GUYANA has been given high marks by the International Monetary Fund (IMF) for its handling of the economy, especially in the context of the country’s emerging status as an oil-and-gas producer.

The IMF is a global multinational financial institution which has, over the decades, provided not only financial assistance to member countries but also policy and technical advice. As such, the views and opinions of the IMF cannot be dismissed or brushed aside, since they could influence the decision-making processes of other financial institutions.

This is not to suggest that the views of the IMF are sacrosanct or always correct. There are instances when the policy prescriptions of the IMF had resulted in protest actions in several countries because of its sometimes harsh conditionalities on borrowing countries. In the final analysis, borrowing from the IMF remains a sovereign decision and cannot be imposed against the will of a sovereign state.

Guyana, under the previous PNC regime, had borrowed heavily from the IMF to service its unsustainable debt burden and address severe balance-of-payments difficulties. Such was the extent of the economic devastation under the Burnham regime that Guyana was declared by the IMF as ‘uncreditworty’ and further loans to the country had ceased. It is apposite to recall that under the previous PNC regime, no report by the Auditor-General was presented to the National Assembly for 12 consecutive years, an indication of the extent to which emphasis was placed on transparency and accountability by the previous regime. The economy had reached rock-bottom and life for the average Guyanese was a living hell.

That narrative has now changed thanks to prudent economic and fiscal management by successive PPP/C administrations. Indeed, the IMF has now applauded the current administration on its progress in strengthening Guyana’s anti-corruption framework and fiscal transparency. At the recently concluded 2022 Article 1V consultations with the Guyana Government, the IMF highlighted several pillars that have been fortified by the PPP/C administration to ensure transparency and the stand against corruption.

Among the several pillars identified are the Integrity Commission, the Public Procurement Commission, the National Procurement and Tender Administration Board, the Auditor-General reports and the implementation of the Extractive Industries Transparency Initiatives. No less significant from a governance and transparency perspective are the amendments made by the PPP/C administration to the Natural Resources Fund Act which, according to the IMF, “set clear ceilings on withdrawals from the fund for budgetary spending and promote transparency in the management and use of oil resources.”

It is not a matter of surprise that Guyana has been removed from the Caribbean Financial Action Task Force (CFATF) and the European Commission’s Money-laundering blacklists. This fact has not escaped the notice of the IMF which has offered technical support to the Guyana Government as it seeks to further strengthen its macroeconomic and fiscal management, develop its financial market infrastructure and strengthen its statistical capabilities.

Despite the challenges of the COVID-19 pandemic, the war in Ukraine and climate change, the Guyana economy continues to be robust. The oil Gross Domestic Product (GDP) is projected to grow over 100 per cent in 2022 and by 20 per cent on average per year during the 2023 to 2026 period. And, according to the IMF, Guyana’s commercially recoverable petroleum reserves are expected to reach 11 billion barrels, one of the highest per capita level in the world.

The Guyana Government came in for high praise by the IMF for the massive decline in public debt and favourable debt dynamics and the administration’s commitment to maintain debt sustainability.

Given the significant economic strides made over recent years due in large measure to the impact of oil, the temptation to appreciate the Guyana currency vis a vis the United States dollar could be strong, but this has to be tempered by the net benefits accruing to the country based on current exchange rates, while allowing for some flexibility to absorb shocks and maintain competitiveness. As observed both by President, Dr Mohamed Irfaan Ali, and Vice-President, Dr Bharrat Jagdeo, such a move to appreciate the Guyana currency could have severe implications for Guyana, especially in terms of our export competitiveness.

There is no question that the economic health of the country is in good hands, thanks to good governance coupled with sound economic management principles adopted by the PPP/C administration.