POVERTY alleviation should be the central focus of any leader but should be of particular concern in countries where there are significant gaps in the distribution of wealth and the ability of people to meet their basic needs. As Guyana undergoes rapid transformation, consistently recording significant economic growth, poverty alleviation should remain the country’s primary concern to curtail the widening of inequalities.

With successes in oil exploration and production offshore, and the subsequent accumulation of substantial profits, there has been a widespread perception that people’s quality of living should be improved. Part of that means alleviating poverty from at least a third (using conservative figures) of the population.

So far, the provision of various cash grants/ transfers has, perhaps, been among the more visible and tangible efforts at cushioning the exacerbated economic impact of external shocks- that is, challenges stemming from the COVID-19 pandemic and later, the Ukraine- Russia crisis. And while scores of economies around the globe struggled with those challenges, Guyana has been able to boast that rapid development in-country, largely attributed to the nascent oil and gas sector and its spinoff developments- placed it in a secure position.

There are several benefits one would expect from cash transfers- particularly when significant price hikes are gripping people’s pockets. In the first instance, people have more disposable income to supplement their spending. Additionally, research has found that such cash transfers may lead to an improvement in people’s psychological state and they can help stimulate production and trade (because with more money to spend, people may want more things).

I suppose, from the government’s point of view, providing cash grants is a wise investment because people are expected to spend that money back in the local economy. In doing so, money circulates within the economy, stimulating business activity, generating taxes and helping to meet some of the people’s needs.

A $25,000 grant, for example, might not seem like a huge amount at the household level, but when the total sum is distributed, it represents a sizable reinjection into the local economy.

Those macroeconomic considerations aside, however, I believe that such short-term measures must only complement- not overshadow or replace- more systemic efforts at poverty alleviation.

To the government’s credit, there is evidence of such efforts and plans. In agriculture, for example, single mothers are targetted for dairy production plans, and young people appear integrally involved in the ongoing youth agriculture and entrepreneurship initiative. These initiatives will help empower vulnerable groups of people, enabling them to generate income for themselves and meaningfully contribute to Guyana’s development.

There have been various efforts at offering much-needed skills training to people, be it from the Human Services, Education or Public Service Ministries. Skill improvements allow people to become gainfully employed or if taken further, create entrepreneurial ventures. Underpinning these efforts is the intention to empower people and help them take care of themselves instead of solely providing welfare support.

Undoubtedly, these efforts are great, and President Dr. Irfaan Ali recently told a gathering of members of the Guyanese diaspora in Los Angeles, California, that his focus will be directed toward people who are empowered and can gain a secured income. While that is a noble promise itself, he assured the gathering that his government has a much larger plan for poverty alleviation.

Until poverty is eradicated, I don’t think any suite of measures, projects, or programmes implemented will ever be enough. But I hope that emphasis will be placed on ensuring that the people most affected- vulnerable women, children and minority groups like our indigenous people and the LGBTQ+ community- are primary considerations.

An important need, too, at least in my opinion, is the application of data-driven monitoring and evaluation mechanisms. This could help to answer pertinent questions and strengthen interventions for the future. For example — How did people really benefit? How can those interventions be improved? Was there a disproportionate impact of a problem on one group of people, thereby requiring additional focus?

Guyana, perhaps now more than ever, is uniquely positioned to exploit its resources to help improve the lives of all its people-hopefully doing so without irreparably harming the environment (but that’s another column). I hope that this oil boom is not squandered and that the large sums of cash expected will be used wisely.

If you would like to discuss this column or any of my previous writings, please feel free to contact me via email: vish14ragobeer@gmail.com