Crime and business Business Editorial...
Business September 3, 2004
Stabroek News
September 3, 2004

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The weekend of violence on the Lower East Coast was first and foremost a human tragedy and one that was avoidable. It boggles the mind that in such a sparsely populated country with few roads, that bandits can roam freely among villages and remain for months at large. We only hope that this weekend is not the start of another crime wave, similar to that which caused such suffering the last two years.

And it would surely be a severe blow to the business community after a year that has held out some promise. As we reported two weeks ago, record numbers of overseas Guyanese returned for their August holidays and spent their money at resorts, hotels and restaurants. Many of them had calculated that crime and political tensions had diminished and it was safe to come home.

And while sugar faces major problems with the European market in the future, the strengthening of the Euro has meant Guysuco's current exports are fetching a better price. Rice farmers are receiving more for their paddy; gold at around US$400 per ounce continues to encourage miners to invest; and even bauxite exports are fetching improved prices. The massive road projects and other infrastructure works, although publicly funded - they will eventually have to be paid for by taxpayers - are creating jobs, and that money is trickling down into the economy. The interim reports of several publicly traded companies have shown improvements. These include the banks which, while cleaning up their portfolios, are beginning to see lending growth, a key indicator of an economy's health.

You would not hear many businessmen say they were doing well - they are like farmers always complaining - but there is a sense that things are looking up.

There are therefore reasons to be cautiously optimistic and optimism is what business is all about. It's about planning despite an uncertain future, taking on debt based on projected revenue. It is a calculated gamble which says that doing something is better than standing still. And while they may not like it, businessmen can handle a depreciation in a currency, delays at the wharf and all the other vagaries.

But crime is the bogeyman that lurks. Not only is it a direct threat to a businessman's property and even his life and limb, but it drives fear into the average consumer. They put off spending, they cut down on activities, they think of emigrating.

It is easy to forget the terror bandits caused for those 18 months after the Camp St jailbreak - the kidnappings, the murders which had many Georgetown residents not coming out after dark. The night spot, Palm Court went under in part because of it. The Coldingen industrial estate was turned into a virtual ghost site of abandoned lots, a victim of direct attacks by criminals and of the pervasive pessimism of those times.

And all of this violence has been and continues to be a big expense to the private sector. The failure of the authorities over many years to protect business from criminals has created a vacuum quickly filled by private security firms. But companies which hire security are diverting resources away from productive activities, and it is the smaller businessmen, the shopkeepers and goldsmiths who are least able to afford protection and face the brunt of the violence.

We hope that this latest rash of attacks is not a precursor of worse to come, but while we hope, the police and the government must do more, now.