The
Caribbean state of Guyana is one often overlooked. A country brimming with
dense rainforests and harsh savannas, the diverse peoples of Guyana must make do
with what little land they have available. Only 2% of the land in Guyana
is suitable for agriculture, most of which is used to produce the national cash
crop sugar. Guyana has struggled to advance beyond its resource-based economy since
acquiring independence in 1966, which has had deleterious effects on the
wellbeing of the country’s citizens. Approximately 11% of Guyanese are unemployed,
and those who are employed are usually involved with the country’s sugar
industry and live in poverty. As of 2015 however, a new opportunity has emerged
for Guyana: oil. With the discovery of offshore oil deposits on Guyana’s
coast, foreign oil companies pledged to invest hundreds of millions of
dollars into the country. Proponents say that this investment could help
finally jumpstart Guyana’s underdeveloped economy, while also alleviateing the country’s poverty and income disparity. Yet given the country’s
anti-imperialist history, many Guyanese remain highly skeptical of foreign
investment. This coincides with fears that foreign investment may lead to the
trampling of nascent local industries, as well as potential environmental catastrophe.
Questions
1. Should
Guyana accept the investments from foreign oil companies like Exxon? What would be the
consequences if Guyana were to accept or refuse such deals, and why?
2. What
else could Guyana do to improve the living standards of its citizens without
foreign assistance?
Although I don’t know enough about Guyana as a country, I do think that its accepting investments from foreign oil companies will have a positive impact on the country, but not on the environment. Positive outcomes might include more opportunities for employment, education, and less reliance on other countries for oil. Yet, some disadvantages include the environmental costs such as polluting the ocean and harming marine life during oil spills, as well as the large the amounts of carbon emissions that will be released once the oil is obtained and burned. However, if Guyana is to refuse the oil deal, it would have to search within itself for another solution for growth. One possibility could be focusing on agriculture, as agriculture is currently a large economic source in Guyana, possibly expanding it and providing more jobs. Yet, with current climate change issues, I believe Guyana could successfully invest in something else, such as with a company focusing on renewable energy, which could even make Guyana a leader of that topic in South America.
ReplyDeleteThis really is a tough situation that the Guyanese people are in. This is a matter of “Should I stay with this illness or should I take this cough syrup that might make me even more sick?”. I feel like Guyana has no choice but to accept investments from foreign oil companies. The only thing that does not make this deal ideal is the possibility of negative consequences, such as destruction to the environment and all-around disrespect to the land and its people. I am not sure of what Guyana could do to improve without the help of foreign assistance. I think that the best option would simply be to invest and deal with aftermath problems if they were to arise.
ReplyDeleteI feel like this video did a good job at highlighting the possible wealth that these oil companies’ investments could have, but it didn’t go into depth with any of the negatives that could arise. My first thought when they started discussing companies coming in to take advantage of the oil was that this was going to be another situation like in the Middle East. When it was discovered Middle Eastern countries had oil, militaries all over the world (the U.S., the Soviet Union shortly after WW2 ended, and many more) took interest in and began stationing troops in those countries to protect oil interests. With tensions already high between Guyana and Venezuela over territory, major monetary deals with Guyana could push Venezuela over the edge into wanting a full-blown war, while also encouraging other countries’ intervention into the situation. However, without these investments, I am not sure how Guyana could improve the living situation of its citizens. These investments would speed up the process of improving the citizens lives, but I’m not sure it’s worth the risk, especially since it seems like the new government is taking a more active role and really looking to improve the quality of life for the citizens.
ReplyDeleteAfter watching this video, I would have to say that I wish it had dove further into the reasons that Guyana might not want to permit this investment. In my opinion, it is no shock that the people of Guyana are skeptical. Looking just at our, the U.S.A.'s, history regarding oil and intruding on land that is not ours, it would not look very good for the Guyana people. Widespread belief regarding the Vietnam war is that it was actually a war over oil, so it is no wonder the Guyana people are skeptical. By saying no, they put themselves at risk by possibly receiving backlash. Further, the benefits may be tremendous, but they are at risk for bringing hostility onto their soil due to conflict among companies with a lot of power. In my opinion, instead of selling their resources to a company, Guyana should create an oil company of the country to sell their resources themselves, so that they have the control of the resource. In this sense, Guyana is still creating jobs, including an entirely new industry, but they are preventing corrupted institutions from possibly having an upper hand on their country and possibly creating a power imbalance.
ReplyDelete