Oil money alone will not transform Guyana

“Economic growth doesn’t mean anything if it leaves the people out”, said the late American politician Jack Kemp. His comment embodies the core points made yesterday by founder member and Director of the Guyana Oil and Gas Association (GOGA), Nigel Hughes. Hughes’ presentation was delivered at the Marriott Hotel when the CaribbeanCentral American Action (CCAA) and the InterAmerican Development Bank (IDB) began its two day conference. The Conference is being held under the theme “The transformational economy: perspectives and opportunities for Guyana’s private sector.” Hughes’ presentation was on a subtheme of the conference, “Building a base for sustainable development.” The GOGA director spoke of the impressive opportunity for economic development that is being flaunted in Guyana’s face. He said, however, for that opportunity to be fully taken advantage in a way that sustainable development will be the outcome, inclusion and transparency must be at the foundation of any game plan. Hughes said that if Guyana is to strategies an approach that maps the roles to be played by all, especially the private sector, the country will immediately improve the odds of making oil a blessing and not a curse. Hughes said that Guyana is on the cusp of a level of change rarely seen in this region, or indeed the world. He outlined the obvious benefits of the oil sector to the government, like royalties and taxes that will result in increased revenues which will in turn allow government spending to increase comfortably.

However, the majority of Hughes’ presentation focused on the role to be played by the private sector. Noting that oil is a finite resource, Hughes questioned, “In 30 years when Liza and her little sisters are dry, where do we want to be as a nation? And, what is the role of private enterprise in getting us there?” Hughes told the gathering that there are several case studies of states where the private sector, and by extension, sections of the populace have benefitted from the discovery of oil even though the lion’s share of the wealth is deposited into government accounts. He noted that while Angola has suffered a lack of transparency and good governance, the country’s local content provisions are a case in point where the private sector has been able to enter into significant contracts based on the strength of the country’s local content provisions. (Kaieteurnews.com)