Oil must drive economic diversification if Guyana is to avert Dutch Disease

Oil must drive economic diversification if Guyana is to avert Dutch Disease – U.S Ambassador Lynch

Apr 02, 2022 News

Kaieteur News – United States of America (USA) Ambassador to Guyana, Sarah-Ann Lynch is of the firm conviction that Guyana has a golden opportunity before it to use its oil earnings to transform the lives of the citizenry.

US Ambassador to Guyana, Sarah-Ann Lynch

The Ambassador noted however such meaningful change can occur if Guyana channels its oil revenue into the avenue of diversification. She said taking such an approach would ensure the country avoids the dreaded Dutch Disease which describes an economic phenomenon where the rapid development of one sector of the economy (particularly natural resources) precipitates a decline in other sectors.
The envoy made these and other statements during her presentation on Thursday afternoon at the Annual General Meeting of the Guyana Manufacturing and Services Association (GMSA).
Ambassador Lynch emphasized that pursuing a diversified economy would ensure more Guyanese are able to derive greater prosperity from their oil resources. The envoy said, “Just as Guyana’s high tide enables bigger ships to come to port, economic diversification can be a high tide that lifts all sectors and all people of Guyana.”
The Ambassador stated that although the country is experiencing unprecedented levels of economic growth, it does not mean that economic diversification is magically achieved on its own.
To ensure economic diversification is realized, the envoy said it is necessary that means and ways are available for manufacturers, agricultural investors and persons in other sectors. The modernization and transparency of processes and the development of Guyana will ensure that products are of high quality, Ambassador Lynch noted. She also expressed the need for the improvement of the standard of operations in both the private and public sectors, to ensure Guyana’s sustainability and ensuring the Dutch Disease does not occur.
Some of these areas are currently being addressed by the government, and the U.S Embassy is doing its part to provide help, Ambassador Lynch stated.
The US official also noted that this is the birth of a transformative decade for Guyana and encouraged the improvement of standards as to achieve economic diversification. The Ambassador furthermore commended GMSA in the part it plays in the development and economic diversification of Guyana.