GUYANA’S Government has pushed back against the prognosis from economist Dr Damien King that its new-found oil wealth will see it falling victim to the so-called resource curse, citing it has been strengthening its institutions to avoid the predicted outcome.
The economist noted in the Jamaica Observer last Friday that, “Guyana is going to go nowhere” as its oil wealth will lead to corruption because the country lacks strong institutions. King’s comments set off a firestorm in the South American country and has seen that country’s Government dismissing the claim in a statement sent to the Caribbean Business Report earlier this week.
However, at least two Guyanese economists share King’s views.
Guyanese economists Ramon Gaskin and Elson Low told Kaieteur News — a daily newspaper in Georgetown, Guyana — that King “has hit the nail on the head in terms of forecasting the future of Guyana, since the warning signs of economic gloom are already evident”.
“Oil-rich countries very often see those close to the Government become extremely wealthy while the average man is no better off. Many warning signs that Guyana is going nowhere are present,” Low is quoted as saying by Kaieteur News, which reached out to him for comments on King’s assertions.
Low added in his response that there is a glaring lack of transparency when it comes to managing the oil and gas sector, pointing out that “there has been a sharp increase in inequality, and poverty persists despite huge oil reserves”.
To this end, Low concluded, “Guyana is going somewhere, but not in a direction to benefit ordinary citizens.”
Gaskin, for his part, told Kaieteur News that Guyana is being steered down a dangerous path by its leaders.
Source: Jamaica Observer
