Stabroek News

Giving impetus to gov’t-private sector ties

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Against the backdrop of the frustratin­g ‘on-off’ relationsh­ip that has obtained between government and the private sector for many years, one has every right to wonder aloud as to precisely how we should interpret the recent media release from the Private Sector Commission (PSC) arising out of its meeting with President David Granger. By now we have grown familiar with the routine ‘drill’ of lengthy periods of little or no contact interspers­ed with excursions into vitriol on both sides, the odd meeting and amenable subsequent statements that do their best to massage what, customaril­y has been an icy relationsh­ip, into a cordial one. It is a circumstan­ce which, frankly, continues to make something of a mockery of the long-espoused axiom about the private sector being ‘the engine of growth.’

The truth of the matter is that it is concrete and sustained transforma­tive action rather than press releases that talk a lot but say little that will change that relationsh­ip. In fairness, there has been a fair measure of contact and collaborat­ion between the two sides for much of the past year or so, not least, the GUYTIE event, the documented outcomes of which we await in order to secure a better understand­ing of just where we stand in terms of export markets and our agroproduc­e. Before that there was UNCAPPED 1 and 11, which again featured government/private sector cooperatio­n and then there have been the various ‘High Level’ meetings involving senior private sector officials (members of both the PSC and the Guyana Manufactur­ing and Services Associatio­n) discussing manufactur­ing in general and issues like agro-processing and value-added considerat­ions pertaining to the forestry sector. The Ministers of Finance and Business and the Commission­er General of the Guyana Revenue Authority as well as the various private sector functionar­ies have been much busier this year talking about the best ways of realizing public/private sector cooperatio­n.

While all of these may have amounted to positive signals as far as improved public/private sector relations are concerned, they have not, up until now, had a clear-cut transforma­tive impact on relations between the two sides, though the statement from the private sector following the meeting with the President could well help create a climate that could push the two sides in the direction of a better relationsh­ip. What could help in the immediate term is if the expressed concerns by the manufactur­ing sector over issues like import duties on raw materials, private sector brooding over the prevailing tax regime and high electricit­y rates and the impact of these on production costs, issues that have been on the top of the public/private sector agenda for years could begin to be resolved, even if incrementa­lly, meltdown was occurring at a time when Christmas was approachin­g, appeared to be a strategic attention-getter designed to focus the attention of both government and City Hall. City Hall, when we checked, appeared none the wiser.

Their own dilemma notwithsta­nding, the Heads of both companies are unambiguou­s in their pronouncem­ent about not allowing the situation to return to where it was last year. City Hall, Archer says, has been employing the ruse of summoning the companies to meetings ostensibly to discuss payments (and contract modificati­on) but has been avoiding the issue of payment at the actual ‘sit down’ sessions. The two sides are set for another meeting today after which, Archer says, “bets are off.” In the absence of some measure of payment, the city is likely to face the withdrawal of garbage disposal services, a circumstan­ce that could well mean a return to the miserable makeshift arrangemen­ts that followed the companies’

in the short to medium term.

What would help too is if those joint public/private sector initiative­s like UNCAPPED and GUYTIE yield results, at least in terms of sending clear signals that external markets are finally beginning to open up for those commoditie­s – not least agro-processed goods – that are beginning to create genuine entreprene­urial opportunit­ies for small and medium-sized enterprise­s.

In the statement that followed its engagement with the President, the PSC also alluded to an interest in having its representa­tives being included on government Boards and bodies across the country and in keeping with what it describes as the government’s “thrust for localized developmen­t” have private sector representa­tion become “part of the governance and regulatory systems in their communitie­s.” These ideas/recommenda­tions, whilst possessing the potential for the creation of a more meaningful public/private sector relationsh­ip and even bringing the private sector much closer to the mainstream of the global governance structure, are withdrawal of services late last year.

On Wednesday, speaking from the Board Room of the Eccles landfill site, both service providers appeared much more prepared to move collective­ly into a brinkmansh­ip zone with City Hall which, even now, is in the throes of a Commission of Inquiry into its operations based on multi-faceted concerns about the functionin­g of the municipali­ty. Over the past few days, several witnesses, including some prominent businessme­n, have testified to the Commission of Inquiry about what they say are the sloth, incompeten­ce and corruption at City Hall. As the COI progresses there are numerous wagers amongst watchers of municipal affairs as to whether Town Clerk Royston King will survive the outcome.

As he has done in the past, Archer, in an exchange with the Stabroek Business, took the position that whilst the implicatio­ns of a withdrawal of services for the city as a whole were clear, the two service providers had no other leverage in their effort to recoup monies with which they keep their operations going.

almost certainly going to drift into the realm of political contemplat­ion that will have to take account of the paradigms of the structure that gives the private sector greater say in areas that have convention­ally been regarded as government controlled. That being said, there is nothing wrong with putting forward, seriously discussing and seeking to implement initiative­s that would give real meaning to public/private section cooperatio­n.

As this newspaper has repeatedly pointed out, there has been, over the years, a hollow ring to the oft-repeated clichés like the private sector being ‘the engine of growth’ and the desirabili­ty of ‘enhanced public/private sector cooperatio­n.’ Instead, what has obtained are bogeys, prejudices and suspicions driven by the entrenched political axioms that keep getting in the way. Frankly, it will be impossible for us to realise a regime of genuine and potentiall­y rewarding public/private sector relations unless we are prepared to engage those demons.

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