In this webinar, panelists examined US policy towards the Caribbean during the first year of the Biden Administration, with a focus on notable issues in need of attention and the opportunity to discuss these issues when the US hosts the Summit of the Americas in June 2022
Presenter
Sir Ronald Sanders
Ambassador of Antigua and Barbuda to the United States and the Organization of American States
Download the Working Paper presented by Sir Ronald Sanders here.
The Guyana Business Journal (GBJ) & Caribbean Policy Consortium welcome you to Season II, Episode X of their Transforming Guyana Series, on Wednesday, April 10, 2024, at 10:30 AM EST.
The webinar will discuss strategies for ensuring local communities benefit from the industry through job training, infrastructure development, and social programs.
Your unique perspective and experience will be invaluable to this discussion. Please register and share in your network.
Guyana Business Journal and Caribbean Policy Consortium Webinar Sheds Light on Fiscal Strategies for Guyana’s Oil and Gas Era
In a compelling episode of the Guyana Business Journal & Caribbean Policy Consortium’s webinar series, “Transforming Guyana, Season II, Episode IX: Guyana’s New Wealth: Fiscal Strategies in the Oil and Gas Era,” leading economists and experts gathered to discuss the fiscal policies and strategies pivotal for navigating Guyana’s burgeoning oil and gas sector. The webinar aired on February 14, bringing together a distinguished panel to explore the challenges and opportunities presented by Guyana’s new wealth.
Insights from the Panel
Samuel Braithewaite from the Department of Economics at UWI Mona emphasized the importance of robust institutions in avoiding the resource curse. He highlighted the need for economic growth to translate into tangible improvements in the lives of Guyanese people, stressing that economics is fundamentally about people.
Thomas Singh, Director of the GREEN Institute and Senior Lecturer at the University of Guyana, raised concerns about the sustainability of growth and the importance of human capital and technology investment. He also noted the challenges posed by the country’s balance of payments deficit.
Collin Constantine of Girton College, Cambridge, pointed out the necessity of focusing on the non-oil primary balance to understand the fiscal position in the oil discovery context. He underscored the institutional constraints in Guyana and the importance of neutral fiscal policy on diversification.
Bright Simons, Founder and President of mPedigree, discussed the strategic organization of natural resources and the learning opportunities from global experiences in managing base erosion, cost inflation, and profit attrition.
Justin Ram, CEO of Justin Ram Advisory Associates, highlighted the oil and gas sector’s pivotal role in Guyana’s economy and the urgent need for investment in public infrastructure. He advocated for sustainable development by efficiently using oil and gas revenues.
Anthony Bryan, Senior Fellow at the Institute of International Relations, UWI, remarked on Guyana’s critical juncture and the potential for fiscal expenditure to increase domestic inflation, stressing the importance of learning from the experiences of others.
Terrence Blackman, Founder of the Guyana Business Journal, envisioned a future where economic growth benefits all Guyanese, emphasizing the need for equitable and sustainable redistribution of oil and gas rents.
A Path Forward
The webinar underscored the complexity of managing Guyana’s newfound oil wealth, highlighting the importance of institutional strength, sustainable development, and equitable growth. As Guyana stands at a crucial juncture in its economic transformation, the insights from these experts provide a roadmap for navigating the challenges and seizing the opportunities ahead.
For access to the entire webinar episode, please visit:
Program
Speakers:
Samuel Braithewaite, Lecturer, Department of Economics, UWI Mona
Thomas Singh, Director of the GREEN Institute & Senior Lecturer, Dept. of Economics, University of Guyana
CollinConstantine, Assistant Professor and Official Fellow of Economics at Girton College, Cambridge
Bright Simons, Founder of mPedigree and Vice President at IMANI Africa
Justin Ram, CEO, Justin Ram Advisory Associates
Anthony Bryan, CPC Co-Chair & Fellow, Senior Fellow, Institute of International Relations, UWI
Terrence Blackman, Founder, Guyana Business Journal
Quotations:
Samuel Braithewaite, Lecturer, Department of Economics, UWI Mona
“When I think of fiscal policy in Guyana, my mind turns to institutions…To avoid the resource curse, we have to be very careful with regards how we deal with institutions, how we deal with the rules of the game.”
“When we talk about economic growth and GDP and so on, economics is about people. If you’re unable to show how all these lofty growth rates are contributing to an improvement in people’s lives, then you’re not doing right by them.”
Thomas Singh, Director of the GREEN Institute & Senior Lecturer, Dept. of Economics, University of Guyana
“The question arises, ‘What are our sources of sustainable growth?’ What if our oil disappears? Would we have the human capital to replace that oil? Have we been investing in technology?”
“Guyana has been running an overall balance payments deficit…It is probably one of the reasons why we aren’t noticing an increase in the Bank of Guyana net foreign assets because [the Bank of Guyana] has to be using up international reserves to meet the deficit.”
CollinConstantine, Assistant Professor and Official Fellow of Economics at Girton College, Cambridge
“If we want to understand the fiscal position of any government with oil discovery, we need to look at the non-oil primary balance as a share of non-oil GDP.”
“There are well-known institutional constraints in countries like Guyana. Ultimately, whether we have oil wealth or not, fiscal policy should aim for neutrality on banks’ diversification ratio, the change in government deposit balance at the central bank or the monetary base, the foreign exchange market, and Central Bank independence (end Bank of Guyana financing of the deficit).”
Bright Simons, Founder and President of mPedigree
“I subscribe to the “institutional imagination” viewpoint. There are so many different ways a society like Guyana can organize its natural resources, including petroleum. No policy or regime is cast in stone as far as best practice is concerned. Regardless of development level, all countries grapple with this heterogeneity of best practices. Guyana needs to have the moral and intellectual courage to interweave the best ideas from all over to create its own best-fitting, optimal vision.”
“You [Guyana] are already fighting over cost accounting issues, just a few years after the onset of first oil. That already tells me that there is massive room in Guyana to learn from us, peer countries near and far, who have been dealing with this “cost oil” and “profit oil” issue for eons around the world. We have tremendous experience with these issues – from base erosion and cost inflation to profit shifting and value attrition, name it, we have seen it all.”
Justin Ram, CEO, Justin Ram Advisory Associates
“Guyana’s economy is primarily driven by the rapidly growing mining and quarrying sector…Specifically, the oil and gas sector since the discovery of substantial oil reserves offshore Guyana in 2015 and 2018.”
“In all other types of economic activities, we find most value added is distributed to workers as wages and to owners as profits. However, when it comes to oil and gas distribution of rents within the country, those rents go first to the government who will then need to redistribute them through public spending.”
“Guyana is in urgent need of intensive investment in public infrastructure, particularly in areas such as roads, electricity and clean water. I think with the oil and gas resources, this can be a way for the government to spend those in a way that provides efficiency and helps facilitate economic activity in other sectors.”
“We need to focus on how we drive sustainable development through the efficient use of the revenues coming from the depletion of oil and gas resources so that we maintain, and indeed grow the country’s capital base.” Investing in human capital is critical, i.e., education and health investment, combined with a competitive economy so that individuals can turn their investment into tangible rewards (sustainable income, consumption).”
Anthony Bryan, CPC Co-Chair & Fellow, Senior Fellow, Institute of International Relations, UWI
“Guyana is at a crossroads at this point. This is really the crux of how Guyana goes ahead.”
“Accelerated fiscal expenditure will increase domestic inflationary practices, potentially creating a great deal of stress within the Guyanese environment and internationally.”
“Guyana can learn from the mistakes, or the successes, from others that went before.”
Terrence Blackman, Founder, Guyana Business Journal
“We want to improve economic, social and security conditions, creating more equitable and diverse opportunities for all Guyanese. And ensure a harmonious, resilient and flourishing Guyana where every citizen benefits from its economic growth – regardless of background or beliefs.”
“In this era of significant economic transformation, particularly in the burgeoning oil and gas sector, Guyana stands at a really crucial juncture. The dynamics of fiscal policy within this evolving landscape present profound challenges and remarkable opportunities.”
“You have these [oil and gas] rents go to the government. The government has to redistribute them, but it has to redistribute them in an economically sound, stable, sustainable manner. And how do you do that? That’s the question we are trying to answer.”
Transforming Guyana Webinar Explores Guyana’s Journey to Becoming a Top Choice for Investors
The Guyana Business Journal (GBJ) and the Caribbean Policy Consortium recently hosted Season II, Episode VIII of their Transforming Guyana webinar series. The episode “Guyana’s Journey to Becoming a Top Choice for Investors” featured insightful discussions from industry experts.
Guyana, a nation on the cusp of transformative change, finds itself at a crossroads, with a burgeoning oil and gas sector reshaping its economic landscape. Yet, as David Lewis, Vice President of Manchester Trade Ltd. Inc., rightly points out, the future prosperity of Guyana relies on a broader perspective. To truly prepare for growth, Guyana must diversify its investment climate beyond oil and gas, creating opportunities in various sectors.
Terrence Blackman, Founder of the Guyana Business Journal, stresses the importance of partnership in engaging the diaspora and attracting investors. It is crucial to shift from a conflictual approach to one that fosters collaboration and mutual benefit.
The head of the Diaspora Unit, Rosalinda Rasul, emphasizes the need to harness skills from both within and beyond Guyana’s borders. Engaging the diaspora to fill skill gaps and energize the country is a strategic move towards sustainable development.
Joel Bhagwandin underscores the significance of addressing the skills deficit and mismatch, recognizing that Guyana’s rapid development requires a skilled workforce capable of meeting international standards.
Stacey Mollison, President/CEO of Libra Management Group, highlights the importance of engaging the younger generation and tapping into their innovation and unique perspectives.
Finally, Patricia Francis calls attention to the need for improved governance and institutional clarity to create a conducive environment for business growth.
Guyana is on the precipice of tremendous growth, with immense economic diversification and development potential. However, the journey is fraught with challenges that require cooperation, skill development, and a clear regulatory framework. The nation’s ability to overcome these obstacles will determine its success in building a resilient and prosperous future beyond oil and gas.
The Transforming Guyana webinar series provides valuable insights into the development of Guyana’s oil and gas industry, focusing on safety, sustainability, and responsible practices.
For access to the full webinar episode, please visit:
Speakers:
RosalindaRasul, Head of Diaspora Unit Ministry of Foreign Affairs & International Cooperation Guyana
JoelBhagwandin, Director, SphereX Professional Services | Commissioner, Public Procurement Commission, Guyana
Stacey Mollison, President/CEO Libra Management Group
Patricia Francis, Chairperson of Trade Facilitation Task Force and former Executive Director ITC
David Lewis, Vice President, Manchester Trade Ltd. Inc. & Co-Chair, Caribbean Policy Consortium
Terrence Blackman, Founder, Guyana Business Journal
Quotations:
David Lewis, Vice President, Manchester Trade Ltd. Inc. & Co-Chair, Caribbean Policy Consortium
“We need to start looking at the investment climate and economy in Guyana, to a certain degree, beyond oil and gas…and the fact of really preparing the country for growth in a variety of sectors.”
“The problem with setting up business and setting up financing and bank accounts in Guyana remains extraordinary. We are beginning to see it as a disincentive, particularly for small companies and for the Diaspora coming in trying to set that up as a key requirement to be a bonafide business there.”
“This is work in progress. You’re building a brand-new country, from where it was before.”
Terrence Blackman, Founder, Guyana Business Journal
“Many observers can find places for criticism, but if you take this view of what’s happening in Guyana in the broad sense, these macroeconomic fundamentals seem to be in place to make it a very attractive destination.”
“We are often – in our approach to this business of Diaspora engagement, the business of investor relations with Guyana – prone to a kind of conflictual relationship. If we aim for partnership, then this is not an unreasonable way to pursue this.”
RosalindaRasul, Head of Diaspora Unit Ministry of Foreign Affairs & International Cooperation Guyana
“When you talk about Guyana having a very small population and then it’s taking off at a massive growth rate, you will need a lot of skills. We can choose to run after projects or initiatives that is not exactly what would have a great impact on the country, or we can choose to engage the Diaspora in a way that will really help to reenergize the country and take it where it needs to go.”
“In 2023, we started a conversation at the national level with private sector and public sector stakeholders on the shortages of skills in the country…that ended with the commitment to form a manpower unit which will be managed by the Ministry of Labor that will look into the shortages and labor needs of the country.”
“All of these companies are coming to the [Diaspora] Unit basically to say that ‘We have positions. There are some that we can’t find the skills in Guyana, we would like to utilize the services of the Unit to reach into the global Diaspora.’”
JoelBhagwandin, Director, SphereX Professional Services | Commissioner, Public Procurement Commission, Guyana
“International investors are always concerned primarily with political risks in the market in which they are contemplating to invest. Now, we are not only looking at geopolitical risk at a domestic level, but broad geopolitical developments.”
“Our development journey that is being ramped up, that is being accelerated at a very rapid pace today, it started three decades ago. It started at a time where we had tremendous economic and political challenges. There was a time when we were a bankrupt economy.”
“The main challenge as of now, in terms of investors and the private sector, is the skills deficit that we have, and it is a two-fold challenge. One, we have a skills deficit, a shortage of skills we need in all the sectors. Two, we have a skills mismatch, meaning that we have people actively looking for work, but of the jobs that are available, they don’t have the skills and competencies to match that.”
Stacey Mollison, President/CEO Libra Management Group
“Our goal is to continue to engage people. Now we’re looking at not just the Guyanese Diaspora, but how do we continue to build and grow this. You start with awareness, you come in-country, you connect with the stakeholders and then you help those people who are serious about engagement.”
“It’s not just about our contemporaries, but we have to engage the young people because they bring innovation and ideas and a whole way of viewing coming into Guyana as second generation…I don’t think we do a good enough job of engaging the Millennial and Gen X population.”
Patricia Francis, Chairperson of Trade Facilitation Task Force and former Executive Director ITC
“The IMF has just come out with their report on Guyana and are indicating that they should probably have growth of about 26.6% this year…Of that, they are seeing that about 6.6% will be from the non-oil and gas domestic sector.”
“Guyana has not really been doing very well when you look at the indicators by the World Bank, looking at the business environment. There seem to be still confusion with respect to multiple ministries that are overlapping in terms of regulatory responsibilities, and investors report they receive confusing messages from various officials. Clarifying this and the whole business of building institutions is critical and important.”
Transforming Guyana Webinar Explores Pathways to a Safe and Sustainable Oil and Gas Industry
The Guyana Business Journal (GBJ) and the Caribbean Policy Consortium recently hosted Season II, Episode VII of their Transforming Guyana webinar series. The episode “Developing and Enforcing a Regulatory Framework for a Safe and Sustainable Guyanese Oil and Gas Industry” featured insightful discussions from industry experts.
The panel of esteemed speakers included:
Thomas B. Singh, Director of the GREEN Institute & Senior Lecturer, Department of Economics, University of Guyana. David Lewis, Vice President, Manchester Trade Ltd. Inc. & Co-Chair, Caribbean Policy Consortium. Terrence Blackman, Founder, Guyana Business Journal.
The webinar delved into the challenges and opportunities of shaping a robust regulatory framework for Guyana’s burgeoning oil and gas sector. Here are some thought-provoking quotations from the event:
Summary
Thomas B. Singh emphasized the importance of aligning institutional outcomes with societal goals, stating, “Instead of asking ourselves what the outcome of our current sets of institutions will be, we should instead say here are the outcomes we’d like to see. What are the institutions that are going to give us those outcomes given certain things that we know, certain parameters that we know about a regulated entity, the oil company.”
He also highlighted the role of social norms in ensuring compliance with regulations, adding, “It is far easier in any society for there to be the observance of rules and the adoption of new rules if there are social norms that support that process.”
David Lewis underscored the importance of drawing from global experiences in regulatory frameworks, stating, “This is not nuclear physics. We have troves of experiences around the world of setting up regulatory frameworks in different industries, including oil and gas that Guyana can benefit from.”
He emphasized the need for investing in human resource development and skills to effectively manage regulatory oversight, saying, “This regulatory overview requires investment in human resource development and skills development. This will not happen by AI. This has to be people who are trained and prepared to be able to manage all of these different interests and information.”
Dr. Lewis also commended the younger generation for embracing economic and political freedom, noting, “Guyana is an emerging market not only in terms of what economics means by an emerging market, but also in the social, political, and cultural understanding of what a free-market economy is.”
Terrence Blackman highlighted the critical challenge of minimizing the environmental impact of oil and gas activities, saying, “This is the central challenge of our time. Ensuring that responsible practices emerge to minimize the environmental impact of exploration and production activities.”
He emphasized the need for collaboration between the state and regulated entities, stating, “There really needs to be a less confrontational stance between the state and the regulated entity. We think that this is in the interest of business.”
The Transforming Guyana webinar series continues to provide valuable insights into the development of Guyana’s oil and gas industry, focusing on safety, sustainability, and responsible practices.
For more information and access to the full webinar episode, please visit:
“Instead of asking ourselves what the outcome of our current sets of institutions will be, we should instead say here are the outcomes we’d like to see. What are the institutions that are going to give us those outcomes given certain things that we know, certain parameters that we know about a regulated entity. The oil company.”
“It is far far easier in any society for there to be the observance of rules and the adoption of new rules if there are social norms that support that process. If on the other hand, our society is at a different place, operating at a different pace, trapped in norms that are relevant for a country and an economy that never had oil, then the order of magnitude, be it in the court room or on the streets. . .of ensuring that laws are followed and that the regulatory framework is the sort of framework that will deliver on our vision, that that becomes incredibly more difficult. . . We need to have supporting norms in society and we don’t necessarily have that.”
David Lewis
“This is not nuclear physics. We have troves of experiences around the world of setting up regulatory frame works in different industries, including oil and gas, that Guyana can benefit from.”
“This regulatory overview requires investment in human resource development and skills development. This will not happen by AI. This has to be people who are trained. Prepared to be able to manage all of these different interest and information. . . not only in the oil and gas sector but it has to be managed in banking, in financial services, in construction.”
“Guyana is an emerging market not only in the terms of what economics means by an emerging market. It is an emerging market in the social, political, and cultural understanding of what a free-market economy is. . . what’s stimulating is, when I see of the young generation, the under forties, how they have embraced this new freedom of economic and political space to do things differently than what their parents, and their grandparents, and what their great grandparents had to do.”
Terrence Blackman
“This is the central challenge of our time. Ensuring that responsible practices emerge to minimize the environmental impact of the exploration and production activities, mitigating potential oil spills, reducing greenhouse gas emissions. . . I still don’t see the emergence of the regulatory infrastructure that’s necessary to manage these challenges that are on the horizon and will be challenges that we must address at some point in the future.”
“There really needs to be a less confrontational stance between the state and the regulated entity. We think that this is in the interest of business.”
The UWI, Institute of International Relations and The Caribbean Policy Consortium are pleased to invite you to an upcoming webinar, “Latin America-Caribbean Relations in a Multipolar World”, on Thursday, 30th November from 5-7 p.m. The seminar will explore the state of the Latin America-Caribbean relationship in the context of a shifting global order where a variety of actors dispute spheres of influence and dominance while remaining closely interdependent in the world tapestry.
The Caribbean Policy Consortium (www.cpcaribbean.org), and the Guyana Business Journal (www.guyanabusinessjournal.com) hosted a Webinar –Transforming Guyana Season II, Episode VI: Workforce Development and the Emerging Guyanese Oil and Gas Economy, on Wednesday, November 08, 2023 now available on YouTube.
The recent Guyana Business Journal webinar, “Transforming Guyana, Season II, Episode VI: Workforce Development and the Emerging Guyanese Oil and Gas Economy,” sparked a crucial dialogue on Guyana’s unprecedented economic growth and the ensuing workforce challenges. The event featured a panel of experts, including Karen Abrams of STEM Guyana, Professor André Brändli, Laurent Stephane from the energy sector, David Lewis of Manchester Trade Ltd. Inc., and Terrence Blackman, the founder of Guyana Business Journal, who collectively emphasized the urgency of developing a skilled workforce to sustain the burgeoning oil and gas industry.
Guyana’s economy is surging, with a remarkable 98.4 percent growth in its oil and gas industry and a 59.5 percent overall expansion in the first half of 2023 alone. This growth brings to light the pressing need for skilled labor, as pointed out by David Lewis, who cautioned against conflating labor supply with skills supply and the tendency to prioritize traditional university education over vocational and technical training. Echoing this, André Brändli highlighted the significance of aligning the labor force with market demands through vocational training in public-private partnerships. You can find his presentation here.
Karen Abrams spoke on the unique skills gap in Guyana, noting the exodus of university graduates and the insufficiency of the current labor force to meet the demands of the oil and gas sector. She advocated for early youth engagement in technical industries to fuel national growth.
Laurent Stephane spoke from his experience in new oil economies, stressing the absence of oil and gas competencies and the unrealistic expectations of immediate prosperity from the sector. He advocated establishing sustainable training systems through local partnerships to ensure long-term skills development and autonomy.
The discussion laid bare the critical juncture at which Guyana stands, the immediate need for strategic workforce development, and the collective role of public-private partnerships in preparing Guyanese nationals for the transformative growth spurred by their oil and gas reserves.
Panelists:
Karen Abrams, STEM Guyana
André Brändli, Professor, Molecular Pathophysiology, Ludwig-Maximilians-Universität München,
Laurent Stephane, Recruitment and Training Manager, Tilenga and EACOP (Uganda & Tanzania)
Moderators:
David Lewis, Vice President, Manchester Trade Ltd. Inc. & Co-Chair, Caribbean Policy Consortium
Terrence Blackman, Founder, Guyana Business Journal
Quotations
David Lewis
“We need to separate the issue of labor supply and demand in a country like Guyana versus skills supply and demand. Sometimes that gets caught up in a political debate.”
“Particularly in the Caribbean we have had a history of overemphasizing the traditional university degree educational system and not so much what we’re seeing today in the 21st century technology driven economy of training in specific skill sets of doing things.”
“Guyana needs new talent, skilled labor, now. Otherwise, many of these projects would just fall flat because you can’t afford it. And not every organization is going to be Exxon and Chevron that can bring in and take care of a couple of thousand of experts at the start up of a project and use that to launch. That’s not the case for everybody.”
Terrence Blackman
“Guyana today finds herself at a really critical juncture, poised on the brink of this irreversible economic transformation. Guyana’s oil and gas industry grew by 98.4 percent in the first half of 2023. The overall economy saw an expansion of about 59.5 almost 60 percent during the same period. A key challenge here will be the impact of Guyana’s labor market…[We must] be realistic about what is possible for a nation of 800,000 people. And think about how this actually could get done.”
André Brändli
“I think there’s some useful messages not only just to Guyana but to many low- and middle-income countries that are focusing, in my opinion, far too much on the university track and neglecting the vocational and professional tracks which are absolutely important. Matching your labor force with the demand of the labor market is absolutely essential.”
“A very important thing is this professional vocational track training is done in a public-private partnership. It doesn’t occur in a void where the public just sets up vocational schools. These are done together with companies. You can’t act in a void; you have to train people by bringing in companies to train these people and offering a wage, a salary, to these students.”
Karen Abrams
“The skills gap that everyone has spoken about is really kind of unique in the Guyana context as well… We are in a situation where 80 percent of our university graduates leave.”
“If all of our unemployed, under employed, discouraged workers, were upskilled and prepared, we still wouldn’t have enough people to maintain the growth that is projected in the oil and gas industry even.”
“We’re so small. We have to make sure we’re capturing our young people early and piping them into that pipeline and inspiring them and motivating them and preparing them and giving them the self-confidence to determine, to answer the question, “in which industry would you like to contribute in Guyana,” and that answer should be, “in one of the technical industries.”
Laurent Stephane
“Plenty of new countries facing the same challenge: no or very limited oil and gas competencies available. And it is very difficult because not only you don’t have the people you don’t have the plants to train the people.”
“In the meantime, you face huge expectations from the authorities and the people. These people are looking for prosperity and most of the people think there will be a miracle linked to oil and gas. And miracles doesn’t really exist…You have to be realistic.”
“You need to develop partnerships in country with local institutions so that they are able to be part of the development of the people so that you do a competence transfer with these institutes and these institutes will be able, in the future, to train their own people… you need to develop a sustainable training system in country where you are autonomous at the end for training the new people.”
The Caribbean Policy Consortium (www.cpcaribbean.org), and the Guyana Business Journal (www.guyanabusinessjournal.com) hosted a Webinar –Transforming Guyana Season II, Episode V: Transparency & Accountability and the Emerging Guyanese Oil and Gas Economy, on Wednesday, October 11, 2023
Guyana’s Emergent Oil and Gas Economy: Navigating Transparency, Accountability, and Citizen Participation
In the recent Guyana Business Journal Webinar titled “Transforming Guyana Season II, Episode V,” a diverse group of experts convened to discuss the intricacies of transparency and accountability in the emerging Guyanese oil and gas economy. The webinar held on October 11 featured prominent speakers such as Michael Skol, Elson Low, Joel Bhagwandin, Troy Thomas, David Lewis, and Terrence Blackman, each of whom brought forth salient insights into the topic.
At the outset, David Lewis shed light on the monumental importance of institutionalizing mechanisms that prioritize transparency, accountability, and anti-corruption measures. Emphasizing that Guyana is not in this journey alone, he spotlighted the many global support structures available. For Lewis, the message was clear: Guyana should proactively harness these global resources and insights to craft its path forward.
On a similar note, Terrence Blackman drew attention to Guyana’s relatively favorable standing regarding economic and political risk, especially when juxtaposed against Venezuela. He called for the country to indulge in more expansive information-sharing practices. For Blackman, Guyana is perched on the precipice of a unique economic opportunity, the benefits of which can only be fully realized through collective diligence and foresight.
Michael Skol addressed the surging global disdain for corrupt practices and money laundering by echoing the undercurrent of caution. Guyana, in his view, should not only take lessons from international scenarios but should also proactively demonstrate its investment-worthiness. Notably, Skol’s reference to Venezuela, arguably grappling with significant corruption, was a potent reminder of the path Guyana should strive to avoid.
Adding another dimension to the discourse, Elson Low emphasized the pressing need to establish a Petroleum Commission. According to Low, such a body would provide the much-needed insulation from overt political influences, ensuring that the oil and gas sector operates within a robust governance framework rather than merely functioning through ad-hoc mechanisms.
Joel Bhagwandin provided an optimistic perspective, underscoring the buoyant investor confidence currently associated with Guyana. For Bhagwandin, the onus of upholding accountability and transparency doesn’t rest solely on institutional frameworks but also individuals and every entity in the ecosystem.
Last but not least, Troy Thomas anchored his insights in the constitutional ethos of Guyana, which anticipates an active role for citizens in decision-making processes. He passionately advocated for fostering avenues that facilitate citizen engagement, particularly in transparency and accountability. Drawing parallels from global contexts, especially the Venezuelan oil and gas debacle, Thomas reiterated the importance of proactive, informed governance.
Guyana stands on the cusp of an economic metamorphosis powered by its emerging oil and gas sector; the challenges and opportunities ahead are manifold. While the potential for unparalleled growth exists, Guyana must institutionalize transparency, nurture accountability, and champion active citizenry. Taking cues from international precedents, especially cautionary tales like Venezuela, will be instrumental in ensuring Guyana’s positive trajectory in the coming years.
Speakers:
Michael Skol, Principal, SKOL & SERNA & Senior Associate, Manchester Trade Ltd. Inc.
Elson Low, Economic and Youth Policy Advisor to the Leader of the Opposition, Guyana
Joel Bhagwandin, Director, SphereX Professional Services | Commissioner, Public Procurement Commission, Guyana
Troy Thomas, Dean, Faculty of Natural Sciences, Director of Undergraduate Research
David Lewis, Vice President, Manchester Trade Ltd. Inc. & Co-Chair, Caribbean Policy Consortium
Terrence Blackman, Founder, Guyana Business Journal
Moderators:
Dr. Terrence Blackman, Founder, Guyana Business Journal
Dr. David Lewis, Vice President, Manchester Trade Ltd. Inc. & Co-Chair, Caribbean Policy Consortium
Quotations:
David Lewis
“In Guyana, across the board, this is a work in progress…Institutions matter. The creation of public sector, private sector, civil society institutions focusing on transparency, accountability and anticorruption initiatives are critical.”
“It’s very important that, at some point, a lot of this be focused on in terms of those skills, the training, and the human resource and institutional capacity and capability in Guyana to manage this largess.”
“There is an entire global infrastructure that can support Guyana in many of these initiatives, and it behooves the country at the government, private sector, civil society level to take advantage of this. We’re not starting from scratch and Guyana is not alone.”
Terrence Blackman
“Venezuela is ten times more risky than Guyana…We’re not a basket case and we’re growing. The question is how we can grow faster in this arena. How we can subsume some of our instincts to secrecy and begin to see that transparency has much more value to us in this moment.”
“Our cultural tendency is toward acting in smaller groups, towards minimizing the sharing of information broadly. We’re now in a world which requires us, in order to get it right, to share things broadly.”
“This is a once-in-a-500-year opportunity. We have to keep in mind that it took us much more than 500 years to get to this point, and we owe the people who will be Guyanese 500 years from now being rigorous and thoughtful in this moment.”
Michael Skol
“This is a period of rising pressure and rising penalties for corruption and money laundering. Investors are placing an ever-higher premium on sending their money to places which can demonstrate their clean credentials.”
“Guyana has a unique and obvious nearby example of what it should not be. Venezuela today is arguably the most corrupt country in the Western Hemisphere, possibly the world. Guyana can profit by showing it is not Venezuela.”
“It is incumbent on Guyana in the present circumstances to demonstrate that you can be trusted from the outset, from right now. That would be the best investment of all.”
“I think Guyana is doing the right thing. It is competing for oil investment, and I am absolutely convinced in these circumstances that every hour, every dollar spent on counter-money laundering and anticorruption comes back manyfold to help the people of Guyana.”
Elson Low
“I think the way forward is for the Petroleum Commission – which the government has promised but not put in place – to be established so that we can move these issues into a space where they’re not political actors but can have established processes and structures in place so that transparency and accountability really are dealt with they way they should be dealt with.”
“From the perspective of justice, we in Guyana have a right to have people in positions that are in the way that they are intended to be. It should not be a makeshift process every single year, but rather that people are able to act without fear of victimization, fear of influence.”
“The reason we have institutions and structures in place is so that we can produce good decisions…There is a difference between governing well and governing. You can govern, go through the motions, but are you doing a good job when it comes to your governance.”
Joel Bhagwandin
“These risks affect international investors’ view of a country, whether they can trust us enough to place their capital.”
“The evidence is such that investments are coming into the country with strong interests, some of which have manifested. So, we are at the point in this country for the first time in our history where investors’ confidence is sky high.”
“Accepting responsibility is a key caveat, a fundamental facet of accountability…When we speak of accountability and transparency for a country, everybody and every institution have a role to play.”
Troy Thomas
“That [Article 13 of the Constitution] tells me that we anticipate that citizens must be involved in decision-making. We anticipate that citizens’ organizations must have access to the decision-making process and to be able to make meaningful input.”
“Transparency, accountability should not seem like anything strange. In fact, if we’re not doing it, we’re not doing our jobs as citizens…It is not only a weight on the government. Citizens also have to create ways of participating and perhaps of finding new modes of engaging and have the impact that is necessary.”
“If revenues from the oil sector are allowing us to move the needle in terms of well-being of citizens, then I think we’re doing something right.”
“Because the oil and gas sector promises to generate revenue on such large scales, and because we have examples around the world – Venezuela right next door – of what can happen even when you have that, I think it’s so much more important that we avoid repeating any of that.”
Navigating Guyana’s Oil and Gas Odyssey: Infrastructure and SustainabilityThe GBJ and CPC’s recent webinar, “Transforming Guyana, Season II, Episode IV: Navigating Guyana’s Oil and Gas Odyssey, Infrastructure and Sustainability,” brought together a panel of distinguished speakers, each offering unique insights into the challenges and opportunities that lie ahead for Guyana.
As we delve into the wealth of wisdom shared by Arthur Deakin, Terrence Blackman, David Lewis, and David Patterson, it becomes evident that Guyana’s journey toward harnessing its oil and gas potential is not without its complexities.
Arthur Deakin, Co-director at Americas Market Intelligence, succinctly encapsulated Guyana’s burgeoning status within the oil and gas industry. He stated, “Guyana is the fastest-growing new oil province in the last decade, by far.” This meteoric rise is undoubtedly a cause for celebration but also demands a vigilant approach to sustainability. Deakin highlighted the importance of allocating a percentage of the National Resource Fund (NRF) to climate resilience and adaptation efforts, emphasizing the need for a legal mandate to balance fossil fuel production with a low-carbon strategy. He also underscored Guyana’s unique opportunity to monetize carbon credits and offsets from its expansive forest coverage, making it a potential leader in Latin America’s environmental efforts.Regarding sustainability,
Dr. Terrence Blackman, Founder of the Guyana Business Journal, emphasized the urgency of addressing electricity issues. He articulated, “You have to do something concrete about electricity quickly, cheaply, and now to sustain immigration and all other things being discussed.” This call to action underscores the symbiotic relationship between infrastructure development and population growth driven by the burgeoning industry. Indeed, the industry is propelling Guyana into the future.
Dr. David Lewis, Vice President of Manchester Trade Ltd. Inc. and Co-Chair of the Caribbean Policy Consortium, painted a picture of Guyana’s potential as he envisioned a future where the nation boasts the “most efficient, diverse, and modern utility in the world.” He challenged Guyana to rise to the occasion and efficiently manage the benefits of its newfound wealth, acknowledging the unprecedented nature of its engagement with global energy giant Exxon. Lewis also stressed the significance of human resources in this transformation, highlighting the need to attract talent from various sectors to compensate for decades of ‘brain drain.
Lastly, Honorable David Patterson, Shadow Minister for Oil & Gas and Former Minister of Infrastructure in Guyana, emphasized the importance of a comprehensive infrastructure plan. He noted, “With an overall infrastructure plan, our investors and potential partners can have a birds-eye view of the landscape, allowing them to make informed decisions.” However, he acknowledged the inherent challenges in reconciling Guyana’s aspiration to be an environmentally conscious, ‘green’ country with its role as an emerging oil and gas producer.The webinar illuminated the intricate web of opportunities and dilemmas facing Guyana after its oil and gas boom. As it strides forward on this transformative journey, Guyana must strike a delicate balance between economic development and environmental responsibility while harnessing the power of its people and infrastructure to shape a prosperous future.
In the words of David Lewis, “Guyana is a work in progress,” and it is a nation poised to write a compelling narrative of growth, sustainability, and prosperity.
Vice President, Manchester Trade Ltd. Inc. & Co-Chair, Caribbean Policy Consortium
Quotations
Arthur Deakin
“Guyana is the fastest-growing new oil province in the last decade, by far.”
“I think there is an opportunity to allocate a percentage of the NRF to climate resilience and climate adaptation works. I think if that’s mandated by law, that would be a very important step towards balancing this fossil fuel production with a low-carbon strategy.”
“There’s a lot of carbon credits and offsets from Guyana’s forest coverage that can be monetized. [Guyana] is the country with the largest forest coverage in Latin America, behind maybe Suriname.”
“There’s still a question mark on how much gas there actually is in the Stabroek block, and that can definitely impact Guyana’s to develop a downstream industry. But the initial plans for gas-to-shore, there’s not enough gas for those industries.”
Terrence Blackman
“You have to do something concrete about electricity quickly, cheaply and now in order to sustain immigration and all other things being discussed.”
“In a sense, we have the industry pulling the country into the future.”
David Lewis
“There is no reason that within the next two, three years, Guyana should not have the most efficient, diverse and modern utility in the world…It is there, it can be done.”
“Guyana is work in progress. It’s work in progress because Guyana has been blessed, and cursed at the same time, to have to manage the benefits of this largess and the engagement with one of the top 10 global organizations [Exxon] that has ever existed without any real preparation to do that before.”
“The issue of human resources is critical…People are realizing that bringing people in from different categories where we have a deficit in Guyana is a plus to a country that has suffered from ‘brain drain’ for decades.”
David Patterson
“With an overall infrastructure plan, our investors and potential partners can have a birds-eye view of the landscape allowing them to make informed decisions.”
“We haven’t made the linkage and definitions between where we originally wanted to be – a totally nice, green country – and that of an oil and gas producing country. There are conflicts.”
On the evening of August 16, 2023, an enlightening and transformative dialogue unfolded at the Chancellor’s Hall, Senate House, University of London. This gathering, titled “Navigating a Changing Guyana: Pathways to Prosperity in the Era of Oil and Gas,” was meticulously organized to delve into the profound implications of Guyana’s burgeoning oil and gas sector. The collaboration between The Guyana Business Journal & Magazine (GBJ), the Caribbean Policy Consortium, Manchester Trade Inc., Guyana SPEAKS, and The Guyana UK Social Development Association brought together distinguished figures from diverse disciplines.
Renowned experts from the private and public sectors in Guyana and the Diaspora converged in thought-provoking discussions, offering invaluable insights into the array of opportunities and challenges. The centerpiece of the evening was a comprehensive UK Diaspora Oil & Gas Update on the ExxonMobil–Guyana Partnership, delivered by Mr. Alistair Routledge, President of Esso Exploration and Production Guyana Ltd.
Routledge disclosed pivotal information about Guyana’s rapidly evolving oil and gas sector during this illuminating presentation. He projected that Guyana’s annual earnings from this sector would soar impressively to US$10 billion by 2030. Additionally, he revealed ExxonMobil’s plans to submit its Field Development Plan (FDP) for its sixth Whiptail project in October 2023.Routledge emphasized, “We now have sanctioned five major developments… those cumulatively amount to an investment commitment of well in excess of US$40 billion. This represents a massive investment for the country and is expected to deliver approximately US$10 billion a year of revenue to the State by the end of this decade.”
In a testament to ExxonMobil’s dedication to Guyana’s progress, Routledge underscored the company’s role in ensuring a positive impact on the nation. This includes bolstering the country’s financial resources and fostering local content opportunities. He highlighted that all proceeds from the oil industry earmarked for Guyana are funneled into the Natural Resource Fund (NRF), contributing to the nation’s overall development.
The event featured two enriching panels addressing the monumental significance of Guyana’s current situation, the many opportunities that await, and the emerging business imperatives crucial for future prosperity. Esteemed panelists, including Mr. Carl Greenidge, Dr. Riyad Insanally, Mr. Faizal Khan, Dr. Juanita Cox, Dr. Rosh Khan, and Mr. Allistair Routledge, brought their expertise to illuminate the discussions.
Dr. Terrence Blackman, the event’s host and facilitator, expressed his contentment with the outcome, stating, “This event underscores the importance of proactive dialogue in shaping Guyana’s future. With vast opportunities on the horizon, it’s imperative that we ensure a holistic and inclusive approach to harnessing the potential that the oil and gas sector promises, not only for Guyana but also for our extended diaspora.”
The forum proved invaluable for networking, collaboration, and the sharing of visionary perspectives. It garnered substantial attention from diverse stakeholders deeply invested in steering Guyana’s development trajectory.
Program
Introductory Remarks
Terrence Richard Blackman, Guyana Business Journal & Magazine
Mr. Rod Westmaas, Guyana SPEAKS
Mr. Orin Alexander, The Guyana UK Social Development Association (GUSDA)
Dr. David Lewis, Caribbean Policy Consortium & Manchester Trade Inc.
Keynote Address: UK Guyanese Diaspora Oil & Gas Update Introduction of Keynote Speaker, Dr. Riyad Insanally, CPC Fellow, Former Guyanese Ambassador to the United States
The ExxonMobil–Guyana Partnership, Mr. Alistair Routledge, President, Esso Exploration and Production Guyana Ltd
Panel Discussion: The Moment & The Opportunity for Guyana
Dr. Riyad Insanally, Moderator Mr. Alistair Routledge, President, Esso Exploration and Production Guyana Ltd. Mr. Carl Greenidge, Advisor on Borders, Former Foreign Minister, Guyana
Panel Discussion: Emerging Business Opportunities: Leveraging the UKDiaspora in Guyana’s Development
Dr. Juanita Cox, Moderator, Dr. Rosh Khan, President – ACE Consulting Group, SocialRank Media, Masterclass Institute (FranklinCovey Guyana), Ms. Mich`ele Small, Development Finance Professional, Mr. Faizal Khan, Chairman, British Chamber of Commerce (BritCham) Guyana
Panelists and Speakers
Sitting (L to R): Michele Small, Allistair Routledge, Terrence Blackman, Juanita CoxStanding (L to R): Riyad Insanally, David Roberts, Orin Alexander, Faisal Khan, Carl Greenidge, Rosh Khan, Rod Westmaas, John Mair, David Lewis
Gallery
Dr. Terrence Richard Blackman, Guyana Business Journal & MagazineThe ExxonMobil–Guyana Partnership, Mr. Alistair Routledge, President, Esso Exploration and Production Guyana Ltd.The ExxonMobil–Guyana Partnership, Mr. Alistair Routledge, President, Esso Exploration and Production Guyana Ltd.The ExxonMobil–Guyana Partnership, Mr. Alistair Routledge, President, Esso Exploration and Production Guyana Ltd.The ExxonMobil–Guyana Partnership, Mr. Alistair Routledge, President, Esso Exploration and Production Guyana Ltd.The ExxonMobil–Guyana Partnership, Mr. Alistair Routledge, President, Esso Exploration and Production Guyana Ltd.
