Education as an investment for growth

Jun 07, 2024 Letters

Dear Editor

Guyana is experiencing remarkable economic growth, requiring a greater pool of skilled and experienced human resources. Guyana’s gross domestic product (GDP) is projected to grow 34.3 percent in 2024, increasing the demand for a robust labor force.

In a strong and deliberate commitment, the Government of Guyana has recognized this need and is dedicated to the training, retraining, and developing new skills of Guyanese.

President Irfaan Ali, in his speeches, continuously emphasizes the transformative power of education, stating that “education is the most powerful tool for personal and national development. It is the key to unlocking opportunities and achieving sustainable growth.” The President also frequently speaks of his government’s role in providing opportunities to all communities in Guyana, instilling a sense of reassurance in the audience about the government’s commitment to education.

The 2024 budget confirms its focus on education. In 2024, the Guyana government allocated approximately $100.5 billion to the education sector. This includes $4.1 billion for the University of Guyana and $4 billion for the Guyana Online Academy of Learning (GOAL) programme. Additionally, $4.9 billion is dedicated to the school feeding programme, benefiting about 126,000 children nationwide. The “Because We Care” student grant was increased to $40,000 per child and a $5,000 uniform voucher, amounting to $9.2 billion for these transfers.

Over the past two years, Guyana teachers have seen significant salaries and benefits increases under the People’s Progressive Party/Civic (PPP/C) government. Salaries for teachers have increased from $24.4 billion in 2020 to $39.4 billion by the end of 2023, marking a 61.4% increase.

This includes comprehensive adjustments such as a minimum of a 12% increase for graduate teachers and up to a 16% increase for those in hinterland areas, along with enhanced allowances for higher degrees. Additionally, new benefits include duty-free concessions for senior teachers near retirement and education allowances for teachers in remote areas. The government has also introduced cost-of-living relief measures and has committed to further investments in the education sector to improve the overall quality of life for teachers.​

The educational investment is forward-thinking and shows that the President, Dr. Irfan Ali, and his ministers are being strategic in resolving a potential gap that could hamper economic growth. There is a direct correlation of education and economic growth. For growth to continue the country needs a workforce that is skilled, knowledgeable and has the competencies for the new economy, this is coined human capital development. Education also allows for labor market efficiencies where worker’s skills match the future labor requirements. A good example is the growing oil and gas sector as well as agricultural sustainability. Education also has the added advantage of reducing income disparity and poverty, as Guyanese can find a pathway out of poverty. Education has a positive impact on health outcomes, which in turn affects economic productivity, instilling a sense of hope in the audience about the future of Guyana.

As a nation, Guyana is also leveraging all modalities to bring education to the masses, including on-site and online expansions in all geographic areas. The University of Guyana and the GOAL programme have several physical expansions.

By addressing these various aspects, education is a cornerstone for sustainable and equitable economic development. Economic growth, that is, increased GDP, has a direct impact on the communities across Guyana in the form of improved living standards, household income levels, employment opportunities, access to education and healthcare, and infrastructure development. Guyanese will benefit from improved quality with the investment in education.

An important aspect of the education policy is that education it is made available to all Guyanese regardless of race, gender, or political affiliations. This inclusive approach provides sustainable and inclusive benefits to all members of society while minimising negative environmental and social impacts. Some have argued that the Government should use some of its budget to increase cash grants to more Guyanese, which was done in the 2024 budget, but educational investments are paid back because of the increased productivity. This emphasis on inclusive access to education reassures the audience that their needs and concerns are being addressed.

Educational spending supports efforts to improve governance and services to Guyanese households and businesses. It also supports efforts to improve transparency, improve commerce, and build a more robust, technologically advanced, and skilled economy. Guyanese stand to benefit directly from the focus of education spending. This is an investment in Guyanese, and their Government is making them the priority, which is crucial for long-term economic prosperity and development.

Respectfully,
Dr. Tilokie Arnold Depoo, Economist