As Guyana’s revenue intake increases there is no corresponding alleviation of poverty

Dear Editor,

It is an international shame and disgrace that Guyana, a country this rich, has such a high percentage of poverty. Whilst statistics play a part in forcing recognition of the gravity of the situation, ordinary Guyanese, across racial and class lines, admit to making tough choices daily, in beloved Guyana, to find three meals, provide school necessitates for their children, pay transportation, mortgage/rent, and take care of other essentials. The World Bank Report (October 2022) informed at least half the nation’s population is surviving on less than $1200 (US$5.50) per day. The report also informed that as Guyana’s revenue intake increases there is no corresponding alleviation of poverty, but rather expanding poverty.

An analysis done by Assistant Professor Dr. Collin Constantine sheds greater insight into the economic deprivations across race and class. The findings in his paper, “Income Inequality in Guyana: Class or Ethnicity? New Evidence from Survey Data 2022,” show: “Indo-Guyanese and Indigenous-Guyanese are overrepresented among the top 10% income earners relative to their share of the total population. For example, Indo-Guyanese make up 43% of the total population, but account for a larger percentage of the top 10% income group. In contrast, Afro-Guyanese and Mixed-Guyanese are underrepresented in the top 10%, but overrepresented among the bottom 90% income earners. Their share of the total income accruing to the bottom 90% exceeds their share of the total population. This violates distributive justice because it indicates that Indo-Guyanese and Indigenous-Guyanese are unfairly advantaged in accessing top incomes, while Afro-Guyanese and Mixed-Guyanese are disadvantaged and concentrated among the low-income majority. The income differences along ethnic lines are significant enough that they contradict principles of fair and equitable distribution of income across all ethnic groups relative to their population sizes. In summary, there is an unequal ethnic distribution of income, with Indo- and Indigenous-Guyanese overly represented among top earners and Afro- and Mixed-Guyanese overly concentrated among lower earners compared to their population shares. This violates notions of distributive justice.”

Constantine posits that these findings indicate, in relation to class and ethnicity, in Guyana show:

(i)       The pursuit and preservation of ethnic dominance of the top decile necessarily engender ethnic income inequality. This follows by definition as the over-representation of Indo-Guyanese in the top 10 percent of the population implies representational inequality. (ii)      Ethnic dominance of the top decile also implies higher intra-group class inequality. In other words, the over-representation of Indo-Guyanese in the top 10 percent of the population is only possible if other Indo-Guyanese are under-represented in the middle and working classes.

The state is failing the people. As Constantine’s findings indicate, all racial groups, middle and working classes are living through economically challenging times under Mr. Ali’s government. The data, above, elucidates the extent to which some groups are affected and makes the case for a national programme that acknowledges race and class disparities, to close the economic gaps. The ordinary person will, however, tell you the figures are higher. Perception also shapes reality (‘he who feels it knows’) and as Guyanese we must deal with all these factors – data and perception of poverty among the ordinary people. Guyanese need a leader who will put the people first, a leader who does not believe leadership requires deceit, abrasiveness and uncouthness, a leader who can make the tough decisions to facilitate pathways for equity and equality to thrive, even if such decisions are unpopular with his/her hardline supporters.

The economic prospect of the ordinary person is at its lowest when compared with the revenue the state earns (Projected 2023 revenue for oil and gas is $US 1.63 Billion). The ordinary man gets nothing from this government save for a few low paying contracts to clean drains and build small bridges; and the workers get nothing. They simply don’t care. The Ali government has disregarded, treated with disdain and contempt the redistributive justice principle adumbrated in the Constitution which should be the basis for an equitable Guyana. His government is deliberately creating an environment of economic injustice and conflicts among the people. The president, his ministers and close allies continue to flaunt their consumptive lifestyles at the taxpayers’ expense, and in the taxpayers’ faces. The fact is clear for all to see, i.e. – the discovery of oil and consequential wealth has created greater income inequalities, social instability, exclusion and marginalisation.

We must therefore collectively not only challenge the inequities in the system but work to break down, crack and crumble the edifice of structural and systemic discrimination for equality to have any prospects of being realised. As we know only too well, borrowing from national poet, Mr. Martin Carter, “all are involved, all are consumed.” Whether Afro-Guyanese, Chinese-Guyanese, Indigenous-Guyanese, Indo-Guyanese, Mixed-Guyanese, etc. all can be consumed by poverty, social deprivation, crime,

drudgery, hopelessness, violations and victimisation or a life free from want, a life where the rule of law, retributive justice, equity and equality are ideals we pursue. President Ali will not do this for us. He continues to indicate his unwillingness (he’s not his own man) to allow all Guyanese to feel valued. Neither is he interested in having the State walk the extra mile to end racial inequalities. That journey, therefore, must commence with us and I dare say, immediately. Guyana must Rise! We must, in this “Oil Rich Guyana,” ensure that prosperity and wealth is placed in the hands of all, particularly the poor of all the races in a manner that leaves no group or race behind.

Sincerely,

Roysdale Forde