In last week’s discussion of Guyana’s proposed local content requirements (LCRs) policy for its coming oil and gas extraction industry, I had introduced three key concepts, which require further elaboration. Those concepts are 1) the enclave economy; 2) the potential for transmission of economic linkages and spillovers from a successful oil and gas industry to the remaining sectors of the economy; and 3) the notion of infant industries. As matters presently stand, these concepts form the cornerstones of government’s rationale supporting LCRs.
There is little doubt that LCRs are indeed required if the country as a whole, is to cope with the challenges of oil and gas extraction. Therefore, today’s column briefly elaborates these concepts, given the central…to continue reading this article, please subscribe. Already a subscriber ? Sign In.