Table 2. 5. i


 British Guiana: Gross fixed capital formation, 1950 through 1960 (current prices)


 Yr Total gross Private Government
 Year fixed capital overseas capital development fund
 expenditure
 BWI$ 1,000

 1950 27,400 8,600 -
 1951 30,100 18,600 -
 1952 25,856 6,541 -
 1953 26,871 5,028 -
 1954 36,116 6,865 8,608
 1955 45,458 5,267 17,522
 1956 48,000 6,753 20,559
 1957 61,490 29,917 18,310
 1958 60,865 16,179 19,881
 1959 59,066 22,065 18,998
 1960 77,895 N. A. 15,801

 Source: Data and material developed during the study and other available data.


 Growth of income, product and expenditure, 1950-60

 Although the national income (at current prices) of British Guiana in 1960 was double
that of 1950, there was virtual stagnation during the periods 1954-55 and 1957-59. From
the table of income, expenditure and product (Table 6a) it may be seen that even though
the gross fixed capital formation has shown a substantial increase from 1954 onwards,
due to large increases in imports of capital goods and net factor payments abroad as the
returns of the invested overseas capital, the national income has not shown any appreci-
able increase. The spectacular leaps of the economy between 1956 and 1957 and between
1959 and 1960 have largely been due to expansion of the bauxite industry. On the other
hand, the poor agricultural crops in 1954-55 and 1957-58 and the fall in world prices of
bauxite during 1958-59 caused the stagnation in those years. The economy is also very
heavily oriented to foreign trade. The exports mainly consist of food and crude materials,
rice, sugar, bauxite and forest products. The major imports are manufactured goods
and machinery and transport equipment closely followed by miscellaneous manufactured
articles, food and animal feeds. An examination of detailed foreign trade statistics
clearly reveals the basic characteristics of a poor, underdeveloped and imbalanced econ-
omy, i. e. importation of all manufactured and processed goods in exchange for agri-
cultural products and raw materials. British Guiana has, however, enjoyed in the past
fairly favourable terms of trade because of guaranteed markets in rice and sugar and
large demands for bauxite and forest products, and this has sustained the economy to a
large extent.

 Very few new economic enterprises were introduced in British Guiana during the 50's,
except for beer, margarine and boat building, and the percentage distribution of GDP at