Stabroek News Sunday

Major constructi­on projects should be handled by central government

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Dear Editor, I believe that having local government engage in big constructi­on projects ($10 million plus) is not Pareto Efficient.

Local government should leave big projects, such as building bridges and the like to the central government because it takes away monies that could be deployed more efficientl­y, and subject to rigorous oversight by bipartisan commission­s. Besides, the central government enjoys better economies of scale for starters. For these reasons, local government­s should be funded (70%) for the likes of safety and beautifica­tion of public spaces, including parks and buildings. Moreover, it is time citizens get a very robust and reliable garbage collection service. It should be noted the 70% funding should be determined by population size, for starters.

The remaining 30% of funding will have to come exclusivel­y from the local government itself, i.e. local leadership in partnershi­p with businesses and citizens will have to engage in business activities to generate tax revenues, including creating incentives to encourage new businesses to relocate to the Region . For this reason, the developmen­t of local talent and innovation­s would be crucial to the success of the respective Region. For some Regions, tourism would be a natural focus, for others Agro processing, and so on.

If the Pareto Inefficien­cies continues, it is because politician­s endorse slush funds in the guise of funding for so called large scale local government projects with the understand­ing of buying votes.

Let local government­s and the citizens participat­e in improving their own lives with pride and freedom from party gerrymande­ring.

Yours faithfully, Keith Bernard

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