The elections have come and gone, but in the run up to those elections there was a dramatic downturn in business. Imports declined as businessmen opted to keep their investment down. Even construction halted, but this might have been tied to the importation of construction materials.
Shoppers were also not as prevalent because fewer people pursued the purchase of luxury items. The only area that seemed to enjoy a rise in business was the marketplace. Supermarkets and the various stalls in the municipal markets bore testimony to people stocking up on food.
This practice of buying more food than usual dates back to the post 1992 elections when violence erupted over the results. In fact, there was the threat of violence even before the elections concluded. Voters, whose names were on the list, suddenly found that those names were not there when they turned up at the polling places.
There was widespread violence in the streets. People were beaten simply because they looked different from their attackers. Of course, with Georgetown being the capital and a non-agricultural area, supplies of vegetables and condiments soon disappeared. Many shops were closed, so access to food became a problem.
It was the food shortage that helped to bring an early end to the violence and the post-election madness.
There was a repeat in 1997, but it was not of the magnitude of 1992. In this case, the people decided to use their economic power. It was during the Christmas season that the then Opposition Leader, Desmond Hoyte, told the people that there will be no Christmas.
Indeed, December is the time when local businesses reap about 50% of its annual revenue. That dried up in 1997. People withheld their spending and the business community screamed. Both the wider society and businessmen began to view elections with trepidation ever since. The 2015 elections were no different, even though the two previous elections were peaceful. The society was like one sitting in anticipation of an earthquake.
In more civilized societies, elections have little or no impact on economic activity. In fact, they could become money spinners by virtue of the elections paraphernalia that could be sold — hats, cups, jerseys and buttons.
The people who made money were those who printed elections materials and the media by way of advertisements. More than anyone else, the media would have raked in millions of dollars and the sales would have mounted perceptibly.
The elections are now over but the world of business is never one that would accept that there are lost opportunities. The business community then goes after those missing opportunities, with hopes to recoup what was lost during the elections campaign. This is indeed a great opportunity for business.
The coalition comprising A Partnership for National Unity and Alliance For Change has won the elections and must now keep its promises. As could be expected, it is investigating some of the things that at one time caused raised eyebrows. In fact, it promised to review the operations of the Guyana Revenue Authority.
There are likely to be waivers of duty, some import liberalizations and, of course, a request for certain items that may be required in the society.
Another thing that is likely to spur business would be the rush by the new government to lower prices as a means of compensating for the inflation in the society. In the wake of the 1992 elections such was the need to show support for the new President Dr Cheddi Jagan, that they lowered the exchange rate for the United States dollar from GY$125 to US$1 to GY$98 to US$1.
Of course this was not based on economic facts, so within a few days the exchange rate reverted to what it was and then began an inexorable upward climb which is still in effect to this day. But there was the support that gave the economy a boost.
There are the campaign promises that must be fulfilled so the business community stands to benefit once more. The coming weeks will be interesting, but for certain, in the months ahead, there is going to be a lot of movement in the business community. All one needs to do is to assess where the business is and capitalize.
Many businessmen have thrown their weight behind the new Government. To show their support, they are spending their own money to cleanup Georgetown which, undoubtedly, was a mess. The tons of garbage removed now have many wondering how it was that people actually lived in the city.
