GUYANA’s national interests are defined in large measure by the extent to which its citizenry benefit from a standard of life in which their material, cultural and spiritual well-being are met to the full extent of the available resources.
Guyana, over the decades, has had an economy that was, in the main, agro-based whereby the production of sugar was the major source of export earnings.
Such was the dominance of sugar on the economy under the ownership and control of Bookers McConnel Group of Companies that the colony was once dubbed ‘Bookers’ Guiana.’
That trend continued for the greater part of our colonial existence until the late 1950’s when the PPP administration took office in 1957. The first task of the new administration was to broaden the base of the economy.
The economy became less dependent on sugar, as rice production picked up momentum and became a significant source of foreign exchange earnings. In addition, the manufacturing sector expanded significantly with the opening of several industrial sites and concessions to the private sector.
Much of the economic and social progress made under the PPP regime were reversed after the PPP was removed from office in the 1964 elections. The new PNC-UF coalition removed several private sector incentives. Subsidies to farmers were also removed. The PPP was accused by the then political opposition of being a ‘rice government.’
Little wonder the economy stagnated and for several consecutive years registered negative growth. Living and working conditions of the Guyanese people recorded an all-time low by the end of the 1980’s. Guyana became one of the poorest countries in the western hemisphere, slightly ahead of Haiti in terms of per capita income.
With the return to power of the PPP/C government on October 5, 1992, Guyana’s economy became increasingly broad-based and diversified. This was indeed a welcome development from the failed economic policies of the then PNC regime, especially in the context of our dependent colonial past when the economy was highly skewed in favour of a narrow range of exports.
This diversification process picked up further momentum with exploitation of our carbon resources. The country is now experiencing an economic boom, thanks largely to the burgeoning oil and gas sector. Indeed, Guyana’s economy is one of the fastest growing in the world.
Yet there are some who continue to see doom and gloom especially in relation to oil and gas. They completely ignore the fact that Guyana is already benefitting substantially from the sector, despite the fact that the government’s spending in the exploratory and extraction phases of the operations have been, at best, minimal.
No one can deny that the share of profit-oil accruing to the government is less than desirable. This reality, however, is not something that this current administration has any responsibility for. The contract with Exxon Mobil was admittedly skewed in favour of the oil companies, a fact acknowledged by both President Dr. Mohamed Irfaan Ali and Vice-president Dr. Bharrat Jagdeo. They have both committed to ensuring that new contracts entered into with the oil companies are done on terms and conditions much more favourable to the Guyanese people and in keeping with the best by way of industry standards.
Yet these assurances are not given prominence by so-called “experts” who continue to bemoan the lopsided nature of the current contract and the “loss” of potential revenues from oil. They seem oblivious to the fact that the opportune time for the harbouring of our carbon resources are not infinite in light of the emphasis on clean and green energy by global policymakers.
Guyana’s best interests cannot be realised by exaggerated fears of environmental hazards and ecological degradation. No business venture is free from the element of risk. The critical factor is to have a careful assessment of risks versus benefits. In our case, the benefits of oil clearly outweigh the risks which accords with our best national interests.