Looming oil industry…Guyanese must make demands or risk losing economic benefits

Sep 11, 2017 News

-Economist

It is imperative that Guyanese get involved in the affairs of its oil industry. They must stay in the know and demand that the country gets its fair share of economic benefits from the resources that are being taken from the ground. That, in a nutshell, is what Economist, Dr. Roger Hosein said at one of the recent lecture series hosted by the Guyana Oil and Gas Association (GOGA).
Dr. Hosein is a Trinidadian economist who lectures at the University of West-Indies. He has done work for the likes of the World Bank and the Inter-American Development Bank.
The need for Guyanese to be fully informed about what is occurring in its oil industry has been highlighted before by international and local voices. But being an economist, Dr. Hosein focused on the economic risk that is at stake if Guyanese take a lax or nonchalant posture while international companies move in and get their way.
Dr. Hosein told those who gathered at the lecture that now is the time when it becomes of crucial importance that the civil society groups demand what is best for their country. He said that the focus should not necessarily be on any one company, but on the resource that is being taken.
Dr. Hosein believes that Guyana is on the precipice of real economic growth. He even thinks that Guyana has the potential to become the hub for economic development in the Caribbean.
However, the economist was keen to point out that for Guyana to reach its true potential, the people have to stand up and demand more.

Trinidadian Economist, Dr. Roger Hosein

He said that the citizenry needs to make it a priority to always be aware of the activities of multinational companies “and you must stress transparency.”
Dr. Hosein cautioned, “If you have civil society leaders who take hush money then the economy will suffer. The stronger the civil society movement is, the greater the value of Corporate Social Responsibly (CSRs that will be exercised by companies.)” He said that the execution of strong CSRs will have an effect on Guyana’s economy.
“Now is the time for all the Parent Teacher Associations (PTAs), the churches and community groups to rise because the type of resource that Guyana will likely experience will be much greater than that it realized in the past; so make wise use of the resources.”
The economist stressed the point that the natural gas and oil found in Guyana belongs to the people of Guyana and it is up to those people to protect their belongings.
Dr. Hosein noted the fact that entrepreneurs in London, America and Toronto will be able to live the high life and drive luxury vehicles based on “your oil and gas.”
“Now, that is okay because that is the way financial matters go. But at the same time, Guyanese cannot be so foolish as to not get your fair share of the economic rents from what is extracted from your own community. That would be your fault if you do not stand up and make demands. You have to know the facts and lobby for your fair share. If you do not do that, then do not get upset with companies that take your resources.”
Dr. Hosein even stressed the importance for Guyanese to demand bottom-up approaches from companies who say they want to contribute to the country’s development. He said that it is not for firms and specialists who are not quite au fait with the history, culture and needs of Guyana to decide what is best for the country’s economic development. The Economist said that the World Bank has adopted the bottom-up strategy (The bottom-up approach speaks to grass root development – localized economic development) and found it successful so civil society should demand that that approach be taken in relevant communities in Guyana.
Dr. Hosein is not the only one who has been stressing the need for civil society to be in the know.
In fact, a very influential international body—the Extractive Industry Transparency Initiative (EITI)—makes it mandatory for governments to keep their citizens in the know about the affairs of all extractive industries, particularly oil. Guyana is looking to become a member of EITI. It has progressed up to the stage of submitting its application. This is to be considered by the international body next month.
Further, local lawyer, accountant and anti-corruption advocate, Christopher Ram has been writing a series; “Every man woman and child in Guyana must become oil-minded.”

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