Out to lunch…

…on the economy

It’s clear Finance Minister Winston Jordan still doesn’t get it about why his insistence on stressing increased gold production in keeping the economy on its growth trajectory isn’t cutting any ice with anyone. So why isn’t he giving the Public Servants their promised “substantial” raise if the economy’s doing so well.
Most recently he was challenged by PPP’s shadow finance maven Irfaan Ali when he blurted we should consider ourselves “lucky” for the role of gold. Is this guy for real? So this is what’s supposed to be taking care of the economy…luck? There’s two things wrong with Jordan’s cockamamie ebullience on gold. First and foremost – as was pointed out by Ali – how much of the proceeds of gold are available to us since the major portion of the gold proceeds are sent overseas by the expatriate two largest producers in the sector?
He should share that figure with the Guyanese populace, who will then know who’s getting the gold and who’s left with the hole! The second thing wrong with Jordan bigging up gold – is he’s seemingly oblivious to the consequent distortion of our economy. Gold’s very volatile since its price has nothing to do with supply and demand and everything to do with totally exogenous factors. Such as the strength of the dollar which is the world’s de facto reserve currency; inflation, interest rates, volatile markets in commodities or stocks etc etc…
So we can’t depend on gold or (any non-renewable resource) to generate sustainable growth – much less development. And this would be true even if ALL of the proceeds from gold were being ploughed back into our economy. The situation’s akin to what has been called “Dutch Disease” – contracted when that country “threw back” and allowed its traditional industries to wither when oil money from North Sea oil started to flow.
And when the oil was gone…the Dutch was left holding “wood” or what former president Donald Ramotar quaintly called “larwah”. It ain’t pretty! For a man as old as Jordan, has he forgotten the discussion from back in the day about “development” being the goal of those placed at the helm of the Finance Ministry and not just “growth”? Growth is necessary – but not sufficient for development.
So let’s make this simple for Jordan. He has to either come up with plans to resuscitate the traditional “six sisters” – or create new industries to get money into the pockets of the populace. If the increased gold production were employing the entire Guyanese work force, there would’ve been no problem – in the near term.
But since it’s not we’re screwed twice over…
…on an ego kick
Your Eyewitness had heard this fella Goolsarran was an egomaniac. But then, back in his days in the bureaucracy during the Burnhamite regime, most professionals had fled (from Burnham on horseback during Hope Estate “reorientation”, among other things) and it was easy to be “king in blind man country”.
Returning to Guyana from a stint at the World Bank (on the bona fides of the GoG) he was livid that some who were his juniors were now in the top tier – far beyond what he’d previously ingratiated himself into. From his vicious attacks on them in the press he showed when it came to “hell and fury” women had nothing on bookkeepers!!
Thrown a few “audit” bones (without much marrow, to his consternation!), he threw a hissy fit when none of his advice – more like “getting even” – was taken by the government.
So he’s returned to singing for his supper. Most recently by claiming the Sanata dyeing and finishing operation – which used a million gallons of water daily – wouldn’t own its own well!
…on sugar
The Stabber waxed quite indignant about the government and GuySuCo not consulting sugar workers – first on the closure and now on its diversification into sugar.
When did the PNC ever consider sugar workers as “people”?