Latest update January 29th, 2025 1:18 PM
Latest News
- “Now is the time to take more loans”-Sport Minister
- Oil-rich Guyana would be bankrupt if it gave $1M to every family – Minister Bharrat claims
- Five-year-old among two killed in Israeli attacks amid Gaza ceasefire
- Introducing biometrics without legal framework would be unconstitutional – GECOM
- Brutus wants High Court to quash PSC Tribunal
HOW GUYANA IS BEING UNDERDEVELOPED BY EXXON MOBIL
Dear Editor
A number of emerging countries economies have experienced a massive boom in wealth and investment over the past two decades. Yet most ordinary people in these societies live in dire poverty with stagnant life expectancy, high unemployment and in societies with low-levels of manufacturing and heavy industry.
One only has to reflect on Guyana and one can observe that the GDP per capita expanded by almost 400% in the last two decades, yet today four out of every 10 Guyanese have serious challenges eating two proper meals and “surviving on income of US$1.75 per day or $10,494 per month” (source: GBPI).
For the roots of these conditions of “under-development,” the best historical account of why these things are happening can be found in Walter Rodney’s “How Europe Underdeveloped Africa” (1972). This book is mandatory reading for anyone who wants to understand what is about to happen to Guyana because of this lopsided anti-Guyanese oil contract signed between the Granger cabal and the international developers.
The core of Rodney’s analysis rests on the assumption that Africa has been crucial to the growth of capitalism in Europe. What he terms “underdevelopment” was, in fact, the product of centuries of exploitation. Rodney conclusively shows that “Europe” – that is, the imperial powers – did not merely enrich their own empires but actually reversed economic and social development in Africa.
Thus, Rodney in his book showed how Europe built immense industrial and colonial empires on the backs of African labour, but in the process devastated the African natural resources and the African societies in the process. As he emphasizes throughout the book, “it would be an act of the most brazen fraud to weigh the social amenities provided during the colonial epoch against the exploitation and to arrive at the conclusion that the good outweighed the bad.”
Thus when Mr. Raphael Trotman rolls out the trinkets such as “UG will get G$100 million for training and development”, he was clearly acting like a “slave agent”, as he imprisons a nation for the journey on this ship that will lead to full exploitation. The slave agent is sprinkling a few trinkets here and there to settle the natives.
What Mr. Trotman has not told the nation is that the annual sales from this operation when it peaks around 2024, would be close to US$2.2billion. Multiplied over the life of the Stabroek Block of 20 years, UG will be getting 0.0002% of the total sales over the life of the investment.
We can now understand why Mr. Trotman can make such infantile statement as “releasing the contract was not good for business” as he was quoted by the Press in November 2017. Of course, he has to say that because he has much to hide.
Then a month later, he was quoted as saying that “we are satisfied with the oil contract bonus”. But when you review the details of the contract, Guyana is expected to walk away with 12.5% of the oil sales but out of that 12.5%, Guyana has to pay the taxes, the transportation cost and the marketing fee which is projected to provide a net benefit to Guyana of under 8% of the oil sales until the initial investments are recovered.
This recovery process can last anywhere from 10-12 years. Guyana’s share of all those trillions will until the investment is recovered, be less than a billion Guyana dollars a year in the first 10 years. Guyana has a G$250 billion budget in 2018 and that was thrown in for context. There is nothing to be happy about on this oil deal, it stinks.
But Mr. Trotman and Mr. Granger are satisfied to sell the nation this lopsided deal and I wonder why? Is it that many family members and business buddied of the Granger cabal are set to reap contracts from this deal?
Are we experiencing a situation where this Granger cabal has sold out the people of Guyana for personal enrichment by allowing Exxon Mobil to under-develop Guyana? Was it JUDAS who sold out Christ?
Sasenarine Singh
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
A warning to President Ali on U.S. Overtures
Peeping Tom… Kaieteur News- It remains unknown what President Ali told the U.S. Secretary of State during their recent... more
OAS Secretary General Election and renewed OAS Consensus
Antiguan Barbudan Ambassador to the United States, Sir Ronald Sanders By Sir Ronald Sanders Kaieteur News- The upcoming election... more
Weekend Cartoon
