A Choice of Technology Framework, Foreign Direct Investment for Forestry Resource Exploitation in Guyana

By:
Dr. Gangapersad Ramdas
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The evaluation of foreign direct investment and technology decisions is premised on shareholder value maximization. Without reference to social and development goals and own account financing, resource depletion in Guyana’s forestry sector could occur without achieving these goals. Property rights reassignments liquidate valuable resources and satisfy the investor rather than the government’s goals.

A population based policy framework explicitly linked to a distributive share of liquidated wealth and development goals is proposed. The choice of financial investment criteria through debt or equity and the choice of physical investment technology are evaluated within a domestic population context.

If the rates of exploitation are targeted to global populations, the amount of debt to be repaid, and overseas shareholder requirements non-sustainable consequences are more likely to occur than if the rates of forestry resource exploitation are tied to the size of the domestic population and the development projects needed.

A choice of investment and technology policy that links net value contribution to the requirements of a government’s balanced annual plus development budget is being proposed. Contracts should therefore link the budget over the lifecycle of the depletable natural resource project plus the net contributions of all other projects taken simultaneously, rather than piecemeal.


Keywords: Choice of Technology, Forestry, property rights, natural resources, debt-equity finance, foreign direct investment, FDI, ICT, poverty reduction, Millennium Development Goals
Stream: Knowledge and Technology
Presentation Type: Paper Presentation in English
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Dr. Gangapersad Ramdas

Professor, Economics and Business Administration, Lincoln University
USA

Dr. Gangapersad Ramdas is a Professor of Economics and Business at Lincoln University, Pennsylvania USA, since 1983. He was an assistant to the Executive Director, Brazil, International Monetary Fund, Washington, 1995-1997 and a Division Chief, Public Finance and Monetary Economics at the Central Bank of Guyana, 1966-1977. At Lincoln University, he chaired the Economics Department, 1983-87 and during 1998-2000. He was awarded Lincoln University’s Distinguished Faculty Award for Research and Scholarship in 1994. He also worked for AT&T as a Data Base Manager 1983 and as a Research Assistant to Dr. Charles Freedman Bank of Canada, 1973. He is Project Director of Lincoln’s Summer Transportation Institute 2002-2005. He holds a Ph.D. in economics (1987), a MS degree US Taxation (1992) Temple University, a MA degree in Economics (1973) from the University of Windsor, Canada, and a BS degree (1969) from the University of Guyana. Westview Press has published Dr. Ramdas’ book on U.S. Export Incentives and Investment Behavior, 1992. His research area is property rights, distributive justice, and economic development. He is writing a movie play ‘In the Shadows of My People. Earlier, he taught Mathematics, Chemistry, Physics, Biology, and Spanish at two high schools in Guyana 1965-66.

Ref: T06P0232