Déjà Vu Banking: PPP Unveils Plan That Echoes Scrapped PNC Institution

By Mark DaCosta- In a curious twist of fate, the People’s Progressive Party (PPP) has unveiled plans to establish a new Development Bank with a significant injection of US$200 million aimed at fostering small and medium-sized enterprises (SMEs) in our country. While the initiative appears commendable on the surface, it reveals a troubling hypocrisy: the ambition mirrors the actions of a bank established by the People’s National Congress (PNC) that the PPP once dismantled. This begs the question — are the current leaders genuinely interested in advancing local entrepreneurship, or are they merely attempting to mask past failures?

During a rally at Albion on July 20, President Irfaan Ali announced the government’s multifaceted approach to bolstering SMEs, promising low-interest loans and co-investment opportunities for aspiring entrepreneurs. “You are voting because you want to embrace the plans of the government,” he told attendees, asserting that the government would eliminate the daunting barriers small businesses face in accessing financial resources. The proposed Development Bank, which aims to remove the traditional need for collateral, is positioned as a solution for the entrepreneurs that the PPP has historically ignored.

Critics, however, have voiced scepticism over the motivations behind this new bank. The original financial institution designed to support local businesses — GAIBANK, established by the PNC — was shut down under the PPP administration following their assumption of power in 1992. It is ironic that the same party now seeks to claim ownership of initiatives to uplift SMEs, which were originally conceived and implemented by their predecessors. Irony aside, it raises eyebrows when the PPP continues to tout their commitment to economic diversification while ignoring the consequences of their prior decisions that led to stagnation in various sectors.

Ali also framed the establishment of the new bank within the broader narrative of managing the country’s newfound oil wealth responsibly and equitably. “If you’re able to match lending with a 0 percent interest rate, we can bring down the commercial bank interest rate from 6 percent or 7 percent to 3 percent for SMEs,” he said, promoting the notion that this bank would bolster liquidity and empower SMEs. Yet, these pledges appear disingenuous when juxtaposed with the government’s history of undermining existing financial systems that sought to uplift local industries.

Moreover, the foundation of this so-called Development Bank has invoked memories of the struggles faced by the agricultural sector  — a vital pillar of our economy. In a recent response to government statements, a prominent critic cited statistics from the Bank of Guyana indicating a decline in agricultural output over the past decade. This critic drew attention to the assertion made by a government official that the agriculture sector is on solid ground, arguing that such claims disregard and contradict hard evidence.

Furthermore, the narrative surrounding GAIBANK is riddled with contention. During its operational years, it was a critical financial institution supporting local businesses — an effort fundamentally at odds with the PPP’s narrative surrounding its closure. Leaders of the current government have, regrettably, sought to rewrite this history, labelling their predecessors’ efforts as mismanagement, rather than acknowledging the socioeconomic landscape the PNC had crafted.

This dissonance is not limited to just historical context. By failing to confront the quiet truths of prior administrations, the PPP is undermining both their credibility and their stated intentions for the future. As they seek to foster entrepreneurship now, it is vital to scrutinise the path paved by their predecessors — one filled with hard-earned lessons.

Had the PPP maintained an enduring commitment to nurturing SMEs through established channels like GAIBANK, our nation’s economic landscape may very well have excelled beyond the bounds it has currently reached. “How are we going to ensure that small businesses are involved in the development of our country?” Dr Ali queried at the Albion rally. The answers seem quite apparent, yet deeply flawed: they involve leveraging prior successes such as GAIBANK.

While the establishment of a Development Bank is presented as a fresh revelation, it raises alarm bells as it starkly contrasts the party’s prior actions. What’s clear is that the PPP’s professed labour of love for small businesses falls short of true commitment, instead opting to exploit previously existing frameworks. As our country moves forward, it is worth remembering that the resurrection of the GAIBANK concepts deserves recognition — and that true success lies not in stealing the ideas of the past, but in honouring them for their contributions towards sustainable growth.