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Guyana’s oil bonanza is being squandered by political duels Sep 15, 2024 Features / Columnists, Peeping Tom Kaieteur News – In Guyana, politics and economics have always danced an ill-fated tango. It is difficult to say which has failed us more: politics or economics. They are both intertwined. The failures of successive administrations, both the People’s National Congress (PNC) and the People’s Progressive Party/Civic (PPP/C), have left Guyanese teetering between frustration and outright despair. Here is the most resource-rich country in the English-speaking Caribbean that has somehow managed to become the poorest in the Western Hemisphere under the PNC, only to remain shackled to the bottom rungs of development under the PPP/C. But then, oil was discovered. That black gold, long dreamt of by nations caught in the whirlpool of stagnation, finally gushed forth. With it, came and opportunity for true transformation. This was Guyana’s moment—a chance to rise above the wreckage of its divisive politics and economic failures. The country was presented with a gold-mine opportunity to chart a new course, to break free of the cycle of dependency and poverty. The old, tired excuses about international commodity prices, weather-related tragedies and loss of key markets no longer can be used as excuses. Oil can provide the resources to reverse, and reverse quickly, decades of decadence. December 2019, when oil production began, should have marked the dawn of a new era for Guyana. Instead, it has only confirmed the worst fears: the politicians, drunk on their own incompetence, are squandering the greatest opportunity this country has ever had. There is little doubt that the management of the oil and gas resources should be the highest priority of any government that claims to act in the national interest. Oil represents the one resource that could, if managed properly, lift our people out of poverty, provide a secure economic future, and finally pull the country from the depths of its historic underachievement. But the failings of Guyana’s political elite have cast a long shadow over this potential windfall. The contract signed with ExxonMobil—infamous for its pitiful returns to the nation—resembles more of a charitable donation than a sovereign agreement negotiated in the interests of the people. One would think that a government, claiming to represent the will of the people, would be keen to renegotiate such a sordid deal. But the PPP/C administration has not done so. What happened to their promise to secure a better deal for Guyana? Why has there been no move to establish the much-touted Petroleum Commission, an entity that was meant to oversee the sector? The government’s failure is compounded by its refusal to tackle other critical issues surrounding in the management of the sector. One of the most glaring concerns is the absence of “ring-fencing” provisions. The current arrangement allows oil companies to deduct costs from one oil field against future profits from others, ensuring that the country may never see the true benefits of individual oil wells. The potential financial fallout from this is staggering. Yet, the government has chosen to remain stubborn, allowing Exxon and its partners to rake in their “massive rate of return” while the Guyanese public gets crumbs from the table. Then there is the issue of decommissioning costs, a ticking financial time bomb. The oil companies will eventually need to dismantle their rigs and clean up their mess, but there is little clarity as to how these astronomical costs are determined. What is now obvious is that these expenses will be dumped onto Guyana. Then we have the most amazing debacle of the government’s failure to install its own independent meters at the production and exportation pumps. Instead, the government is monitoring oil production and exports with the same meters installed by the oil companies —a glaring dereliction of duty. One of the most egregious provisions of the oil contract is the clause that mandates the government to pay the taxes owed by oil companies. This effectively robs the country’s Treasury of much-needed revenue. Instead of collecting billions in taxes that could fund critical infrastructure, education, and healthcare, and pay teachers, nurses, the disciplined services and public servants better,  the government is paying, at least on paper, what should be the oil companies’ responsibility. One might think that with the discovery of oil, the nation’s political leaders would be fully absorbed in securing the future of the country. But no, the country’s two main political parties seem more interested in staging weekly press conferences that amount to little more than theater. The Opposition, PNCR focuses on issues that, while important, fail to recognize the significant transformative moment that the nation is experiencing. Its political harangues are focused more on other issues rather than the oil sector. And even when they segue into addressing oil and gas, it is done in piecemeal fashion— including adopting ambivalent positions on renegotiation and ring-fencing. The ruling party, meanwhile, has reduced its public engagements to a one-man show in the form of Bharrat Jagdeo, the PPP/C General Secretary. He hosts weekly press conferences that devolve into a tit-for-tat exchange with the main Opposition. If the Opposition coughs, he is ready with a bottle of cough-syrup. Questions about oil are treated as secondary and are dealt with mainly in response to questions from the media which has to sit there and endure his weekly tantrums. His soliloquies on corruption, governance, and development do little to mask the reality: the PPP/C, for all its talk, is unwilling to challenge the interests of Exxon and other oil giants, preferring instead to tinker at the margins of the sector while the real profits flow offshore. Rather than engage with the enormity of the oil sector’s potential and the risks it poses, both parties are locked in a battle for political capital. The PPP/C wants to convince the electorate that they inherited a rotten deal and the Opposition is not fit to rule. The Opposition is content with throwing barbs about corruption and discrimination. Meanwhile, the people of Guyana are left to wonder whether their leaders are truly capable of handling the complexities of an oil economy. The question that should preoccupy every serious politician, economist, and public servant in Guyana today is this: how can the country secure the best possible deal for its oil and gas resources, and how can those resources be managed to ensure long-term, sustainable development? Without clear answers to these questions, the oil boom will become just another chapter in Guyana’s long history of missed opportunities. The politicians in Georgetown, however, seem to believe they have all the time in the world to play their games. They don’t. The window of opportunity is closing, and with each passing week, the nation loses more of its leverage. Oil reserves are finite, and once they’re gone, they’re gone. If Guyana’s leaders continue to prioritize political finger-pointing over serious governance, the oil wealth will slip through the country’s fingers. It is a sad indictment of the political class that, in the face of such historic opportunity, they have chosen the path of least resistance. Guyana’s oil wealth has the potential to transform the country, but only if its leaders wake up to the reality that scoring political points means nothing if there’s no future left to win. (The views expressed in this article are those of the author and do not necessarily reflect the opinions of this newspaper.) Related Similar Articles

Road Accidents in Guyana: A Public Health Crisis in Need of Urgent Action Sep 15, 2024 Letters Dear Editor, Over the past decade, road accidents have emerged as one of the most pressing public health challenges in Guyana. Despite efforts to improve road safety, the frequency and severity of road traffic collisions have continued to rise, making this issue a critical point of concern for public health officials, policymakers, and the general public. The alarming trend not only affects individuals and families but has broader social and economic repercussions, which, if left unchecked, could severely undermine national development. The Rising Toll of Road Accidents Road accidents in Guyana have consistently ranked among the top causes of death in recent years. According to the Guyana Police Force, the country has seen an increase in both the number of accidents and fatalities over the past decade. Between 2010 and 2020, Guyana recorded an average of 120 to 130 road fatalities per year, with spikes in accident rates during festive seasons and holiday periods. Moreover, studies indicate that the actual number of injuries related to road accidents may be underreported, with non-fatal injuries, including disabilities, affecting thousands more annually. The rate of road traffic deaths in Guyana remains significantly higher than the regional average for Latin America and the Caribbean. A 2021 report by the World Health Organization (WHO) showed that Guyana had one of the highest road traffic death rates per capita in the Americas, at approximately 18 deaths per 100,000 people. This figure far exceeds the global average of 17.4 deaths per 100,000. Public Health Implications From a public health perspective, road traffic accidents pose a multifaceted threat. The direct health consequences are evident in the high number of fatalities, permanent disabilities, and trauma-related injuries, which place significant strain on the country’s healthcare system. Hospitals, particularly in the capital, Georgetown, often face an overwhelming influx of accident victims requiring immediate and long-term medical care. This has compounded the existing challenges in an already stretched healthcare system that struggles with limited resources, a shortage of trained medical professionals, and inadequate infrastructure. Beyond the immediate medical care, road traffic accidents have long-term implications for families and communities. Many victims are often breadwinners, and their deaths or disabilities leave families economically vulnerable, perpetuating cycles of poverty and dependence. Rehabilitation costs, loss of productivity, and psychological impacts from trauma also add to the growing burden on both individual households and the state. Underlying Causes: Speeding, Drunk Driving, and Poor Infrastructure Several factors contribute to the high incidence of road accidents in Guyana. The most significant among them is reckless driving behaviour. Speeding and drunk driving remain the leading causes of fatal road accidents. Despite public awareness campaigns and enforcement measures, these dangerous behaviours continue unabated, particularly among younger drivers and during late-night hours. According to police reports, over 40% of road fatalities between 2015 and 2020 were linked to alcohol consumption. Another factor is the poor state of Guyana’s road infrastructure. While significant investment has been made to improve roads, particularly in rural areas, many highways and streets remain in a deteriorated condition, with inadequate lighting, poorly marked lanes, and a lack of pedestrian crossings. The increase in vehicle ownership over the last decade, coupled with inadequate road safety features, has created a hazardous environment for both drivers and pedestrians. The prevalence of motorcycles and minibuses, known for flouting traffic regulations, has further exacerbated the situation. A Call to Action: A National Road Safety Strategy Addressing this public health crisis requires a multifaceted approach that involves not only the enforcement of existing laws but also a concerted effort to change driving behaviour and improve road infrastructure. The government must prioritize the development of a comprehensive National Road Safety Strategy, one that aligns with international best practices, such as the WHO’s Global Plan for the Decade of Action for Road Safety (2021-2030). Key recommendations include: Enhanced Law Enforcement: Stricter enforcement of traffic laws is essential. This includes implementing zero-tolerance policies for drunk driving, mandatory use of seat belts and helmets, and penalizing speeding and reckless driving. The introduction of more frequent roadside checks, speed cameras, and breathalyzer tests would deter violations. Public Education Campaigns: Sustainable behaviour change requires targeted public education campaigns, particularly aimed at young drivers and high-risk groups. These campaigns should focus on the dangers of drunk driving, speeding, and distractions such as mobile phone use. Infrastructure Improvements: The government must prioritize infrastructure development, focusing on road safety features like pedestrian crossings, speed bumps, and improved street lighting. Rural and suburban areas, where accident rates are highest, should receive special attention. Data-Driven Policy Making: There is a need for more reliable and comprehensive data collection on road accidents. This includes not only fatality statistics but also detailed records on the types of injuries, locations of accidents, and demographic information. Better data will enable policymakers to tailor interventions to specific risk factors and regions. Improved Emergency Response: Strengthening the country’s emergency medical response system is critical. Ensuring that accident victims receive timely and appropriate care can significantly reduce fatalities and long-term disabilities. Conclusion Road accidents in Guyana are a public health emergency that requires immediate and sustained attention. The rising death toll and the burden on the healthcare system reflect an urgent need for stronger enforcement of traffic laws, infrastructure improvements, and public education. By treating road safety as a priority, Guyana can protect its citizens from preventable harm, reduce the strain on public health resources, and create safer communities for all. Failure to act now will not only result in more lives lost but also slow the progress of national development. The time for action is now—Guyana cannot afford to continue down this dangerous road. Oswald Alleyne Related Similar Articles

Traffic and traffic related issues should be properly regulated Sep 15, 2024 Letters Dear Editor, There is urgent need for a total reorganization of the way traffic and its related issues are handled in our country. I am speaking from the standpoint of the use of our roads, how traffic offences are dealt with, to the major establishment of a traffic department. We discuss these issues under the following headings: There should be the setting up of a traffic department solely for the purpose of the issuing of licenses and driving permits.  I am talking about the removal of this aspect of licensing from the Guyana Police Force. Many are of the opinion that most of the problems we experience today, the present structure is porous and needs a total restructuring. There is urgent need for the establishment of a Department of motor vehicles, one that has strict rules and regulations dealing with vehicular training and licensing. This reduces the sole dependence on the GPF, who are oftentimes accused of corrupt transactions. In the aforementioned structure framework, there would be a pool of trained and certified instructors who will carry out theoretical as well as practical tests. This reduces the incidence of bribery where; the student driver is unable to pinpoint who would carry out his practical test thus reducing his punch line to bribe. Many operators of vehicles on our roads just cannot drive, I am talking about persons having a license who did not merit it, simply put, they got their driver’s license through fraudulent means; the creole version of that is “They bought their books.” The GPF is seen in a negative light when it comes to the certification of drivers. In the circumstances they have come in for heavy criticism by users of our roads, that is, by pedestrians and other motor traffic users alike. The general consensus is that many persons driving in Guyana are not certified as competent to be behind the wheel of a vehicle, as such, there should be an entire restructuring of the department. Secondly, the penalties for drunk driving and unlicensed drivers in my humble view should be the instant revocation of their licenses. No one has any right being behind the wheel of a potentially dangerous machine while inebriated, period, end of discussion! This age-old endemic situation has plagued us for too long and it is high time to get rid of the offenders. At this point I call upon our judicial system to impose heavy penalties for those breaking the law; too many lives are being lost to such wanton lawlessness on our roads. The slogan if you drink don’t drive and if you are driving don’t drink, these laws must be adhered to at all times. The setting up of a data base on traffic offenders, that is, information stored in an electronic or computer system, this comes in as a handy tool when administering penalties to errant drivers. Without a data base those drivers who are irresponsible and reckless go scotch free, however, with careful tracking of offenders a thorough assessment can be made of who should be permitted to be on our roads and those who should not. Make no mistake most, and I repeat most of the vehicular homicides committed on our roads are by repeat offenders, persons who believe that our roads are highways for recklessness. I am therefore calling on the authorities to rein in this reckless endangerment of the lives of our roads, and the time to do so is now! I am on record as calling for the establishment of roundabouts wherever the situation warrants it. Right from the very start I have championed the move to construct these traffic regulators; I am talking about the construction of such fixtures at major junctures on our roadway network. It is cheap (there is no need of traffic lights), it reduces the incidence of speeding, and it is an excellent regulator of traffic. Roundabouts keep the movement of traffic in an orderly and sustained manner. Old and existing traffic signs should be replaced as well as repainted, while there should be the mounting of others especially on our newer roads. Oftentimes drivers are at a loss as to whether streets are one way or a dual carriageway, due to the fact that there are no signs to direct traffic. Lastly penalties for traffic offences: (a) For drunk driving there should be the revocation of one’s license forthwith! Driving drunk while commandeering a potentially dangerous machine is a recipe for disaster, do not wait for the inevitable to take place, do not wait for a drunk driver to kill someone, act now and stop the carnage. This applies to those found speeding under the influence of a mind-altering drug. (b) A person found guilty of committing a vehicular homicide rather than issuing a fine only, authorities should put a moratorium on his driving, for example place a 10-year ban on his ability to be the holder of a license, when that ban expires, he must go through training to get a new license. (c) For repeat offenders a total ban on that person ever to hold a license. I make reference to this matter in the light of that driver who ploughed through traffic cones and, I would use the term, murdered that police officer, that was his second killing, here is where his driving privileges must come to an abrupt end. Ironically, I am told that driver is back behind wheels; heaven help us all! While some drivers use our roads with care and caution, on the other hand they are those who couldn’t care less and are in the constant habit of commandeering their vehicles in a reckless manner. This nonsense has to stop, now! As we move along this road of progress, our infrastructure marks the signature imprint of modernization, however, over the years these same roads and highways have become killing fields, bearing the sure signs of retrogression. In this regard, systems must be put in place to bring down the barbarity on our roads; the atrocities that exist on a daily basis must be brought to an end now! At this juncture of our development, we cannot allow the wanton destruction of our human resources, defensive driving or driving at careful and responsible speeds should be the watchword. I have forwarded this article to The Attorney General and The Minister of Home Affairs, for their consideration. Respectfully  Submitted Neil  Adams Related Similar Articles

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