Economist and Working People’s Alliance (WPA) Executive, Professor Clive Thomas today said the move by government to recant its earlier decision to issue each household with a $200,000 cash grant exposes the Government’s inability to plan effectively. 

The Government has said that owing to a number of issues that rose following its $200,000 per household grant announcement, a decision was made to withdraw the household grant and instead issue a $100,000 cash grant to every adult Guyanese.

But Dr Thomas, who is the brainchild of the “Buxton Proposal” expressed disappointment in the move, contending that it’s an indication of Government’s lack of appreciation for social and scientific experiments and studies that have clearly defined what constitutes a household. 

Noting that it is an insult to the Bureau of Statistics, Dr Thomas said the Government has further reduced the initiative to a political gimmick, now targeting voters. 

“To my mind, it is shameful that the government can go to the extent of saying that they will give this to households and then turn around and change their minds and decide to give it to every eligible voter…and this to my mind is a scandal of very high proportion,” Dr Thomas said. 

He said single parent families with minors or teenage mothers, who have not yet attained the age of 18, are likely to be sidelined. 

In his Buxton Proposal, which dates back to 2018, Dr Thomas made a case for direct cash transfers, arguing that each household should receive a grant of US$5000 or GUY$1M from the oil revenues. But he said in the absence of a feasibility study or a strategic plan guided by a clear framework, the government is simply engaging in a handout for political mileage.

“This is a handout, and it is called a handout because it is given under a programme that is not worked out in terms of time, there is no guarantee that it would be repeated, there is no stated regularity in it…It is not a financial asset they are accumulating. They are getting a once and for all handout, and you don’t know when it is coming next. This is not a time bound, serious social executed project. This is a gamble to get what the definition, the recipients of the money are defined as, people who vote,” Dr Thomas said. 

WPA Presidential Candidate, Dr David Hinds said the WPA remains convinced that a Universal Basic Income in the form of Cash Transfers is one of the most effective means of reducing poverty in Guyana. 

He said the country’s oil and gas windfall affords it the golden opportunity to implement the idea, which has been successfully adopted in many countries across the world. 

“For the WPA, this matter of the Cash Transfer is rooted in our commitment to alleviate poverty as a developmental goal-it goes beyond politicking. WPA is, therefore, heartened that some of the initial skeptics have warmed to the idea as a serious policy initiative. In this regard, the PPP’s attempt to utilize it as a political gimmick should not dimmish its seriousness,” Dr Hinds said.  

He said the WPA strongly believes that its initial estimation of an annual transfer of approximately $1 million is still valid.

Dr Hinds said given the party’s estimation that Guyana’s oil reserves are closer to 30 billion barrels, it is now their view that Guyanese households should be afforded more than that initial estimate.

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