Siege perilous Viewpoint
By Dr James Rose
Guyana Chronicle
June 28, 2002

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A multi-national corporation is a commercial instrument of formidable effectiveness, admired because of its capacity to get things done, suspect because of its ability to manipulate the affairs of political states far and wide, feared because of this power and hated because of the excesses with which that power is known to have been used. It is perhaps the leading purveyor of influence and pressure on public offices the world over. All the experts agree that the multi-national wields economic and political power of the highest consequence. That it has abused this influence there can be no doubt and this is why it has been tainted with the curse of bigness.

Information Communication Technology (ICT), on the other hand, is perhaps the most powerful tool currently being used to shape and reshape the world in which we live. The international economy has journeyed through several significant developmental phases, but the current transition to an information society is undoubtedly the most profound affecting, as it does in every profound ways, all countries irrespective of size, location or technological capacity.

So what happens when an economically profitable convergence is achieved by a purveyor of ICT and a multi-national corporation? As with so many other things beautiful, yet ironic about this country, such a conjunction is unfolding before our very eyes here in Guyana.

In 1991, GT&T, a subsidiary of the telecommunication multi-national, ATN, was given a 20-year monopoly on telecommunications by the government of Guyana, which allowed GT&T to operate as the sole carrier of local, long distance and international traffic. Over the years the bulk of the revenues generated by GT&T has come from its international calling facility i.e. calls from overseas terminating in Guyana or calls originating in Guyana, but terminating somewhere outside of the country.

Subsequently, Guyanese were introduced to the Internet. The Internet, as a commercial entity, threatened the existence of the Guyana Post Office Corporation (GPOC) with the introduction of e-mail and the electronic delivery of messages. The GPOC suffered, but has re-organised to cope with the digital challenge. Quite recently other services have arrived with their attractive rates, cozy interactivity and novel interpersonal connectivity that now challenge the GT&T monopoly. One such service is the voice over Internet protocol, (VOIP) which permits a telephone call to originate on the Internet and terminate at a telephone. This service transcends borders and makes traditional international telephone calls seem somewhat archaic and excessively expensive. In Guyana several Internet cafes now offer VOIP as their premier service. This is perceived by GT&T as a major threat to its monopoly, violating its exclusive licence rights to national and international voice and data transmission and consequently its main source of revenue generation, long distance and international calling.

We may therefore understand the chagrin of GT&T and its parent company, the multi-national ATN, which in this threatening circumstance it is confronted by the Government’s determination to terminate GT&T’s exclusive licence rights. It is not surprising that they would want to bring out their big guns, flex their bulging muscles and attempt to frighten the Government and people of Guyana. What we cannot understand and ought not to tolerate is the fact that IDB has been contacted by ATN and a US$18M ICT loan agreement, almost signed, has been deferred and will continue to be deferred until such time as ATN and GT&T get their way. This is perhaps possible because Guyana is a small state that is both poor and fragmented with a political culture unduly influenced by caprice and opportunism. If therefore the current impasse can be utilised to partisan advantage then so be it and to hell with national interests. It is however important to note that such monopolies have been dismantled elsewhere in the Caribbean with quiet grace.

As we have seen multi-nationals wield considerable influence in the corridors of international political decision-making. What is more a small state that is poor and with but little international collateral can hardly hope to muster the type of human resource capacity or high pressure international lobby that are readily available to the multi-national. But even so capitulation is unacceptable. Considerations of national interests and national dignity argue strongly and persuasively against buckling under. If ever there was a time to sink sectional differences then this is one such time and it is to be hoped that our leaders can muster new levels of maturity and statesmanship to organise a united front against this most recent assault on this nation’s sovereignty and integrity.

Sometime ago a similar attempt was made and we sat back passively and allowed ourselves to be bullied and blackmailed. I suspect that in a perverse way fate is giving us a second chance to redeem ourselves as an independent nation. Will we avail ourselves of the opportunity or will we sit back absorbing this further indignity?