Oil economy must be wary of `commodity trap’ – Komal Samaroo

Chief Executive Officer of Demerara Distillers Ltd. Komal Samaroo

Even as Guyana readies itself for the imminent exploitation of oil and gas and for the management of the revenues to be derived therefrom, Chief Executive Officer of Demerara Distillers Ltd. Komal Samaroo has cautioned about the danger of the country becoming ensnared in what he calls “the commodity trap” resulting from external controls over global commodity prices.

Pointing out that most of Guyana’s export earnings already come from commodities the prices of which are fixed by international markets and subject to fluctuation over time depending on demand and supply, Samaroo asserted that it will be no different in the newly emerging oil and gas sector.

“In my view this is a very vulnerable position to be in and the nation’s prosperity could swing like a pendulum, as we have seen in some countries in the region that depend primarily on commodities,” Samaroo said, even as he called for the creation of “a national strategy to be designed and implemented to avoid this circumstance”…..