employed for nationaloutput is rather SmsaLk as rmost of the ecoomit activities are con-
centrated on coastal land and euemployment is aboat 16% of the total labour force,
(3) public overhead capital investment is very high, due to the necessity of tmaintaiting
and building sea defences, Toads, and drainage ad irrigation systems, (4) credit facili-
ties are inadequate and expensive for smaI entrepreneurs, and (5) government's social
welfare expenditure, ainly in medical and educational facilities, is too little due tb in-
adequate revenue receipts. partly because of the tax-holiday granted to new enterprises.
Hence, unless government and private enterprise co-operate in an all out effort for rapid
economic growth, it is very difficult to see how British Guiana can break away from her
virtual economic stagnation. But the recent political strife in the country is frightening
away investment of private capital.


Changes in productivity
 The estimation of labour productivity in the econmy of British Guiana cannot be fully
undertaken due-to lack of detailed data. However, on the basis of the four major indus-
tries rice, sugar, bauxite and-timber -the average annual compounded rate of producti-
vity increase may be estimated at 2.3 %for the period 1954-60.

 ThiE rate of 2.3 %m ust be considered as an upper limit for the economy as a whole
Since other sectors of the economy, particularly the professions and personal services
sector, will have a considerably lower rate. Again, as British Guiana is inclined to de-
velop and diversify the agriculture .sector, especially rice, and expansion is anticipated in
manufacturing sectors, which will be quite new to the labour force, the labour productivi-
ty will probably show some decline in the near future.


Growth of income, product and expenditure, 1960-75
 The future of the economy of British Guiana is very much of an unknown quantity due to
the political turmoil, dependence oo foreign public and private capital and the fluctuating
past trend of the economy as a whole.

 The method of economic projection has therefore been simply to Freondl between
gross national product (~1iP) projection on the basis ofla iscreasp in the labour fo re and
productivity and a sectoral growth projection arrived at from the past trends and future
development programmes. The finally accepted projection is subjected later on to a
feasibility test on the basis of an inter-industry table for 19.59 Table 6c),

 Table 2. 5. iv shows the three projections of the economic growth of British uiana for
 1960-75.

 For the GNP blow-ups, the maximum estimate is based on annual creases of labour
force participation at 3.075% and productivity at 2.3 %. The labour force hase. bn eti-
mated on the basis of the high rate of population growth of 3.07 % annually, together with
.005 % of extra employment for the back tog of unnemployn p9ppley, so ha t the rat~o of
unemployment to total labour force will be ahout 6.5 % in 1e75 as compared with 1l % in
1956 or 1960. On the other hand, the minimum estimate is based only ao the low rate of
population growth of 2.849% annually, ignoring any extra employment and productivity
increase.