GUYANA’S $100k PAYOUT: Is the Initiative Sustainable for the Newfound Oil-rich State?
By: Judy Bissoon
Amidst Guyana’s oil boom, the government announced that they will be issuing a one-time payment of $100,000 GUY ($480 USD) to every citizen, aged 18 and older, including the diaspora community as well. With a population of under a million people, a total payout of around $30.5 billion GUY ($145.7 million USD) is expected to roll out at the end of 2024. Many are applauding the initiative as the citizens welcome the money amid rising living costs. However, the long-term impact remains questionable. Without strategic long-term planning and investments in critical infrastructure and services, lasting benefits cannot be catalyzed. Policymakers must prioritize sustainable planning, not just short-term fixes.
Guyana is experiencing what I would call “mind-boggling” wealth and economic growth, all due thanks to the discovery of oil off its shores. Oil production is transforming the economic landscape, propelling it from one of the lowest GDP per capita rankings in Latin America to a nation producing nearly 650,000 barrels of oil per day from the Stabroek Bloc. It is reporting revenues nearing $2.6 billion dollars (GUY). This undoubtedly results in an exponential growth in GDP, which can then translate to major modernization of infrastructures and increased quality of living for its citizens.
While Guyana’s oil wealth is economically transformative, the challenge lies in ensuring it leads to meaningful and sustainable improvements. The government’s initiative to distribute one-time cash grants risks being a temporary fix to deeper systemic issues. Although the payout offers short-term relief from rising living costs, it does little to address long-term challenges. Without strategic investments, such as revitalizing the sugar and rice industries to lower food costs or expanding renewable energy projects to diversify the economy and create jobs, living conditions may deteriorate, even for the farmers producing the goods. Lasting stability requires more than short-term solutions—it demands forward- thinking planning to maximize the benefits of Guyana’s oil wealth.
Channeling investments into the healthcare sector is just as critical as agriculture and energy. While urban areas have benefited from modernized hospitals and clinics, rural families often face significant barriers to accessing care. By modernizing clinics and small hospitals in rural regions, the government can provide immediate, accessible healthcare, reducing the need for costly travel. Finally, key social protection services should not be neglected. Investing in childcare and social protection services is extremely critical, as doing so will offer support for vulnerable children who suffer from child abuse or neglect and assist single-parent families.
Many supporters of the initiative state that citizens, as it is their right, should receive money from the prosperity that oil has bought the country. Of course, citizens must benefit, and according to prominent economists in the country, this initiative is “broadly” good. The above suggestions, however, are not to criticize the cash grant, as it is agreed that it offers a much-needed relief for Guyanese. Rather, they highlight the potential to further enhance quality of life by directing the oil revenues and resources into critical sectors. Doing so can ensure lasting benefits through improved infrastructure and services.
Additionally, prominent opposition leaders are stating that this one-time payout should be the first of many. However, this is precarious as it may create a dependency on the government to give away cash to citizens and introduce large deficits in the economy. This viewpoint overlooks the importance of sustainable economic policies that build long-term resilience, and a diversified and self-sustaining economy. When there is a sustainable economy, the benefits of the oil wealth can extend beyond temporary financial relief and ensure lasting prosperity for the nation.
Conclusively, policymakers and the members of Guyana’s Parliament must not look to such short-lived initiatives as a solution to the pressing problems in the country. Instead, they must seize this transformative opportunity to create long-term and direct benefits by directing resources into the improvement of services and goods consumed by the ordinary Guyanese.
Judy Bissoon is a first-year graduate student at the School of Diplomacy, specializing in International Security and Global Negotiations. Her academic interests lie in migration, human security, and gender equality. With valuable experience at the United Nations, she is committed to furthering her work in multilateral environments, dedicated to advancing gender equality and human rights on a global scale.
