Guyana Is Striking It Rich The Right Way

Getting Rich, Right Guyana Past efforts at reforming the constitution of Guyana have yielded little change. Now, however, as the small South American nation prepares to dole out the benefits from new oil drilling, advocates say the recently empaneled Constitution Reform Commission must create a new political and economic order. “A political system that gives the government – with a one-seat majority in the legislature – unrestrained control over natural resources breeds political discontent and instability,” wrote Americas Quarterly. Dubbed the “New Qatar,” after the oil-rich emirate in the Persian Gulf, Guyana is blessed with offshore oil reserves of more than 11 billion barrels, making it a leading oil producer in terms of per capita growth. Last year, the country’s gross domestic product increased by a third, the Guardian reported. This year, similar growth is expected. Formerly a poor country, people are receiving $5,000 public cash grants, parcels of land to build houses and university scholarships. Oil companies, knowing how important Guyanese oil is for their bottom lines, are fighting over who benefits the most from the reserves, too, added Reuters. But, despite the oil boom, many Guyanese folks are still struggling with poverty, noted the World Bank. The influx of cash, meanwhile, sparked inflation that caused prices of sugar, oranges, cooking oil, and peppers to more than double last year alone, while individual workers’ wages have remained stagnant, the Associated Press reported. A major test of knowing whether or not oil riches have spread throughout the country’s economy will be whether or not emigrants return to the country, argued the St Kitts and Nevis Observer in an editorial. Half of the country’s population lives and works elsewhere in order to make ends meet. Others also wonder about other repercussions. As National Geographic explained, Guyana’s natural wilderness is one of the continent’s best-kept secrets. Could a growing energy sector imperil this resource, the nascent basis of a tourist economy that could otherwise help balance out the country’s dependence on oil? In the New York Times, Rutgers University English and journalism professor Gaiutra Bahadur also pointed out how Guyana’s capital Georgetown faces serious challenges due to climate change and rising sea levels – but has little choice, it seems, than to develop carbon-based industries to survive. Also, how might the new economic climate impact the drug trafficking networks operating throughout Guyana and South America? Authorities recently captured a submarine in a jungle waterway with the capacity to haul up to three tons of cocaine, for instance, CBS News wrote. Now, analysts say the country has a unique and amazing chance: To get rich in the right way.