In a move that has left many scratching their heads, Vice President Bharrat Jagdeo recently announced a halt on the issuance of sandpit licenses in Guyana. The decision, purportedly made to address concerns over land usage and pricing, raises serious questions about the government’s grasp of basic economic principles and its commitment to fair competition. What is even more insulting is how he expects the public to believe his drivel, how many believe him and how too many (not all) of the local media allow his inane explanations to to unchallenged.
Jagdeo cited the need for land for the development of Silica City, a high-tech residential community, and concerns over inflated sand prices as reasons for the hold. However, this explanation fails to withstand even the most cursory scrutiny.
Firstly, the notion that limiting competition by halting new sand mining operations will somehow lower prices is, frankly, laughable. Basic economics dictates that increased competition leads to lower prices for consumers. By stifling new entrants into the market, the government is effectively handing a monopoly to existing sandpit owners, allowing them to continue to dictate prices without fear of competition. I wonder how many government ministers are secret partners in sandpit mines?
Furthermore, the claim that land is needed for Silica City development is dubious at best. It seems convenient that this justification conveniently aligns with the government’s desire to restrict private sector involvement in the sand mining industry. One cannot help but wonder when the ulterior motives at play here will be revealed.
The rejection of sandpit applications from Police Commissioner Clifton Hicken and Deputy Police Commissioner Calvin Brutus adds another layer of intrigue to this saga. While Jagdeo asserts that the government’s position is “clear” on this matter, we are all aware of this government’s penchant for favoritism and cronyism so we are certain that Clifton Hicken will soon and quietly get his sandpit mining license.
Moreover, the revelation that there are 200 pending applications for sand mining licenses only serves to highlight the absurdity of the government’s actions. With such a high demand for licenses, it is incomprehensible why the government would choose to stifle entrepreneurship and economic growth in this crucial sector, while prices are increasing significantly. Within the past two years, the price of sand has increased by more than 70%, and Jagdeo believes that limiting competition will help?
Jagdeo’s decision to halt sandpit licenses if fraught with trickery and ignores the principles of free market competition. If Guyana hopes to foster a thriving economy and attract investment, it must prioritize policies that promote fair competition and economic opportunity for all, rather than succumbing to political maneuvering and favoritism.