private road vehicles (taxis, buses, trucks and carts) in transport and communications;
and professions, personal services and catering in professions, etc. The estimates are
based on available land for rice, opening up of the interior for forestry, investment and
output estimates in mining, saw-milling etc., and the government's policy to encourage
private enterprise and the willingness and anticipated participation of private enterprise
in the development of manufacturing and service sectors. Although government is active-
ly investigating and supplying economic reports to private entrepreneurs about the pos-
sibilities of various engineering and manufacturing industries, such as small-scale steel
rolling and melting plants, light building materials, enamel wares, boots and shoes, glass
and pottery, bicycle tyres and tubes, textile mills, cement, and canning, very few of
these industries could be included in our estimates as most of them are still in the investi-
gation stage, and private enterprises do not seem to be willing to commit themselves to
further investment at the moment.

 One must note that we have not projected the production of sugar at a high rate because,
owing to the limitation of the guaranteed market for sugar exports at a high price, the in-
dustry has already reached the optimum economic level. Expected growth in the sugar
industry will come from increased peasant cultivation and intensive production methods
which will be sufficient to take care of the expanding domestic market.

 The output data for the above main economic activities are given in Table 2. 5. vi. For
rice the figure for 1960 is the amount actually milled, whereas the figures for other
years are the estimated milled equivalent of rough rice after a deduction of 10% for seed
and feed for animals. For sugar, 1960 was a very good year; the annual average produc-
tion and exports for 1957-60 were only 302,000 and 280,000 tons, respectively.

 The growth rates for ihe services sectors of the economy have been assumed to follow
in general the growth of the whole economy. As for building and construction, the great-
er part of which is fixed capital formation, we have estimated the capital formation from
195U capital output ratios with some adjustment for the mining and other manufacturing
sectors, the investments in which are expected to change to some extent.

 On the basis of above sectoral growths, the GDP at factor cost and GNP figures arrived
at are as shown in Table 2. 5. vii.

 The differences between GDP and GNP are due to net factor income payments to rest
of the world, most of it being the dividend and profit of the private overseas capital in-
vested in British Guiana.

 Comparing the GNP blow-ups and sectoral growth pattern, we are inclined to accept the
latter projections. Since in an under-developed economy the growth process will lower
the productivity due to difficulties in acquiring new skills required for diversified econom-
ic activities, and since the only labour intensive activity is going to be the rice industry,
the sectoral growth projection appears to us as the most likely pattern of economic growth
in British Guiana. It may be remembered that 1960 was a very good year as against the
stagnant period of 1957-59, and therefore the indicated growth by 1975 will not be a negli-
gible achievement in view of the past trend of the economy.