As a prelude to the privatization of the sugar industry, the Government of President Desmond Hoyte invited Booker Tate to manage it in the hope of arresting its catastrophic decline during the years of the PNC administration. Then as now the sugar industry employed about 20,000 people and provided a substantial portion of Guyana’s GDP and foreign exchange earnings. The plot to privatize, for which no mandate was sought or given at the 1985 general elections, unraveled when the PPP announced that it will not by bound by any such agreement. As it happened, the PPP won the elections, freely and fairly held for the first time since 1968.
The professional management of Booker Tate in the 1990s, the quality of which began to decline in the 2000s, saw a dramatic increase in wages and conditions and increased production. With a guaranteed market in Europe and guaranteed prices, a promising future for sugar once again appeared on the horizon. But dark clouds were beginning to gather. The cost of production remained unsustainably high because of low productivity, aging equipment, soil quality, labour issues and other problems. The growth of globalization was beginning to threaten sugar’s protected regime. A decision had to be taken about the future of sugar.