Economics

Unemployment for economics S.b.a
Unemployment rate: 12%
Job losses – A need to retool
Chairman, Vision Guyana

INTRODUCTION:
Job losses are building around our nation, especially in the manufacturing and export areas. We have always struggled with manufacturing due to the high cost of energy. As a nation, we have not focused any on reducing our energy cost by implementing alternative solutions such as wind power.
Recently this newspaper reported that one leading furniture manufacturer sent home 30-odd factory workers since production has been too low and they were not able to keep the factory going. For us to retool this sector, a tiered taxation rate based on company size as well as tax incentives for marketing of goods and services is needed as manufactures seek to expand and explore new markets.

Last month, Agriculture Minister, Robert Persaud, said that for the first quarter of this year, the export value in the forestry sector has been close to US$8M and for the same period last year it was about US$12M. With the housing market in North America on the decline, need for timber has been significantly reduced and our exporters are starting to feel the pinch.
There must be development of new strategies and new efforts to retool the sector. It is very important that we build a stronger link between the manufacturing and agriculture sector. We must focus on finding new markets for our products.

NEW STRATEGIES NEEDED:
With the signing of the EPA in October 2008 and the upcoming negotiations for a possible free trade arrangement with Canada, this can be the opportunity to rethink our approach to the manufacturing and export sector. The development component for the region will be critical to counter the global economic crisis and the impact on Guyana.
There is a specific need for the Government of Guyana to create a specific stimulus package of this sector to avoid future and more drastic lay-offs and also to maintain foreign exchange ratios....