ABSTRACT
This chapter examines development policy in the economy of Guyana during the post-war period. Development policy in Guyana has occurred through a number of phases and dimensions. The rate of capital formation in Guyana will depend primarily on public investment due to the declining size of the private sector. Planning in Guyana is plagued with the problem of maximising the growth potential of the economy, within a basic needs strategy, under the constraints of the scarcity of development finance and the low capital absorptive capacity of the economy. The major factors confining Guyana's capacity to use capital productively are limited infrastructure, shortage of complementary factors of production, planning and implementation constraints to productive capital formation, and institutional constraints. One of the recurrent constraints to economic planning in Guyana is a lack of entrepreneurial and managerial abilities to take advantage of investment opportunities, to plan and implement capital formation projects and operate them efficiently.
