THE 2025 International Monetary Fund Article IV Consultation Report has asserted a blanket approval of Guyana’s approach in managing its new oil riches, delivering confirmation that the management of the Natural Resource Fund (NRF) by the administration is an exemplar of fiscal responsibility worthy of international recognition.

This award should not be glossed over: In a world where resource-endowed countries are prone to suffering the “resource curse,” Guyana has done something different by combining good management and foresight.
The IMF projection that NRF assets will constitute a staggering 360 percent of non-oil GDP by 2042, says something about the transformative potential of Guyana’s measured approach to its petroleum bonanza.

The action of the government to raise the limit for withdrawals under the NRF in 2024 is not fiscal recklessness, but a well-thought-out measure that balances near- term development imperatives with future prosperity.
The prudent approach funds enormous capital expenditure on strategic infrastructure and social services and simultaneously saves wealth for subsequent generations of Guyanese.
The new system, which applies a sliding scale for the withdrawal of the first US$5 billion of deposits but retains 90 percent of deposits above this, demonstrates sophisticated financial planning that is embarrassing many of the older oil-producing nations.

Such policy flexibility combined with strict parliamentary control creates a safe system that is resistant to the mismanagement that has cursed other resource-based economies.
Transparency forms the foundation of Guyana’s resource-management strategy, with the NRF Act 2021 detailing exact measures of regulation in terms of oil revenues and mandatory public disclosure of every transaction.

Public disclosure of the US$605.5 million paid into the NRF for the first quarter of 2025 is a classic example of the same pledge of transparency.
Unlike the approach of the previous administration, accused of secrecy in the management of oil revenue, the current government has instituted tough accountability including parliamentary authorisation of withdrawals and severe penalties for non-disclosure of petroleum revenues.

Vice President Jagdeo’s assertion that “every cent of oil revenue is accounted for” is reinforced by institutional measures that make such assurances more than mere politics.
The prudent stewardship of the NRF has positioned Guyana on a trajectory to avoid the boom-and-bust cycles that have devastated other resource-based economies.
With three of its major projects already producing in excess of 600,000 barrels of oil per day and three more set to be in production between 2025 and 2027, Guyana can potentially become an energy behemoth, producing in excess of 1.3 million barrels per

day. But what makes Guyana’s strategy stand out is not only the remarkable production levels, but also the strategic redirection of these revenues into a fund that will serve both the present and future generations.
The government taking US$600 million out of the NRF and placing it in the Consolidated Fund in 2023, illustrates how the oil wealth is being used to meet near-term development needs without sacrificing long-term fiscal resilience.
The IMF’s endorsement should silence critics who questioned whether a developing nation such as Guyana could manage such enormous resource wealth responsibly.

The tight fiscal framework under which the NRF is run, with its open withdrawal guidelines and statutory debt limit, has served to successfully reconcile competing national priorities.
While some opposition voices and media continue to question government policies, as is the case with the Stabroek News oftentimes in what could be termed “bitter and petty political editorials,” the reality  proves a model of successful management of resources.
The government has proved that good resource management and speedy development need not be mutually exclusive goals.

As Guyana continues with its superior economic miracle, keen attention will be required to assist in ensuring that transparency and accountability remain top priorities.
The IMF’s initiative with member governments on fiscal risk management offers highly effective tools Guyana needs to hold on to as it has to overcome advanced challenges in curbing its burgeoning resource wealth.
The NRF is not just a savings vehicle, it is also a comprehensive strategy for the conversion of limited natural resources into lasting prosperity.

With continued sound management and astute investment of oil revenues, Guyana can achieve what numerous resource-rich countries have so far been unable to do: The conversion of underground wealth into sustainable, broadly based economic growth that accrues to the advantage of future generations.