GEO · 2018. 11. 8. · SBA Small Business Act SME Small and Micro-enterprise SO Strategic...

GEO

GUYANA ECONOMIC OPPORTUNITIES

2001 Annual Report

Submitted by: Chemonics International, Inc.

In association with:

Management Systems International, Inc.

to United States Agency for International Development

Georgetown, Guyana

Under Contract No. 504-C-00-99-00009-00

January 2002

Project Report No. 14

GEO 2001 Annual Report, January 1, 2001 – December 31, 2001

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Table of Contents

Table of Contents i Acronyms and Abbreviations ii Introduction: 2001 Overview 1 I. Activities and Accomplishments During the Reporting Period A. IR1: Increased Capacity to Implement Economic Policy 1 B. IR2: Strengthened Private Sector Organizations 6 C. IR3: Increased Services for Micro and Small Enterprises 9 D. Activities Planned but Not Implemented 10

E. Other Activities 11 II. Activities Planned for Next Quarter (January – March 2002) 11 III. Progress Towards Development Results 15 IV. Quarterly Financial Report (October 1 – December 31, 2001) 37 V. Annual Financial Report 39 Annex: Revised SO1 Results Framework 42


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Acronyms and Abbreviations CBTPA Caribbean Basin Trade Preference Act COP Chief of Party/Project Director DG Democracy/Governance FPA Forest Products Association FTAA Free Trade Area of the Americas GEO Guyana Economic Opportunities (Project) GMA Guyana Manufacturers’ Association GNBS Guyana National Bureau of Standards GOG Government of Guyana GO-INVEST Guyana Office for Investment IPED Institute of Private Enterprise Development IR Intermediate Result IT Information Technology MFTIC Ministry of Foreign Trade and International Cooperation MOF Ministry of Finance MSI Management Systems International MTIC Ministry of Tourism, Industry and Commerce MTTI Ministry of Trade, Tourism and Industry NGO Non-Governmental Organization PMP Performance Monitoring Plan PSC Private Sector Commission PSIP Public Sector Investment Program PSO Private Sector Organization R4 Results Review and Resource Request (USAID reporting

document) SBA Small Business Act SME Small and Micro-enterprise SO Strategic Objective THAG Tourism and Hospitality Association of Guyana USAID United States Agency for International Development WTO World Trade Organization


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Introduction: 2001Overview In the GEO 2000 Annual Report, we advised that, due to national elections scheduled for mid-March, there was a possibility of delay and/or postponement of activities planned for the first quarter of 2001. At the request of the Mission, we did in fact postpone several activities due to the elections. As a result of the demonstrations, marches and violence which occurred immediately after the election, the Mission again requested that we delay activities which would involve bringing consultants to Guyana, due to the volatile political situation. However, during the first quarter and part of the second we were able to continue many activities, using resources outside of Guyana to put in place the necessary planning so that implementation could proceed quickly once the political situation returned to normal. After this slow start the Project made significant progress in the second and third quarters in putting many activities back on track. Two important awareness seminars, one on the Value Added Tax and the other on the Caribbean Basin Initiative, highlighted GEO interventions. Other key activities during the year included two study tours; development and completion of an Investor Roadmap; institutional strengthening of the Guyana National Bureau of Standards; and assistance to restructure, strengthen and revitalize Go-Invest. During the year USAID and the Government of Guyana amended the Strategic Objective Agreement under which the GEO Project and the Chemonics’ contract fall. Under the amendment, the original Intermediate Result (IR) 2 – Improved Climate for Private Investment has become the new strategic objective. In keeping with this reformulation of the results framework, activities that are aimed at improving the investment climate (former IR2) are now reported under IR 1 – Increased Capacity to Implement Economic Policy. The revised Results Framework is found in Annex. This report is divided into four sections: activities undertaken during the year, progress toward meeting performance results and targets, activities planned for the next quarter, and a financial report. Status of critical assumptions, any operating problems or outstanding issues are reported, as needed, under these four report sections. I. Activities and Accomplishments During the Reporting Period

A. Activities under IR 1: Increased Capacity to Implement Economic Policy for

Growth with Equity Activities of the now expanded IR1 focused primarily in three areas: seminars on important economic issues and policies and on technical assistance to two agencies: the Guyana National Bureau of Standards (GNBS) and the Guyana Office of Investment (Go-Invest).


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Seminars The GEO Project collaborated with the Private Sector Commission and several Government agencies to plan and stage two seminars last year on important economic issues and policies.

• Awareness Seminar on the Value Added Tax - The current cumbersome tax regime has been on the reform agenda of the private sector for many years. Businesses and private sector organizations have been lobbying for the introduction of a value added tax (VAT). Both the private sector and the Government requested GEO assistance in presenting an awareness seminar on the value added tax so that both sectors would have a better idea of what a VAT is, how it operates, and the experience of other countries in adopting a VAT system. Co-sponsored by the PSC and the Ministry of Finance, the seminar was held in June and drew over 200 participants. Drawing on international, regional and local expertise, the seminar provided an overview of the experience worldwide with the introduction of VATs, issues and problems with implementation and administration, and the impact of VAT at the level of the firm. The seminar provided the initial groundwork for possible future GEO assistance in the areas of tax reform and/or preparation for the introduction of a VAT.

• Awareness Seminar on the Caribbean Basin Initiative (CBI) - The Private Sector

Commission requested GEO assistance in presenting a seminar on CBI. The seminar, which was jointly sponsored by the PSC, Go-Invest and GEO, attracted almost 170 attendees. Two trade specialists from Washington provided an overview and history of the U.S. sponsored Caribbean Basin Initiative and explained the recent changes to the program under the Caribbean Basin Trade Preference Act of 2000. A key part of the seminar was a presentation by a local garment manufacturer who is Guyana’s only entrepreneur currently benefiting from CBI. Go-Invest is already providing follow-up assistance to interested local garment manufacturers and with GEO assistance hopes to sponsor a study tour to a leading U.S. furniture trade show.

Guyana Office of Investment The Guyana Office of Investment (Go-Invest) is the key agency within the Government for the facilitation and promotion of local and foreign investment. Last year the Export Promotion Council was merged with Go-Invest, adding export facilitation and promotion to its portfolio.

• Institutional Assessment of Go-Invest – A GEO sponsored assessment of Go-Invest was finalized and submitted to the Government in early 2001. The assessment was


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the first step in the planned development of a GEO plan of assistance to strengthen Go-Invest. A new CEO was appointed to Go-Invest in May. Based in part on the institutional assessment, the CEO requested GEO assistance in refocusing, revitalizing and strengthening the operations of Go-Invest. Initial assistance during the second and third quarters of the year included:

- Recommendations on re-organizing Go-Invest - Drafting of a new Presidential order and agency mandate - Developing a short-term action plan, covering the startup under the new

CEO (May to July) - Developing a mid-term action or work plan, detailing the activities to be

undertaken during the next 12 – 15 months. - Assistance in planning a wood product study tour to the premiere U.S.

wood products complex in High Point, North Carolina.

• Procedures Manual for Go-Invest – Previous Project assistance to Go-Invest pointed out the weakness and in some instances total lack of procedures for handling many of the necessary day-to-day operations. In addition, with the recent restructuring of the agency, many of the existing job descriptions and staff positions are no longer applicable. During 2001, GEO provided assistance to develop internal operating procedures for Go-Invest. This assistance is part of a continuing program to strengthen the internal operations of the agency, so that it can more efficiently and effectively carryout its mandate of promoting and facilitating both exports and investment. A draft has been submitted by the local consultants who assisted Go-Invest in developing the procedures manuals. After review and finalization by the staff and management of Go-Invest, the procedures will be submitted to the Go-Invest Board for approval.

• Communications Strategy – Two Chemonics communications specialist reviewed

the current status of Go-Invest communications and made recommendations on what and how to communicate more effectively with its clients and partners, but also internally. Among the recommendations were to quickly produce basic fact sheets on Guyana, on Go-Invest, and on the various sectors and to make them available to prospective investors. Other recommendations included the need for a client database and tracking system, better intra and inter-agency communications, and developing a more professional atmosphere within Go-Invest when receiving clients. Pending appointment of a new Board of Directors, the CEO has already started implementing some of the recommendations. A local PR firm has been hired to begin producing some of the recommended fact sheets and the Agency has requested GEO assistance under next year’s work plan to meet other recommendations in the communications report.

• Investor Roadmap – During 2000 GEO had provided assistance to Go-Invest in

developing an Investor Roadmap. The roadmap will serve several purposes. First,


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it identifies all the steps, regulations and requirements necessary for an investor/businessman to begin and operate a business in Guyana. Second, the results of the Roadmap will now be used to identify those bureaucratic procedures and red tape that could be modified or eliminated, thus greatly facilitating and speeding up the approval, registration and permit processes. Several recent studies have indicated that a key factor in influencing decisions to invest in a given country is the ease of doing business. The Roadmap will serve as a basis for discussions between the private business sector and the agencies concerned to identify those procedures and regulations that may be too time-consuming, costly or are redundant. Demand for the Roadmap has been high and a second printing is underway. All private sector organizations (PSOs), and the relevant national, regional and city government offices will receive copies as reference documents for their members/clients. The Roadmap includes a detailed reference manual; a series of 19 factsheets, which provide quick reference information on each agency involved in the investment process; and the Roadmap has been posted on the Go-Invest website. GEO also worked with Go-Invest staff to set up a schedule and methodology for updating the Roadmap.

• Wood Products Study Tour to High Point, North Carolina - The area around High

Point, North Carolina probably represents the most important cluster for the furniture/wood products sector in North America. Furniture, component and accessory manufacturers; tool and machine manufacturers and retailers; marketing expertise and agents; and other middlemen are all centered in a very small geographic area. As part of its assistance to Go-Invest for export promotion, the Project plans to organize an awareness tour to High Point for a group of Guyanese entrepreneurs in the wood products sector. For Go-Invest staff this will be a training program so that they will be better able to plan, organize and implement similar investment or export promotion activities in the future. For the representatives of the wood products sector the tour will serve as an introduction to the operation of and requirements for successfully competing in the world market. Preparations for the study tour were halted pending further discussions with the AID Mission. Although the halt has meant that we missed the High Point trade show in October, the Project hopes to sponsor the tour for the next trade show in April 2002.

The Guyana National Bureau of Standards The GNBS sets and enforces product, management and quality standards. These standards will prove critical for Guyanese investors, producers and exporters if they are to have access to international markets, particularly with the advent of trade agreements such as WTO and FTAA. In 2000 GEO provided assistance in undertaking an assessment of the Bureau and its operations, and in developing a planning framework for future Bureau work


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and GEO assistance. The work this past year involved following up on recommendations in the assessment on ways to strengthen the Bureau.

• Cost Accounting for the Guyana National Bureau of Standards (GNBS) – A local accounting firm worked with the staff and accounting department of the GNBS to establish a simple system which will permit the Bureau to attribute costs and revenues to individual cost centers. The introduction of the use of Quickbooks accounting software will not only facilitate eventual cost recovery for services the Bureau provides, thereby promoting sustainability of the Bureau’s work, but it should also improve the Bureau’s budgeting process.

• Communication Strategy for GNBS – Two communications specialists from

Chemonics’ Home Office, assisted the Bureau to assess its current communication strategy. Key recommendations included more focus on sector specific communications and less on advertising the Bureau in general, the need to develop a client/stakeholder database, and developing various communication channels and messages for different target groups. While here, the consultants also provided guidelines for developing factsheets, training in PowerPoint presentations, and recommendations for the metrication campaign.

• GNBS Training Plan - International standards are constantly changing and being

up-graded. In addition, new standards are and will be agreed to and adopted under trade agreements such as WTO and FTAA. The GNBS has a relatively young staff and the Bureau Director requested assistance in developing a medium term training plan to enable his staff to keep up with new standards, methodologies and best practices. A draft plan was completed late in the year and is under review by the Bureau. In addition to technical skills, the plan stressed the need for training in communication, supervisory, work management and computer skills.

Other Activities under IR1

• Investment Act – In 2000 GEO provided assistance to the Private Sector Commission and the private business community to develop a draft Investment Code, as called for during the Presidential Business Summit in 1999. Several important issues and questions were raised during consultations on the draft and participants requested additional information about certain provisions. In early 2001 GEO’s Investment Specialist prepared responses to specific questions and developed position papers on four key issues: the risks and effect of dollarization; how to deal with ‘thin’ investments; the use of tax holidays vs. tax credits; and national treatment for foreign investors.

In August the Government tabled its version of an Investment Code in Parliament. Much of the Code tabled follows the draft Investment Act that was developed with GEO assistance and submitted to the Government by the private sector. However,


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the draft Code does not appear to be legislation and thus will not have the force of law. The underlying purpose of a code is to offer comfort to potential investors that their rights are clear, transparent and enforceable under the law. The Code tabled by the Government appears to be more a statement of philosophy or intent towards investment and not enforceable guarantees. In addition, several important sections or clauses in the original GEO assisted draft were removed. Certain segments of the private business community have expressed reservations about the version tabled in Parliament.

B. Activities under IR 2: Strengthened Private Sector Organizations Capable of Influencing Public Policy

The GEO Private Sector Advocacy Advisor continued to have excellent results in working with private-sector organizations to build their capacity to advocate for change. Two new regional chambers were formed this past year, one in West Coast Berbice and the other in Mahaica. Both have requested GEO assistance. At the beginning of the Project GEO began working with four regional chambers of commerce and three of the Georgetown and product based PSOs (THAG, GMA and FPA). The response from the regional chambers in working with GEO has been much more forthcoming and the results of their advocacy initiatives has been very good. We are now working with 9 regional chambers plus their newly formed umbrella organization, the Association of Regional Chambers of Commerce (ARCC). Attempts continue to work with other PSOs, but the response continues to be limited.

• Strategic Plans – GEO provided assistance to chambers in Bartica, Mahaica, West Coast Berbice, and to ARCC to develop strategic plans, so as to better identify and articulate their goals and objectives. In addition, after having seen GEO work with the local chamber, the 800-member Essequibo Paddy Producers Association requested and received GEO assistance in developing their own strategic plan.

• Advocacy Training – Advocacy training continued on a learn-by-doing

methodology in working closely with the PSOs on their advocacy issues. Key areas included:

- Writing press releases – so that they are clear, concise and focused - Communications – included development of an ARCC monthly newsletter,

a brochure on the organization and a member directory; and a joint press conference with FPA.

- Conducting meetings with Government officials. Specific points covered included the topics:

�� to be covered (don’t overload) ��the tone of the meeting (open, non-threatening) ��offering PSO assistance – not just requesting Government assistance


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��eliciting pledges and commitments ��scripting issues and questions to avoid taking too much time and to

ensure the correct message is passed and received ��a postmortem afterwards to evaluate the meeting, and perhaps most

important ��follow-up.

• Key Advocacy Issues worked on during the year included:

- Completion of the Linden-Lethem (Brazil) road (Linden, Rupununi, Berbice)

- Government assistance to develop Beach 63 as a tourist attraction (UCCI, Berbice)

- Improved farm-to-market and back-dam (farm) roads (UCCI, Berbice) - Removal of large farm animals from roadways (UCCI) - Border-trading issues with Brazil with the Commissioner of Customs

(Rupununi) - An ARCC meeting with President Jagdeo to present the concerns and

programs of each of the (then) eight chambers. - Lobbying of GPL which resulted in a meeting with the CEO on issues of

poor service (UCCI). - Meeting with and pledge of support from Guyana’s Ambassador to Brazil

on cross border issues with Brazil (Rupununi). - Meetings by the Rupununi Chamber with Government officials and the

development of a draft plan for an industrial site in Lethem.

• Results of Advocacy Initiatives – It is rare that an advocacy campaign will achieve 100% of what is sought. Particularly for the chambers of commerce, just being invited to the discussion table is a significant impact. Although the majority of the issues of concern to the regional chambers are local, the chambers and ARCC also appear to be making a name for themselves and are having an impact on the national level. Below are some of the indications that the chambers and ARCC are having an impact.

- A member of ARCC was invited to a meeting held by the Prime Minister when the Governor of Roraima was in Georgetown to discuss the road to Brazil

- The Minister of Tourism, Industry and Commerce agreed to set up a twelve-person committee to oversee development of Beach 63. (UCCI member named to head the committee)

- The Minister of Health committed to not only decentralize the health delivery system, but also to place a member of ARCC chambers on regional health committees that the Ministry plans to set up.

- The Bartica, Rupununi and West Demerara chambers now all have representatives on various regional government boards.

- GOG announced legislation abolishing the 2% export fee on logs (FPA)


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- Government for the first time publicly condemned chainsaw logging (Bartica Chamber).

- The Linden chamber was asked by the Region 10 Administration to submit its views and priorities for next year’s capital budget.

- The Minister of Foreign Trade asked ARCC to nominate a representative to serve on the Government’s Trade Advisory Committee.

• GMA Proposal for the Reform of the Consumption Tax – The GEO Project

provided the assistance of a local tax expert to help the Guyana Manufacturers’ Association develop a position paper on the reform of the consumption tax. The position paper is part of an advocacy campaign by the Guyana Manufacturing Association to reduce the consumption tax on purchased inputs that they believe make their products uncompetitive with similar imported goods. The paper was submitted to the Minister of Finance.

• Study Tour for the Regional Chambers of Commerce – Many of the regional

chambers of commerce were created within the last year or two. All are institutionally weak and provide relatively few services to their members. Unfortunately, in Guyana the regional chambers have few models of a well-functioning private-sector organization (PSO) that are able to demonstrate how a PSO should operate, the types of services that could be provided, how to raise funds, and the impact of sound advocacy programs. Nonetheless, the regional chambers of commerce have proven to be the most dynamic PSOs with which GEO is working. The GEO Project sponsored a study tour for eight representatives of the regional chambers of commerce to visit chambers and other business organizations and government agencies in Trinidad, Grenada, and Barbados. Among the issues covered were membership activities, communications, relationships with government, advocacy techniques, and chamber involvement in the community. The study tour offered the opportunity for the relatively new but growing Guyanese chambers to meet with their counterparts in older and more experienced organizations to discuss common problems, learn what has worked and not worked elsewhere, and begin to get an idea of how successful PSOs operate. Each participant gave a presentation to his own chamber upon the groups return. The tour generated such an interest, that two chamber members paid all their own expenses so that they could participate.

• Leveraging of Resources for the GMA. GEO met with representatives of the GMA

and the CIDA sponsored CPEC Project concerning the GMA strategic plan. CPEC is interested in assisting the GMA in implementing the plan, which was developed with GEO assistance. Given the planned gradual reduction in the role of the GEO Private Sector Advisor in working with PSOs, we view this leveraging of additional resources to assist the GMA as a very good solution to keeping the GMA plan going. The GEO Advisor worked with the GMA executive for a final review and revision of the plan.


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• Tour of Denmor Garments. The GEO Advisor also arranged for 30 chamber

members to tour Denmor Garments Manufacturers. The purpose was to demonstrate and re-enforce the belief that economic development on a first class basis is possible in Guyana. Other tours are planned in the future to instill the idea that modern investment possibilities exist and are working in Guyana.

C. Activities under IR 3: Increased Services Available to Support Micro and

Small Enterprises

• IPED Institutional Strengthening – GEO sponsored two training workshops for the credit officers and accounting staff of IPED. The first was on cash-flow analysis and the second on identifying and managing loan delinquency. Each training course was presented to two groups of participants, so that credit officers from regional offices could attend. Training in these two topics had been recommended in an earlier GEO-sponsored assessment of IPED. The successful completion of the training program was also a condition for assistance from the Inter-American Development Bank (IDB) for a planned new MIS. The improved MIS was also a recommendation, adopted by the IDB, from the earlier assessment conducted by GEO.

• IPED Study Tour – IPED is almost the sole source of small- and micro-lending in

Guyana. As with the regional chambers described earlier, there is no opportunity within the country for IPED staff and management to compare experiences or share best practices and lessons learned with other organizations. The Project sponsored a study tour for the General Manager, a member of the IPED Board of Directors, and five credit officers to visit micro-finance institutions (MFI) in Bolivia. A major focus was on lending techniques. Participants met with counterparts at the BancoSol, FundaPro and Fomento a Iniciativas Economicas. The tour is one of a series of study tours, each with a different theme or objective, planned with a view to giving IPED much-needed interaction with other MFIs, to discuss common problems, exchange experiences, and learn new methods and best practices.

• IPED Institutional Strengthening: Strategic Planning – The GEO Micro-finance

Specialist met with the management and the Board of Directors of IPED to discuss the planning process. IPED has widened the services it provides, by adding a training institute. It is also currently contemplating a conversion to, or at least the addition, of development bank services. Prior to making a decision about adding development bank services, it was recommended that IPED undertake a planning exercise that would provide much needed information and answer some questions about such a conversion. Specific recommendations were that GEO assist with the strategic planning, market analysis, resource analysis, financial analysis and projections, and transformation support.


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• Business Financing and Training Opportunities – A request that came out of last

years Stakeholders’ Conference was based on the lack of availability of information on training resources and programs and on sources of business financing. The work of a local consultant in producing these two informational bulletins was held up during the first half of the year because of the elections. Work has continued but has been slow. It is hoped that both will be available early next year.

• Formulation of a Small Business Development Program – Late in the year GEO

developed an action plan for providing assistance to small and micro-businesses. After lengthy discussions with the various public and private sector organizations involved in the SME sector and with individual small businesses, it became evident that a key lack in SME support services is in making market linkages. Several organizations have or are providing business support services and others are providing technical advice. The problem has been, however, that improving business techniques and technical operations has not resulted in many instances of business growth. The GEO Project will seek to fill this void by assisting in making the necessary linkages between producers and buyers.

D. Activities Planned but Not Implemented After at least a year of inaction from the Project Cycle Division in the Ministry of Finance, it appears as if there is no longer a need for GEO to complete two pending activities:

• PCD Management Information System (MIS) – The GEO Information Technology Specialist attempted to meet with the Head and staff of the Project Cycle Division to identify changes in the draft MIS that was submitted to the Division over a year ago. The GEO Project Director finally spoke to the PCD Head and was informed that the Ministry was now pursuing other means to install an MIS.

• Project Cycle Procedures Manual – Although the draft procedures manual was

given to the PCD over a year ago, we have not had a response to the draft. We now assume that GEO assistance is no longer needed.

• WTO Action Plan - No action on WTO was possible during the January – April

period due to the lead up to the elections and the post-election disturbances. In April, the newly elected President announced significant changes in the Cabinet which affected the Project’s ability to carryout some planned activities. The Ministry of Trade, Tourism and Industry, with which GEO had been trying to work on WTO, no longer has the trade portfolio. A new Ministry of Foreign Trade and International Cooperation has been created. The Project has met with the new Ministry, but no specific agreement has been reached on assistance on WTO/FTAA issues.


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E. Other Activities During the Year

• Reformulation of the Private Sector Advisor’s Scope of Work - The GEO Private Sector Specialist has provided excellent assistance during the first two years of the Project as a long-term advisor. The PSOs which have shown interest and have worked closely with the Advisor have made tremendous progress in planning and implementing advocacy and lobbying campaigns on a whole host of issues. We believe it is time to begin to reduce this assistance so that the methods they have learned over the first two years of the progress will be sustainable. At the same time the Project will make use of the Advisor’s extensive experience in working on investment/export promotion. To this end, the Advisor will begin to spend an increasing amount of his time in providing technical assistance on export/investment promotion and less time on advocacy training for the PSOs. The Advisor has developed an ‘exit strategy’ for focusing on areas where PSO advocacy skills remain weak, so as to put in place solutions which will increase the sustainability of the advocacy work prior to the end of the Project.

II. Activities Planned for Next Quarter (January – March 2002) A. IR 1 Implementation of Economic Policy Go-Invest:

• Client Satisfaction Survey – An initial survey was conducted with clients who used Go-Invest services in 1999. The results of that survey were used extensively in later GEO assistance in recommending ways and means of improving Go-Invest performance. The 1999 survey was also used as the baseline for measuring the impact of GEO assistance to Go-Invest. The updated survey will serve to measure progress in improving Go-Invest service and identify other areas in need of improvement.

• Market Information Training - As mentioned previously, Go-Invest now has the

added task of export facilitation and promotion. To date, Go-Invest has not been involved in providing export data and information. The training will be primarily internet based and will teach staff how to find, analyze and report product specific market information for foreign markets. The New Guyana Marketing Board has also been invited to send members of its staff to the training program. The NGMC focuses on non-traditional agricultural exports.

• Annual Workplan – Many Government agencies do not prepare detailed annual

workplans or set performance targets. GEO will provide assistance to Go-Invest to review progress in the implementation of its mid-term action plan and help develop an annual workplan. Milestones, indicators and performance targets will be developed to help monitor implementation.


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• Team Building Exercise – Go-Invest has undergone significant changes over the

past few months and more are planned over the coming year. GEO will provide the services of a facilitator to assist Go-Invest in preparing for and implementing a team building retreat intended to promote a participatory and team approach to Agency planning and implementation.

• Information Technology – Several observations and recommendations in the

Communication Strategy and the assessment of Go-Invest dealt with the information technology needs. GEO will assist with the following IT activities during the next quarter:

- IT network assessment - Client tracking/monitoring database - Business enterprise database - Update/reformulate the Go-Invest website

• Roadmap Follow-up – electronic forms – The Investor Roadmap has been

incorporated into the Go-Invest website for easy access for both local and domestic investors. Unfortunately, many of the required application and permit forms are scanned copies in PDF format, not easily useable and may not be accepted by the agencies. GEO will assist in creating electronic versions of agency forms which can readily be printed out either from the website or from computer disks. The electronic versions will be made available to all participating agencies and organizations that use the Roadmap as a client/member reference document.

• Go-Invest Training Plan – GEO will provide assistance in developing a staff

training plan. Guyana National Bureau of Standards

• Information Technology – As was the case with Go-Invest, there were several recommendations in the GNBS Communication Strategy that dealt with the information technology needs of the Bureau. GEO will assist with the following IT activities during the next quarter:

- IT network assessment - Client tracking/monitoring database - Business enterprise database

• Team Building Exercise – GEO will provide the services of a facilitator to assist the

Bureau in preparing for and implementing a team building retreat. The exercise is intended to promote a more participatory and team approach to Agency activities.


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Other Activities Planned Under IR1:

• Review of the Tax Regime – Depending on the outcome of discussions between the Mission and the Government, the Project will begin planning a review of the tax regime, that was requested by both the private and public sectors.

• Assessment of the Ministry of Foreign Trade - Although not in the Year 3 Work

Plan as yet, the Minister of Foreign Trade and International Cooperation has requested GEO assistance in developing a staff training program and in staging a series of seminars on key trade policy issues affecting Guyana. If approved by the Mission, we will undertake a training needs assessment of the Ministry and identify topics for the seminar series.

B. IR3 Private Sector Advocacy – PSO Strengthening

• Advocacy Training/Assistance – Although GEO assistance to the regional chambers and ARCC will be greatly reduced, the Project will continue to assist PSOs in formulating and implementing advocacy campaigns when requested.

• High Point Wood Products Tour – It is hoped that agreement will be reached for

the implementation of this activity, scheduled for April. Targeted particularly at the Forest Products Association and to a lesser extent Go-Invest, the purpose is to make representatives of the forest products sector aware of the requirements for entering the export market to North America. Follow-up will look at developing an action plan with FPA to provide assistance to its members in meeting these standards.

• Eco-Tourism Awareness Tour – As with the wood products tour, the purpose will

be to make the tourism sector aware of the quality standards necessary to attract tourists to Guyana. The tour is also expected to be a starting point for a GEO program of assistance in this important sector. GEO will begin planning the activity during the quarter, working with the Ministry of Tourism, Industry and Commerce and THAG.

C. IR3 Small and Micro-enterprises

• SME Product Identification Survey - With the assistance of a local consultant, GEO will begin to compile a list of products currently produced by the SME sector in Guyana and identify those which have potential for growth. This will be the first phase in implementing the GEO SME Action Plan.


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• North American Market Survey – Also part of the SME Action Plan, the market surveys will identify products having the most potential for niche markets in New York City and Toronto, targeting the large Guyanese expatriate communities. Depending on the results of these initial market surveys and time permitting other market could be targeted toward the end of the quarter.

• Establish SME Partnership Network – Under the GEO SME development activity,

the Project will work with and through a group of organizations, with the Project playing a coordinating role. Initial organizations will include the GMA, IPED, Go-Invest and ARCC. Others will be involved, particularly technical ministries and product based PSOs as the need arises. During the quarter the Project will sponsor a workshop to work with the key partners to establish common purpose, set targets, and identify the approach to implementation.

• Identification of Potential Entrepreneurs – The SME Action program will focus on

working directly with entrepreneurs to assist them to meet the technical, business and marketing requirements of entering markets and growing their businesses. During the next quarter we will begin the process of identifying potential SME partners.

• IPED Strategic Planning Exercise – The Project will begin the process of working

with IPED to undertake a strategic planning exercise, so that the Institute will have a better idea of where it plans to go in the future, how it will get there, and the resources (both financial and human) that will be needed to achieve their objectives.


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III. Progress Towards Development Results A. Overview The response and participation of most GEO partners remain strong. For the 2001 Annual Report we provide the status on the following indicators:

• Client satisfaction with services provided by Go-Invest • Average time to process investment applications • Improved application of commercial/investment regulations and policies • Information technology tools are used • Progress in meeting WTO commitments • Membership in private sector organizations • Number of advocacy campaigns undertaken by PSOs • Private sector influence on public policies • Number of loans disbursed by IPED • Number of individuals receiving loans at IPED • Number of clients assisted with non-financial services

We also provide an update on the status of the various recommendations made in previous GEO assessments, reports and activities conducted with Project partners over the first half of the Project.


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B. SO Level Performance Results

STRATEGIC OBJECTIVE 1: Improved Climate for Private Investment APPROVED: 9/4/01 Country/Organization: Guyana

RESULT NAME: SO level - Improved Climate for Private Investment

INDICATOR: Improved Satisfaction of Potential Investors

UNIT OF MEASURE: Percent of potential investors reporting expectations met or exceeded.

YEAR PLANNED ACTUAL

1999 (B) 43%

SOURCE: GO-Invest Survey 2000 - -

2001 50% 94%

INDICATOR DESCRIPTION: Go-Invest will conduct a survey of its registered investors to determine the level of potential investors reporting met or exceeded expectations.

2002

60%

2003 75%

Ninety-four percent of respondents reported that the overall quality of Go-Invest services was satisfactory or better. The result more than doubled the answers to the same question asked of clients in 1999. There are several explanations for this, but we believe the key factor is a changed attitude and a new client orientation at Go-Invest as a result of the appointment of a new CEO in May 2001. From the beginning the CEO used the 1999 client satisfaction survey and the 2000-2001 assessment and recommendations to guide management of Go-Invest activities. We believe there is also a ‘honeymoon’ effect from a change in management, in that clients are more willing to give the new administration at Go-Invest to prove itself. Finally, previously the reputation of Go-Invest was so low, as evidenced by the 1999 survey, that any improvement might result in the client expressing satisfaction. It should be noted that even though the scores for most questions on the quality of Go-Invest services were higher this year, clients still identified the same areas as being in need of improvement.


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INDICATOR: Average time to process investment applications.

UNIT OF MEASURE: Number of months

YEAR PLANNED ACTUAL

1999 (B) Duty Free 7

Land 19

Discretionary 10

SOURCE: Go-Invest 2000 — —

2001 Duty Free 5

Land 16

Discretionary 8

Duty Free 2

Land 7

Discretionary 4

2002 Duty Free 3

Land 12

Discretionary 6

INDICATOR DESCRIPTION: Average time, in months, between the date of application to the date of decision. The data will be disaggregated among the following categories because each category implies significantly different processing times:

Duty Free Concessions

Land for Investment

Discretionary Concessions

2003 Duty Free 1

Land 8

Discretionary 3

COMMENTS: This indicator is important for GEO and Go-Invest to track because one of the primary functions of Go-Invest is to speed up the process for investors to obtain final decisions. If this process is improved, it will be indicative of a better investment climate.

The time needed to process the various applications for duty free concessions, land and discretionary concessions also registered a very significant drop from the baseline in 1999 and were also well below the targets for this year. Again, there is a much more positive attitude at Go-Invest and staff are taking on a much more proactive role in assisting investors with their various applications. We have also seen that the Investor Roadmap has been a benefit, not only to potential investors, but to Go-Invest staff members themselves. Many have commented that they did not realize all the steps required and the order of various permits that an investor is required to follow. A note of caution, however, in


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interpreting the results above. The variation in responses is quite large, especially for the time required to duty free concessions, obtain land and received discretionary concessions.



INDICATOR: Improved application of commercial/investment regulations and policies.

UNIT OF MEASURE: Scale. Steps taken toward the implementation of an investment code.

YEAR PLANNED ACTUAL

1999 (B) — —

SOURCE: GEO Project 2000 Steps 1, 2, 3, 4 Steps 1, 2

2001 Step 5 Steps 2, 3

2002 Steps 6, 7 INDICATOR DESCRIPTION:

(Stage I) Investment Code is in place. Steps: 1- Code is developed. 2- Draft Code is Vetted. 3- Code is revised. 4- Code is finalized. (Stage II) Investment strategy is implemented and enforced. Steps: 5- Applicable laws are revised (these will

be defined). 6- Key laws are passed by Parliament

(these laws must be refined). 7- Information regarding laws is

disseminated (knowledge and awareness increased).

8- Laws are enforced (laws are generally applied through court cases or other mechanisms.

2003 Step 8

COMMENTS: Applicable laws will be defined as they become apparent. In addition, elements of enforcement will also likely require further definition. Progress of this indicator will not necessarily be linear; hence it depends heavily on SO team/RP team analysis. Note, while this indicator is subject to a number of external influences, it is a critical factor in the achievement of the overall objective. In addition, GEO (as well as its predecessor project) has played an important role in helping to move this forward.


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After a very effective start to GEO assistance in developing a draft investment act over a year ago, we are disappointed that the process did not progress further over the past year. A series of private sector consultations on the draft act were completed in late 2000. There were several issues raised about certain sections of the draft and GEO provided assistance in developing position papers on these issues. In July of 2001 the government submitted a modified version of the draft act to Parliament. Unfortunately, many important provisions were left out and the Government’s version will apparently not be enacted as law, but is more a statement of philosophy. Since the tabling in Parliament there has been lobbying by various members of the private sector to revisit the Government’s version. C. IR1 Performance Results Information Technology in the Project Cycle Division


RESULT NAME: IR1 Increased Capacity to Implement Economic Policy for Growth with Equity

INDICATOR: Information technology tools are utilized.

UNIT OF MEASURE: Scale, see below.

YEAR PLANNED ACTUAL

1999 (B) — —

SOURCE: TBD 2000 Steps 1 1

2001 Step 2 & 3 —

2002 Step 4 INDICATOR DESCRIPTION: 1. MIS system is developed 2. Users are trained 3. MIS is utilized by the Project

Cycle Unit. 4. Examples of increased

efficiency are evident as a result of the MIS.

2003 Step 4

COMMENTS: This IR will be reevaluated after one year to determine whether it should be dropped. Depending on the status of this IR, GEO could, in the future, examine whether it would be useful to track the percentage of projects with a capital budget to expenditure ratio of 1. Currently, the figure is calculated on a government wide scale and is estimated at 98%, however, this is largely due to the fact that the government reallocates funding between offices in the latter part of the budget cycle. The MIS would allow the Project Cycle Unit to track this on an office by office basis which would provide a much more accurate picture of planning capacity.


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We noted in the 2000 annual report that by mid-year 2000 drafts of both the MIS and of a procedures manual had been submitted to the Project Cycle Division in the Ministry of Finance for comment, approval or changes. We again noted in the Year 2 Work Plan that nothing had been heard from the Division, despite repeated requests. Finally in a meeting between the Head of the Division and the GEO COP during the second quarter of 2001, the Division Head indicated that the Division would no longer need the assistance of GEO to complete the MIS and that an IDB project would complete the work. The Project did not receive a response to a letter from the COP to the Division Head requesting a written confirmation of the canceling of the two pending activities. We recommend that the Project and the Mission revisit this indicator, since it is clear that the Project Cycle Division is no longer interest in GEO assistance. An alternative indicator could be based on current GEO work on IT issues with agencies such as the GNBS and Go-Invest.


RESULT NAME: SO Level - Improved Climate for Private Investment

INDICATOR: Percentage of WTO Obligations Met

UNIT OF MEASURE: Percentage YEAR PLANNED ACTUAL

1999 (B) — —

SOURCE: GEO Study 2000 TBD —

2001 TBD —

2002 TBD INDICATOR DESCRIPTION: GEO is planning a study in which a consultant will prepare a matrix of policies which must be met to comply with WTO obligations. The study will provide a current status (the baseline) and appropriate targets for the next four years.

2003 TBD

COMMENTS: Baseline and targets will be developed as a part of an upcoming study.

After the March 2001 national elections there was a change of Ministers and portfolios responsible for trade issues. The former Ministry of Trade, Tourism and Industry no longer has the portfolio for trade, which was transferred to a new ministry, the Ministry of Foreign Trade and International Cooperation. The GEO COP, along with the Mission Director and the CTO for the GEO Project, met with the new Minister of Foreign Trade.


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He indicated that he had other resources and would not need GEO assistance in meeting WTO/FTAA obligations and commitments. Thus, there has been no movement in meeting targets set for WTO, since the initial matrix was drafted of areas where Guyana has not yet met existing obligations. GEO will continue to work with the Mission to see if there are ways that the Project can assist other ministries (such as the Ministry of Agriculture for phytosanitary requirements) to meet sectoral WTO/FTAA requirements. D. IR2 Performance Results One indicator used to measure performance is the increase in membership in PSOs with which the Project works. There was some confusion in the numbers reported in the 2001 Semi-Annual Report, as some chambers of commerce reported all members, whether their dues were up to date or not. Others reported only those who had paid their dues. This creates a reporting problem, since all chambers do not have strict rules as to whether a member looses his membership if he has not paid. The PSOs also have different rules as to the period in which a member is still considered a member after the due date for paying annual membership fees, as well as the date when dues are paid. To avoid this confusion in the future, we will report both figures, that is the number of businesses or individuals that the PSO itself still considers to be members as well as the number of members whose dues are up to date. The breakdown between the two categories of membership numbers as at December 31, 2001is presented below.

Private-Sector Organization

Total Membership Financial Membership

Non-Financial Membership

Linden 36 26 10 Essequibo 45 45 0 Berbice 44 44 0 Upper Corentyne 78 48 30 THAG 65 45 20 GMA 89 89 0 FPA 61 18 41 Lethem 55 55 0 Bartica 18 0 18 West Berbice 16 16 0 West Demerara 60 50 10 Mahaica 14 0 14

Total 581 436 143


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Private Sector Influences Public Policies


RESULT NAME: IR2: Strengthened Capacity of the Private Sector to Influence Public Policy

INDICATOR: Membership in Local Chambers of Commerce and private sector associations.

UNIT OF MEASURE: Numbers of firms who are members of Local Chambers of Commerce and business associations.

YEAR PLANNED ACTUAL

1999 (B) — Linden 25 Essequibo 55 Berbice 32 Upper Corentyne 60 THAG 54 GMA 125 FPA 62

TOTAL 413

2000 425 Linden 26 Essequibo 37 Berbice 39 Upper Corentyne 75 THAG 65 GMA 90 FPA 62 Lethem 36 Bartica 18

TOTAL 448

2001 440 Linden 36 Essequibo 45 Berbice 44 Upper Corentyne 78 THAG 65 GMA 89 FPA 61 Lethem 55 Bartica 18 West Berbice 16 West Demerara 60 Mahaica 14 TOTAL 581

2002 462

INDICATOR DESCRIPTION: This covers local chambers and business associations which are assisted by GEO. This does not cover the Private Sector Commission because the overall membership numbers will not provide an accurate picture of institutional strength ( there is a small and finite number of potential members; for example, corporate membership is expected to increase by 100% in 2000), therefore its inclusion would distort the numbers. (THAG- Tourism and Hotel Association of Guyana, GMA- Guyana Manufacturing Association, FPA- Forest Products Association)

2003 485

COMMENTS: This can function as a proxy indicator because GEO will assist in strengthening PSOs. The key concept is that if PSOs can demonstrate tangible benefits, membership will likely expand. For example, this could be improved analysis that leads to a greater influence on policy issues. Another example is the provision of services, such as internet access, access to information, advertising, etc. In turn, increased membership is likely to increase revenues, which will lead to greater sustainability over time. GEO will monitor the linkages between increasing capacity and increasing membership to analyze whether there are other factors influencing membership.


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The figures reported in the two tables above report on membership of all the PSOs with which the Project worked last year. To get a better appreciation of membership increases one needs to look at the same PSOs from one year to the next. The nine PSOs with which we worked last year had 448 members at the end of 2000. Those same nine registered 491 members for 2001, registering an overall increase of almost 10% over last year, and surpassing the 2001 target of 440 members.



INDICATOR: Number of advocacy campaigns undertaken by private sector organizations.

UNIT OF MEASURE: Number of campaigns.

YEAR PLANNED ACTUAL

1999 (B) 0

SOURCE: Private sector organizations, such as the private sector commission, local chambers of commerce, and business associations which receive assistance from USAID.

2000 7 15

2001 10 14

2002 15 INDICATOR DESCRIPTION: A campaign entails an organized and coordinated effort to influence public policy around one or more defined issues of importance to the private sector. A campaign incorporates more than one approach to influence policy, such as letter writing, lobbying, and/or providing interviews to the media on an issue(s).

2003 15

COMMENTS: PSOs are continually involved in trying to influence public policy. Currently most of these efforts are limited to a single activity. In most instances these consist of a meeting with a Minister, the President or other high Government officials. We do not consider these activities as advocacy campaigns as defined above. Therefore, the baseline is no campaigns.

Following are the advocacy campaigns that PSOs launched during 2001.

• ARCC - Seeking associate status for Guyana in MERCOSUR • ARCC - Creation of donor advisory committees • ARCC - Creation of free zones • ARCC - Amerindian outreach


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• ARCC - Passage of copyright and anti-piracy legislation • Berbice Chamber - Increased/better investment incentives • Berbice Chamber - Development of aquaculture • Essequibo Chamber - Enforcement on the ban on bush rum • Rupununi Chambers - Membership on regional oversight committees • Rupununi Chamber - Township status for Lethem • Upper Corentyne Chamber - Rehabilitation of the Moleson-Orealla Road • Upper Corentyne Chamber - Resolution of the Surinam border conflict • Bartica Chamber - Tourism plan for Bartica • Bartica Chamber - Control of illegal logging



INDICATOR: Private Sector Influences public policies

UNIT OF MEASURE: Number of public policies.

YEAR PLANNED ACTUAL

1999 — 0 SOURCE: Private Sector Organizations (PSOs) including the Private Sector Commission (PSC), Local Chambers of Commerce, and Business Associations.

2000 Local 4 Nat’l 2

7 3


5 3


INDICATOR DESCRIPTION: This indicator captures the number of policies, both at the local and national level which reflect a PSO position or point of view as a result of lobbying efforts or campaigns on the part of one or more PSOs.

(Nat’l = national)


COMMENTS: While this indicator is not a direct measure of the SO per se, it is used because if the private sector has more influence on public policy, they will have a better business climate to provide more economic opportunities for the poor. The other reason for this indicator is that it tracks whether capacity building of the private sector is having an impact on public policy (which is a culmination of underlying activities). At the national level, policies where PSOs will likely have an impact are; banking policy, WTO related policies, the investment code, and policy related to the function and organization of Go-Invest. At the local level, examples of policy issues which affect PSOs include the establishment of industrial zones, local crime, participation in infrastructure rehabilitation decisions, membership on government boards, etc..


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Most campaigns initiated in earlier years continue as well. In 2002 and 2003, as campaigns launched in 2000 and 2001 are continued, it is likely that the total number of new advocacy activities will decrease due to the need of Chambers to focus on conducting effectively a set number of campaigns. Following are the areas where private-sector organizations have had a policy impact during 2001: National issues:

• Industrial sites/free zones - a model for the development of industrial sites/free zones was shared by ARCC with several Government ministries. The MTIC will review the plan as a possible model for future industrial sites. The Ministry has also agreed to help develop an industrial site in Lethem.

• Surinam border issues - In the Chambers' meeting with the President during the first half of 2001, the Upper Corentyne Chamber raised its concern over the border issue with Surinam. The President has invited the Chamber president to be part of a Guyanese delegation that will visit Surinam in the future.

• Illegal logging - The Berbice and Linden Chambers have been lobbying for control of illegal logging. The Government is taking the issue seriously, with an arrest in 2001 of an illegal logger near Linden.

Local issues:

• Tourism plan for Bartica - After lobbying and an invitation to visit Bartica, the Minister of Tourism, Industry and Commerce has offered the services of his Ministry in helping Bartica develop a concrete tourism plan.

• Upgrading of the Moleson-Orealla Road - After two years of having shown no interest, lobbying by the Upper Corentyne Chamber has been effective, as the Ministry of Public Works has indicated it will commence work on improving the road.

• Aquaculture development in Berbice - After efforts by the Berbice Chamber to promote aquaculture, the Government of Guyana has brought an Israeli investor to the region to investigate sites for a possible aquaculture project.

• Membership on oversight committees – Having representation on local and regional government boards is an issue shared by all the regional chambers. It was previously reported that the Rupununi Chamber had lobbied for and now has regular meetings with the regional government. The Rupununi Chamber now also sits on two standing committees, one for protected areas and the other for tourism development. The Bartica Chamber also successfully lobbied for membership on Regional Subcommittees on Environment, Health and Sanitation and a Chamber member will also sit on the Regatta Subcommittee of the Regional Democratic Council. The West Demerara Chamber has representation on 5 regional boards.


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• Township status for Lethem - Again after an initial series of "no's" from various Government officials on the request for township status for Lethem, lobbying by the Rupunui Chamber appears to have been successful as the President recently announced that Lethem would be given township status.


RESULT NAME: IR3: Increased Financial and Non-Financial Services Available to Support Small and Micro-enterprises

INDICATOR: Numbers of loans disbursed.

UNIT OF MEASURE: Number of loans.

YEAR PLANNED

ACTUAL

(M) (F) (T)

1999 (B) — 837 3042 3879

SOURCE: IPED 2000 (T) 4460 1230 2852 4082

2001 (T) 4900 164 2458 3562

2002 (T) 5400 INDICATOR DESCRIPTION: Disaggregated by region and gender (M=male, F=female, T=total) 2003 (T) 6000

IPED did not meet either target for last year. Several factors have probably influenced this. First, the period from February through May Guyana was a period of extreme uncertainty in the run up to national elections held in March, and especially in the disturbances that followed. Many businesses suffered during this period. This is particularly true for many of the street vendors and microenterprises that make up a good proportion of IPED’s clientele. A second factor is the downturn in the economy. Several important businesses went into receivership during the year, resulting in layoffs, business closures and increased unemployment. Again, IPED’s clients would probably be among the first to feel the downturn in the economy as the income workers incomes fell. Finally, the events of September 11th in the U.S. have once again shown the impact of the growing globalization of the economy. Though the impact would not be directly felt, IPED’s clients would again be affected by the further slowing of the economy brought on by the events of September 11th. In addition, there was a significant fall in remittances from the U.S. beginning in mid-September.


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INDICATOR: Numbers of individuals receiving loans.

UNIT OF MEASURE: Numbers of individuals.

YEAR PLANNED

(M) (F) (T)

ACTUAL

(M) (F) (T)

1999 (B) — 504 1676 2180

SOURCE: IPED 2000 2400 533 1893 2426

2001 2640 780 1820 2600

2002 2900 INDICATOR DESCRIPTION: Disaggregated by region and gender. This indicator is used in combination with numbers of loans disbursed to examine the diversity of clients receiving loans (i.e. one person may receive more than one loan).

2003 3200

COMMENTS: Historically, 75% of loan recipients have been women.

To date, we have not identified targets with the Mission for measuring the impact of GEO assistance in the provision of non-financial services to SMEs. As reported earlier in this report, we have developed an SME strategy which will target market linkages and provide non-financial (and perhaps financial) services to SMEs in preparing them to enter new or expand existing markets. As the program is set up, we will work with the Mission to set targets for this indictor.


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INDICATOR: Number of clients assisted.

UNIT OF MEASURE: Number of clients (individuals).

YEAR PLANNED ACTUAL

1999 (B) — —

SOURCE: The Beacon Foundation, Red Thread, and other partners yet to be defined.

2000 TBD —

2001 TBD —

2002 TBD INDICATOR DESCRIPTION: This incorporates the number of clients provided with services such as advice on:

- Product Diversification

- Production Processes

- Quality Control

- Costings and cost control

- Business Planning

- Administration

- Record Keeping

- Marketing

Disaggregated by region and gender. New product areas will be defined by the microenterprise consultant.

2003 TBD

COMMENTS: Baselines and targets will be defined once partners have been identified and first reports are provided.

As part of our monitoring of Project performance and impact it is important to know whether GEO partners are following the advice and recommendations we make. In the table/matrix on the following pages, we provide an update on the status of the various recommendations made to GEO partners during the first half of the Project.


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Matrix of Results of GEO Activities

GEO Activity Recommendations Result Institute of Private Enterprise Development (IPED) Rapid Appraisal - Micro-credit and Micro-enterprise Development

Strengthen micro-lending operations of IPED. Various activities carried out (see below).

Action Plan 2000 Conduct institutional assessment. Assessment carried out, providing various recommendations (see below). Improve credit methodologies. Received assistance in improved credit methodologies and training in cash-

flow analysis. IPED has incorporated introduced practices into new financial management system.

Improve financial management systems. Used assessment by GEO to secure IDB/MIF funding to finance development of new financial management system and related manual. Most credit-related training provided by GEO, in addition to practices learned during Bolivia study tour, have been incorporated into the new system. System needs to be reviewed, and staff need to be trained, for which IPED would like GEO assistance.

Improve management information system. Used assessment to secure IDB/MIF funding to finance installation of new MIS. System needs to be reviewed to ensure that it is integrated with new financial management system, and staff need to be trained in the system, for which IPED would like GEO assistance.

Institutional Assessment

Improve human resource management. Various incentive compensation schemes are being evaluated, based upon models provided during Bolivia study tour.

General guidelines on credit analysis and interest-rate calculations.

IPED has incorporated many practices into new financial management system.

Strengthening Credit Methodologies

Develop more detailed financial manuals. IPED has developed a new financial management system. Cash Flow Analysis Training

General guidelines and training to credit officers in cash-flow analysis.

Credit officers currently using practices provided via training. IPED has incorporated practices into new financial management system.

Bolivia Study Tour General exposure in lending, incentive schemes, and organizational development.

IPED has incorporated many practices into new financial management system. Also, is evaluating the adoption of incentive schemes for credit officers.

Strategic-planning Guidance

General recommendations on importance of strategic-planning prior to transformation into development bank.

IPED intends to develop strategic plan as a precursor to the transformation process, and would like to have GEO assistance. Has met with GEO consultant Osbourne Nurse on basics of strategic planning.


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GEO Activity Recommendations Result

Private Sector Commission (PSC) Funding Proposal to Support Institutional Strengthening of the PSC

Develop policy unit. Study used by PSC to receive funding from CIDA and DFID to fund policy center, with GEO providing short term technical assistance. Policy center currently being staffed. CIDA technical advisor due in February.

Preliminary Framework for an Investment Strategy

General guidance on relevance of investment strategy. Investment code drafted that included several points highlighted in framework. No other action taken.

Web Site Content intended for posting on Internet. Web site was posted to Internet in 2001. At present, content needs to be updated.

Draft Investment Code Law intended to be presented to Government for passage into law.

Initial consultations with public and private sector led to creation of position papers addressing key concerns. Investment code presented to Parliament in 2001 as policy statement, not law. Currently, many individuals voicing the need to re-introduce full law to Parliament.

WTO/FTAA Seminar Seminar series on important economic issues - informational.

WTO compliance study partially completed, then abandoned by Government.

VAT Seminar Seminar series on important economic issues - informational

Government evaluating possible introduction of VAT. PSC lobbying for tax reform.

CBI Seminar Seminar series on important economic issues - informational

GO-INVEST introduced in targeting U.S. trade shows to allow local firms to benefit from CBI.

Competition Policy Seminar

Seminar series on important economic issues - informational

No action taken.

Guyana Manufacturers Association (GMA) Concept Paper for a Private-Sector Development Bank

The paper offered the GMA various options to choose from, from totally Government to totally private sector, with various permutations in between.

The GMA opted for the option of identifying an existing development bank to come to Guyana. GMA contacted the Development Finance Limited (DFL). DFL initiated discussions with Government in 2000 to launch development bank. Discussions at present concerning concessions. DFL is hiring staff and procuring office space currently, with intentions to begin operations in 2002.

Strategic Plan and Action Plan

Numerous goals concerning enhanced advocacy, institutional strengthening, and improved member services.

Lobbied and received commitment from Government to work to create private-sector-owned development bank. Agreement signed with CIDA-funded CPEC program to help implement strategic plan. Implementation ongoing.

Position Paper on Consumption Tax Reform

Prepared for use by GMA in lobbying Government. The President has presented the proposal to Cabinet for review. GMA intends to lobby Government to evaluate adoption of VAT in 2002.

Forest Products Association (FPA) Strategic Plan and Action Plan

Numerous goals concerning enhanced advocacy, institutional strengthening, and improved member

Implementation ongoing, although few achievements have occurred.


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GEO Activity Recommendations Result services.

Tourism and Hospitality Association of Guyana (THAG) Strategic Plan and Action Plan


THAG advocated for passage of tourism legislation, currently being discussed by Cabinet. Few other actions have taken place.

Guyana National Bureau of Standards (GNBS) Raise awareness of importance of organization and its programs.

Communications plan was developed, and many recommendations in this plan are being implemented (see below).

Improve human resources management. Human resources development plan is currently being finalized.

Institutional Assessment and Planning Framework

Improve efficiency of the organization by introducing new accounting systems, documentation center; also by strengthening GNBS' role in serving as international contact point for national standards.

New accounting system was designed and installed. No concrete actions have been made concerning the other recommendations.

Cost-Accounting System New accounting procedures and chart of accounts created.

Software recently installed. GNBS will use new guidelines and chart of accounts for first time in preparing 2002 budget.

Metrication campaign GNBS hired a local PR firm to assist with its metrication, procurement and jewelry campaigns. These campaigns are ongoing.

Development of single standards/quality logo GNBS has created a new quality logo to replace all its old logos. Government procurement campaign GNBS hired a local PR firm to assist with its metrication, procurement and

jewelry campaigns. These campaigns are ongoing. Promotion of GNBS standards GNBS received training in fact-sheet production and PowerPoint

presentation skills from GEO, and is currently using these skills to promote the agency

Development of target audience database In the February GEO will conduct an IT assessment of GNBS to help it move towards developing a database.

Jewelry certification campaign GNBS hired a local PR firm to assist with its metrication, procurement and jewelry campaigns. These campaigns are ongoing.

Communications Strategy

Establishment of priority product programs This action will form a key part of GNBS' 2002 annual work plan. Training Plan Train staff Currently being finalized.


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Guyana Office for Investment (GO-INVEST) Rapid Appraisal - Investment and Export Promotion

Prepared investment strategy, update fiscal incentive regime, identify roadblocks in investment and exporting, organize study tour for GO-INVEST

Investment code drafted to clarify fiscal incentive regime. Investor Roadmap prepared to clarify current investment process, and to identify key blockages in process. GO-INVEST launching first attempts to remove blockages. Study tour organized for GO-INVEST to visit Trinidad and Costa Rica.

1999 Client Survey General presentation of client feedback. Clients recommended

No immediate action taken. Client recommendations mirror those made in subsequent institutional assessment.

Trinidad/Costa Rica Study Tour

General exposure to other investment and export-promotion agencies.

GO-INVEST using agencies visited as models for developing new programs and approaches.

Clarify mandate, policies and procedures. Procedures manual created. Interim policy statement drafted. Strengthen organization via public rations program, IT enhancement, and new services.

Communications strategy drafted, and currently being implemented (see below). IT review to take place in February 2002. Creation of enhanced export and investment services ongoing.

Diagnostic Assessment

Train staff. Training held in market information-collection and communications. Training plan to be developed with GEO assistance in March 2002.

Investor Roadmap For informational purposes, available in hard copy and on the web. Red tape identified.

GO-INVEST has recently completed the incentives section of the roadmap, and would like to work with GEO to complete annexes on investment in the mining and forestry sectors. Roadmap already being used by the public.

Short-term: publicize GO-INVEST, complete roadmap and flyers.

Communications strategy developed. Roadmap flyers created. Section on incentives prepared for Roadmap. GO-INVEST interested in working with GEO for completing annexes on mining and forestry.

Medium-term: Simply investment forms; computerize business registration; improve customs procedures.

Committee formed to evaluate redundancy in investor forms and to suggest improvements. No other actions taken.

Investor Roadmap Recommendations

Long-term: evaluate e-government services. No action taken. Short-term: Clarify mandate and procedures; enhance IT.

Interim policy statement drafted. Procedures manual created. Interim policy statement drafted. IT review to take place in 2002.

Framework for Reorganization

Medium to Long-term: creation investment/export strategy and strategic plan.

No action taken.

Interim Policy Statement and Mid-term Action Plan

General policy statement. Also, calendar of events outlined in assessment

See actions listed under institutional assessment.

Communications Strategy Short-term: Create new flyers; develop PowerPoint presentations; update forms; produce fact sheets; decorate office; organize awards events; upgrade trade-fair displays; enhance library; promote web site

PR firm hired to develop new information flyers and organize media campaigns. New printer and computer project purchased. PowerPoint presentations created. Staff trained in communications skills. Other items ongoing throughout 2002.


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GEO Activity Recommendations Result Long-term: develop campaigns to increase

transparency and to encourage foreign direct investment

Procedures Manuals For use as is in guiding operations. Under review by GO-INVEST board. 2001 Client Survey For informational purposes. Currently underway. Market Information Training

Guidance in finding adequate market information. Currently underway.

Ministry of Foreign Trade Rapid Appraisal - Trade Policy

Enhance computer skills, evaluate commitments under various trade agreements; conduct training in trade-policy analysis.

MIS assessment conducted. WTO matrix partially completed. No other action taken (see below).

Data, Information and Training Need Assessment

Gather information on Guyanese producers, create trade reference center, review status of WTO obligations, and train staff in above.

WTO obligation matrix partially completed. No other action taken by Government.

WTO Action Plan Resource for use by Government in determining which WTO obligations are not being met.

Government abandoned project, saying that it did not need GEO assistance.

MIS Assessment Upgrade network and develop needed databases. Government to proceed with upgrades using IDB financing. Ministry of Finance Rapid Appraisal - Macro Economic Policy

Hire and train additional staff; create better database for use in producing more timely and useful reports; review tax code and fiscal incentives.

Training and MIS assessments conducted; initial database created. No other action taken by Government (see below). More detailed review of consumption tax carried out in conjunction with GMA. Investment code drafted with provisions clarifying fiscal incentives.

Rapid Appraisal - Information Technology

Design new information management systems for Project Cycle and Macroeconomic Units.

MIS assessments conducted and initial database created for Project Cycle Unit. No other action taken by Government (see below).

MIS Assessment of the Project Cycle Unit

Upgrade network and develop expenditures database. Database created for installation in Project Cycle Unit; however, Government has not used the program. Government will proceed with upgrades using IDB financing, and will design its own database.

Training Needs Assessment of the Project Cycle Unit

Develop procedures manual and train staff. Procedures manual developed by GEO. However, Government abandoned project with no explanation to the Project.

Procedures Manual for the Project Cycle Unit

Manual created for use in Project Cycle Unit. Government abandoned project, claiming that it did not need GEO assistance (see above).

Regional Chambers of Commerce Rapid Appraisal - Private Sector Organization

Develop strategic plans for all PSOs and help strengthen each such institution.

Strategic plans and action plans created for various PSOs, resulting in a range of implemented activities (see below).

Essequibo Chamber of Commerce – Strategic

Strengthen human resources; expand membership; procure IT equipment; profile membership; promote

Developed detailed membership list. Increased financial membership from 2000. Advocated for opening of customs office and for enforcement of ban


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GEO Activity Recommendations Result Plan and Action Plan investment in Essequibo; advocate for improvement

in various economic and social improvements; advocate for greater government responsiveness to local issues.

on bush rum. Through ARCC, has lobbied for associate MERCOSUR status for Guyana, the creation of donor advisory committees, the creation of free-trade zones, the passage of copyright legislation, and for improved Amerindian outreach. Institutional strengthening exercises ongoing.

Linden Chamber of Commerce – Strategic Plan and Action Plan

Strengthen institution; promote local investment; advocate for completion of road to Brazil; strengthen partnership with other PSOs; build relationship with media.

Chamber membership grew in 2000 and 2001. Helped form ARCC and strengthen relations with other regional chambers. Has advocated for improvement of local power supply and completion of the road to Brazil. Government invited chamber to participate in discussion on road to Brazil and intervened with power company to resolve supply problems. Through ARCC, has lobbied for associate MERCOSUR status for Guyana, the creation of donor advisory committees, the creation of free-trade zones, the passage of copyright legislation, and for improved Amerindian outreach. Other activities ongoing.

Berbice Chamber of Commerce – Strategic Plan and Action Plan

Strengthen institution; attract investment; advocate for greater government responsiveness to local issues; build more effective alliances.

Increased membership in 2000 and 2001. Advocated for improved government and private-sector accountability, for an industrial site and other enhanced investment incentives, to have role on Berbice River tender commission, for completion of road to Brazil, and for development of aquaculture. Based upon advocacy work: Government has brought in Israeli investor to evaluate aquaculture development, has better enforced laws on illegal logging, completed an industrial site in New Amsterdam, gave the chamber a position on the Berbice River tender commission, and invited the chamber to participate in discussions on the road to Brazil. Through ARCC, has lobbied for associate MERCOSUR status for Guyana, the creation of donor advisory committees, the creation of free-trade zones, the passage of copyright legislation, and for improved Amerindian outreach. Other actions ongoing.


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Upper Corentyne Chamber of Commerce – Strategic Plan and Action Plan

Strengthen chamber institutionally; promote access to competitive interest rates; build financial resources; engage Government to improve local well-being; advocate for property rights legislation.

Membership grew in 2000 and 2001. Advocated for: Government to evaluate development of Beach No. 63; for the removal of farm animals from roads; for reduction in consumption tax on gasoline; for rehabilitation of the Moleson-Orealla Road; and for resolution of the Surinam border conflict. Based upon lobbying activities, chamber has received a commitment from the Ministry of Industry to discuss development of Beach No. 63, gotten the Ministry of Public Works to agree to begin improvements on the Moleson-Orealla Road, and been invited to travel to Surinam with the President to discuss the border conflict. Through ARCC, has lobbied for associate MERCOSUR status for Guyana, the creation of donor advisory committees, the creation of free-trade zones, the passage of copyright legislation, and for improved Amerindian outreach. Other issues are ongoing.

Rupununi Chamber of Commerce – Strategic Plan and Action Plan


Has increased membership since 2000. Has advocated for the completion of the road to Brazil, for closer relations with the Regional Government, for membership on oversight committees, for increased trade with Brazil, and for township status. Based upon these activities, Government has invited the chamber to participate in discussions on the road to Brazil, convinced the Government to discuss trade problems with Brazil, held consultations with the Regional Government, been invited to sit on government oversight committees, and been promised township status. Through ARCC, has lobbied for associate MERCOSUR status for Guyana, the creation of donor advisory committees, the creation of free-trade zones, the passage of copyright legislation, and for improved Amerindian outreach.

West Berbice Chamber of Commerce – Strategic Plan and Action Plan


Implementation of plan is commencing. Through ARCC, has lobbied for associate MERCOSUR status for Guyana, the creation of donor advisory committees, the creation of free-trade zones, the passage of copyright legislation, and for improved Amerindian outreach.


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Bartica Chamber of Commerce – Strategic Plan and Action Plan

Increase membership; promote tourism; strengthen partnership with other PSOs; advocate for improved infrastructure.

Has helped formed network of PSOs via membership in ARCC. Advocated for assistance from Ministry of Industry and Tourism in creating tourism plan, to which the Ministry has offered assistance. The chamber has also advocated for a role on several regional subcommittees, and was granted such a position by the Government. Through ARCC, has lobbied for associate MERCOSUR status for Guyana, the creation of donor advisory committees, the creation of free-trade zones, the passage of copyright legislation, and for improved Amerindian outreach. Other actions ongoing.

West Demerara Chamber of Commerce – Strategic Plan and Action Plan



Mahaica Chamber of Commerce – Strategic Plan and Action Plan



Other General Activities Rapid Appraisal - Micro-credit and Micro-enterprise Development

Strengthen micro-lending operations of IPED, Scotia Enterprise, GlobeTrust, and Beacon Foundation; development of non-traditional exports.

Extensive support provided to IPED (see above), but no other organizations assisted. GlobeTrust ceased operations. GO-INVEST supported to enhance export-promotion (see above). SME Action Plan created to further develop exports (see below).

Proposal for the Development of Selected Micro- and Small-Enterprise Sub-sectors

Assist in development of balata, leather, nibbi, and agro-processing sectors.

No direct action taken. Revised SME Action Plan prepared in 2001.

Small Business Empowerment Bill

Drafted for presentation to Government. Government action pending.

Feasibility Study of Production of Clay Tiles in the Rupununi

Rupununi soil determined unfit for use in producing clay tiles.

Client searching for suitable clay deposits.

Caribbean Basin Trade Preference Act Action Plan

Develop activities for business to take advantage of CBTPA.

GO-INVEST to evaluate organization of missions to trade shows in U.S. in order to help businesses benefit from CBPTA.

SME Assistance Action Plan

Create SME support network built upon market linkages, export promotion, sectoral support, and regulatory reform.

Initial development of network to commence in 2002.


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Annex

Revised SO1 Results Framework


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Strategic Objective:

Improved Climate For Private Investment

USAID Results Framework (NEW)

IR1 Increased Capacity

To Implement Economic

Policy

IR2 Strengthened

Capacity Of private Sector to

Influence Public Policy

IR3 Increased Services

Available to Small/ Micro-enterprises

IR1.1 Strengthened

Analytical Capacity Of Public Sector

IR1.2 Trade Policies &

Practices Conform to International

Norms

IR1.3 Market/Investment

Information Available to

producers/investors

IR1.4 Effective

Application of Commercial/Invest. Laws/Regulations

IR2.1 Private/Public

Sector Partnership Created

IR2.2 Strengthened Private Sector Organizations

IR 1.4.1 Laws Constraining Private Investment Reformed & Widely

Disseminated

IR2.1.2.1 Groundwork for

FTAA Completed

GEO · 2018. 11. 8. · SBA Small Business Act SME Small and Micro-enterprise SO Strategic...

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