When wisely deployed, oil revenues will propel Guyana to First-World status

[ad_1]

FIRST World status is the kind of society to which countries in Europe and North America have evolved. In such societies, the economic and social well-being of the population is well taken care of. Poverty has been eliminated, and the State provides for the educational, health and other social amenities required by the population. The economies are productive, and the working population are employed. Law and Order pervade everywhere, and one’s life, property and safety are secure. Human rights such as democracy and freedom of speech and assembly are practised and promoted by such societies. All undeveloped and developing countries, such as Guyana, are striving to achieve First World-type societies.

Having enough wealth to fund such societies is a prerequisite for achieving them. The development of the oil industry has been one of the quickest ways of earning the vast sums needed to fund the advent of such societies. Four years ago, Guyana suddenly found itself among the oil producers, and unlike most Third World countries, which have found themselves suddenly being able to enter the corridors of great wealth, there was no wild celebration or euphoria among Guyanese. Several foreign journalists had made their way to Guyana to report on how the unsophisticated natives were celebrating, only to find normality, and Guyanese people going about their business in the usual way. This disappointment incensed several of these journalists, who were reduced to reporting what a backward and unsanitary place Georgetown was, but there was no Guyanese riposte to these false insults.

Instead, Guyanese have been debating how best to deploy their oil revenues, and the first side of the debate has advocated the very attractive proposition that the bulk of the revenues be distributed to every citizen after putting aside a small amount for savings. It was felt that wealth was there for the unrestrained enjoyment and use of the population. There are, however, two inhibitory factors that would delay such rapid wealth distribution. The first is that at this time, the oil revenues are too small for any meaningful individual distribution, and secondly, there are examples of countries coming into great wealth and, after using it, finding themselves as poor as before.

Suriname, when it became independent, was given a “golden handshake” of a billion dollars by a former colonial power, the Netherlands. Suriname used the money to buy consumer goods of every kind, even confectionery. And people from Guyana and other Caribbean countries went to Suriname to shop. Suriname was, in the times of the “golden handshake”, a pleasant place to live. But after a few years, the money was exhausted, and Suriname returned to its poor condition. The advocates of distribution feel that it should be done as soon as enough oil revenues accumulate.

The other side of the debate advocates that the oil revenues are essentially capital to be used for economic and social development, which the country has always denied. Further, money was to be used to generate wealth, and major consumption should only be financed from the wealth generated. The doctrine of the “Resource Curse” and the “Dutch Disease” whereby newly oil-rich countries neglect their old industries and focus wholly on oil and enjoy great prosperity which may last for a prolonged period, creating the illusion of permanency until the day of reckoning arrives, and for one of many reasons, the illusion of permanency is shattered. These reasons may include a decrease in resources, a fall in world prices, or sanctions limiting exports caused by war or strained diplomatic relations. This doctrine dovetails into the first proposition on this side of the debate.

The example of Venezuela could be used to support this side of the debate: Venezuela, before the discovery of oil, lived on Agriculture and Mining, and was regarded as a developing country. With the discovery of oil, Venezuela suddenly came into great wealth and the standard of living of a large part of the population was elevated. Since Venezuela has the largest oil reserves in the world, it was felt that Venezuela would continue to grow wealthier and wealthier, and both the population and government turned away from the industries that once supported the country, and focused completely on oil.

The socialist government of President Chavez was confident that Venezuela would always be wealthy, and he nationalised the American-owned-and-managed oil companies. The skilled expatriate staff left the industry, and corruption became widespread. This, together with the growth of authoritarian governance and the eschewing of democracy, caused the United States to impose sanctions, and Venezuela’s exports and oil revenues were reduced to a fraction of what they once were. Poverty and hunger became widespread, and a quarter of the population fled the country, and Venezuela, from being the richest country in South America, became the poorest. The Amerindian population, which was neglected and exploited as labourers, especially in the building industry, now became desperately poor.

Guyana has resisted the glitz of conspicuous consumption, and is investing the revenues in programmes and projects that will continue to grow socially and economically, finally achieving First World standards. Such programmes include the construction of roads and bridges interconnecting the whole country, and facilitating the movement of goods, services and people. Large investments are being made to give the population land and houses; hospitals are being upgraded, and new modern hospitals are being constructed in the Hinterland; schools and educational institutions are being built and upgraded in every part of the country; thousands of free Online degree programmes are stimulating higher education, and the University of Guyana is upgrading its programmes, and introducing new and relevant ones; and the Law-enforcing authorities are being reequipped and strengthened so that citizens and their property would enjoy greater security. Electricity is being made available by the supply of solar energy, and information technology, including computers, is becoming widespread in the Hinterland regions. The present industries are being expanded and made more productive. Agriculture, for example, the country’s biggest and most widespread industry, which employs a majority of the workforce, has embarked on a revolution. New crops are being introduced to satisfy domestic needs and with export potential, such as maise and soya and various spices, and even millet and tropical wheat are being successfully grown on an experimental scale. Rice production is increasing, and the export market is growing. The sugar industry is being revived and modernised and is fully satisfying local needs. The poultry and livestock industries are being upgraded by the import of American species of poultry and the introduction of Barbados Black Belly sheep and Holstein bulls and sperm.

The Gas to Energy project, whereby gas from the oil wells would be converted into electricity to be sold at half the present price and also be transformed into liquid gas for domestic use. The foundation is being laid for a strong and competitive manufacturing sector, and several new industries are awaiting the advent of cheap power to be launched, for example, glass and bottle manufacturing industries. A focused and serious effort is being made to bring justice to the Amerindian community as the “First People” and billions of dollars have been transferred to their villages to assist in their development and to permit them to enjoy the same social amenities and economic opportunities as the Coastal Regions. This side of the debate has taken a page out of the book of the First Side, which advocates wholesale distribution of oil revenues by making limited distributions. Other suggestions include transfers to social welfare such as increases in Old Age pensions, NIS pensions, personal financial grants to the entire adult population from time to time, financial grants to all school children for uniforms and equipment, provision of school meals, and grants to assist citizens in meeting their electricity and water consumption costs. These grants and transfers are meant to improve the quality of life and standard of living steadily and are not as noticeable as the wholesale distribution advocated by the First Side of the debate. The population would eventually have to decide whether they wish to have the oil revenues distributed for immediate use as the very popular rhumba song once advised: “Enjoy yourself, it’s later than you think, the years go by as quickly as a wink. Enjoy yourself, enjoy yourself or whether they would use the funds as development capital for the non-oil sectors while at the same time allocating funds for the social sectors such as Health, Education, pensions and periodic modest grants to the population so that the country keeps developing three-dimensionally, though almost imperceptibly and without glitz, until in four or five years it achieves First World Standard. The country has already embarked upon this second course, and the discerning are beginning to see some achievement.

[ad_1]

Source link : http://www.bing.com/news/apiclick.aspx?ref=FexRss&aid=&tid=66dd3d8b8422455a8f035e33f23008eb&url=https%3A%2F%2Fguyanachronicle.com%2F2024%2F09%2F08%2Fwhen-wisely-deployed-oil-revenues-will-propel-guyana-to-first-world-status%2F&c=11060074686066633740&mkt=en-us Author : Publish date : 2024-09-07 18:00:00 Copyright for syndicated content belongs to the linked Source .

M	T	W	T	F	S	S
1	2	3	4	5	6	7
8	9	10	11	12	13	14
15	16	17	18	19	20	21
22	23	24	25	26	27	28
29	30	31

When wisely deployed, oil revenues will propel Guyana to First-World status

HRW against repeating Venezuelan elections — MercoPress

Mexico vs. New Zealand prediction, odds, betting tips, best bets for international friendly match

Mexico vs. New Zealand prediction, odds, betting tips, best bets for international friendly match

Heartbreaking Tragedy Exposes Critical Failures in America’s Pedestrian Safety

Uncover the Caribbean’s Best-Kept Secret: The Island Everyone is Talking About for Its Safety!

Antigua and Barbuda Poised to Shine as the Caribbean’s Second Fastest Growing Economy!

Exciting News: Aruba Reopens Its Borders to Latin America on December 1!

Urgent Warning: US Tariffs Could Jeopardize Bahamas’ Trade and Tourism!

Barbados Welcomes a Tourism Boom as the US Overtakes the UK in Visitor Numbers for 2025!

Peak Re Launches Thrilling New Venture in North America!

Bolivia’s Political Landscape Transforms: Centrist Candidate Surges as Voters Turn Away from Socialism

Bolsonaro’s Conviction: What It Means for U.S.-Brazil Relations

Turks & Caicos Islands Triumph Over British Virgin Islands in Epic Rugby Clash!

Categories

Archives