“Future of Guyana's economy depends on politicians' ability to develop all resources, not just oil”- UK expert

“Future of Guyana’s economy depends on politicians’ ability to develop all resources, not just oil”- UK expert

Jul 27, 2017 News

By Abena Rockcliffe-Campbell

Dr. Perry Stanislas

Oil is often referred to as ‘black gold’. It is a valued commodity that generates much revenue for countries that have it. However, many oil-rich countries around the world are still poor. This fact was magnified at a recent symposium held by the Guyana Oil and Gas Association (GOGA) in collaboration with the Caribbean Institute of Forensic Accounting (CIFA).
At that forum, United Kingdom expert on security and oil resources, Dr. Perry Stanislas, spoke about the importance of not depending solely on oil which is a mistake made by quite a few countries.
Dr. Stanislas, who is also a University lecturer, said that Guyana’s development as a nation goes beyond the oil industry, “the oil industry is an important sector, but it is still just one sector. It is important that Guyana remembers that.
Dr. Stanislas said that the ability to identify, nurture and effectively exploit the human intellectual, cultural and physical resources of a country is at the root of business and leadership success. He pointed out that Guyana is indeed a resource-rich country – having timber, gold, diamond, bauxite and oil. He said that the success of the economy depends on how well the politicians are able to develop those industries and exploit all resources “not just one, not just oil. You cannot eat oil.” He emphasised that agriculture is also important.
Dr. Stanislas said that, “The majority of countries with oil resources are in a mess.” However, he then pointed to United Arab Emirates (UAE) that has been successful. He said that UAE’s decision-making in terms of how it develops oil industry is at a regional level. Dr. Stanislas asserted that one of the key issues deliberated and decided upon is that the UAE will use oil revenue to build infrastructure that will support business and commercial activity in order to reduce dependency on oil.
Dubai is the largest, richest and most populous city in the UAE. Dr. Stanislas said only five percent of Dubai’s income comes from oil. The majority of Dubai’s money is used to pump prime industries that help to create an environment to attract foreign investment.
Dr. Stanislas said that the Private Sector in Dubai is run by foreigners.
“It is the only country in the world where the majority of the population does not come from that country. They used their oil money to create infrastructure, then they invite people to come in, and that is how they make their money.
Using Dubai’s most recent infrastructural projects as a reference, Dr. Stanislas stressed, “Dubai makes money from business not oil, so nurture a society for investment.
The UK expert said that all wise economic leaders want to create an environment to do business.
He then noted that he was on his first visit to Guyana, but had visited almost all other Caribbean jurisdictions. “Why? That’s a serious question? Why didn’t I come here before? That means the country has not benefitted from my tourist money”
Dr. Stanislas said that policy makers need to figure out a way to make Guyana more friendly to business and tourists, but not at the expense of the population.
Indeed, efforts made by the People Progressive Party/Civic (PPP/C) administration in previous years to present Guyana as business-friendly were deemed a burden to Guyanese. The PPP/C government had granted “concessions galore” to several companies, saying that this was a strategy to encourage investment. The government had also allowed certain entities to get away with what some described as “lawlessness.”

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