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This report was prepared for use within the Bank. It may not be published lnor may it be quoted as representing the Bank's views. The Bank accepts noresponsibility for the accuracy or comoleteness of the contents of the renort.

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

AND

PROSPECTS

OF

BRITISH GUIANA

June 7, 1961

Department of OperationsEurope, Africa and Australasia

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CURRENCUY EQUIVALENTS

$ 1 British West Indies (BWI) = U. S. cents 58. 33$ BWI 1 million = TU S. $583; 333l U.S. $ = $ BWI 1.715)I DWI = f 0. 4. 21 b Sterling = $ BWI 4.80

In this report, the $ sign denotes British West Indiesdollars, unless otherwise stated.

CONTENTS

Page

Map

BUasic Ladat.a

Summary and Conclusion

I. G*EN_iE RI

II , RECENT ECONOMIC DEVi,OPHETTS 2

Production and Foreign Trade 2Employment 6Currency and Banking 6Government Finance 7

III. PROSPECTS AND CREDITWI RTHINESS 8

Statistical Tables

| - ~~~~~~~~~BRITiSH GUiANA

]~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~A ,i, -\h

4 ;~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~, Sp .Ol,,PSn 09sS__ Ssno

g ~ ~ ~ ~ ~ < } \ ' Roods Q;L ~~~~~~~~~~~~~~~~~~~ SuSor e.l,les

i7 O zMofthews / / \ ' ~~~~~~~~~~~~~~~~~~. 4RP,ds orfolts * -olhe mI Ies

*M/A . X Xueet ~~~~~ ~ ~ ~~~~~~~~~Reg,,q Olwokn

S _ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~561,000 Pop.lof,(..

t- LX i~~~~~~~~~~ mo

I r t F X o W<~~~~~~~~~~~~-------- ;i

I Off WCK" 2g 30% "`~-O 1 ? uN

l X Nst

avo ,! t>z~~~~~~~ ~~~~~~~' '-k-f l

H~~~~~~~~~~~~~~~~~~~~~ R N A ) o2 o*.t

MAY 1961 IBR[)-804R

BASIC DATA

(BWIr mIdllon unless otherwise showin

Population (1960): 561,000 - increasing at 3' per annum

Gross National Product Per Capita (1960): US "'! 252

Public Debt (as of December 31, 1960)

External debt 85.99 (US C 50.14 million)Internal debt 16.3!, ( " it 9t3 It )Total 102.33 ( " " 59,67 " )

1 Qc< 1 9Qq 19q7 1958 19'9 19602!

Gross Thnm.esc Prnduiirt (rt. factorcost) 192.7 208.0 226.3 214.1 222.3 237.5

of which, in percentages:A.griculture 26.7 2U.3 25=0 9257 25=2 2f= ?

Mining 9.9 11.3 10.9 8.7 11.0 13.3Industry and construction 23.1 21.5 23=0 22.0 21=5 2().6

Consumer Prices (1957-100) 97 99 100 101 103 1o0)Nl[OneXyr SUPP1Y 33.0 33.2~~/ 36.1 38.1 3. 4';.9

Current receiptus 96." 1J2 113.8_ 103 _. L4 1097 128.I 7

Current payments 111.5 116.4 145.5 133.3 127.6 165.8.uret a__sun ba_ac _ .,I....... 1_17 __ _7 n........n 'I ff . Xs n O't. I

D UI 1-UP1 D dUG t) - 19 Ud | dISU -' p v v -LU, X -L { { { -c7 . 7 - t t .7 -v 8 . |~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~-L.. ) LU L - - -C 7 -i 7 -

Net inflow of capital 1)4.0 23.7 36.4 27.5 29.1 4i7.9

External Reserves 52.1 54.1 '6.9 58.2 61.6 n.a.

Government Budget

Expenditure 57.5 60.8 61.b 66.4 61t.5 67.3Current (40.0) (k40-2) O L(.iJ L3 -1) (46) ( )(5.3)

Development (17.5) (20.6) (18.3) (19.9) (19.0) (16.0)Current revenue 42.5 4i.9 45.8 )49.1 48.8 56).3Balance -15.0 -18.9 -15.6 -17.3 -15.7 -1].0financed by:Foreign grants and loans 1)4.9 13.5 13.2 10.3 22.4 1,.6Internal borroiing - 2.8 - 3.8 8.6

1/ Provisional

SUMNARY AND CONCLUSION

i. British Guiana is the only English-speaking country on the SouthAmerican mainland. Still a Colony, it will achieve full internal self-government in July of 1961. No date has been set for independence, but thecountry will probably become independent within the next two and a half years.

ii. Some 560,000 people live in a country nearly the size of GreatBritain, While average population density is 7 per sq. mile, about 90% ofthe people are concentrated in the southeastern half of a narrow alluvialstrip along the Atlantic Coast, where sugar is grown on plantations and riceon small farms. The interior, forest and savannah, is practically empt;y,except for some mining settlements, ranches and logging camps.

iii. The population is increasing rapidly, unemployment is high and percapita incomes are rising slowly. After the recovery from the 1958 recession,gross domestic product in 1960 was only 4% higher than in 1957. On the otherhand, exports were 13% greater than in 1957 and private investment reached arecord level due to the construction of an alumina plant and the opening ofa manganese mine.

iv. The Governmentts 1954-59 development program was completed asplanned. The $100 million spent on it resulted in the expansion of cultivatedland in the coastal area and in improved urban living conditions. About two-thirds of the money was provided by the United Kingdom in form of loans andgrants, and one-third locally from government revenue and borrowing. Thecurrent five-year development program aims mainly at the further develonmentof agriculture and the improvement of transport. The Government expects tofinance Anbout q55 of its estimated cost with funds from the UT.K anrd Anbut20% with local resources, with the rest unaccounted for as yet.

v. Given political stability and maintenance of existing standardls ofaHmrnlstraionj the pospects fr oe-rnnomir gr^,rT+vh in +.he next. seveiraln -en-rs

are favorable. New land is being prepared for cultivation and the recenitinvT=estm.aent - ,nig sho rl substantiallyn r" aise export earnings r e-erl;he-less, unemployment is likely to remain a problem.

vi. At present, public debt service absorbs about 12% of governmentrevenule and service payments on external debt equal 4,-5% of ex+venearnings. Even if government revenue and exports were to increase rapi(ly

4 the rext f4'f years., debl U.4-UL- --tios w. p ris b of

continued borrowing for development. Nevertheless, on purely economicgros - riis Guaa-h 'd -e abl to seric adiira debt.1-' - 1,-4-_- - A4 -- IA14UJ. UIJ4J. A.4~ .iL .. LV_LOIA UUj.id.l SIUUJ.U UV dLJ±Lu IUu S VICU~ caUU...LU1011d± UeLj 1,

V.L. ncrk an es _ret in an A 3 _ __ _4s _ __ L1i= PU.L.LUj.Is.1oCE± U _1 L I j1,± JJ11i ±UL 41 IJ dp±U uUULjUaUi±nld

transition, and accentuated by the multi-racial composition of the Brit-ishGuiarna population, co'ud possibly affect the economy- wnich is heavily depend-ent on foreign markets and foreign investment. These circumstances enhancethe impot-anlce of bhe United Kingdom guarantee which will be attached to tneproposed modest loan by the Bank.

I. GENERAL

1. British Guiana is about 83,000 sq. miles in area. Four-fifths ofit is covered with tropical forest. The rest is savannah and an alluvia.lstrip of some 6,000 sq. miles along the Atlantic Coast. Of the 561,000people, nearly 500,000 live in the southeastern half of the coastal strip,including about 100,000 in Georgetown, where government is administered andbusiness transacted.

2. The population is ethnically varied. About one-half of the peopleare East Indian, one-third African, over 10% mixed, and the rest Amerind:ian,European (British and Portuguese) and Chinese, Though molded into anEnglish-speaking community with relatively high standards of education anldskill, the people preserve their owrn characteristics and personal frictionoften occurs for reasons of race.

3. Five political parties will participate in the general electionon August 21. The three important ones are the People's Progressive Party,grouping most of the East Indians and some rural Africans, the People'sNational Congress supported by urban African labor, and the United Force,!offering a non-racial platform and appealing to the moderates.

4. By the middle of July, British Guiana will have a new Constitu.ionproviding for full internal self-government. The new legislature will bebicameral. The LegislatUive Assembly will consist of 35 elected members andthe Senate of 13 memhPrs nnminatex3 hv the Clovernor. After the elections..the Governor will appoint the Premier and his Ministers, and will act ontheir advice, except in ma.tters of defense and foreign relations. H-e wiilhowever, retain emergency powers.

5. British Guiana has not joined the West Indies Federation. In part,this may be explained by the East Indians' fear of Af-rican - erinl andpolitical preponderance. Future relations between British Guiana and theFederation w4ll prlobabAly be deersndonly after both 1-vre achelrdi. . LUJ_.& i L J -JLJLU±y LIUILL t ilL.L.LUkA U -LJ.y cLJ .tC.LL. UVIi ll 1-i- UIAiVl4 . ±

pendence.

6. This report describes developments in British Guiana since theVis;+ ofc the" Bar-' econ.mi m-rr n h all of -1958 Whnich res 't+ed~ , f VII'.- JJ-11Xl. 0 ¼JiJii.- J.LO LJ£1 U' WI aa.1 'J.L -L.',L S , 4.LU-,J

in the presentation to the Executive Directors of a report on "The Economyof Brllshl GuianaI , uatLeU Xebruar.y -271, 157()7 74-J.2_

- 2 -

II. RECENT ECONOMIC DEVELOPMEITS

Prodluictiron -nnd Fo%reian T-rade

7. Gross domestic product fell in 1958 because of the lower demandfor bauxite and the reduction in exports of rice after a severe drought.By 1960, the situation was restored and gross domestic product at currentprices was 4% higher than in 1957. Because of the rapid population gr,wth,however, real income per head was lower than in 195to

8. Exports and imports fell in 1958 and 1959, but in 1960 they bothreached record figures, exports being 13% and imports 22% higher than iLn1957* The large deficit on current payments reflected a heavy inflow ofcapital, mainly direct foreign investment in mining.

9. Income from agriculture rose by 9% between 1957 and 1960, Theshare of sugar and rice, the main crops, was unchanged. Together theyaccount for about a quarter of the gross domestic product and provide aboutone-third of total employment.

10. In terms of income and exports, sugar is the main product of BritishGuiana. It accounts for about one-seventh of the gross domestic productand for nearly one-half of the exports. A plantation crop, sugar is mainlyproduced bDy two private companies employing over 20,000 workers. Althoughproduction has increased in recent years, employment has remained stationarybecause of progressive mechanization.

11. Since 1957. annual exports have fluctuated between 250,000 tonsand 300,000 tons, over three-quarters of which have been marketed in theUnited Kingdom0 Of the annual exports to thle United Kingdom. 150,C00 tonsare sold at prices fixed annually un:er the terms of the Commonwealth SugarAgreement: the remainder is sold at wTforld mrarket prices. The Commonswealthprice, co i.fo U.K. ports, has been fixed at 145 per long ton for 1961,ar-ere Rinr pri iiin +the Lorndrinn Tnn'ke+. in tne fiyst +wo months of 1961

averaged about -27 per long ton.

12. The area under rice expanded from 137,000 acres to 195,000 acresbetween 1957 nnci ,OAn Most of the expanon w.Tas plannned nn.d cnrried out .

under the Governmentts program of drainage and irrigation, and farm settle-me, .m+.By 190 lA bnouNtl+. I1(' nncn,0 a ncr +es in ^a" the-oir n"area had been draineodand in part put under cultivation. Work on another project, the 33,000 acresBlack B~lr h, was compled _and settlementv b+ated, So. were also put under cultivation, Rice growers are mainly independent farmers,Cii1tivatrngJr on +Ine aveag 110 acre of -ad -ol -oo-e- - i- - s-have beenset up recently to carry out land improvements and certain farm operations.

13. Part of the rice is exported, mainly to the West Indies. In 1960,rice accounted for 12% of total expor-ts. Evenl so, by the end of the year,

the Rice Marketing Board was left with substantial stocks. The main reasonfor this was that British Guiana produces narboiled rice. which is morenutritious but is not easily marketable outside the West Indies because ofits taste. In order to overcome this difficultvy the Rice Marketing Boardnow intends to build new and convert existing rice mills to produce whiteriGe for overseas mnrkets:

1)1- TIn itsc developme-nnPnt. progamjr t.he. Government. has grivenm c-nsqidrableh1attention to the diversification of agriculture, by encouraging the growingof coonutpalms, cocoa, cirus ru i+ti an c7+.onAffee - o n+ increases in ut-lfput of these crops, however, have been small because of the innate conserva-

+1 ~n r~ +.h,, fn~.tv 'c,n -i e mn l. .-- +h1n laP+o1 af ' ,m merivir- 1 timof the famers ar.d alobcueof the sho_tae of re-d im-ndog

term credit. For some of the products which the Government is trying toint-roduces 5~~$ Kr ye vs needed o r-ap t.he first crop; conmo,n-, b-Irb<

do not lend for terms of that length and the resources of the British GiLanaCre'di Corporation-L 'I ,are 'L.L1imLLUDO TLI c ±a..ers h tende to p

rice on newly reclaimed land, thus frustrating the Government's policy.

15. Timber accounts for about 3% of the exports. The mixed characterof the forest (60 specejs per acre) andiu trLanspor.U UdiffcLu uits the mai

obstacles to exploitation of the vast timber resources of the country. Inthe last few years, it has become evident that greer1eart, the easily mcirket-

able species used in marine construction, has been widely cut out. ItsreolacemLent through large-scale reafforestation wouid require a long, ha_dand probably uneconomic effort.

16. Cattle raising has made progress in the past few years. Dairyfarming has expanded in the coastal belt and meat production in the Rupununisavannah in the south-west and the intermediate savannah in the north-east.Breeds have been improved and the average weight of the animals has grown.Meat is now being shipped to Georgetown by air, instead of the cattle beingdriven on tile hoof. Poultry farms have been established replacing impoItsof eggs and poultry. Fishing has been developed for export (shrimps) anddomestic consumption.

17. Mining contributes at present 13% to the gross domestic productand provides almost one-third of total exports. While only about 4,000people find employment in the mines, their incomes and living conditionsare far above the average. Income and export taxes, and royalties, reslltin substantial revenue to the Government; about one-third of income taxreceipts comes from the mining companies.

18. British Guiana produces about 15% of the western worldts baux:ite.In recent years, about 85% of the output was exported as dried bauxite usedin the production of aluminum and about 15% as chemically processed calcinedbauxite used in refractory and abrasive industries. About 90% of the outputcomes from the Mvackenzie mine of the Demerara Bauxite Company, Ltd. (Deriba),a subsidiary of Aluminium Company of Canada, Ltd. The remainder is minedat Kwakwani on the Berbice River by Reynolds i'btals Company. The bauxitedeposits are large; at the present production rate, Demba has enough bauxitefor several decades. Both companies continue to explore their extensiveproperties held under mining leases.

19. After declining substantial2y in 1958 and 1959, output of baw itewas restored to its 1956 peak in 1960. Exports of dried and caLcined bauxiteby Demba reached record levels, with calcined bauxite selling at very remu-nerative prices and providing 40% of the export proceeds. Reynolds' exq)ortsof dried bauxite also recovered from the recession. Dried bauxite is slhippedto Canada by Demba and to the U.S. by Reynolds; calcined bauxite, on theother hand, is being offered by Demba in several markets including the UJnitedKingdom and the United States. Because of the shallowness of the Demeraraand Berbice rivers and siltation at their mouths, Demba has to tranship thebauxite into ocean-going vessels in Trinidad while Reynolds has to transhipit once at the Berbice sand bar and for the second time in Trinidad or tlheVirgin Islands. In fact, transport difficulties are said to be the mainreason for the hitherto limited size of Reynoldst operation in British Guiana.

20. The most important development in the mining sector in the pastfew years was the construction at Mackenzie of an alumina plant at the costof U.S.$35 million. The Government encouraged this heavy investment byexempting from duty building materials and equipment for the plant and bygranting Demba a five-year tax holiday for profits derived from the sale ofalumina. Production at the plant, which provides employment for 400 workers,started in March 1961 and in 1962 earnings from the sale of alumina sholldmake up 59% of Demba's export proceeds.

21. Another major development in the mining sphere was the opening bythe African Mines Management Company (a subsidiary of Union Carbide OreCorporation) of a manganese mine at Matthews Ridge in the north-west of thecountrv. Together with the construction of a crushing and washing plant,a housing settlement for some 500 workers, a 32-mile long railway and aharbor on the Kaituma River, this cdevelnnment renuired the investment oiU.S.$15 million. Operations started in 1960 and, beginning in 1962, theCnompany exnntqs to -m-nrt to the United States abhnut. 36n-non trnnq of mnnganeseore per annum. Although the mineral extracted is of rather low grade, 3ocationandr t.rnnq-ne)r+ c-onditioAns -rendepr +.he ,m,nine Pnnr-(nir-_

22. Since the s.h.utdown n 1T 959 of n. im,)portant goldining copnygold output has dropped almost to nil. Production of diamonds, on the otherhand, has risen fromn $1.4 million in l958 to $5,3 million in 1960 due tothe opening of new areas.

23. Although manufacturing contributes only 5% to the gross domesticrodr. ut+ ; + aI-om# - - + han 'r\v 4f -3- en T-,AvreF+vrI hIo - ne4'I A , i U -_ tAVf *. v . * .L. v > , . ^. t -vj WJ - -6. .- ,. -v-J * . o flak)

some progress in the last few years. New plants have been built, principallyfor the prodbaectiwon -of consum,erst goods. T;m ar gr.r-~ s-r '1 arAd scme-.LL. U14jiJ JU..U.U&.L J.L L.L L =LD±~ - JLJUU% * L1±UJ CI.U 6~ "J 0'.=.±LJ 14L.- WJ%. .) LAI

times use less capital-intensive production techniques to take advantage oflow i labor; .i.si In .L Liiivlo u..z.e~ older w~5 ma,H& .. ny of the conecie

with the sugar and mining industries, have expanded their activities for thedoestic make -lor export.eUU II .L%U± 11Iid.AU±~L dIIU 4.0.L AU

24. To promote industrialization, t!he GovertnarIt2 has intLro0uced taxconcessions for profits from new enterprise, exemptions from duty for importsof investment goods9 "id adoeuerawo depreciatirnA BetPWeUn 1957 arid 1959,,

a five-year income tax holiday wao granted to a number of industrial ventures.Depreciation allvwances' are granted to persons Linvet n part of t ir;co.ein industrial buildings, machinery and equipment, The Government has es-*+tabl4sh.ed ir.dustria'l s, 4tes 16-iti4-,n 4, the-4- -G -erto ba. -a an d 2 0etepies.LALL. ,4 U.L .J LJ L4 LI LJ. VAI .LI.L Ul ~~ UJ,r U UWLI LU. ULi dl CL d dL ± U C_ J LI L'~.LJA. JL

have already applied for theme Tariff protection on a very small scale hasaLso been gJtv-en t1o sorUe new i±ndUust r i Se

2I5 The capaclty of ULa= U'orge'oI,l UI1eLmHad power planL>, VJiLLWI se-vts

the city and the surrounding area, was recently increased from 121W to 15W.Ai f-irthe-r PIYw of generating equi-pment is being obtaiued. The expansion lwasundertaken by the British Guiana Electricity Corporation set up by the Govern-,ment to operate the plant hitherto operated by the International Power Companyof Montreal. The purchase in 1960 of the Georgeto-,m power plant by the Clovern-ment was prompted by the reluctance of the Canadian company to invest inexpanding the existing installations. Electricity tariffs were raised orLJanuary 1, :1961 to finance out of revenue part of the expansion. The totalgenerating capacity of the thermal installations supplying the needs of themines and tthe sugar mills, and those of other consumers in their vicinity,was also increased in the past few years.

26. The concentration of the population in the coastal area and thevastness of the almost empty interior present British Guiana wTith extremelydifficult transport problems. The coast is serviced by three competingmeans of transport. The Government-operated coastal and river services arethe cheapest and carry most of the freight. The Government-owned railroad,about 80 miles long, carries practically nothing but passengers. The fre-quency of both services, as well as their rates, are not determined oneconomic grouids but geared to the Government's policy of servicing widelyscattered localities on the northwestern part of -the coast and on the lowercourse of the rivers. The consequence of this situation is the need forlarge subsidies from the government budget.

27. The third means of transport in the heavily populated southeasternpart of the coastal area is the East Coast Road. This road has deprived therailroad of most of the freight traffic not taken over by the water services.The Government has recently concluded that a railroad reduced to commutersttraffic and confronted with the high cost of maintenance of obsolete equip-ment is no longer an economic proposition and should be dismantled. Thegradual dismantling of the railroad would call for an imorovement of the EastCoast Road, a costly venture in view of the most unfavorable soil conditions.The Gnvernm-mt has askpe the IJnit.ei Nt.iern- fo-r Phrbnair1 asistance inexamining the transport situation in the coastal area and the possibility ofrehahnii±.ti.ng the existing road.

28_ Thp mmin rl ff; i1Y- n.r wi+.h .r:n:nmr+. in +.hp ir+prinr m-D eriQ f-rrm +.h.o

fact that river navigation is restricted by rapids. Only the lower courseof some rivers is navigable and even there traffic is limited by shallownessand siltation. At the request of the Government, the U.N. Special Fund isat present e in a se of the D.a Va. tio. problem.The scarcity of population and the low level of economic activity, except

in the bauxite and manganese mining areas, raise doubts as to the justifica-tion for .r Con Str ucven imtprovement, of roads. Nevertheless, roadbuilding surveys are being conducted in the interior and an application ispending before the UoS. Development Loan Fund for the financing of a road toLethem in the Rupununi savannah. For the moment, long distance passengertraffic in the interior relies to a large extent on air transport.

Employment

29. The last estimates of employments prepared in 19560 showed a laborforce of 16520CO of whom 30,000 or 18% were unemployed and 15,000 or 9, wereemployed part time. Although employment has risen since 1956, particularlyin rice cultivation, mining and manufacturing, the rapid increase in popula-tion is believed to have left high rates of unemployment.

30. British Guiana has an active trade union movement. Over 40 organi-zations represent labor. with a membership of about 40s000. The sugar workerstunion with 20,000 members is by far the strongest. Labor conditions in thelarger en-terprises have improved substantially in the past few years. Presentwages for sugar cane cutters are $5.34 for a 7-1/2-hour day and for manganeseminers 6.50 for an 8-hour day. Various fringe benefits are now being pro-vided by the large employers. The minimum daily wage for government workerswas recen-tly increased from $2.52 to $3.04 (U.S.1.77).

Currency and Banking

31. Notes and coins in circulation increased from $21.1 million at theend of 1957 to $27.6 million at the end of 1960. British Guiana has nocentral bank. The currencv is issued by the Currencv Board of the EasternGroup of British Caribbean Territories, which provides British Guiana currencyon demand aeainst deposits of sterling and provides sterling in exchange forBritish Guiana currency. The currency is thus backed by sterling assets.In 1959; however, arrangements were made for the Currency Board to subscribeto internal bond issues by the participating Governments. Under these arrange-ments the Clirremntw Roard purchased $2.4 million of British G na bc;nds.

32. There are two commercial banks, Barclays Bank, D.CeO. and theRoyal Bank of Canada vith headquarters overseas, where they hold part of theirliquid assets9 and brano-hes scattered throughout the conuntrya Their interestrates are related to the discount rate of the Bank of England and reflectits~ cGhnngs In 1958, anrd again in 1960, their loans a.nd advances expv,r.dedmuch more rapidly than their deposits, with the result that between December 31*l9Q7 and D)ecember 31, 1961 the ratio of loans and advances to deposits rosefrom 47% to 77%. Simultaneously, foreign balances of the commercial banksdeclined substantially. A in 16- Switch,Ii Wr overseas to d ome,stic asse+soccurred at the Post Office Savings Bank, where the increase in savings inthe last three years was associated with a rapid rise in domestic invest-ments Some expansion-in domestic credit was also carried out by the Newwhic pr;govides htir wpch4ase manes mortgage loa.s, and I O ld s o td .which provides hire p-urchase finance,

-7-

33. The most important source of medium- and long-term credit in theCo,-+r is l;,e Bri;tiJsh rG,v. aria Cred'4t Crpoain a4 4tt^tr body Over---_-1 A- nVI. vry i 1L~ 1).J. UJ.VJL0i UJU.~L1 J V.LLUP" JUJ. HU4.CLU.LU1ii, CL 0kUdLLt'IJJ.,Y LUUUY. u V %-I

the years, its lending activity has contributed to the lowering of interestr -atludes cageu Uy privaten r.nU1Ly _LULUZ±r. .LUd s uy Uith Uu±por.L'UirL1 UoUUi±LUU

$11 million at the end of 1960. Nevertheless, demand for medium- and long-tlerm credit h-tvaS COontinued unabatedU particularly on tne part oI Iarmers newlysettled on land reclaimed by the Government under the development program,

Government Finance

34. During 1958, proceeds of import duty were affected by the reductionin imports, while the income tax collected on 1957 incomes reached an alltime high. The situation was reversed in 1959, when the fall in income taxcollections, caused by the 1958 recession, was offset by higher import dt.typroceeds. In 1960, practically all categories of government revenue regis-tered increases and the total was 23% higher than in 1957.

35. The Government was successful in 1958 and 1959 in keeping currentbudget expenditure within the limits inmposed by stagnant reven;ue., I-. 1960,c--.trrent expenditure increased sharply and a further increase is forecast for19S1i The rnain reasons behind these increases are higher service on the publicdebt and higher wages, salaries and pensions for government workers. In spiteof mounting expenditure, however, the 1960 budget showed a large current surplusof $5 million. A much smaller surplus is forecast for 1961.

36. Betwreen 1954 and 1959, the Government spent $>103.8 million on itsdevelopment program. Most of the investment expenditure was on agricultureand transport but about 3C% of the money was spent on housing and other socialservices. Substantial expansion of cultivable land in the coastal area an&improved urban living conditions plainly demonstrate the usefulness of theGovernment s development effort.

37. Funds for the 1954-59 development program came largelv frcm abroad.Public issues in Lendon and Exchequer loans provided $43.4 millicn andColonial De-velonment and Welfare grants .9q,2 millinn- Tnternal loqns bronuht$16 million,, while $190 4 million came from government revenue.

38. The Government's current development program covers the years1960-6L and will require an expenditure of 110.5 million (U..86L.L million)-It puts even more stress on productive investment in agricul-ture (mainlyrdra;in_ge andr irriantir-nn) nnti transcpnnr+t (nrimnriltr roadqs tha rln did +.he nrPNroidevelopment program. Investment in social services is estimated at less than2C)% of the total, mainiv rdiii ton a r reduction in resiidential construction,The program provides for higher expenditure on geological and other surveys,and for a hicher appropriation for the British Guiiiana Credit Corporation +o

make loans f'or industrial development. On the whole, the program appears wellbaln-ced and rffa^tij-4rnr d4-ir-ce+d +ot.Yn"r1A mark v-g +hen besq+ -on of av,i-] ab1l

resources.

39. Th.e 1960-64 development program will probably be more difficult tofinance '!% +h'n" te p u ne Tihe U.K. has agreed A 4O make -v4able L,dto -4-

British Guiana TM million ($19.2 million) in 25-year Exchequer loans, of whichpart was rmiade a-vailable in 1960 "at 6-l/2%) and the rest will beccme availablein 1961 and 1962. The U.K. has also agreed to consider a further L4 nillioni1 Exchequer loans to finance expenditure on the program in 1963 and 1564.A further $23 million will be forthcoming in Colonial Development and Welfaregrants.

4O. The domestic contribution to development raises more doubt. TheGovernment expects to borrow internally $10 million over the five years andshould be able to do so, given political stability. The availability of4t15 million from government revenue may be based on somewhat optimisticassumptions, in view of the trend of current expenditure. In addition, afurther amount of p224 million is to be secured either at home or abroad.The prcposed Bank loan equivalent to $2.1 million would slightly reduce thisgap.

41. Only a modest percentage of the total planned expenditure is thusintended to be met from internal sources. Pressure on government revenuefrom current expenditure makes it difficult to increase the contributicn fromlocal sources during this planning period. Private capital investment is alsoheavily financed from abroad. This dependence on external resources adds todifficulties in formulating measures to promote the economic growth in thelonger run, but the Government is aware of the need to increase the contributiarto public investment from domestic resources.

42. The Government spent about P16 million on public investment in 1960and intends to spend about .2L million in 1961. Provided that funds areavailable and existing standards of administration maintained, the Government,having in six years invested more thar n ml'O millonr under its l95b-'Q dulop-ment program, should be able to invest a comparable amount in five years tinderthe current nrngrnm,

III. PROSPECTS AUD CREDITWORTHINESS

43. Unless new minerals are discovered and their exploitation isstarted, the position of the British Guiana economy in the next decade willbe determined primarily by the production of, and markets for. sugar, rice,bauxite and manganese.

44. The statistical position of sugar is not expected to change muchin tihe foreseeable future. With consumption rising slowly and new producersentering the marketj sugar production in British Guiana -ill probably remainat its present level and its ratio to the aross domestic nroduct will proba-bly decline. The Commonwealth Sugar Agreement provides support for a largepart of British Guianats sullar exports. The Agreement runs until 1968.

45. The future importance of rice for the economy will he reflectedrather in the size of employment than in the size of income. Of the

-9-

cultivable land which will become available after the completion of thedrainage and irrigation works included in the current development program,-hy fnr thenra1-. nnr1-. i-1-1 part nbe ti imnAr rice, so +hni -.tot nrea unAderrice may expand to 235,ooo acres by 1964. If the plan to switch part of the-n nr1iu-+ r%nn f,rom r-n r;i 1 iA rH on +.n wlih +0 ri r'o ft -r ov-nn +. ; e rt-r n--ri r nii - i nins

producers should be able within the reasonable future to pay back in taxesthe fuLnds invested by the Go-verv=m,+ 4 betw7ee,n 1960 eOnd lOAL in t0.-> ,

of their land, Production forecasts indicate that in the early tsixtiesrice- c-LL V U VIL O ivatio n shoCL 'dmL .tLa i i)Its. share QL~ r, OO t h e 09S dmsi

Export earnings from rice might increase by some $6-8 million by 1965'.rTlil Justification4- fo epadi. rice c-14tivatior. after theri-'ixi .L~ J A ~.L .LiL'_CL~JL± 1 i.~U.LuLL u .L ~ .,UJ.Ltj.VCLU.U 1.. L CL. Lu~ Ul~lL~~JJ~

appears more doubtful. Nlearby countries will probably absorb no more rice01Lcul B.Li.L IOisL GutLina wi''L.J Iha-vre avallabtle fLor eiMport by 19'4 wh-ile OLme UJA

consumption is unlikely to increase faster than in the past.

46. Mining should provide the main impulse to the expansion of theB--itiU_sh (1ruiana econoiray in theiu c-=rrent d'ec-adue. Its shi-are Jun thl-e gross domlesticproduct might increase by about 5C%. Earnings from mineral exports couldpossibly double by 1964, adding $p0 miilion to the country's external earniiugIf the present productive capacity is fully utilized and prices remain stable,bauxite and alumina couid account for one-third of total exports in l9i14 asagainst one-fourth in 1960. However, further heavy investment in bauxitemining and processing, comparable to that made between 1957 and 1961, is un-likely, although Rey-nolds Metals Company could expand production very sub-stantially if transport difficulties were overcome.

4-(. Output of manganese ore. expected tp reachn J3O6,0 tons per annumin 1962, will contribute to the rise of the mining sector. At present prices,export earnings from manganese may reach about $15 million per annum in themiddle 'sixties.

48. The development program-contemplated an increase of some 20% inthe acreage under coconut, citrus, cocoa and coffee. Production, however,will be rather for local consumption than for export. Cattle raising willprobably expand further, possibly more in the coastal area and in the inter-mediate savannah, than on the Rupununi savannah where high cost of transportprevents the use of fertilizer. Fisheries should also expand further.Forestry, on the contrary, is not expected to increase in the current decadebecause of the mixed character of the forest and transport problems - thesame obstacles that have hampered development in the past.

49. A modest expansion in manufacturing is likely to continue and itsshare in the gross domestic product will probably remain stationary. Thebusiness community and the Government are studying the possibilities cfestablishing glass, cement, furniture, paper, metal working and food proces-sing industries. There is in British Guiana sufficient business acumen andskilled labor for new industrial ventures. However, the dcmestic market isnarrow and export outlets are limited. particularly since Jamaica andTrinidad are in a better position to supply the West Indies with the productsof light industry.

-10-

50. At current rates of taxation, an increase of about 5% per annumin government revenue is expected during the period 196IULO4. This rate ofgrowth would be slower than that forecast for the economys, since intiL 1966the Government will not collect income tax on profits from the investmentmade recently by the mining companies. Current budget expenditure willprobably increase more rapidly than revenue under the impact of the gTrowingcost of operating and maintaining transport and social services, and -thegrowing service on debt contracted to finance development. The Governlmentmay thus find it more difficult to °inance out of revenue part of itsdevelopment expenditure.

51. According to the estimates supplied by the Government, grossdomestic product (at market prices) may reach $340 million in 1964. Suchan increase would represent an annual rate of growth of 6%-7% per annum, ahigh rate even if an annual increase in population of 3% is taken into accountPer capita, gross domestic product may therefore rise from $470 in 1960 to$54o in 1964. Employment prospects appear less favorable; a part of t;headditional employment to come from the expansion of farming has alreadiymaterialized and unemployment may be about the same in the middle rsixtiesas it is now.

52. It is much more difficult to assess the prospects of the BritishGuiana economv in the longer run. Nothine is known as vet of the Government'sdevelopment plans for the late 'sixties. Production of rice will probablylevel sff after 196q- whilTe thp diversifieatinn of agriculture on the coastcould hardly contribute substantially to economic growth. Further expansionin mining depends, nn the one hand- on f'tltre world demand for bauixite! andmanganese, and the policies of the mining companies, and, on the other hand,on the discovery of new minerals. The latter woulid offer the best prospec-tfor the development of the country's interior. In the present generation,mmvr 1 rcres en- fn..i ca++1nrn o,.4- -,P +Ta4-1,o +~' ,.- .Tnlll 'A - -hw,-arl= Vvkr 4I-iacsy -.., t'cyt.-_ .. an. e-n -of-- +he .1-.. ,o.e. be _..eded by thepoverty of the soil and the lack of transport.

53. At the end of 1960, total public long-term debt of British Guianawas equivTl (ent to abovut U.S. *60 r_ lionA Service payfien+t on +t1-i Adbt

absorb at present about 12% of government revenue. If the Governmentsu-ceeded in boroT.^TrI before +the enA of 196 +-hea ¶rn 1aen+ of U-S. A;3'

million still required to finance the 6UQxb development program, debtser-tVCe --n 1906-5 w' -be-sout2%rlativ toprse.tgVeraet_srr

and about 18% in relation to government revenue expected for that year. In4>I,en -P`1 1,-w.g *Pe y ,a mh+e n.-r Ar4 decl:r.e 10ans governma.ent r,-v,r;cn-

V.D~~A'S .L.AJJa..JVN.a.L5 *'SW J'SO.J. 1), UX*V.J .L Qua.'J *i.aj V.A~~~~~~V.tL44.JSL- IJV%J GUOj &MILIAAIU W'S V'C.rJUL lul.

should increase rapidly once the tax holiday afforded to the mining ccmpaniesin conunection wiivitrecert ir4est-__4t___4 r -- 44e4is o- - er.-.LLL 'L,:J~' LaAJJ ~.LLI .AV1S,U41U _LAV , UkILLiLV V ~..~±J .LO UVUJ.

t1.~~~~~~-L- r_ -_u_ A4^ J.ICm _- -___ _ : n__ - n _r 4: :_- .JL4-e U;L oV:;1ue± J.CO !7J. l-4 r 11±_- .,I. DDU1± ±11 U LU11g-WU±11i Ut1UU D1 D.rl u1ll

Guiana was equivalent to about U.S. $50 million, Service payments in 1961jJVLJU± proaby o--epuuu b.o 4.4%~ ci 1960 c-< reni <.ur-xia± earnILLLg. ±&takirl

into account additional external borrowing required for theI9O-.64 develop-junent program and assumling that, owing mainly to larger exports Of minerals

and rice. current external earnings would increase bv about 50% between1960 and 1965, the ratio of external debt service payments to currentexternal earnings in 1965 woutld be aboit, 5%_6%.

qq_ n)n Pnriconnmic groumndst British Guian.a shoujAd be ale to servicethe additional debt required to finance its current development program.

transition, and accentuated by the multi-racial composition of the BritishGiar. -n- po-p,~'ainc'dpsl'fe+ +heL e-CUr.o.,.J-h^ isO -ea-srljy

dependent on foreign markets and foreign investment. These circumstancesenhar.c^v the~-~ ,lPort e of the TT-4-ed T1--... g.A … …1e w wl be

attached.~ULI.', LAIjJU U4UPU V. Iii UL.L.UU I"IirUVIIL tU thLLe propos WmoLdeLoa WbLy Lie

attached to the proposed modest loan by the Bank.

List. of Tables

1. 5-ro-ss Dom,est-ic and llilationa]J. P~rodulct:15, 95

2. Gross Capital. Fortion: 1950, 1955-1959

4 rl J. - - o l.& s : 1i95r 1955-194. ) IU.J. La J1)UULi -'V)U, y -L'7UU;_LU

. agricui:uraI rroduc tion: 19;5-196u

6. iMIineral Production: 1950, 1955-1960

7. Miajor Exports: 1950, 1955-1960

8. Money and Banking Statistics: 1950, 1955-1960

9. External Reserves: 1955-1960

10. Government Receipts and Expenditure: 1955-1961

11. CurreDnt Government Revenue: 1955-1961

12. Current Government Expenditure: 1955-1961

13. Deve:lopment Expenditure: 1954-1964

14. Public Debt Outstanding as of December 31, 1960

15. Estimated Service on Public Debt

TaPble 1

Gross Domestic and National Product: l950 5-1960(6> mil'ion)

1/-1 -05 -7-'7 .L L7 1 U58 -77 YO6

Private consumption 108.1 -I1'.2 158.5 166.9 164.0 '1 Z'7 ''.-

Government consuwmption 16.2 26.0 no.4 31.4 r' 3 D ,

Gross domestlc fixed investment 27. 45 48.0 63.3 .

Changes in stock,s -1. + .5 +.1 +.3 +4.7 -0.3 -

Exports of goods and services 55.1 93.1 98.2 111.0 100.5 106.9 125.8

Expenditure on GD? & mports 205.3 311.3 333.2 372.9 353.6 358.3 409.7

ess: imports of goods & services -61.0 -95.4 -100.9 -120.3 -117.0 -111.6 -146.1

Expenrditure on GDP 144.3 215.9 232.2 252.6 236.3 247.6 263.6

Less: factor income payments torest of world -6.9 -9.4 -11.1 -12.1 -8.9 -10.9 -14.5

Less: depreciation allowance forforeign-owned assets -3.7 -5.3 -5.3 -5.4 -5.4 -5.6 -6.4

Gross National Product 133.7 201.2 215.9 235.1 222.0 231.:L 242.7

Gross Domestic Product (at factorcost) 135.0 192.7 208.0 226.3 214.1 222.3 237.5

Percent of Gross Domnstic Product

Agriculture, forestry & fisheries 24.4 26.7 25.3 25.0 25.7 25.2 26.2

'ining , 9.6 9.9 11.3 10.9 8.7 11.0 13.32/

Manufacture 17.0 13.5 11.2 12.9 13.1 12.9 12.8

Construction 8.4 9.6 10.3 10.1 8.9 8.6 7.8

Commerce & finance 13.7 17.6 16.6 16.3 16.9 16.7 15.7

Transport & communications 6.4 6.2 6.6 6.1 6.5 6. ; 6.n

Rent of dwellings 5.0 2.8 2.6 2.5 2.6 2.5, 2.4

Government & other services 15.5 13.7 16.1 16.2 17a6 16aB 15.8

1/ Provisiona:L2/ Including processing of agricultural products

Source: 1950, D.A. Percival and W.P. D'Andrade; the National Economi.c Accountsof British Guiana.

1955-56, Dr. r,. O'T.oichlin, Study of 3ritish Guiana National Accounts.1957-60, Government Statistician.

Table 2

Gross Capital Formation: 1950. 1955-1959

1 q9;( I C9S)r) I 1; 9( 1 9S7 I cK8 _95 C)rq

lotal ($ mil.iion) 25.9 46.0 48.1 63.6 56.7 51.3

Percent of Total

1. Sources of Funds:

Government

(1) Loans 10.8 26.5 21.3 n.a. 13.3 36.8(2) Grants 4.2 8.4 10.1 10.3 6.9 6.8(3) Savings 4.2 8.4 10.1 4.2 4.4 6.3

Foreign-owned Comn-anies

(4) Depreciation 14.3 11.6 10.9 8.5 9.5 10.9(5) Reinvested earnings and

new capital 18.9 11.5 14.0 38.5 19.1 32.0

Local Firms and Households

(6) Depreciation 12.0 7.8 6.6 ( (46 8 (7.2(7) Savings 35.6 25.8 27.2 (n.a. ( .

Internal Sources (3)+(6)+(7) 51.8 42.0 43.7 42.7 51.2 13.5

External Sources (1)+(2)+(4)~ +(5) 48&2 58.0 56.3 57.3 48.8 86.5

2. Use of Fumds

Fixed Investment: Government 19.3 43.3 41.3 (99.5 (98.1 (98.2Private 86.5 55.5 58.5 ( ( (

Inventories -6.8 1;2 =2 5 19 1=

l/ Provisional

Source: Gov(Drnment Statistician.

Table 3

Balance of Payrnents - 1950, 1955-1960(W million)

lj L'1950 1955 1956 1957 1958 1959 1960

I. CURRENT ACCOUIWT

A. Receipts 56.6 96.0 100.3 113.8 103.4 109.7 128.7

Merchandise eponrtn- exelud-ing ships, stores and air-craft fu.el 51$ 915 95.7 1091 96 1 n.7 1236

Servn -t Ti- es-o 1.1 13. 3-3 1. 2 .2 . 1

Ir.ves+men+~ ~~1 Anc+. = rvt 05 .4 04 .4 *A+ .4

- Govt. &P.O.S.B. 7. .8 1. 1,2 1.3 1.4 1.5_'

Othe, - B.G. expendit-ures of

U.K. forces - .2 .3 .3 .3 .3 .3

Remittances 0.1 1.72/ .7 .9 .9 .9 .9

B. Payents 69.3 111.6 116.4 145.5 133.3 127.6 165.8

Merchandise imports, c.i.f. 56.5 94.5 99.9 118.5 116.0 110.6 145.0

Services 3.7 2.0 2.0 1.8 2.0 2.0 2.1

Investment income - profitsof foreign-owned sibsidiariesand branches 7.7 9.5 11.5 12.5 9.3 11.3 14.9

Interest on public debt 0.6 1.1 1.0 1.3 1.3 1.3 1.3

Remittances, Govt.contribu-+iSOns ,) penion °.. 4. 21 2.4 A. 2.4 2.

'..JU1±~1J.U %i~U~JLU1L,I'l F7 nr7J ~ -J . .7 'In7 7 (7 C- .2r Current, Account Dalanca C1. 1. -16U r-2. -2. I1. 3.(A - B)

(conttd)

Table 3

(contad)

1950 1955 1956 1957 1958 19592:/ 19601II. CAPITAL ACCOuLTFT

C Long-term Capital and GrantInflow 9.8 14.5 24.0 36.4 27.5 29.1 48.2

Direct foreign investment insubsidiaries and branches 8.6 10.6 12.0 29.9 16.2 22.0 34.6

Government loans 0.1 - 7.2 - 7.5 3.6 8.0

C.D. & W. grants2' 1.1 3.9 4.8 6.5 3.8 3.5 5.6

D. Capital Outflow, long-term, - .5 . n.a. - _

~' ~ A~!4~F Tt'1. ri F)I % 'in '7 n/. I A' el AA F1r I '7 0D. N L---LI -et Cap:ital 'n'low 9.8 4. ,. 7 U.4 41.") 4 29. 4f7.

F. Balancing Items +2.9 +1.5 -7.6 -8.7 +2.4 -11.2 -10.8

Changes - Govt. P.O.S.B.securities holding (-inc.)A/+1.5 +0.8 +0.2 -1.4 -5.2 - 2.5 - 2.3

Changes in Govt. holdingshort-term assets (-inc.) +3.2 -1.1 +5.6 +3.5 - 2.1 - 3.8

Changes in B.G. balances offoreign banks (- dec.) +1.3 -1.3 -0.1 +0.3 + 0.6 + 2.3

Changes in overseas balancesof B.G. banks (- inc.) -0.2 +3.6 -0.2 -0.5 +3.1 - 3.6 + 5.1

Errors and omissions +1.6 -7.4 -5.9 -12.3 +0.7 - 3.6 -12.1

Capital Account Balance +12.7 +15.5 +16.1 +27.7 +29.9 +17.9 +37.1(E-F)

1/ Provisional.2/ Tne11rhAq I1 9 mi11orln trarsqfpr from IUK. to B.G.C_ CTOvprnment.3/ Also includes small amounts of M.S.A. grants.

7n/ tInclud-es, r prn +o Qinkinrg fuAnds.

Source: Governrnent Statistician.

Table 4

Major mports, c.i.f. - 1950, 1 1($ million)

, I' Nfl ^,fl n N m r er. nf n ( fIr ntni

Food i3 .6 i9.71 20.6 2i.6 22.1 22.1 -25 . -

Beverages & tobacco 1.3 2.3 2.1 2.2 1.9 1.7 2.1

Crude materials excl. fuels n.a. 0.6 0.6 1.0 0.7 0.8 0.9

Mineral fuels, lubricants &related materials 4.4 7.6 8.4 9.4 8.4 9.2 10.9

Animal & vegetable oils & fats 0.2 0.5 0e7 1.2 1.4 1.4 1.8

Chemicals n.a. 7.3 8.3 9.0 9.3 9.0 10.0

Fabrics 5.7 6.5 6.2 6.8 6.7 6.1 8.4

Cement 0.5 1.0 1.3 1.7 1.6 1.6 1.5

Iron & Steel n.a. 3.2 2.9 6.3 4.6 4.6 5.2

Tractors n.a. 1.9 2.3 3.2 3.0 3.0 4.0

Mining. industrial machinery n.a. 5.3 7.7 9.8 9.8 8.6 16.0

Motor vehicles n.a. 3.6 3.5 4.4 4.3 3.6 5.3

Other manuf'actures n.a. 35.0 35.2 41.8 42.0 38.8 54.2

Miscellaneous n.a. 0.L °.L 0.5 0.5 0.5 0.5

Total 55.1 94.9 100.2 118.9 116.3 111.0 146.0

Source: Government Statistician.

Table 5

Agricultural Production - 1955-1960

1955 1956 1957 1958 1955 1960.

Production

S;upar nanp (1.000 t.on.) 2-6q 2-820 3;.90 I-Z76 3.215 3,74S

Riee-paddy (1,000 tons) 144.6 127.4 130.5 113.8 19.5- 178

COCOV.t (m4114rn , l nn+ut) '77 71 71 71 5° 7.

'.43_. '4 U4m;' '. VJ O ..', O AI..L..LX* ...L.'O *'..I. £4. > ' Iz r 7/ '7 -';

FrLLuit, incl. citrus 13,071± 13,317 13,60...J4 13,°94 14,223 n.a.

(1,000 lbs.)

Area under Cultivation (1,000 acres)

Sugar Cane 79 77 86 90 93 96

Rice 153 118 137 155 179 195

Coconut 32 32 32 33 34LJ 34

Ground Provisions 22 23 23 23 23-1/ 24

Coffee 5 5 5 5 5-1/ 5

Fruit, including citrus 9 9 9 9 9 9

1/ Provisional.

Source: Government Statistician.

Table 6

Minpral Production - 1950, 1955-1960

Bauxite Diamonds GoldYear Quantitv Value Quantity Value Quantitv Value

(000 tons) (000 $) (000 metric (000 $) (000 ozs.) (000 $)narats)

1950 1,594 13,825 37.5 r 1;35 13.8 691

1955 2.L3,5 25.007 , 1.,9 23.08 lj4°-

~956 2;/,gi 59O08 29. l,28 15.8 95S

1957 2,2029 29,220 29.0 1,390 16.5 990

1956 1,586 20,728 33.1 1,436 17.5 1,047

1959 16 A7,' 07, tC.0 307731

196 2,4o 0 71 'Al,347 10. 5'3 2.4 1,Source: Government Statistici.-

Source: Governiment Statistician.

Major Exports: 1950, 1955-1960

Year Sugar Rice Bauxite Gold and Diamonds Timber Other Total

(ci million)

1950 23.1 4.0 13.8 1.9 1.2 6.1 50.1

1955 40.3 12.5 24.8 2.1 2.8 6.5 89.0

1956 41.6 9.9 29.3 1.7 3.0 7.8 93.3

1957 53.6 9.2 29.5 1.9 3.2 9.6 107.0

1958 54.7 h.8 20.6 2.0 3.6 10.6 96.3

1959 46.4 12.5 25.0 3.1 3.3 11.7 102.0

1960:L/ 54.0 14.8 31.3 5.5 3.4 13.9 122.9

Year Suwar Rice Bauxite Gold Diamonds Timber

in thousands of:

Tons Tons Tons Ozs. Metric CubicCarats Ft.

1950 173.3 29.1 1,583.4 114h 38.0 637.1

1955 242.5 53.3 2,169.2 1h.0 33.2 1,2715.0

1956 245.9 41.3 2,107.6 6.6 30.9 1,288.4

1957 255.5 38.2 2,021,2 8.3 28.4 1,425.8

1958 300.3 17.7 1,364.3 10.8 32.0 1,551.2

1959 255.2 49.9 1,514.7 0.7 61.0 1,441.8

19601/ 292.9 54.4 2,311.7 - 96.9 1,452.3

1 Provisional

Source: Government Statistician.

Table 8

Money and Banking Statistics: 1950, 1955-1960($ million)

LiabilitiesDeposits Assets

Money Time and Banks Loans andEnd of Supply Total Demand Savings Cash Abroad (net) Advances

1950 19,9 16.6 9.7 6.9 2.4 8.3 6.0

1955 33.0 29.7 16.2 13.5 4.o 8.5 12.8

1956 33.2 30.5 14.6 15.9 5.0 10.G 14.0

1957 36.1 33.7 15.5 18.2 5.5 9.4 15.7

1958 38.1 35.9 14.6 21.3 5.9 6.1 21.5

1959 39.5 37.8 15.5 22.3 4.3 9.0 22.3

1960 45.9 42,4 18.0 24.4 5.3 1.6 32.8

Source: Official Gazette and Government Statistician.

Table 9

External Reserves: 1955-].960($ million, valued at market prices, December 31)

1955 1956 1957 1958 1959 1960

Currencv BoardV 16-5 18.3 21=1 23,1 23.8 27.0

Post Offic.e Savinq BRank 15.9 Ji,.6 ILo l±-7 12-7 11.8

Government fimnrc exet-11Aina

sinking funds .4 .3 .3 .3 .3 .3

Sugar funds?/ 10.8 10.9 12.1 14eo 15.8 n.a.

Net foreign balances offinil -4- 4- A... stftun _( .... lOo a0 6.1 9. e6

TPot-a' Cf'1 I44 560 8e 1A .. ga.

Value of sterling securities assumed to be identical with amount ofcurrency in circulation.Welfare, rehabilitation, pension, and other funds of sugar industry.

j/ Excluding foreign assets of other public and private funds, insurancecompanies, etc.l/ Provisional.

Source: Government Statistician.

Table 10

Govermnent Receipts and Expenditure: 1955-1961

($ million)

Revisedestimate Estimate

1955 1956 1957 1958 1959 1960 1961

Current expenditure 40.0 40.2 43.1 46.5 45.5 51.3 55.0Development expenditure 17.5 20.6 18.3 19.9 1910 16.0 24.0

Total 57.5 60.8 61.4 66.4 X _67.3 79.0

Recurrent revenue 42.5 41.9 45.8 49.1 48.8 56.3 56.6

(Current surplus) (2.5) (1.7) (2.7) (2.6) (3.3) (5.0) (1.6)

Loans - external 11.0 7.4 7.4 7.5 18.9 8.0 8.0internal - 2.8 - 3.8 8.6 - 2.5

Colonial Developmentand Welfare grants 3.9 6.1 5.8 2,8 3.5 5.6 9.0

Total receipts 57.4 58.2 59.0 63. 9.8 699 76.1

Change in Treasury bal-an.es (- inrcrease) +.I +2.6 +2.4 +3.2 -15.3 -2.6 +2.9

Source: Office of the Financial Secretary

Current Government Revenue: 1955-1961

($ million)

Revisedestimate Estimate

1955 1956 1957 1958 1959 1960 1961

Import duty 14.5 14.8 16.0 15.8 16.9 21.0 20.0

Income tax 12.1 13.0 15.9 19.0 16.7 17.3 18.5

Excise duty 4.1 4.2 4.4 5.0 5.0 5.7 5.6

Other tax revenue 5.1 3.4 2.9 2.5 2.9 3.9 3.5

Total tax revenue 35.8 35.4 39.2 42.3 41.5 47.9 47.6

Fees, fines, etc. 1.1 1.3 1.2 1.2 1.3 1.4 1.4

Revenue from propertyand enterprise 3.4 4.2 4.2 4.5 5 0 6.0 6.6

P.Lepa-ynent of 'loarns *..5 .6 .6 .5.6.

V Uher 1.7, .4 .65 .43

Total revenue 42.5\ ,r 41.9 4, -0 48.g 5 56.6

Source: Office of the Financial Secretary.

Table 12

Current Govenment enditure: 1955-1961(~ million)

Rev-sedestimate Estimate

i9 _; 1956 195~7 1958 1959 1960 1961_

Debt Service 200 2.5 3.7 4.1 4.2 6.1 6.9Interest lY 1o7 7W 3O 3T0.Amortization .7 .9 1.1 1.1 1.2 ir8 19

Administration 7.5 7.9 8e3 8.3 8.1 8.7 9.3General 31 3.2 7T. __. _ /%Defense, Law and Order 4.4 4.7 4.9 4.8 4e7 5.1 5.3

Economic Services 9c3 9.3 9.8 11.1 10.5 11.4 12a3Natural Resources 307 3.9 7 02- 4. 54 . (ir'ansport and Communi- 5.4 5>2 5.3 5.7 5.5 6.1 6.4cations

Miscellaneous .2 .2 .2 2 .2 .2 2

Social Services 11.9 12e9 13.5 14.2 14e6 16.1 17.6Health 4.9 5. 7 6.2 6.1Education 5.0 6.1 6.0 6.6 607 7.6 8.3Social Assi.stance 1.4 1.5 1,6 1.7 1.7 1.9 2.8Housing .1 .1 .1 .1 .1 .1 .1Other .g .3 .3 .4 .4 .3 .3

Miscellaneous 9.3 7.5 7.8 8.A 8.1 9.0 8.9

Tetal Exp9nditure 40r 40.2 43.1 46.5 45.5 51.3 55.o

Source: Office of the Financial Secretarv

Table 13

Develpment Bxpenditure: 1954-1964

Revisedestimate, Estimate Allocation

1954 - 1959 1960 1961 1960 - 1c964

$000 % $000 $000 $000 %

Agriculture 37,598 36.3 8,251 10 220 46 868 L2;4Sea and river defenses L 630o 1;729 1 .85 5.000 T7hDrainage and irrigation 25,605 24.7 5,074 6,047 309858 27.9land settlement 2.771t 2-7 601 1;2h42 69750 6.1Research 39730 3.6 847 19218 1,275 12Other 859 ne8 _ 128 2-985 2.7

Fnrests~~~~~ 6 0.6 12 _ 55I0 0=5

Tnnds and minpes 2-568 2 5 793 677 w°no 2=7Geological surveys 1,730 T7 2,000 I:7Other surveys 838 0.8 23T 160 1,000 0.9

Transport and cor.minications 2699 26 3 686 5,395 26989 2J.5Air transport 1$286 l -2 334 -16d6 1T7Ports and stewmers 7 '08 A A 1s8, I ALl A 6,53 5.o

Railways 3,574 3 5 113 500 2,000 1,8Roads~~~~~~~~~~~~ 7I47 7 2 109 1s9 14}4)77 IQ I

Postal and telecommunications 7,581 7.3 1,071 1,050 2,296 2.1

Finance (credit) 10,008 9.7 - 750 13v000 11L8

Public utilities 3,323 3.2 432 2 012 4,882 4.4TjT',4 - -l 0 '701 0 7 '7 - 9lf9 1) 1'- 5" , . LLljL C I 7JL L.O I .)4 L.,U( LO*u

Electricity 532 0.5 92 1,000 2,000 1.8

Education 1,783 17 395 1 033 4 100 3.7____ ((J7 u,j y50 4pO O U.O

Housing 15,3; 1570 51000 6 0,M,, ---- Ianeo.uS 4 5 2 1>) 1,)si. I--i 7. ,

Total 103,792 100,0 16,000 23,988 110,505 i0,O

Financed from

Current surplus 19,388 2,400 3,000 15,000C.D. & W. grants 24,977 5,600 9,000u ,000U.K. loa-ns 43,398 8,000 8,000 38,400internal loans 16,029 - 2,500 10,000Other - - 1,488 12,000Uncovered - - 12,105

Source: Office of the Financial Secretary

Table 14

Z1 1 T-4 . ..I- 4-. 4 __T.,_1 -A TT-.A-; -',,-f3,,APUblLc Debtu Ou San':mIcun U.ibre

as of December 31, 1960

Net Outstanding 1/Gross~ t (rll-Li-ons of

outstanding U.S. dDllar(thousands) (thousands) equivalents)

L DEBT AS OF DECE_ IVI_ER .31. 19-00 _

Exterral Debt s 20,232 -i, 50.14

Rublicly-issued sterling bonds b 9,1445 b 7,119 19.9143% 1929-1980 2,090 22 T9

3 - l/h 191_2o 14z- 2 0 A 3% 1934-1969 385 131 .373-1/2% 1951-1968 2,180 1,631 4.57

1956-1985 3,540 3,349 9.384% Perpetual Stock (Demerara

Railway) 50 50 .144% Perpetual Annuities (Demerara

Railway) 390 390 1.09Supplementary Sinking Fund - -211 -. 59

Privately-placed debt L 1,271 L 1,271 3.56l,0142,000 Rice Development Co.from Colonial Development Corp.5-3/4-6-1/2%, 1953-1962 3/ 1,021 1,021 2.86

B250,000 British Guiana fromBarclays Overseas DevelopmentCorp. 7%, 1960-1970 250 250 .70

U.K. Government loans I 9,516 M 9,516 26.64I5,500,000 Exchequer Loans5-1/2-6%, 1958/59 - 1983/84 5,365 5,365 15.02

;14,000,000 Exchequer Loans5-5/8-6-1/2%, 1960/62-1985/87 4,000 2/ 4,000 2/ 11.20

L245,300 C.D. & W. 3-3-1/2%,1945/56 - 1965/72 151 151 .42

Tahl tli (r1nt.. )

Net Outstandin 1/t-ross ~ ~ ~~ (.iill:Lons of

outstanding U.S. dollar

It+ernal A-eb 4V -,A 9,re28 rnxrt 16,34 il) a ~~~ ~ ~-1a..'- U JL LZLJ 8-.-~" .--w L''% 4'

.> 1icTh1Tue >AZdollar bonds ~ vi~ 18,73 TVl= 16,23)7 o L'7

3-1/2% debentures 1946-1986 5,o 3,43 -1 /2C bor,d 192-1 960I 47 2]2 ) _-Lj -V .UVLUi .J7C. 7 -J-7 IJ 1 C1.r 193 .113%0 1917-1967 413)

/nc1 /06 L... ,r%r-i 1f vi O r ri L.)-1/2/o deb~uenvLures 1971-171 804U

4-1/2% debentures 1957-1986 1,534 1,468 .86/0 1957-197 1,31L4 1,28 .75

5-1/2% debentures 1958-1988 300 300 .176% 1959-1979 3,600 3,600 2.105-1/2% debentures 1959-1979 5,000 5,000 2.92

Privately-placed debt BWI$ 107 BwI$ 107 0.06'WI$ 120,000 Newtown CountryDistrict from Colonial LifeInsurance Co. 7%, 1957-1972 3/ 107 107 0.06

AUL)rJ:NAiD,BT PRPuOvSED FOR 1961:

B-WT$ 2,500,000 Internal bond issue(equivalent of U.S. $1.46 million)

1/ Net of accumulated sinking funds.

2/ Of this amount bi,667,500 (equivalent of U.S. $4.67 million) was disbursed asof December 31, 1960. An additional 16,667,500 is scheduled to be disbursedduring 1961 and the remainder in 1962.

3/ Debt guaranteed by the government of British Guiana.

4/ Figures on internal debt compiled by the Office of the Financial Secretary,British Guiana.

.Source: IBRD Statistical Division.

Table 151_

-si at Q-- Ser.c o,,- >-li TDeb+ t),+ ,+ r.Ai viLJ ..L', aA L AJ4.'--u_

December 31, 1960 and on Additional Debt11VPVOt-eu -LU± /~J.; L ./ -

(in U.S.4 million equivalents)

Net amount Parments Lturn year

outstandingYear January 1 2/ Amortization interest Total

A), External Debt

1961 50.7 0.8 2.4 3.31962 49.7 3.8 2.7 6.51963 45-7 i.0 2.6 3.61964 41.4 1.0 2.6 3.61965 43.1 1.1 2.5 3.61966 41.7 1.1 2.5 3.61967 40.3 1.2 2.5 3.61968 38.8 4.2 2.4 6.61969 34.3 1.1 2.1 3.31970 32.9 1.8 2.1 3.91971 30.9 1.2 2.0 3.21972 29.5 1.2 1.9 3.11973 28.0 1.2 1.8 3.01974 26.5 1.3 1.7 3.01975 24.9 1.4 1.7 3.0

B;) Internal Debt 3/

1961 9,5 0.1 0.5 0.61962 10.8 0.3 0.6 0.91963 10.4 0.3 0.6 0.91964 10.0 0.3 0.6 0.91965 9.5 0.3 0.6 0.91966 8.9 0.4 0.6 1.01967 8.3 0.4 0.6 1.01968 7.7 0.4 0.6 1.01969 7.0 0.4 0.6 1.01970 6.4 0.4 0.6 1.01971 5.8 0.4 0.6 1.01972 5.1 0. 0.6 1.01973 4.6 0.4 o.6 1.01974 4.1 0.4 0.6 1.01975 3.7 o.l 0.6 1.0

1/ Include1 sevicr on all de-bt incldeid in Ta¾lI I)i prepared April 28- 1(9612/ Does not take supplemental sinking fund into account.

I Est+.i mated~ se'rice nirmPtn. on in+rn1 deb. tnn 1miled hy ± the. Offi of

the FiLnancial Secretary, British Guiana.

Source: IBRD Statistics Division.