Declaration of Sophia

Chapter 6 Foreign Trade and Private Investment

6.1 As we move to control land in the interest of the nation, we will also take control over all foreign trade - import and export. Already, through a marketing committee on which the Sugar Producers are represented, the Government is responsible for sugar exports. Our other major exports - bauxite, rice and forestry products - are already handled by public agencies. This pattern will be extended to all other exports. The object is to ensure quality and reliability, as well as an effective monitoring of the system. In addition, your Government as the agency finally responsible for the whole economy, must be in a position to decide, after consultation, on directions of trade in the general national interest.

6.2 Similarly, import trade cannot continue as it is now, subject to whimsical preferences on the part of private importers, which preferences are frequently dictated by tradition and agency agreements rather than consideration of quality, price and relevancy to Government's international agreement and national policies.

6.3 These controls will be introduced, not for the sake of controls, but to ensure consistency to maximise benefits to the nation, including reasonable prices to consumers directly and indirectly. Trade is an integral part of economic planning, the justification and need for which are not only an article of faith with the P.N.C, but universally accepted in Guyana. Who then, but the Government, must in practice be responsible for foreign trade?

Internal Trade

6.4 So far as internal trade is concerned, there is or can be a somewhat different approach, primarily because it is internal to Guyana where your Party and Government can more readily ensure the protection and furtherance of the people's interests.

6.5 As part of our policy of having three sectors in the economy - the public, co-operative and private - agencies of all three sectors may be engaged, and can be engaged in such internal trade.

6.6 There can be no argument against the co-operatives being thus involved, but some there are who tend to believe that it is wrong for the Government to be in the distributive activities of the community. It was never intended that such activities should be the exclusive domain of private enterprise. Indeed, it has always been our position that Government should be in this field directly and it is further its duty, by encouragement, assistance and patronage, to extend the co-operative share. This follows naturally from the declared objective of making the Co-operative sector the dominant sector eventually.

6.7 Further, in view of the anti-social operations of several individual private sector agencies, as evidenced by black-marketing and hoarding, it may, indeed, has become necessary for certain essential commodities, henceforth, to be handled exclusively by Government and Co-operative outlets and agencies. We cannot and will not permit to develop in Guyana what we have witnessed in other countries where a relative handful of companies and individuals reap fantastic profits while the consumers - the people - pay correspondingly fantastically high prices for essential goods. We are socialist and the people's interests are the primary ones.

Local and Foreign Enterprise

6.8 There was an earlier allusion to Guyana's tri-sectorial economy. Our commitment to the development of the co-operative is well known with and without the Party, as also is the fact that no sub-sector, apart from those reserved to the Government, is closed to the co-operative.

6.9 In the circumstances of our Party's policy, however, there will be a place and role for the private sector. There will be certain sub-sectors like public transport and communications which must and will be owned and controlled exclusively by the Government. But there will be others in which any of the three sectors will be free to be involved on terms decided on by your Government.

6.10 We are frequently asked about our Policy in relation to foreign private investment. The time has come now to give, indeed to repeat, the answer once and for all. Private investment from abroad is welcome in specific fields in consortium with Government and/or co-operatives, provided that in each case Government will shortly be appointed to set our clearly the fields and areas contemplated for such joint ventures as well as the attendant terms and conditions, one of which will be a guarantee against confiscation. The work of the Committee will have to be completed by March 31st 1975. When the list is adopted and published there can be absolutely no doubt or grey areas.

Foreign Aid

6.11 On several previous occasions I have stated - and found unanimous agreement at various Congresses - that the tasks of developing Guyana is one primarily for Guyanese. Yet, there are still too many of our citizens, fortunately not a majority, who explicitly or implicitly put their faith in foreign assistance, government to government, or foreign private investments as the main instruments of development.

6.12 We certainly are not unmindful of the substantial aid we have received from several friendly countries and international agencies. We cannot be forgetful of the financial assistance this from our neighbours Trinidad and Tobago and Venezuala. But all this, apart from being insufficient on its own, is no substitute for our own people's effort. In addition, even if there were the will, the capacity on the part of would-be aid donor is doubtful at this time. Therefore, not only national dignity, but also a sense of realism dictates our philosophy of self-reliance.

6.13 We have done will in the past. By now we, as a people, have contributed over $100M in self-helf at community and national levels since the P.N.C's accession to office. Important and vital infrastructure works have been executed by this means but I have a feeling that in some quarters there is now a tendency to relax. Though in some areas self-help projects go on apace, in others there is too great a time-lag between commencement and completion.

6.14 If my judgement is right, this would represent a slipping back at a time when more than ever the supreme effort is needed if we, as a nation, are to reap the full harvest from our earlier achievements.