As Guyana stands at the cusp of a golden era in its economic history, the stage was set for a high-stakes conversation about the country’s future on Tuesday evening.
The second annual Regional Investments and Capital Markets Conference kicked off at the Pegasus Suites in Kingston, bringing together some of the Caribbean’s brightest business minds and policymakers.
It wasn’t just the glitter of Guyana’s newfound oil wealth that had everyone talking.
In a frank and passionate address, Chairman of the Jamaica Stock Exchange (JSE), Steven Whittingham urged Guyana not to fall into the same economic traps that once nearly sank Jamaica.
While he praised Guyana’s rapid economic growth, driven largely by its oil sector, he also spoke about the risks of sudden prosperity.
He recalled how Jamaica, decades ago, stood on the precipice of disaster.
“There was a time when Jamaica was seen as the sick man of the Caribbean.
“Our currency depreciated faster than we could count, and the preferential treatment for sugar, once our lifeblood, was removed. Jamaica was left vulnerable,” Whittingham recalled.
“Look at us now,” he said, adding, “Jamaica has become a beacon of financial stability. Our GDP is up, unemployment is down to historic lows, and our stock exchange is thriving.”
Whittingham took time to outline the success of the Jamaica Stock Exchange, which now boasts over 100 listed companies and a market capitalisation of $11 billion.
“We’ve built a platform for wealth generation and capital raising that is internationally recognised. But it wasn’t always this way,” he reasoned.
And then came his message for Guyana, the fastest-growing economy in the world.
“…successful economies are not built solely on natural resources. They are built by successful companies and successful companies need capital. Guyana is at a crossroads. It’s a land of opportunity, but you must tread carefully,” he said.
The room became quiet as Whittingham told the story of Jamaica’s bauxite levy.
The Jamaican government, back in the 1970s, had introduced a capital development fund, similar to Guyana’s Natural Resource Fund that was supposed to act as a safety net for the economy.
The plan? To save the proceeds from bauxite to support social enterprise and bolster the country’s reserves.
Instead, the fund was mismanaged, and the capital vanished.
“It became a cautionary tale.
“…about what happens when economic decisions are not made with foresight or prudence,” he noted.
And with that, he offered his warning to Guyana, to avoid the same pitfalls.
While the country’s oil wealth has put it on the map, Whittingham urged Guyana to not become seduced by short-term gains.
And that is exactly what the Guyana government has set out to do, to spend now on transforming the country in all sectors but also to save for the future.
Vice President Dr. Bharrat Jagdeo is on record repeatedly stating and explaining that Guyana will not splurge its windfall revenues and have nothing to show for it in the end.
There has been advocacy in Guyana for the government to issue millions in cash grants from oil revenues to the citizenry on the basis that the people are the owners of the oil and gas resources. But Jagdeo said that this mentality threatens to return Guyana to the days when it was a poor country before the change of administration in the early 90s.
As the conference continues to conclude on Wednesday, government officials including Senior Minister with Responsibility for Finance in the Office of the President, Dr. Ashni Singh, and Minister of Natural Resources Vickram Bahrrat are set to address the gathering.
