 to US
$450 a ton. I have shown in previous columns how inflation has affected
the current cost base. Add poor productivity and investment in a
refinery that cannot show a return on investment and these will affect
the final numbers in our economy this year.

The recent exposure of what is happening to our forest will also have
an impact on our economy this year. Reports have shown that many blocks
of our forest were harvested illegally. When you add that it is alleged
that GFC officers have been found to be paid on the side not to report
harvesting has taken place this will all impact negatively and affect
our economy.

The Government recently announced hundreds of scholarships to Cuba, a
country ruled by a dictator. When will we also announce scholarships to
the USA, Canada, and UK where many Guyanese in the diaspora are
creating wealth and adding value in their adopted countries. When will
their monies and skills be attracted to Guyana? When will the investing
conditions be right? How many Guyanese have created wealth in Cuba or
Russia? Over the last five years, Guyana has seen very low or negative
growth and other economic indicators such as inflation and the consumer
price index are all in double digits. What has the business education
from these countries done for our nation where many in leadership
positions have been trained.

The challenge for many in the business community, students aspiring to
get a business and economic education and those wanting to invest in
our nation are the understanding of our true business climate and
opportunities. Our economic measures are our baseline.

Until next week "Roop"

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