THE discovery of oil offshore Guyana about two years ago has been welcome news to her citizens here and abroad and they would all be happy when this country becomes an oil-producing nation by 2020.
By then, oil prices which have experienced a slump over the past few years have been projected to get back on track, much in Guyana’s favour. Oil — or “black gold” as it is often referred to — is a globally demanded commodity and as such, is a major revenue generator and when managed well can significantly transform the social, economic and infrastructural image of a country.

Saudi Arabia, Kuwait and the United Arab Emirates quickly come to mind; and it would be vital that Guyana puts systems in place to prudently manage its oil wealth, so that the country and all of her citizens benefit. It is encouraging that Guyana has already taken some initial steps in this direction by seeking membership in the Extractive Industries Transparency Initiative, a global standard for accountable management of oil, gas and mineral resources.

Prudent and transparent management of our natural resources cannot be over-emphasised, since an abundance of wealth never experienced before can be both a blessing and a curse in the absence of a clearly thought-out strategy to utilise it. The world has seen Nigeria, a major African oil-producing nation, and closer to home, Venezuela, among several other developing nations falling victims of the paradox of plenty — all valuable lessons Guyana should learn to avoid.

The case of Venezuela stands out. When oil was discovered there, exports from other sectors virtually disappeared and now with a global decline in oil prices, the economy of the Bolivarian Republic has been thrown into turmoil. Guyana will have to take careful note and should always engage in forward planning to circumvent unforeseen eventualities. Greater than committing in rhetoric would be for Government to commit in action to protect other productive sectors, so that Guyana at no one time is solely dependent on oil revenues to stay afloat like Venezuela, whose economy is 95 per cent oil- dependent.

For this reason, it would be prudent that some of the oil funds are invested in agriculture and cheap energy, so that Guyana remains food-secure and impetus is given to the manufacturing sector. Big industries such as rice and sugar should be diversified with emphasis on added value to avoid loss of jobs and to create new avenues of employment. And it is time that Guyana gives more attention to developing the coconut industry, which is among the fastest-growing industries in the world. With more money at its disposal, greater emphasis should also be placed on a modern approach to agriculture with the establishment of mega farms producing a variety of crops, as well as large-scale animal rearing, making greater use of modern technology.

Oil at no time should result in an abandonment of traditional sectors, but rather, developing and strengthening of them. It is necessary that Guyana moves along this path, since the oil will not be with us forever. We should look at where we would want to be after the oil dries up.

Aside from agriculture and cheap energy, it would be important that focus be placed on modernising public infrastructure, improving education, health-care, citizens’ standard of living and development of tourism. With a world-class tourism industry, a thriving manufacturing sector, an educated nation and a diverse and advanced agriculture sector, the future of Guyana will be secured for generations and generations after oil is no longer with us.