By Dr. Leyland Lucas
Visiting Professor
School of Enterprise and Business Innovation
University of Guyana
As Guyana prepares for the flow of oil and gas in 2020, there is a great deal of discussion surrounding how this nation will benefit. Unfortunately, as this discussion occurs, much of the focus has been on the challenges linked to oil and gas exploration in a developing country. There is certainly reason for such concerns to be raised, as there is a wealth of evidence suggesting that the benefits may not outweigh the costs. As I write this article, there is overwhelming evidence that individual wealth often grows with the flow of oil and gas in developing countries. Unfortunately, the growth in individual wealth does not spread throughout the country and remains concentrated in the hands of a few. There are stories of enhanced wealth among the elite, absence of broad national development from the added revenue, and even suggestions of heightened corruption with the flow of oil and gas in these developing countries. This, coupled with the social upheaval and population shifts linked to the individual economic expectations from this industry provide further evidence around what could happen in Guyana. Whether or not we can protect ourselves from all that we have heard remains an open question.
