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– Guyana dismisses sweeping claims in NY Times article
– says steps being taken to avoid pitfalls in oil sector
GUYANA on Sunday made it clear that it is “fully aware of the dangers surrounding resource-rich countries” and as a result has done extensive research on issues of the “pre-source curse where unrealistic expectations ahead of oil production result in demands for higher wages and government spending, and the other two pitfalls — the resource curse and Dutch Disease.”
The Ministry of Finance’s statement follows an article written by New York Times (NYT) national energy business correspondent Clifford Krauss titled “The $20B question for Guyana” which, in an attempt to highlight the country’s prospects of becoming an oil rich nation, painted an untrue picture of the country’s state of affairs.
In the article which has caused much public outcry, Krauss asserted that “foreign bank developers have told the government that legislation to create a sovereign wealth fund… lacks sufficient regulatory controls to avert corruption” and that “The legislation is in limbo.”
Will oil will give Guyana a second chance? Or is another failed state in the making? https://t.co/IbRRNwb8t3
— Clifford Krauss (@ckrausss) July 20, 2018
In response, the Finance Ministry made it clear that “in crafting the National Resource Fund Act (NRFA) we have asked for advice from several international institutions, including the International Monetary Fund, the World Bank and the Commonwealth Secretariat”.
The proposed legislation specifically addresses two main issues: the stability of the economy to absorb increased government spending and economic activity; and the balance between spending on critical development projects and the long-term goal of saving for future generations.
This is also laid out in a Green Paper which will be presented to the National Assembly.
Additionally, the Finance Ministry said that the NRFA, which will be laid in Parliament before the end of the year as indicated in Budget 2018, is the culmination of many lessons learnt around the world by resource-rich countries over the past 100 years.
TRANSPARENCY
“Crucially, it directly addresses the transparent handling of, and accounting for, the oil-related funds from depositing in the NRF to their spending which can only be done via the Annual Budget approved by the National Assembly.”
The fund itself is to be managed by the Bank of Guyana and overseen by a committee that encompasses several independent interest groups, including a representative nominated by the Leader of the Opposition. Quarterly reports on its activity will also be presented to Parliament.
“We are confident that the NRFA will fully address these legitimate concerns,” the Ministry added while noting that the overriding impression of the article is that the Government and the country are hapless, and unable to deal with the new oil sector.
“We acknowledge there are serious human skills deficits, but the Government is proceeding carefully and methodically towards First Oil. The National Resource Fund will be in place before 2020,” the ministry assured.
Meanwhile, addressing the article’s narrative of a “Poor man wins the lottery; disaster ensues,” the Ministry of Finance notes some of Guyana’s most pressing challenges “and raises the question of how we as Guyanese see ourselves and our country.”
SINGLE STORY
The ministry noted that the article also calls to mind two quotes by the Nigerian novelist and short story writer Chimamanda Ngozi Adichie; “Show a people as one thing, as only one thing, over and over again and that is what they become” and “The single story creates stereotype and the problem with stereotype is not that they are untrue but that they are incomplete, they make one story become the only story.”
As such, the Ministry of Finance has called on all Guyanese to “reject the single story being told about us, no matter who tells that story. We must look towards the future with hope in our heritage, in the legacies of our ancestors and in the path that is being crafted for us now”.
TWITTER BACKLASH
Just because we don’t live in excess doesn’t mean that we are primitive.
— Sophie ?? (@spbj28) July 20, 2018
The ministry urged the NYT writer “to take a closer look at our country, its proud and resourceful people and our resilience in the face of the odds” as it expressed much disappointment with the article, making it clear that it will not address the “laughably simplistic and selective description of our country as a land where children go to school in canoes, the lack of historical context and the author’s deficit of understanding and sensitivity towards Guyana”; nor his blanket claim that “the civil service is corrupt,” which is an insult to the majority of hardworking and honest public servants.
On Saturday, U.S. oil giant ExxonMobil distanced itself from the article. In a statement posted on its Facebook page, the company said “The New York Times (NYT) is an independent media entity based in the United States. ExxonMobil did not pay for the reporter to travel to Guyana for this article.”
TWITTER BACKLASH
I can say as a Graduate from the University of Guyana, i have not migrated and i not infected with any disease. Just to make that clear.
— Ronald Austin Jr (@Asutin452) July 21, 2018
“ExxonMobil’s only involvement was our agreement to be interviewed and, at the request of the reporter, we offered to facilitate a tour of our contracted assets,” the statement said.
Against the backdrop of the narrative peddled by the author, ExxonMobil affirmed, “Guyana is a beautiful place, with beautiful people. We are happy to have the opportunity to operate and live in the communities of Guyana.”
Meanwhile, Krauss has defended his piece via Twitter where he said, “The New York Times pays the expenses of its reporters. And my piece was in no way derogatory toward the people of Guyana. Beautiful people, beautiful country. Problems, of course. And many, many Guyanese viewed my piece for what it was: critical but balanced journalism.”
