Guyana, with its huge oil and gas reserves find, is never going to be the same. The possibilities are positively skewed with an upward trend, and its development into an ultra modern state, rivaling Gulf Cooperation Council (GCC) states in the middle-east, is a distinct outcome. But, let it be understood, Guyana also faces huge challenges.
The recent history of the country had been one of political and economic turmoil, resulting in mass migration to mainly North America, with Trinidad being a transshipment point. In as late as September 2015, Guyana was classified as Post-Completion-Point HIPC by the International Monetary Fund. Guyana has suffered greatly over the years, despite its enormous potential in natural resources.
Now, however, it’s going to be a different story, but Guyana, for it to be successful in the future it must resist the urge to spend expansively and not allow growth to take place in an adhoc manner. That is to say, given its new found wealth, growth and development of the country must be strategic and with an emphasis of preserving gains the country’s future will depend on. The Regulatory framework must be strong and given today’s technology, enforcing regulations is no longer an issue. The country, its governance, its society, business, education, health and economy depends on the mindfulness of its regime, and the will to act in the best interest of the country at the negotiation table.
There are going to be many issues in the growth stage, and this the point where it must be vigilant in ensuring its best interests are served. Political regimes in the CARICOM are not renowned for pragmatism, and this is an inherent problem, further exacerbated by the hypnotic charm of new found wealth. As an under-developed country, the threats are great, as the profit motive settles in. For this reason, investment in the Guyana market, will be tricky, as business is conducted in the same old manner and models that has stunted growth and development in the region.
Having said that, the opportunities are so great that it stuns the mind. Guyana’s interior resources needs to be harnessed and developed, in energy, infrastructure and services. It’s vast resources of arable land, harnessable hydro-electricity, forestry, agriculture, mineral resources in gold and other precious metals are tremendous. The remnants of its sugar industry, is another potential revenue earner as a biofuel producer.
Developing these others sectors of the economy will help the economy to be resilient to shocks that will be created from the volatility of oil markets. The importance of having a diversified economy, is easily demonstrable in the present zero growth circumstance faced by neighbors Venezuela and Trinidad and Tobago.
It is therefore of utmost importance that Guyana embark on a strategic plan that will ensure its sustainability in the far term!