There is an old saying that ‘Money is the root of all dissension’, and this has become an actuality now that Guyana has become a country earning substantial oil revenues. There have been numerous voices demanding how the funds should be utilised, but the three proposals which most have settled on are: Firstly, that all the revenues should be periodically distributed to every citizen at a million dollars each time; secondly, that the bulk of the revenues be similarly distributed with a small proportion being spent of social services; and thirdly, that a part of the revenues be kept as reserves, a part spent on social services such as health and education; judiciary, increasing salaries, pensions and grants given from time to time for specifics such as school uniforms or assistance to fishermen so that they could maintain the fishing industry with the major part of the revenues being devoted to investing in developing the non-oil sectors of the economy.

The present Government have adopted the third alternative. They have been meticulously putting aside reserves and spending on social projects such as in health, education, judiciary, pensions, salaries but the major part of spending is directed to investment in developing the non-oil sectors of the economy. This commitment to diversification of the economy is intended to guard against the almost magnetic pull of becoming dependent on oil. Countries which become dependent on oil suffer great hardship and even poverty when the oil reserves become depleted or when oil prices fluctuate downwards. This scenario is known as The Dutch Disease. Several countries have been afflicted by the Dutch Disease, Venezuela, Guyana’s neighbour, being one of the most prominent.

Guyana, in addition to the social spending as mentioned above, that is, spending on health, education, pensions, increasing salaries and giving grants for specifics, has been heavily investing in infrastructure, agriculture, mining and forestry.
The various new roads, the repair of older roads and the building of new bridges are interconnecting the country, and for the first time, the interior and the coast are being united. The privately owned aeronautical industry is being supported with the repair and construction of new airstrips countrywide. This interconnectivity is providing the foundation for the economic take-off of the country. Indeed, without the new infrastructure, the other aspects of the economy which are being developed could never attain full fruition.

Agriculture is the other aspect of the economy on which most investment is being made. The rice industry is being successfully expanded and Guyana is even helping Trinidad to resuscitate their rice industry. Sugar, which was almost consciously destroyed some years ago, is beginning to have a new lease of life. Honey, which is a profitable niche market, is fast growing and new crops such as wheat and millet with soya and corn are being grown. Livestock with sperm from Frisian sperm banks and Blackbelly sheep from Barbados are improving this sector. Fish and shrimp farms are being developed and many fishermen, with government help have renewed their boats and engines. And there is a Caribbean market of six billion dollars to absorb all of Guyana’s agricultural products.

Manufacturing industries such as food packaging, production of spices, jams and preserves, wooden furniture for a niche international market and even some types of garment manufacturing are already being entered in expectation of the cheaper power which will come with the “Gas to Shore Project” in less than two years.
Mining, especially for gold, has been expanding and quarrying for stone and sand has been growing with the demands of the construction industry and infrastructural developments. The Forestry industry has been expanding at the same time, paying attention to Low Carbon Development from which Guyana has been earning millions of dollars.
The economic and developmental model as a new oil-producing country that Guyana has been pursuing has firmly avoided the Dutch Disease, kept inflation under control, and would still be prosperous when the oil resources would have been depleted.
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