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Artificial Intelligence And The Development Of Agriculture And Food Sectors In Oil Rich Guyana – Part 1

By H. Arlington Chesney

News Americas, WASHINGTON, D.C., Thurs. July 20, 2023: The Caribbean, indeed, the world, is prioritising the use of Artificial Intelligence (AI) in the modernisation of their national economies. This is associated with the proliferation of devices, such as, IoT, IIoT and InstructGPT with its sibling, ChatGPT, and Microsoft’s AI for Earth Programme.

The agricultural sector is part of this transformational process with the use of AI in agriculture globally projected to increase from US$1.1 billion in 2019 to US$3.8 billion by 2024. This favourable projection is linked to AI use in agriculture being associated Inter alia with increased efficiency and effectiveness, resulting in increased profitability and industry sustainability.

These beneficial outcomes are primarily due to the plethora of associated devices that are grouped as (1) algorithmic and (2) autonomous.

The algorithmic devices can collect, analyze and interpret gigantic quantities of data and make projections and/or predictions that exceeds human capacity and reliability improving with increasing data range and use.

This has led to AI being used inter alia to:

In crops, (i) forecast weather and hence best timing of planting; (ii) determine fertiliser, pesticide and irrigation water use; (iii) optimise supply chains; and (iv) forecast market peculiarities and readiness.

In livestock, (i) determine feeding patterns; and (ii) management of endemic diseases.

There are many autonomous devices, including drones and robots, conducting precision operations, such as:

In crops, land management and agronomic practices, including pest control, and pollination,

In livestock, milking, feeding and general husbandry.

In farm administration and management, transport, haulage and sanitation.

What Are The Implications For The Agriculture And Food Sectors In An Oil Rich Guyana And, By Extension, CARICOM?

Guyana’s President, Dr Irfaan Ali, CARICOM’s Lead Head for Agriculture, recently stated that the “Caribbean market must be positioned as a high-value specialised one”. It is now well demonstrated that the World Trade Organisation’s requirement for globally produced commodities to have relatively free access to national markets of developing countries, such as, Guyana, has hindered the growth of indigenous agricultural and food sectors.

Nonetheless, because of potential geopolitical pressures and the established trading patterns for food commodities prevailing in Guyana and Caricom, this status quo will not change significantly soon. Therefore, achievement of the position identified by President Ali, that is, food supply to a “high-value specialised” market, must be generally done with global competitiveness.

With the abundance of stated benefits associated with the use of AI in agriculture, the potential use in achieving competitiveness required of Guyana’s agriculture and food sector needs to be examined.

The use of AI in agriculture would not pose a mental block to practitioners in Guyana’s agricultural sector who have historically introduced innovative practices and techniques. For example, the sugar industry has utilised aircraft for fertilising and pest control and drones for assessing the state of its available lands. Similarly, the rice industry has “adapted” caged wheels for tractors operating under waterlogged conditions, utilized aircraft for seeding and fertilising and a land leveling “machine” which could be considered as a precursor within the concept of Machine Learning Systems.

Further, at a basic algorithmic level, farmers have established their timings for land preparation, planting and, hence, harvesting with traditional knowledge of the climatic seasons. Within that broad canvas, they determine best times to plant their short term and tree crops with the advent of the “full moon”. More recently, they have become aware that long droughts, associated with climatic changes, are followed by severe pest infestations. Consequently, they make early preparations to effect control.

Agriculture is a complex social, economic and environmental system that responds to the particular and peculiar metrics of Guyana; these metrics are/will be robustly dynamic with the impact of climate change. Consequently, the uses of AI in agriculture in Guyana can’t be transferred wholesale from the countries in which they are being used successfully. They must be tested, adapted and customised to ensure fit for purpose in Guyana. This process, which is tantamount to being a “living laboratory”, requires enhanced—numbers and specialties—technical and financial capacities. With respect to finance, Guyana can use some of its substantial current and projected oil and gas revenues. Once used wisely, this will be a profitable investment in the development of the country’s sustainable agricultural and food sectors of the future.

At the algorithmic level, particularly as it relates to data on weather patterns, the Caribbean Institute for Meteorology and Hydrology, in association with national Hydrometeorological Services, like Guyana’s, is making available Numerical Weather Predictions to the public, including those in the agricultural and food sectors. With support from the Extension Services, this information could then be used by individual small and large agrientrepreneurs to plan, with a level of precision, for farm activities. These would include time of land preparation, planting, weed control, husbandry practices and harvesting. This is particularly critical for the agriculturally important, but difficult to manage, heavy clay/silt soils of Guyana’s coastal and riverine areas.

Small farmers currently dominate the country’s food production sector. With their limited technical and instrumental capacity, the template of institutions (ministries or parastatals or agriculturally based associations) collecting and analysing data and developing projections must be promoted and strengthened. As stated previously, the use of AI, at both the algorithmic and autonomous levels, will require “living laboratories”. It’s recommended that these be located at the various ecological zones within Guyana. This will enhance possibilities of minimising risk whilst optimising possibilities for sustainable enterprise development. This is made more necessary because of the current high costs of autonomous devices.

A strong, innovative, visionary and responsive institutional model is essential.

Notwithstanding the above, there are some potential uses for AI in the developing agriculture and food sectors in Guyana. Firstly, at the algorithmic level, weather and soil data could be collected and analysed to project with significant statistical accuracy timing of critical agronomic practices and approaches to various marketplaces. This will require the Government to enhance its soil collection and analytical capacity to include in the first instance selected crops within specific ecological zones.

A further possibility is the collection of appropriate activity data throughout, – but particularly at the production segments -selected value chains, to facilitate the development of “traceability” models: a prerequisite as Guyana expands its production for its robustly expanding hospitality sector and for CARICOM and other export markets.

At the autonomous level, as Guyana, for climate change reasons, is moving southwards, away from the “threatened” coastlands, there is need to rapidly regularise occupancy to facilitate development plans. Drones are appropriate for this activity. However, the appropriate legal framework must be established, operationalised and institutionalised. Drones may also be used for planning the layout, including planting densities, of medium to large sized farms, growing corn, soybeans, rice, sugar, tree crops, and pasture grasses. Similarly, they can be used for pest control.

In the Intermediate and Rupununi Savannahs, whose topography is generally flat and/or undulating, appropriate planting, fertilising and harvesting autonomous machines can be adapted used. Naturally, this will depend on the capital cost and the ability to maintain an acceptable level of Return on Investment. These activities could serve as pilots for similar enterprises in Belize and Suriname and, in a more limited way, Jamaica. That is, with its favourable oil and gas revenues, Guyana can be the leader in the use of AI in Agriculture in CARICOM.

Clearly, there are challenges to its use, and these will be addressed in a subsequent article. However, suffice it to say that the successful use of AI, in ensuring long term resilient and consequently sustainable food systems and food security in Guyana, depends on the adequacy and competency of its HI, Human Intelligence.

EDITOR’S NOTE: Dr H Arlington D Chesney is a leading Caribbean agricultural professional who has served his country, the Caribbean and the hemisphere in the areas of research, education and development. He’s a professional Emeritus of IICA and, in 2011, was awarded Guyana‘s Golden Arrow of Achievement for his contribution to agricultural development in Guyana and the Caribbean.   

Omai Finds More Gold In Guyana

News Americas, GEORGETOWN, Guyana, Thurs. July 20, 2023: Canadian gold company Omai Gold Mines Corporation has announced it has found more gold in Guyana.

The find came at the Wenot project in Region Seven (Cuyuni-Mazaruni) in Guyana, according to Omai President and CEO Elaine Cunningham.

The recent assays received for five additional holes, including exploration and extension holes at Wenot, have shown promising results. The drill results confirm the continuity of the gold-bearing structures to at least 100 meters below the current resource model, with intersections of significant gold grades. These findings support the growing evidence that the gold grades at Wenot increase with depth.

Omai says it will focus its attention and budget on testing undrilled gaps within the Wenot deposit model, expanding the western “starter pit” area, and exploring the blue-sky potential for the Wenot deposit at depth. The company believes that the ongoing drill program and results will have a positive impact on the mineral resources, leading to an updated estimate and a decision on a preliminary economic assessment later this year.

Omai Gold Mines Corporation has been actively exploring its well-endowed Omai gold property in Guyana. The company aims to tap into the significant expansion potential of the Wenot deposit and identify additional gold deposits in the region. The ongoing drilling program and the discovery of extensive gold values have reinforced Omai’s confidence in the property’s potential.

With previous technical reports supporting the significant gold deposits at Wenot and exploration targets showing promise, Omai is committed to further exploration and development in the region. The company’s focus on extending the Wenot deposit and evaluating opportunities for open-pit mining reflects its long-term vision and dedication to maximizing the potential of the Omai gold property.

Omai Gold Mines Corporation returned to the Wenot and Fennell pits in 2020, marking its renewed commitment to the Guyanese mining sector. The company has since undertaken an extensive drilling program to uncover the full potential of its holdings.

ANSA McAL Acquires Stake in Bahamian Brewery & Beverage Company

News Americas, NASSAU, Bahamas, Thurs. July 20, 2023: ANSA McAL Limited has successfully completed an agreement to acquire a stake in the dynamic Bahamian Brewery & Beverage Company Limited, (BBB). BBB, a proud Bahamian-owned brewery and non-alcoholic beverage producer located in Freeport, Grand Bahama, has established itself as a fully integrated company, encompassing brewing, distribution, and retail operations. Since its inception in 2007, BBB has been dedicated to brewing excellence, starting with its flagship beer, SANDS, named after its owner, James “Jimmy” Sands.

With a diverse range of nine different brands, the Bahamian Brewery not only produces its own beverages but also distributes various global beer brands throughout the Bahamas. As the Caribbean’s leading independent brewer, CARIB Brewery has a rich history, steeped in culture and taste. With breweries in Trinidad & Tobago, Grenada, St. Kitts & Nevis, and Florida, CARIB Brewery has crafted a superior and consistent portfolio of brands across 33 countries.

Under the agreement, the Bahamian Brewery will leverage its world-class manufacturing facility and robust route-to-market system to produce beverages from CARIB Brewery’s portfolio of high-quality brands. This collaboration aims to unleash the spirit of Caribbean fun and bring CARIB’s exceptional products to a wider global audience.

Anthony Sabga III, CEO of the ANSA McAL Group, expressed enthusiasm about the partnership, highlighting the alignment with their strategy to drive the growth of appealing beverage brands on a global scale. The investment will enable the Bahamian Brewery to create additional value and pave the way for a new phase of growth. ANSA McAL’s extensive experience in such situations, combined with the qualities exhibited by Jimmy Sands and his team, makes them an ideal partner. The Bahamian Brewery’s popular beverage brands, which perfectly complement ANSA McAL’s existing portfolio, further contribute to the excitement surrounding this collaboration.

EU Announces €45 Billion Investment In Caribbean, Latin America

News Americas, LONDON, England, Weds. July 19, 2023: In a significant move to strengthen ties with Caribbean and Latin American leader, EU leaders in Brussels have unveiled a €45bn investment package aimed at fostering sustainable development and accelerating the transition to clean energy.

The investment announcement came at the EU-CELAC summit, the first of its kind since 2015,which aimed to bring the EU closer to Latin American and Caribbean countries. Disagreements over how to refer to the war in Ukraine in the final text soured negotiations but the investment encompasses critical projects in various sectors, including the extraction of essential minerals, electrification of bus fleets, healthcare advancements, telecommunications, and conservation efforts for the Amazon rainforest in Brazil.

Emphasizing the importance of responsible investment, European Commission President Ursula von der Leyen stressed the need for high environmental and social standards.

While discussions surrounding a trade deal with Mercosur yielded minimal progress, EU leaders expressed their commitment to concluding the agreement this year. The EU’s cautious approach to ratifying the trade deal is rooted in concerns over protecting the Amazon rainforest and upholding environmental standards. By fostering trade and collaboration, the EU aims to advance its climate goals, with a particular focus on leveraging Latin America’s potential in hydrogen production and critical raw materials essential for the energy transition.

This investment endeavor signifies a strategic shift in EU rhetoric, promoting sustainable practices and local capacity-building rather than mere raw material extraction. The EU’s strengthened ties with Caribbean and Latin America serves to diversify supply chains, reduce reliance on single sources, and facilitate a mutually beneficial partnership for economic growth and environmental stewardship.

IDB Partners To Mobilize Funds for Renewable Energy Investments

News Americas, NEW YORK, NY, Weds. July 19, 2023: The Inter-American Development Bank (IDB) has joined forces with the International Renewable Energy Agency (IRENA) by signing an agreement to become a partner of the Energy Transition Accelerator Financing (ETAF) platform. As part of its commitment, the IDB plans to allocate up to USD 100 million to co-finance renewable energy projects and energy transition technologies in the Latin America and Caribbean region.

This collaboration between the IDB and IRENA is set to have a profound impact on the region by catalyzing the energy transition, advancing progress on energy access and security, and driving significant changes in the renewable energy landscape.

IRENA Director-General Francesco La Camera and IDB CEO Ilan Goldfajn expressed their enthusiasm for the partnership. Director-General La Camera emphasized the urgency for action on the energy transition as the climate tipping point draws near, and highlighted the IDB’s invaluable expertise and substantial resources that will contribute to progress in Latin America and the Caribbean.

IDB President, Ilan Goldfajn, also spoke about the IDB’s increased climate ambition and the importance of mobilizing more capital for low-carbon technologies. By joining IRENA’s important financing platform, the IDB takes a significant step towards supporting the energy transition goals of Latin America and the Caribbean. This collaboration positions the region as a key player in addressing the global challenge of climate change.

The ETAF platform, initially aiming to mobilize USD 1 billion by 2030, has already surpassed its target with the involvement of new partners like the IDB. The current capital commitment stands at an impressive USD 1.25 billion, exceeding the platform’s initial goal. Leveraging its global reach and expertise in the energy transition, IRENA is actively developing a pipeline of projects in emerging markets across Latin America and the Caribbean. These projects will be presented to interested ETAF partners, including the IDB, for potential funding and support.

Expansion Capital Options For Black And Caribbean American Businesses

News Americas, NEW YORK, NY, Tues. July 18, 2023: Securing capital to foster the growth of your business in the United States can be a significant challenge, particularly for Black and Caribbean American business owners. Fortunately, Invest Caribbean officials assert that there are numerous financing options available to address this issue. These options encompass working capital loans, business loans, equipment loans, and commercial real estate loans. By availing yourself of these funds, you can propel the expansion of your business. Here’s an overview of how you may qualify for each category:

Working Capital Loans:

Financing up to $500,000

Minimum 2 years in business

Loan term of 10 years

Minimum credit score of 700

No prepayment penalty

No collateral required

Business Loans:

Various loan options, including SBA Express, SBA 7(a), SBA 504, USDA, conventional, and non-conforming financing

Loan amounts ranging from $1,000 to $25 million

Short and long-term loan options available

Sole proprietors are eligible

Funds can be used for any business purpose, such as real estate acquisition or construction, business acquisition or startup, working capital, debt refinancing, or consolidation of merchant cash advances

No or low collateral required

High loan-to-value (LTV) financing available

Nationwide coverage, including rural locations

Equipment Loans:

Loan amounts from $5,000 to $5 million+

Terms of up to 10 years

0% down payment for purchases

Startup-friendly terms

Expedited approval process, with same-day funding available

Financing for new and used equipment

Commercial Real Estate Loans:

Loan amounts from $25,000 to $30 million+

High LTV financing

Non-profits are eligible

No prepayment penalty

Interest-only repayment option available

Unrestricted cash-out

Expedited closing process

Flexible underwriting

Suitable for investor-owned and owner-occupied commercial properties

For more information, visit https://www.investcaribbeannow.com/our-services and navigate to the US SME Loans section.

Response to World Health Organization Reviews of Aspartame

News Americas, BRUSSELS, Belgium, July 13, 2023: In response to two World Health Organization (WHO) evaluations of aspartame, one of the most thoroughly researched ingredients in the world, released today, the International Sweeteners Association (ISA) applauds the WHO’s reaffirmation of aspartame’s safety by its leading scientific body responsible for evaluating the safety of food additives, the Joint FAO/WHO Expert Committee on Food Additives (JECFA). These conclusions are consistent with the findings of over 90 global food safety agencies who have confirmed aspartame’s safety, including the European Food Safety Authority (EFSA), that has reviewed aspartame twice, and the US Food and Drug Administration (FDA).

“JECFA has once again reaffirmed aspartame’s safety after conducting a thorough, comprehensive and scientifically rigorous review” said ISA Secretary General Frances Hunt-Wood. “Aspartame, like all low/no calorie sweeteners, when used as part of a balanced diet, provides consumers with choice to reduce sugar intake, a critical public health objective.”

As part of its comprehensive assessment, reconfirming the safety of aspartame, JECFA examined IARC’s conclusions and found no concern for human health. Importantly, IARC is not a food safety body and its 2B classification does not consider intake levels nor actual risk, making an IARC review far less comprehensive than the thorough reviews conducted by food safety bodies like JECFA and potentially confusing for consumers.

To put this in context, IARC’s 2B classification puts aspartame in the same category as kimchi and other pickled vegetables. IARC would be the first to say that they don’t suggest people should stop using kimchi at meals.

As part of an overall healthy diet and lifestyle, aspartame can be used to further public health objectives on sugar intake reduction and ultimately assist in weight and diabetes management, as well as with dental health.

Navigating Crypto Taxing In The Caribbean: A Comprehensive Guide

News Americas, NEW YORK, NY, Weds. July 12, 2023: Cryptocurrency has revolutionized the financial landscape, providing individuals with greater financial freedom and opportunities for investment. However, as the popularity of cryptocurrencies grows, governments worldwide are implementing regulations to ensure proper taxation. In the Caribbean region, where numerous countries are embracing digital currencies, it is essential for crypto enthusiasts to understand the tax implications. In this article, we explore the key aspects of crypto taxing in the Caribbean and offer guidance for navigating this evolving landscape. In addition, you may improve your trading skills by using a reputable trading platform like https://immediate-momentum.io/.

Understanding the Caribbean’s Approach to Crypto Taxation

Embracing Cryptocurrency

Caribbean nations have recognized the potential benefits of cryptocurrencies and have taken steps to embrace their usage. Several countries, such as Barbados, Bermuda, and Antigua and Barbuda, have implemented friendly regulations to attract crypto-related businesses and investments. This approach creates a favorable environment for cryptocurrency adoption in the region.

Tax Classification of Cryptocurrencies:

Determining how cryptocurrencies are classified for tax purposes is crucial for understanding the applicable regulations. In the Caribbean, cryptocurrencies are typically treated as assets or property rather than legal tender. Therefore, they are subject to capital gains tax or similar regulations, depending on the specific jurisdiction.

Tax Obligations for Crypto Investors:

Capital Gains Tax:

Most Caribbean countries impose capital gains tax on the sale or exchange of cryptocurrencies. Individuals who realize a profit from the sale of their digital assets are required to report the gains and pay taxes accordingly. The tax rate for capital gains varies from country to country, so it is important to consult local tax authorities or seek professional advice to ensure compliance.

Reporting Requirements:

Crypto investors must maintain accurate records of their transactions, including the purchase, sale, and exchange of digital assets. These records should include the date, time, value, and any associated fees. These details are necessary for calculating gains or losses and will assist in fulfilling reporting obligations.

Tax Deductions:

Crypto investors in the Caribbean may be eligible for certain tax deductions related to their digital asset activities. Expenses incurred for mining operations, cryptocurrency trading fees, and hardware and software purchases may be deductible. Keeping detailed records of these expenses is essential for accurately claiming deductions.

Tax Considerations for Businesses:

Crypto-related Businesses:

Caribbean countries offer attractive opportunities for businesses operating in the crypto space. Entrepreneurs involved in cryptocurrency exchanges, blockchain development, or digital wallet services must adhere to specific tax regulations. These may include registration requirements, reporting obligations, and payment of corporate taxes.

Value Added Tax (VAT):

The application of VAT to cryptocurrency transactions varies across the Caribbean. Some countries may consider digital currencies as exempt, while others apply VAT to certain crypto-related activities. Business owners must consult local tax authorities or engage with tax professionals to determine their VAT obligations in relation to cryptocurrencies.

Payroll Taxes and Employee Compensation:

If businesses pay their employees in cryptocurrencies, they must consider the tax implications. Employers are typically required to report and withhold payroll taxes on employee compensation, regardless of whether it is paid in fiat currency or cryptocurrency. Businesses should consult with local tax experts to ensure compliance with payroll tax regulations.

Navigating Crypto Tax Planning Strategies:

Holding Period and Tax Rates:

Understanding the tax implications based on the holding period of your cryptocurrencies is crucial for effective tax planning. In some Caribbean countries, holding periods may impact the tax rate applied to capital gains. For example, longer holding periods may qualify for lower tax rates or even tax exemptions. Familiarize yourself with the specific regulations in your jurisdiction to optimize your tax planning strategy.

Tax Loss Harvesting:

Tax loss harvesting is a strategy that involves selling cryptocurrencies at a loss to offset gains and reduce tax liability. This approach can be particularly useful during periods of market volatility or when you have incurred losses on specific assets. By strategically timing your sales, you can effectively manage your taxable gains and potentially reduce your overall tax burden.

Donation of Cryptocurrencies:

Donating cryptocurrencies to charitable organizations can be an impactful way to support causes you care about while also providing potential tax benefits. Some Caribbean countries offer tax incentives for donations, including cryptocurrencies, allowing individuals to reduce their taxable income. However, it is important to research and comply with the specific requirements and guidelines for charitable donations in your jurisdiction.

As cryptocurrencies continue to gain traction in the Caribbean, governments are working to establish clear tax frameworks for this new asset class. Crypto investors and businesses must understand the tax obligations specific to their jurisdictions to avoid penalties and ensure compliance. By keeping accurate records, seeking professional advice, and staying informed about the evolving regulations, individuals and businesses can navigate the Caribbean’s crypto taxing landscape with confidence and transparency.

Guyana Leads Caribbean In Foreign Direct Investment

News Americas, GEORGETOWN, Guyana, Weds. July 11, 2023: The latest report on ‘Foreign Direct Investment in Latin America and the Caribbean’ by the United Nations (UN) Economic Commission for Latin America and the Caribbean (ECLAC), show that Guyana has emerged as the top destination for Foreign Direct Investment (FDI) in the Caribbean for the year 2022. The country witnessed a record-breaking inflow of $4.389 billion.

The remarkable performance can be attributed to the growing interest of foreign investors in Guyana’s hydrocarbon sector. In fact, the natural resources industry accounted for 99% of the total FDI inflows in 2022, despite experiencing a 2% decrease compared to the previous year.

This isn’t the first time Guyana has achieved the highest FDI inflows. In 2021 as well, the country secured the top position in attracting foreign investments.

The ECLAC report also highlights that Guyana’s future looks promising, as the country’s hydrocarbon sector is expected to continue attracting significant investments in the upcoming years. Several announcements made in 2022 indicate sustained interest from investors in Guyana’s oil and gas industry.

Furthermore, the report emphasizes that the influx of FDI in the non-renewable energies sector across Latin America and the Caribbean is influenced by factors such as international market fluctuations in energy prices, the discovery of new hydrocarbon sources in the region, and changes in local market structures. Notably, six countries, including Brazil, Colombia, Guyana, Mexico, the Plurinational State of Bolivia, and Trinidad and Tobago, have witnessed substantial FDI inflows into their hydrocarbon sectors, with an average annual investment of $7.214 billion between 2000 and 2022.

The report points out that larger FDI inflows in certain years can be attributed to the discovery of oil reserves, exemplified by Guyana’s case. Since 2018, Guyana has experienced a significant surge in FDI inflows in the hydrocarbon sector, with an average annual investment of $814 million, compared to just $6 million per year between 2002 and 2011. As a result, the sector has accounted for more than 90% of the country’s total FDI inflows.

Guyana’s impressive growth in the oil industry can be traced back to the discovery of offshore oil deposits in 2015, largely driven by the exploration efforts of US oil company ExxonMobil. Since then, the country has consistently expanded its oil reserves, production, and revenue derived from oil production.

The report also highlights the notable contributions of Guyana and Mexico to the growth of the coal, oil and gas, and renewable energy sectors in 2022. This growth can be attributed to higher global energy prices and ongoing efforts towards energy transition. In fact, Guyana and Mexico accounted for 93% of the total project investments, surpassing $22 billion, in these sectors.

Additionally, the renewable energy sector experienced significant growth, with investments close to $11 billion and a 40% increase compared to the previous year. Noteworthy projects, including oil extraction initiatives in Guyana, have also contributed to the sector’s expansion, particularly in the United States.

Overall, Guyana’s remarkable FDI inflows and its strategic focus on the hydrocarbon sector position the country as a key player in attracting foreign investments in the Caribbean region.

A Crucial Link For Oil And Gas Revenue Sharing: Managed Migration And Sustainable Human Development

By Dr. Terrence Blackman and Dr. Carolyn Walcott

News Americas, NEW YORK, NY, Sat. July 8, 2023: International and Caribbean regional forecasts indicate that Guyana’s oil wealth will significantly enhance its global socioeconomic standing and create opportunities for its traditional sectors, such as agriculture and renewables, to flourish even after the oil exploration phase. This economic diversification can enable Guyana to become a major food supplier to the Caribbean region while exporting goods worldwide, supported by a reliable energy supply. While the state and private sector actively pursue these possibilities, a crucial challenge is meeting the country’s human capital needs to effectively serve existing and emerging industries that contribute to the ongoing national transformation.

However, there are concerns about how shared resources and the benefits from oil proceeds will reach ordinary Guyanese citizens. Previous promises of a “good life for all Guyanese” and ideas for direct cash grants have generated expectations and caution. While some proponents advocate for monetary payouts, others, like Prof. Roger Hosein of the University of the West Indies, argue that in an ethnically polarized nation like Guyana, cash grants and political promises must be revised. Drawing from experiences in Trinidad and Tobago, where oil and political power have influenced political campaigns and development along polarized ethnic lines, Prof. Hosein and Dr. Remi Piet, appearing on Guyana Business Journal’s and the Caribbean Policy Consortium’s recently premiered Season II, Episode I webinar series, “Transforming Guyana,”  emphasized the need for a careful evaluation of the labor, trade, and production sectors in Guyana’s revenue-sharing model. They argue that direct interventions for low-income individuals should be based on empirical data, ensuring a targeted approach that addresses education, job creation, and broader long-term employment and economic objectives.

Guyana faces a significant human resource shortfall, given its population of less than a million people, with less than 60 percent engaged in productive sectors. Efforts through institutions like the University of Guyana and the Guyana Online Academy of Learning are underway to address this shortage through specialized technical and vocational training. However, Hosein and Piet propose, in addition, leveraging the current influx of migrants from Venezuela and Haiti as a strategy to bolster Guyana’s labor pool. They argue that investments in human capacity building should be complemented through contracts that secure skilled individuals for a specified period, guaranteeing retention and sustainability. It is essential to recognize that the strength of Guyana’s economy over the next 15 years, they emphasize, lies not solely in the energy sector but in the effective management of energy resources alongside production, trade, and employment structures that facilitate growth in non-energy sectors.

Governance of resources remains a critical aspect of Guyana’s economic growth. Piet and Hosein note the necessity of a revenue-sharing model developed through collaboration among key stakeholders. This model should prioritize social welfare, foster transparent development, and ensure fair distribution of Guyana’s assets. In conjunction with this, a program of human resource mentorship is essential to drive sustainable development aligned with the needs of local society. Interestingly, Piet and Hosein argue that the mining sector, due to its growth relative to oil and gas, can serve as a model for developing a cohesive revenue-sharing methodology. Institutional mechanisms for targeted incentives and a holistic approach, including periodic assessments of the country’s fiscal terms for new oil agreements, should also be considered.

As Guyana continues to invest in its human capital and physical infrastructure, policy-making on revenue sharing must be prioritized beyond the political realm. A shared national vision, supported by consultation and collaboration among state and non-state actors, including civil society, for revenue sharing, will pave the way for Guyana to thrive beyond the lifespan of its oil reservoirs.

EDITOR’S NOTE: Dr. Carolyn Walcott is a media and communications educator and scholar with a diverse background in journalism education, international communication, and media development. She received her undergraduate degree in Communication and her Graduate Diploma in International Studies at the University of Guyana. She completed her M.A. in Communication and Development at Ohio University and her Ph.D. in Communication at Georgia State University. Her research agenda focuses on media pedagogy and practice, national identity, rhetoric, and political communication.

Dr. Terrence Richard Blackman is a member of the Guyanese diaspora. He is an associate professor of mathematics and a founding member of the Undergraduate Program in Mathematics at Medgar Evers College. In addition, he is a former Dr. Martin Luther King Jr. Visiting Professor at MIT and a member of The School of Mathematics at The Institute for Advanced Study. He previously served as Chair of the Mathematics Department and Dean of the School of Science, Health, and Technology at Medgar Evers College, where he has worked for more than twenty-five years. He graduated from Queen’s College, Guyana, Brooklyn College, CUNY, and the City University of New York Graduate School.