Are we better off today than we were before first oil?

Feb 11, 2025 Features / Columnists, Peeping Tom

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Peeping Tom…

Kaieteur News-If you had asked me ten years ago what I wanted for Guyana, I would have said a few things: better roads, cheaper housing, an end to the eternal struggle of finding someone willing to work for a reasonable wage, and most importantly, not having to sell a kidney just to afford a decent meal.

Then oil came along, and suddenly, we got the roads—but not in the way we expected. We got houses—if you have a million US dollars to spare. We got labour—if you consider your only option is to pay an arm and a leg for a day’s work. And as for food prices, well, let’s just say that at this rate, it’s going to be cheaper to eat the actual money than to buy groceries and greens.

So, here we are. We are now an oil-producing state, a proud petro-economy, a nation that can finally look at Qatar and say, “Hey, we too have something in common besides the heat!” And yet, I find myself wondering—would we have been better off if we had never struck oil in the first place?

First, let’s talk about infrastructure. Before oil, we had a few potholes, and yes, there was a time when these were large enough to be considered archaeological sites, but at least they weren’t being pulverized by convoys of 18-wheelers carrying equipment the size of small skyscrapers. Now, billions are being spent fixing the very roads that are being destroyed by the oil industry and its heavy machinery.

It’s a beautiful cycle: build road, truck smashes road, rebuild road, repeat. And yet, somehow, despite all this spending, it still takes an hour to drive three miles during peak hours. We are now paying for roads at a rate that makes gold look cheap, and yet the only thing that has improved is our ability to creatively insult traffic while stuck in it.

Then there’s housing.  Once upon a time, a humble Guyanese could dream of a small but sturdy home, a modest fence, and perhaps even a nice hammock to sip their morning coffee in. Today, thanks to our oil economy, you can buy that same house—if you’re prepared to part with your firstborn and promise to name your next three children after the contractor.

The prices of basic construction materials have shot up so high that even the government’s tax breaks feel like a cruel joke. Sand? Might as well import it from Mars. Cement? You’d have better luck negotiating with diamond dealers. And let’s not even talk about galvanized sheets. The only people who seem to be able to afford homes these days are the rich and those making good money. Poor people cannot afford to build a fowl coop.

Labor is another delightful mess. Before oil, finding someone to do a job was straightforward: offer a fair wage, and someone would take it. Now? Good luck. Every able-bodied person is either working for the oil industry, working in construction, working for someone who works for the oil industry or the construction sector; or has developed a sudden allergy to employment unless it pays in offshore accounts. The labour shortage is so bad that even the stray dogs in Georgetown are looking for employment benefits. I recently tried to hire someone to paint my fence, and he asked for a salary package that included health insurance and pension. Even the neighbourhood kid who used to wash cars is now a “freelance sanitation consultant” and charges an hourly rate that would make a Wall Street banker blush. And of course, there’s the cost of living. Yes, global inflation is a factor. But so is the fact that everyone is walking around with pockets full of oil money, and it turns out that when people have more disposable income, they dispose of it on things that drive up prices for everyone else. A simple plate of cook-up rice now costs as much as two plates did in the past. Rent has become so expensive that the only people who can afford to live in the city are those who can afford not to rent. The only place where prices have remained stable is the cemetery, and that’s only because people are still trying to avoid ending up there. But don’t let me speak too fast.

So, are we better off? The economists say yes. The government says absolutely. But when was the last time an economist had to haggle with a vendor over the price of a boulanger? When was the last time a government official had to decide whether to pay rent or buy groceries? The truth is, oil has made us richer on paper, but for the average Guyanese, it has also made life infinitely more complicated. We are working harder, paying more, and enjoying less.

Would we have been better off without oil? Well, let’s put it this way: Before oil, we were struggling. But at least we were struggling together. Now, we’re still struggling—just with fancier cars, pricier houses, and a lot more dust in the air. Welcome to the oil boom. Don’t forget to tip your “freelance sanitation consultant” on the way out.

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

(Are we better off today than we were before first oil?)

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• billions, Guyana, Infrastructure, Peeping Tom, Qatar

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