Office of the President of Guyana

Government, PSC sign MoU on National Competitiveness Strategy

President Bharrat Jagdeo witnesses the signing of the MoU on the National Competitiveness Strategy by Head of the Presidential Secretariat and Cabinet Secretary Dr. Roger Luncheon on Government’s behalf and Chairman of the PSC Yesu Persaud on behalf of the Private Sector. (OP photo by Sandra Prince)

Georgetown, GINA, May 4, 2006

The Government of Guyana and the Private Sector Commission (PSC) today inked a Memorandum of Understanding (MoU) that sets out what has been agreed between the entities regarding the foundation and operation of the new National Competitiveness Council (NCC).

Affixing their signatures to the document in the presence of President Bharrat Jagdeo were Head of the Presidential Secretariat and Cabinet Secretary Dr. Roger Luncheon on Government’s behalf and Chairman of the PSC Yesu Persaud on behalf of the Private Sector.

Witnessing the signing ceremony at the Office of the President were members of the PSC and the Project Adviser to the President on the National Competitiveness Strategy (NCS) Kevin Logan. The NCC will be Guyana's main institution for high-level public-private dialogue on the Strategy and all competitiveness-related issues.

The MoU would serve as an institutional structure to support public-private dialogue on the NCS and in signing this MoU, both parties commit to supporting the NCC in accordance with:

The definition of the roles and responsibilities of the NCC and supporting institutions
The NCC membership structure, which will comprise 12 persons, six to be nominated by government, four by the Private Sector and two by organized labour. The Council would be chaired by the President and in his absence, the Prime Minister.
The method of nomination of members to the NCC
The schedule for commencing the work of the NCC

Today’s signing signals recognition by Government and the PSC that genuine partnership between the two sectors enhances Guyana's ability to implement policies and programmes which boost national competitiveness. As an expression of this, since September 2005, the Government and the private sector (led by the PSC) have been working to consult widely amongst national stakeholders and to provide input to the Office of the President and the Ministry of Tourism, Industry and Commerce, enabling them to update the NCS.

Head of the Presidential Secretariat and Cabinet Secretary Dr. Roger Luncheon and Chairman of the PSC Yesu Persaud exchange the agreement signed at the Office of the President. (OP photo by Sandra Prince)

This update - the second draft of the NCS - contains a significant number of new policies and programmes which the Government has committed to implementing, as well as outlining a new institutional structure for ongoing public-private dialogue on competitiveness issues.

This MoU is also premised on several important events including the release by Office of the President and Ministry of Tourism, Industry and Commerce of first draft policy discussion paper on competitiveness: "Enhancing National Competitiveness: Implementing the National Strategy" in July last. Positive responses were received from the PSC in September and the first bout of national consultation on the NCS begun.

This consultation exercise was led by (for the Government) a Cabinet Steering Committee chaired by the Minister of Tourism, Industry and Commerce; and (for the private sector) the PSC's Trade and Investment Sub-Committee. The overall effort was supported by an ad-hoc public-private Steering Committee composed of representatives of the Office of the President, the Tourism Ministry, and the PSC.

The Government, with support from the Inter-American Development Bank (IDB), engaged the services of four teams of international consultants to look in particular at four areas of competitiveness policy:

Strengthening the Environment for Private Sector Investment
Strengthening Enterprise Competitiveness for Export Development
Developing Fast-Track Sectors of the Economy
Strengthening Public-Private Dialogue for Competitiveness

Government and the Private Sector Commission representative after the signing of the Memorandum of Understanding (MoU) that sets out what has been agreed between the entities regarding the foundation and operation of the new National Competitiveness Council (NCC). (OP photo by Sandra Prince)

These four areas were looked at because they are covered under the Government's upcoming Support for Competitiveness Programme, which is receiving funding from the IDB. The Government, the PSC and the IDB worked together to finalise the Terms of Reference for the consultancies to cover each area.

Additionally, under joint Government / PSC leadership, seven public-private focus groups were held covering

Investment Promotion / Red Tape
Competition Policy / Consumer Protection
Framework for Export Promotion / Trade Negotiation
Technology, Skills, Financing and BDS
Developing Fast Track Sectors: Aquaculture
Developing Fast Track Sectors: Contract manufacturing/services exports
Facilitating Public / Private Sector Cooperation

Government and the PSC are expected to issue a joint statement later.

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Banking sector must prepare for int’l and regional competition

President Jagdeo declares open GBTI’s business conference

President Bharrat Jagdeo and GBTI’s CEO Radhakrishna Sharma in discussion at the Business Conference hosted at Le Meridien Pegasus under the theme “Defining a Successful Business Strategy within the CSME.’ Sandra Prince photo

Georgetown, GINA, May 4, 2006

The banking sector has a crucial role to play in the production process and competition, not only within the local and regional economy, but also internationally and hence it is imperative that the private sector prepares.

This is one of the many challenges meted out today by President Bharrat Jagdeo to the participants of the Guyana Bank for Trade and Industry’s Business Conference hosted at Le Meridien Pegasus.

GBTI led the way for the private sector by being the first private entity in Guyana to host a business conference for local and regional counterparts, an initiative that was launched by President Jagdeo. The Business conference 2006 was held under the theme “Defining a Successful Business Strategy within the CSME,’ a theme, President Jagdeo remarked that should focus on defining successful strategy, not within the CSME, but rather a strategy that would address competition at all levels.

The President explained that several challenges are posed by globalisation and while countries cannot tackle them independently, an opportunity is offered to do so collectively through the single market. Hence, he noted that the time for talk is at an end as the CSME is here and countries have to work together. However, the Head of State was quick to point out that countries don’t compete, but rather businesses do and the role of the private sector in the success of the single market and economy is critical.

Citing an example, the President said CARICOM has managed to create a regional economy of $50B and while a $1B economy of a particular country may fail to attract attention internationally, this large regional economy certainly would not.

“A large bank in the United States or Europe would not pay any attention to this $1B economy, it may be too small but an economy of $50B will definitely attract their attention. So do not for a moment think that your competition would only be from regional competitors. By pooling our economic states we have now become attractive to competitors from the rest of the world,” the President said.

President Bharrat Jagdeo addresses the Guyana’s Bank for Trade and Industry Business Conference hosted at Le Meridien Pegasus under the theme “Defining a Successful Business Strategy within the CSME.’ Sandra Prince photo

It is in this context that he urged the participants to consider a strategy not within the CSME, but rather one that tackles the international situation.

The banking sector was also urged to boost its capacity, which is one way to handle the competition.

“We have to develop the instruments that you have available now in the banking sector so that they can match any instrument and service provided out of or within the region. So it is a development of the services offered to customers,” the President said.

President Jagdeo also urged bankers to work at reducing the cost of intermediation, which would be reflected in lending rates.

Additionally, “You have to move away from seeing yourselves as outside of the production cycle. You are a very important part of that cycle, in fact some may say the most important part of that cycle because without effective and efficient credit the economy cannot do well and therefore I hope that today’s conference would allow the bankers to get closer with their customers and not just see them as a subject for making loans, but would also see themselves as part of the economic strategy of the country,” the President said.

He also called on the bankers to work at establishing a Credit bureau, which would avoid bad debtors from accessing further loans.

However, the Head of State was quick to acknowledge that there are still too many outstanding issues to be addressed by both government and the private sector and work is being done on government’s part. He alluded to the Presidential business summit to be held by the private sector as one example of taking the relations between the two entities higher.

Also addressing the opening ceremony of the conference were Chairman of GBTI, Robin Stoby and Chief Executive Officer of the bank Radhakrishna Sharma. The feature address was delivered by Ambassador Joan Underwood, Non-resident Ambassador for Antigua and Barbuda to Latin America. She also holds the posts of that country’s National Spokesperson on CSME and as Manager, Human Resources and Strategic Development, ABI, Financial.

The conference also featured a distinguished panel delivering presentations on various issues in the sector.

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