Dear Editor,
Several interesting suggestions have been advanced in the media on how to utilize the anticipated oil and gas money. If the projected revenues hold true, Guyana would be experiencing in a few years’ time a financial bonanza unmatched in its history as a sovereign nation.
Already, expectations have been raised. The question uppermost in people’s mind is to what extent, and how soon, their material conditions would improve as a consequence of our newly found riches.
These are not unreasonable expectations. After all, we are all led to believe that on a per capita basis we now rank among the highest in the world in terms of oil deposits.
Professor Clive Thomas has recently put forward a suggestion that a part of the oil revenues should be paid out as direct cash transfers to citizens. Some argued against the suggestion on the grounds that it could result in a dependency syndrome and a disincentive to seek gainful employment. The money, it is felt, would be better spent on the development of the social and physical infrastructure of the country and laying the foundations for sustained agro-industrial growth.
Both arguments, in my view, have considerable merit and therefore ought to be taken into consideration. There is no reason why, given the projected quantum of petro-dollars, citizens cannot enjoy the best of both worlds, namely direct cash advances and better infrastructural and social developments particularly in the critical areas of education, health and housing.
As a young boy growing up, I was always encouraged to believe that we are rich in natural and mineral resources. Our persistent poverty was blamed, not on us, but on other extraneous and exogenous factors including our colonial past and a hostile and unfair global environment.
Now that oil and gas has emerged on the horizon, it is incumbent on policy makers to manage the process in such a way to optimize the oil benefits and minimize the risks involved. Already we are hearing of certain dangers associated with oil production such as the so-called ‘Dutch Disease’, ‘Resource Curse’ ‘Governance Curse’ among others. The challenge before us all is to transform these ‘curses’ into ‘blessings’.
This is why it is so important to draw on experts in the field and the best and brightest minds to manage the sector. Oil must, as far as possible, be depoliticized and not used as a means of doling out political patrimony.
Yours faithfully,
Hydar Ally
