Guyana, the poor country that could be catapulted by the oil boom

GEORGETOWN.- The second poorest country in the world

South America

It is preparing for an oil boom that could put it at the top of the list of rich countries of the continent. But can Guyana avoid the so-called oil curse and ensure that its new wealth benefits all its inhabitants?

"Many people still do not understand how important it is," said the US ambbadador to Guyana, Perry Holloway, in Georgetown last November.

"By 2025, the GDP will grow between 300% and 1000%, it's gigantic, it will be the richest country in the hemisphere and potentially the richest country in the world," he said. added with optimism.

This may seem exaggerated, but with a population of about 750,000, Guyana's wealth is set to explode. ExxonMobil, the main operator in Guyana, claims to have discovered reserves of more than 5,500 million barrels of oil in the country's waters, in the Atlantic Ocean.

Curse of oil

Money, no doubt, would be welcome. This former British colony, the only English-speaking country in South America, has high rates of unemployment and poverty.

But history has a warning for Guyana. The discovery of oil in other developing countries has exacerbated existing corruption. In many cases, the "new oil wealth" ended up being stolen and wasted. This is known as the curse of oil.

In Guyana, "corruption is rife," says Troy Thomas, head of the local branch of the anti-corruption NGO
International Transparency He says he is "very worried" about the oil curse. Some see the political crisis as an early sign of the effects of the curse.

After the ruling coalition received a vote of no confidence in December instead of calling elections, it challenged the vote in court. This caused protests.

"All we are asking is that the government respect our constitution," the protesters said. "They just want to stay in power and control the oil money," adds one of them.

The legal battle continues and this week the Caribbean Court of Justice hears the final appeal in this case.

Education

"We have seen the experiences in other countries," said Vincent Adams, new chief of Guyana's Environmental Protection Agency, who has worked for three decades in the Department of Environmental Protection. Energy of the United States. "They got all this oil wealth and many of these countries are now worse off than oil."

For Adams, there is a solution to avoid this trap: "Education, education is the base, it is the best investment that this country or any other country can do".

He leads the renewal movement of the Faculty of Engineering of the University of Guyana, the largest provider of higher education in the country. But preparing young Guianese for the lucrative new industry has not been easy.

"Unfortunately for us, we do not have laboratories for an oil engineering program," said Elena Trim, the dean of the faculty.

It has also been difficult to attract talented academics with relevant experience. "Our wages are not that high," he says with an ironic laugh. "So, people apply to the University of Guyana and when we inform them of our salary level, they do not really want to accept the offer."

However, even at this early stage, the oil industry in Guyana has already acquired faculty graduates from other engineering specialties.

"Now [ellos] They take our students like hot cakes, "says Trim.

Skepticism abounds

In Sophia, one of the poorest neighborhoods in Georgetown, there is less optimism. Some of the houses and huts built had access to electricity and running water during this century.

"Frankly, in this community, about 10% of the city's population lives here, but 10% of the resources are not spent here," says Colin Marks.