ABSTRACT
In late 1988 the government of Guyana embarked on a wide-ranging and externally supported programme of economic liberalization. The basic objective of this programme was to resuscitate the economy and reverse the decade of economic decline and deterioration (see Commonwealth Secretariat 1989). The economic vibrancy of the economy was to be restored by converting it from a regulated market system with extensive administrative and price controls to one based on the operation of the free market. In keeping with this aim, there was almost complete liberalization of the foreign exchange, trade and domestic markets.
