Introduction
This week’s column addresses the fourth and final driver along with its modeled metrics; namely, operational cost of oil production share ratios in Guyana. The fourth driver, like the previous three, separately and together combine to indicate broadly, the intrinsic affordability of the Buxton Proposal, my recommended Universal Basic Income mechanism, UBI, for addressing embedded poverty in Guyana,
Today’s presentation draws heavily from my previous somewhat elaborated and detailed review of the Inter-American Development Bank, IADB’s, Traversing A Slippery Slope, Guyana’s Oil Opportunity, 2020. In that study strong benefits were projected for Guyana, based on the results obtained from the application of the IMF-FARI model in the estimation of cost shares for oil production. Of note, it was also used for the estimating of Government Take, which was considered last week.
Based on the above stated context, I start today’s topic with a brief presentation of the FARI model in the next Section.
