AS thousands of parents and guardians this week begin lining up at schools across Guyana to collect the government’s Because We Care cash grant, the initiative once again demonstrates a fundamental principle of public policy: investments in children are among the most effective investments a nation can make.
This year’s $85,000 per child distribution comprising a $60,000 cash grant, a $5,000 uniform allowance and a new $20,000 transportation grant is not just a transfer of funds, but a concerted effort to reduce barriers to education and to support household stability.
The scale and importance of the programme is underlined by the appeal from Minister of Education Sonia Parag to parents to fully participate in the nationwide distribution exercise.
An estimated $12.4 billion will be transferred directly to households across the country this year, benefitting approximately 206,000 children in public and private schools.
Such figures put the Because We Care initiative among the largest social-support programmes currently operating in Guyana.
The programme’s development over the last decade tells an important story about changing ways of educational support in Guyana.
The initiative was first introduced in 2014 by the PPP/C administration as a $10,000 grant, but it was halted after the change of government in 2015 and was brought back in 2020 when the PPP/C returned to office.
Since then, the grant has expanded incrementally, from $19,000 in 2020 to the current package valued at $85,000 per child. The expansion of the programme to students of private schools in 2021 has broadened its scope and strengthened its universality.
Critics of direct cash-transfer programmes often ask whether these initiatives are sustainable public policy or merely short-term relief. This is not a debate exclusive to Guyana, nor is it without merit. Cash-transfer programmes are increasingly being adopted by governments and international development institutions around the world as effective tools to reduce poverty, improve education outcomes and increase household resilience.
Evidence from developing economies is consistent that direct financial support to families, conditioned on children’s welfare and education, often leads to long-term human capital development in addition to immediate consumption.
However, in the Guyanese context, the Because We Care grant holds a particularly special place.
While Guyana is experiencing unprecedented economic growth fuelled by oil revenues, many households are still grappling with the increasing costs of education, transportation, and daily living.
The start of a school year can often be a huge financial burden on families, especially those with multiple children. School uniforms, books, transportation, stationery, electronic devices and other education-related needs can quickly drain household budgets.
This year, the $20,000 transportation grant is a big bonus. Transportation costs have become an increasingly significant cost for families, especially for those in rural and hinterland communities, where accessing educational institutions often involves substantial travel costs.
Policymakers have shown an understanding that education extends beyond the classroom walls by recognising transportation as a distinct educational barrier.
But programmes like Because We Care should not be judged solely on the amount of money that is distributed.
Questions of efficiency, transparency and long-term impact are also important. The government’s plan to send teams to all administrative regions and have ministers directly oversee the distribution process indicates an understanding that the public’s trust in such initiatives is largely contingent on successful implementation.
There is also a broader economic aspect to consider. The injection of billions of dollars into households means immediate economic activity as families buy school supplies, clothing, transportation services and other necessities. Money spent locally benefits local businesses and circulates through the economy.
At the same time, policymakers need to be alert to the possibility that times of grant distribution could be exploited for price gouging or artificial inflation of prices of key goods and services, issues that have been raised periodically in the public debate.
The Because We Care programme is, in the end, not just a social programme; it is a manifestation of a broader philosophical question regarding the role of government in national development.
For Guyana’s remarkable economic transformation to yield meaningful and equitable results, investment in education and human capital must remain top of mind. Oil revenues have the potential to fund roads, bridges and infrastructure, but it will be the educated, healthy and supported citizens who will determine whether a country’s prosperity is sustained across generations.
The transaction should be seen as more than just a distribution exercise this week as parents collect their grants.
It is a reminder that the real wealth of any nation is not beneath its soil, but in the opportunities it builds for its children.
At the end of the day, it will not just be the revenues that Guyana receives that will determine its future, but how it invests in those who will inherit that future.