Unless oil sector properly managed it could exacerbate already high level of income disparity
Dear Editor,
Guyana cannot move forward unless there is racial unity and political reconciliation. In fact, it is the adversarial nature of our politics that is largely responsible for our underdevelopment and high poverty levels. Despite an abundance of natural and mineral resources, Guyana has been left behind economically in the Caribbean and the hemisphere as a whole.
The ‘winner takes it all’ system of governance has proven over the decades to be largely dysfunctional and a drag on our national effort and our common aspirations for a peaceful and prosperous country.
The sad reality is that the country is rich but the masses of people remain poor. With oil now on the horizon, there are enhanced expectations that life can be better. However, this expectation can become yet another ‘pie in the sky’ unless there is effective management of our economy in which oil has become an integral component.
My fear is that unless the sector is properly managed it could exacerbate an already high level of income disparity where people who are well connected with the power elites could benefit disproportionately from the oil wealth at the expense of the poor.
Oil is only one element of our national patrimony. We have to ensure that we do not put all our eggs in the proverbial oil basket and in the process downplay the importance of our agricultural sector which still remains the backbone of our economy and cumulatively the largest employer of labour.
Oil revenues must be utilized to ensure holistic and integrated development. Any attempt to downplay the contributions of the other sectors, in particular the agricultural sector, is fraught with dangers as the experiences of several oil producing nations have demonstrated.
Our oil revenues must be used to help bridge the income gap and foster national cohesion. Unless strategies are put in place to achieve the twin goals of prosperity and national cohesion the risk of the ‘resource curse’ and the so-called Dutch Disease could become a living reality
Yours faithfully, Hydar Ally