I support the one-time direct cash transfer of $100,000 per person

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Dear Editor,

Direct cash transfers allow the government to make a payment to eligible recipients. This payment can be conditional or unconditional.

I am in favor of one-time direct cash transfers because they help reduce poverty. It can also help reduce racial economic disparities, as money is normally spent in local communities, which boosts local economies.

I suggest that unconditional direct cash transfers are not means tested and that the only eligibility criteria is that you must be a Guyanese living in Guyana.

The beneficiaries of these direct cash transfers would be Guyanese living in Guyana.

The transfer amount should be around 100,000 GYD per person. This means that a single person, regardless of age, will receive 100,000 GYD; a family of four receives 400,000 GYD.

The reason I support one-time, untested direct cash transfers is that everyone benefits. Whereas with means-tested direct cash transfers, there may be unintended consequences such as increased cost of living for non-beneficiaries.

The estimated total one-time cost would be around GYD 80B or US$ 400m.

Direct cash transfers are not the answer to ending poverty, as they can have unintended consequences by driving up prices, which requires larger direct cash transfers.

There is a saying: Give someone a fish and feed him for a day; give someone a net and he can eat forever. Direct cash transfers are like giving someone a fish. Whereas jobs are likened to giving a person a net. Having a job helps with social mobility as it not only gives people an income but also skills to progress.

yours faithfully

Sean Ori

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