How free is Guyana?

Aug 01, 2024 Features / Columnists, Peeping Tom

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Kaieteur News – As Guyana celebrates Emancipation, it is timely to question the extent of its freedom—especially considering the economic stranglehold foreign companies have on its economy. In Guyana’s case, the overwhelming influence of foreign multinationals has led to significant economic and political ramifications, raising concerns about the true extent of the country’s freedom.

Guyana is experiencing a modern form of recolonization through foreign capital, with multinational corporations exerting significant control over its vital industries, including oil, gold, bauxite, and timber. This new wave of economic dominance is facilitated by the government’s consent,

Foreign companies dominate key sectors of Guyana’s economy, including bauxite, gold, diamonds, manganese and, in the recent past, timber. These natural resources have long been the backbone of the country’s economic potential. However, the terms under which these resources are exploited have often placed foreign interests above national sovereignty. Contracts signed with these companies frequently include concessions that local companies can only dream of, effectively placing these foreign entities above national laws.

The Production Sharing Agreement (PSA), for example, signed between the Government of Guyana and the oil companies provide a stability clause that if at any time after the signing of the PSA, there are changes in the laws of Guyana,  and those changers adversely affect the oil companies, the government has to take prompt affirmative action to restore the lost of impaired economic benefits so that the oil companies are not disadvantaged. In other words, no new laws can adversely affect the economic interests of the oil companies.

In the gold industry, certain foreign companies in the past have enjoyed the exclusive right to export gold—a privilege then reserved for the government. This and other special status granted to foreign multinationals sideline local companies and undermines the government’s role in managing and regulating the country’s precious resources. The concentration of such power in the hands of foreign companies raises the question: how can Guyanese people truly determine their own future when their natural wealth is controlled by external entities?

The issue of sovereignty becomes even more pressing when considering the government’s apparent inability to renegotiate oil contracts with foreign companies. Despite the legal right to do so, the government seems constrained by external pressures. This reluctance to renegotiate terms that could potentially benefit the nation more equitably points to a deeper issue: the influence of foreign powers in shaping national policies. If a country’s government cannot freely exercise its right to negotiate or renegotiate agreements that impact its economy, can it truly be considered free?

The case of oil exploration and production is particularly poignant. The original contracts with foreign oil companies were negotiated under circumstances that have since changed, including significant discoveries that have substantially altered the country’s economic outlook. Yet, the government has not moved to renegotiate these contracts, leading to suspicions of external influence or pressure. This situation raises concerns about the autonomy of Guyana’s political leadership and the extent to which they can act in the best interests of the nation.

Another concerning aspect of Guyana’s supposed freedom is the imposition of sanctions on local individuals and firms at the behest of foreign governments. In some instances, these sanctions are imposed without the foreign government providing substantial evidence of wrongdoing to the Guyanese authorities. This external imposition of penalties raises questions about the respect for Guyana’s sovereignty by powerful international players.

The economic and political realities facing Guyana are deeply rooted in its history. The country’s wealth in natural resources has long attracted foreign interest, often leading to exploitative arrangements that have favoured external parties. This historical context has created a legacy of dependency on foreign investment and expertise, which continues to shape the country’s economic landscape.

However, the current realities demand a re-examination of these arrangements. The modern global economy offers opportunities for greater local involvement in the management and exploitation of natural resources. Yet, Guyana’s experience suggests that the country is still grappling with the remnants of a colonial mindset, where foreign interests are prioritized over local development.

The failure to provide local companies with the same concessions as foreign companies, and ensure equitable distribution of the country’s natural wealth speaks to a deeper issue of governance and national self-determination. The question of how free Guyana really is cannot be answered solely by looking at its political independence. It requires a critical examination of the economic structures and relationships that define its place in the global economy.

For Guyana to truly be free, it must assert greater control over its natural resources and ensure that the benefits of these resources are equitably shared among its citizens. This includes renegotiating contracts with foreign companies, enforcing national laws without exceptions, and protecting the country’s sovereignty from external pressures.

Ultimately, the question of freedom in Guyana is not just about political independence; it’s about economic sovereignty and the ability of the nation to chart its own course. The dominance of foreign companies in key sectors and the influence of external powers in national affairs challenge this notion of freedom.

(The views expressed in this article are those of the author and do not necessarily reflect the opinions of this newspaper.)

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• control, dominance, Freedom, Guyana, Peeping Tom

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