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ADDRESS OF HIS EXCELLENCY BHARRAT JAGDEO, PRESIDENT OF GUYANA AT THE OPENING OF GUYEXPO 2004, 24th SEPTEMBER 2004

 

Centuries ago, the legend of El Dorado and the belief that this golden city was to be found somewhere in Guyana lured many explorers to come to these shores in search of riches and fame. The El Dorado we speak about today is not a city where the streets are paved with gold, nor is it our world-renowned rum. Our El Dorado is the promise of increasing prosperity and success that lives within the spirit of the Guyanese people. A spirit that shows itself in remarkable ways here today at Guyexpo 2004 and that will continue to propel us forward as a nation.

This goal is consistent with my personal vision for our country, a vision that I would like to once again share with you.

My vision is of a prosperous country, a cohesive nation and a satisfied people living in safety and harmony. A Guyana in which each and every one of our citizens is entitled to live his or her life in a safe, secure and tolerant environment, with the opportunity to engage in life-fulfilling and life-sustaining activities, and with access to public services that support his or her needs.

I want to see a Guyana where all our people have access to quality health care, where all our young people can pursue educational excellence, and where everyone has a decent house with access to safe water and electricity. A Guyana where creativity and innovation flourish – in business, in academia, in research, in sport, and in all other aspects of our national life. I want to see Guyanese businesses competing and winning on the world stage, with an active and effective Government working alongside a vigorous private sector that provides the engine for decent jobs and greater income. I want to see a Guyana where all our people feel secure, and where the intolerance and bigotry that still blight our national life become things of the past. A Guyana where elected leaders discuss real issues that matter in the lives of our people, and where all our hard-won democratic and constitutional institutions fulfil their potential.

I want to see a Guyana where all are treated equally, regardless of ethnicity, gender, religion or economic status. A Guyana where the faded flags of conflict and division are left in the past where they belong.

The creativity, skills and optimism visible here today at GUYEXPO show how close we are to achieving that vision. All Guyanese should embrace this vision, and we should not shy away from proclaiming to the world, and especially to our overseas friends who join us today, that this is Guyana that we are building.

The vision I speak of finds practical expression in my Government's programme. We have clear strategies to deliver results.

Our economic strategy is built on three over-arching principles. Firstly, the government must continue to manage the economy prudently, and maintain solid foundations for sustained economic growth. Without this, nothing else is possible. Secondly, we must create wealth and attack poverty by enabling widespread access to economic opportunities. To do this we must support a vigorous, modern private sector, able to compete and win in a globalized market place. Thirdly, we must match this with sustained investment in public services paying particular attention to poverty alleviation. In summary we must be pro- growth, pro jobs and anti- poverty.

The role of the private sector in this strategy is paramount. My Government will remain steadfast in supporting industry and businesses by guaranteeing a stable and enabling environment for investment and trade. We have one of the most attractive incentive schemes in the region, and our legislative and policy framework is continually improving to provide a predictable and transparent environment within which to conduct business. The Fiscal Amendments Enactment Act, the Competition Bill, the Investment Act – are all recent examples of how my Government supports entrepreneurship throughout Guyana .

But the private sector must be dynamic and innovative as it adapts to a constantly changing international environment.

In the past, Guyana earned most of its income from exports of our major primary products – bauxite, sugar and rice. We were able to compete in the world markets of the time, and could rely on these exports, not only as our principal engine of growth, but also as the source for large numbers of jobs.

The world has changed since then.

In the coming years, we will lose certain market preferences for some of our products and the relentless march of globalisation will continue.

Globalisation is the defining economic challenge of our time. Every country in the world has experienced deep and fundamental change as a result of the technological and social revolutions that have taken place in the last decade. History will show that the challenges of globalisation were felt with particular intensity by small economies like ours.

I am determined that history's judgment will show that we passed the test, and that Guyana – both its Government and its private sector – have made use of the opportunities presented by globalisation, to the benefit of Guyana.

The private sector that will inherit this future and succeed in creating wealth for shareholders are those companies who are of good corporate citizens, who comply with the laws of the country, seek out domestic and international alliances, explore new forms of financing. It is those companies that understand the challenges of globalization, and continually seek increased productivity and corporate excellence. Those who continuously complain will not succeed and will be consigned to history in this new dispensation.

For the Government's part, our support for the modernization of our traditional economic base will continue, aware that this is a critical component of our response to globalisation. But we will also support efforts to dramatically expand and diversify the non-traditional base, so that the private sector can create and pursue opportunities to generate income and employment. If you look around today, you will see many examples of what we have achieved in this regard.

To further facilitate economic growth and promote social advancement, we are investing over 100 billion dollars in the years ahead. Improvements to our national road network are underway, and construction of the Berbice River Crossing will commence in 2005. Our airports are being developed to improve our international attractiveness as a place for leisure and to do business, and work has started on a world class Convention Centre which will establish Guyana as a prime venue for international conferences.

We are also investing in public services that attack poverty and empower all our citizens by improving the qualities of their lives – our investment in Health this year alone exceeds 4.5 billion dollars, with over 13 billion being invested in Education. Housing development, land distribution and water rehabilitation programmes are progressing at unprecedented levels across the country. We are working to expand the electricity network, and to ensure that individuals and businesses have access to a safe, reliable and affordable supply.

Despite huge difficulties, I continue to seek liberalization in the Information and Communications Technology industry. ICT represents a tremendous opportunity for Guyana . As well as the role it can play in improving productivity and creating new market access for existing businesses, our geographical location, use of the English language, and educated population are three strong competitive advantages which we have to offer ICT companies who wish to operate here. However, the inherited monopoly and ongoing campaign against liberalisation by the incumbent telecommunications operator impinge on our ability to develop this sector. Let me be clear on this – I will not rest until we have removed these obstacles, and look forward to the day when all Guyanese citizens and businesses have adequate, competitively priced access to telecommunications.

This is one of many challenges we face, but it is important that we remain focused on the bigger picture.

As this exhibition demonstrates, there is robust investment activity taking place in Guyana , and the economic outlook is immeasurably better than ever before in our history.

Let investors be reassured that my Government will remain resolute in our pursuit of sound macro-economic policies – we will continue to manage the economy in a manner which promotes the accumulation of wealth. Your investments in Guyana will be safe.

You should not just take my word for it - the record of successive PPP/Civic Governments speaks for itself. In the early 1990's we experienced triple digit inflation, commercial interest rates in excess of 30%, and a series of massive currency devaluations. Our fiscal and balance-of-payments deficits were unsustainable, and our foreign debt at 2.1 billion dollars was more than six times our GDP. 90% of the Government's revenue was spent on servicing this national debt

Just over a decade later, GDP has increased by over 250%, our currency is stable, and inflation has been in single digits for ten years. Our fiscal deficit has fallen from 41% of GDP to less than 8%, and our balance of payment deficit is now less than 85 million US dollars down from a deficit of $231 million. The interest rate for Treasury Bills has declined from 23% to 3.4%, and commercial borrowing rates average 15%. The cost of servicing our national debt has decreased to about 20% of the Government's revenue.

Our citizens and businesses are earning and saving more – aggregate deposits are at record highs, our net international reserves have grown more than tenfold, and private sector credit has increased phenomenally – from 8.7 billion dollars in 1992 to over 50 billion dollars today.

This prudent economic management is supported by an aggressive programme to create a predictable and transparent legislative environment. We have passed inter alia Securities legislation, and modernised our Customs, Financial Administration, Audit and Income Tax Acts.

All of this is complemented by the unprecedented investments in Education that I spoke of earlier. These investments are preparing our work force to meet the challenges of the future, in line with my Government's firm belief that a secure, healthy, educated population is essential for overall economic growth.

My promise here today, to our local and overseas investors, is that the Government of Guyana will continue to support all efforts by the private sector to grow our economy, and create jobs for our people.

I have focused so far on our economic agenda, but before I conclude, I would like to briefly speak about some other key aspects on our national agenda.

We should not deny that in recent years, our nation has faced a number of daunting challenges on the security front. I want to reassure you that we are combating these threats, and will overcome them. My Government will devote all necessary resources to combat this scourge – our security forces will want for nothing in their efforts to maintain stability, security and safety for all our citizens.

The PPP/Civic government is proud of our struggle for the restoration of freedom and democracy in this country. Our young democracy has one of the most inclusive constitutions in the world, and we are working tirelessly to build fair and durable democratic institutions. We continue to strive towards the day where our people's rights are fully realised, and where freedom of speech, freedom of assembly, freedom to travel, and all the other rights that our people hold dear, become the norm in our society. All of us who are leaders within this great country must rise to the responsibilities invested in us by our people, and work tirelessly to make all aspects of our parliamentary democracy work. My government remains fully committed to this, and will work with anyone who shares this commitment.

We have traveled a long way, but the best is yet to come. Together, we will move forward – Guyanese working in partnership and friendship with investors and other overseas partner.

It is with this sense of optimism that I would like to welcome our overseas visitors, congratulate and thank the organizers and wish the exhibitors success.

I am delighted to declare open GUYEXPO 2004.

Thank you.

24 th September, 2004