SINCE the discovery of Oil and Gas in Guyana, journalists and other public commentators, both locally and internationally, have been predicting that Guyana would inevitably be afflicted with the Dutch Disease. This occurs when all economic life becomes focused on the oil and gas industry since its revenues and incomes are so lucrative and that the other segments of the economy which once used to support the country would now be neglected, become uncompetitive and decline.  When the Oil resources become exhausted, or there is a prolonged period of falling prices, the spectre of poverty would again arise and it will be exacerbated since all other industries would have fallen into decline.

The intelligentsia and those faced with managing the oil and gas industry are aware of the dangers of the Dutch Disease and have established a tightly protected Natural Resources Fund wherein the oil revenues would be deposited and withdrawn with transparency.  Part of the funds would be kept for future generations and part would be used for current activities, which would include the long-desired injections of developmental capital into the social and economic life of the country.  Investment in economic life would include Agriculture, Mining, and the creation of a manufacturing sector.   Social spending would be made, among other areas, in raising the Health and Educational standards and subsidising costs for citizens, increasing pensions and wages, and giving grants for specifics and cost of living relief.  The overall aim is to keep increasing the disposable income of citizens.

Before oil was discovered, the country’s main earnings derived from Agriculture which included the Sugar, Rice, and coconut industries and food and fruit crops, and fishing and Mining, which included the bauxite and gold industries; all these industries were always in the mode of struggle for investment capital.  Now that investment capital has become available, the policy is to create a strong, sustainable and diversified non-oil economy.

Recently, Vice President Dr. Jagdeo has said that Agriculture is as important as the Oil and Gas industry, and in this offering, we will review how Agriculture is being strengthened and expanded to prevent any infection from Dutch Disease: Last year, 7 percent of the Budget was allocated to Agriculture which was $38 billion.  This amount of funds was almost twice what was spent in 2020.

This money was invested into all aspects of Agriculture: introduction and development of new crops; development of traditional areas of Agriculture; development of Marine aspects; and investment in international cooperation and Marketing.  The very able and proactive Minister of Agriculture, Hon Zulfikar Mustapha, has provided expert and forward leadership never before experienced in the Ministry.

Wheat flour is one of Guyana’s main imports and its shortage or absence leads to much suffering and the destabilisation of the political life of the country.  The Ministry of Agriculture has been experimenting in Regions 8 and 9 with wheat cultivation, and several varieties of tropical wheat have been imported from Mexico.  From all reports, the first crop of wheat would be reaped before the year’s end.  If wheat could be grown economically, it would save the country much foreign exchange and may, in time, graduate to an export crop like Rice.

Several other new crops have been introduced and these include soya and maise (corn), which have been planted along the Berbice River and in a few months, 1000 acres of soya would be reaped.  Corn and soya are used for animal fodder and would be an import substitution.   Several spices – ginger, black pepper, nutmeg, and turmeric have been successfully grown and their acreage would be expanded.  Floriculture has been embarked upon with the cultivation of roses and in time the repertoire would include other flowers and orchids.  The late Boyo Ramsaroop had established a profitable flower export trade and this resuscitation of Floriculture promises to be a profitable earner.

Coconut cultivation is being expanded to meet the insatiable world demand for coconuts and their byproducts.  One of the byproducts, coconut oil, is now comparable to olive oil and is preferred over olive oil by a growing number of consumers. To improve the cultivation, 1000 Brazilian high-yielding dwarf seeds have been imported and are growing.

In addition to coconuts, the traditional crops of Rice and Sugar were addressed.  Rice production increased and additional drying floors were constructed in Regions two and four.  A new market for packaged rice was found in Lebanon.  Sugar began its slow revival and Rose Hall, Enmore, and Skeldon estates were reopened and approximately 1500 workers were employed.  The mechanisation of the factories is progressing and the expansion of the packaging plant at Blairmont will soon be completed.

Agriculture requires efficient drainage and irrigation as well as several good roads.  The pump stations and sluices throughout the Agricultural areas have been rehabilitated and much work has been done on the roads, in particular the farm-to-market ones.

Fishing was supported, and fisher folk received over $ 1 billion grants, which they would use to rehabilitate their boats and engines.  Cage culture for fishing was introduced and eight cages were acquired.  Brackish water shrimp production increased and a Prawns project was being developed at Onverwagt.

Livestock development continued with the importation of several hundred Black Belly sheep from Barbados, and over 60 bulls from Texas for genetic improvement, and a modular pig slaughtering and processing facility was established at Garden of Eden.

The Ministry of Agriculture personnel and other agriculturists attended several conferences in the Caribbean and Latin America and were able to establish useful networking, some of which with potential investors.  A Guyana/ Barbados Food Terminal was established in Barbados which would assist in marketing Guyana’s agriproducts.  CARICOM also accepted Guyana as the main supplier for its $ 5 billion food market.

The successful efforts in Agriculture over the last year are a clear indication that Guyana’s economy will remain diversified and profitable and that Dutch Disease will not be infecting this country.