US Ambassador to Guyana Sarah-Ann Lynch says anyone who cared about the rule of law when it came to free and fair elections last year should also see how important it is to creating a stable and transparent investment climate for local and foreign investment.
Speaking at an AmCham Guyana virtual forum on the topic of “Rule of Law as a Foundation for a Competitive Business Environment”, Ambassador Lynch said Guyana would do well, along with any other country, to follow the Five Pillars as laid out by the American Chamber of Commerce in order to gain a competitive advantage in attracting investors. These were: Transparency, Predictability, Stability, Accountability and Due Process. She said there was a clear linkage that countries that developed frameworks for and followed these principles enjoyed a higher level of commercial activity.
Lynch also said that when it came to Local Content Policy there was a need to set out a clear and realistic path that balances the protection of the country’s human capital while welcoming foreign investment. She recalled that at the recent Houston Offshore Technical Conference she saw numerous MOUs signed that she expects will lead to joint ventures in Guyana where all parties will profit together. She also encouraged the passage of an amended Natural Resource Fund Act, and that the careful management of this fund combined with a sensible local content policy could be the keys to unleashing sustainable prosperity for all Guyanese. Reducing the cost of energy and building infrastructure would also contribute to Guyana’s new economic boom.
She noted that the same daily frustrations citizens felt in dealing with bureaucracy was often faced by investors including those from the Diaspora. And when it came to corruption she said the Ali administration must be aware that without guardrails unscrupulous officials could misappropriate oil revenues. On this point she advised that America has strict and actively enforced laws and that if you or a company is seen as engaging in “shady business” you will not only lose your reputation but you might be prohibited from travel as set out in Proclamation 7750 of 2004 which suspends entry of persons engaged in or benefiting from corruption. Finally she said that by promoting diversity, including gender-based, would prove to be a long term benefit for the country.
Kendra Gaither, Executive Director for The Coalition of Rule of Law in Global Markets for the US Chamber of Commerce gave more details on the five pillars saying multinational companies assessed long term investments in countries on various criteria, primarily market opportunities, while also weighing the stability of the investment climate which includes consistent application of laws, the government’s position on sanctity of contracts and a country’s compliance with international treaties. And she noted that when it came to disputes they must be resolved not in an adhoc manner but in a fair and transparent process.
Gaither also said Guyana’s score on its investment climate had increased by 4% from 2019 to 48.73%
Nelly Rivas, Vice President for Government Relations in Latin America for commodity trader Cargill gave the forum the perspective of a major US investor with revenues of US$114B last year. She said the size of a market was not always the main reason for entry. For example Cargill has large offices in Singapore and Switzerland - both very small markets but ones with strong legal systems providing certainty and stability for their operations.
Keynote Speaker Attorney General Anil Nandlall emphasised the connection between last year’s election trauma and the need for a strong independent judiciary, and that free and fair elections should never be taken for granted. He recalled the President of the Caribbean Court of Justice Adrian Saunders saying that Guyana’s impending economic transformation could be significantly enhanced with good governance and the adherence to the rule of law, inclusive of property rights. Nandlall said no serious investors would put money in a country where such rights are not respected and where social disorder is widespread or an un-elected government is in charge.
Closing off, President of AmCham Guyana Devindra Kissoon said investors would be encouraged to hear that a renewed arbitration act and legislation to streamline business registration were now in the pipeline.
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