Dear Editor
Guyana’s newfound oil wealth invites inevitable international speculation about what the future holds. Though the emergence of the novel coronavirus strains the traditional resilience of international engagement in a globalised economy, the past emergence of rapidly developing markets remain topical lessons. Countries from Equatorial Guinea to the wealthiest emirates of the UAE and Singapore have all seen their own economic miracles in recent decades. Yet history has unfortunately shown that more countries wind up like Equatorial Guinea than Singapore – countries that are rich on paper but subject to the whims of commodity prices and plundered of their wealth by a small, Eurocentric elite. A key component of Guyana avoiding this fate will be constant, open-engagement with the world.

The premise for why Guyana needs to look globally is geography. Within its immediate confines, Guyana’s geography is poor. Short of a substantial, impractical, and unethical investment, its hinterlands are largely inaccessible. Regionally, its neighbors present few opportunities – two claim part of Guyana’s territory and one struggles to connect its far western cities with its Atlantic centers. Given these challenges and the opportunities farther afield, Guyana must unveil greater measures for international engagement.

Let us begin with steps for increasing the country’s hard diplomatic footprint. What happens politically in the coming months will mean significant ramifications for Guyana’s relationship with CARICOM. A committed diplomatic corps in the few remaining Caribbean states where Guyana lacks a footprint has some value in asserting its commitment to the region, but a truly balanced relationship requires a commitment from CARICOM to Georgetown. A government drive to create some incentive package for new embassies or agency offices in the city ought to be pursued for the potential value to regional dialogue and trade negotiations. Yet this pales in comparison to continental and international diplomatic dividends.

Such an expanded diplomatic focus domestically and abroad promotes financial opportunities in nearly every region. The current presence in Europe is laudable for a state of Guyana’s size, but there should be a more aggressive pursuit of concessions from EU bodies. Current efforts have secured wins like the removal from the money laundering watchlist, but education and environmental money has been left on the table. Following the lead of other developing regions, there is a proven model to secure developmental aid for the higher education sector and environmental stewardship; the EU has previously given millions of dollars to conserve natural resources in Central America and has shown an intent to help conserve Amazonia. Finally, preemptive engagement with the superpowers and South America translate to concrete economic gains.

The framework for Guyana’s growth will necessitate trade negotiations. Currently, MERCOSUR is seeking a major free trade deal with Singapore that would undoubtedly benefit Guyana. However institutional issues in these negotiations highlight the need for greater action from the Guyanese government. As the deal is currently written, specific language for freedom of movement in high skill industries has left future employment options on the table. Recognising this, we see Guyanese interests should take a greater role in MERCOSUR talks or be pursued independently through bilateral FTAs. This latter option is only underscored by MERCOSUR delaying the deal, largely because of other member states who have struggled with the COVID-19 outbreak. If this matter does not highlight the importance of diplomatic flexibility to Guyana’s future, then the US and China should.
The booming commodities trade will necessitate improved processing and export infrastructure near Georgetown, as well as sufficient security to protect cargo. While the government can independently work to guarantee this, an efficient option is to negotiate with the world’s two major superpowers. Sure, neither country is the perfect ally – US military facilities are a lightening rod for controversy and China is a key backer of Venezuela – but balancing their interests can be done to Guyana’s gain. Already, Pakistan has used a similar strategy to finance the Gwadar Trade Port and its military, while Turkey has acted likewise. Playing off powerful states can save billions in port construction, maritime surveillance, and general infrastructure improvements.

Lastly, there are internal reforms which can encourage international engagement and investment. Geographically, Guyana sits at an underutilised touch-point for four continents and has a linguistic advantage with English proficiency. This first highlights the value of building the country into a major air and sea port. There is little competition for maritime traffic within the region, which makes securing a container port an easy priority. COVID-19 makes air travel a risky investment, but a long term goal of a globally-connected airline – in the vein of Qatar, Emirates, or Singapore Air – which could even be backed by one of these aforementioned carriers, would be critical in asserting Guyana on the world stage. This translates into a booming domestic market. Greater attention on business-friendly reforms and low tax rates facilities the growth that Singapore, Ireland, and Dubai have modeled. Whether this is expressed in inter-continental banking, expat living, or high-paying ecotourism, Guyana is poised to profit.

Part of what separates the mineral-rich islands of inequity like Equatorial Guinea and Angola with the booming centers of the UAE and Qatar is the willingness to engage with the world. Pursuing just a few of the initiatives outlined replicates the reforms of the past few decades’ most successful economies. What remains to be seen is if Guyana settles for isolating, one-off oil payments or uses this as the country’s introduction to the full extent of the world’s current markets.
Regards
Andrew Langford