Guyana does not need a return to reckless policies which led to economic ruin

Dear Editor,
The PNCR’s promises for the use of oil revenues are reckless and shortsighted. Their plan to dramatically increase salaries and pensions; offer monthly rent- assistance, free tertiary education, childcare allowances, and various other benefits within the first 100 days of Government hinges dangerously on the assumption that oil revenues would remain high and consistent.
This approach significantly increases Guyana’s recurrent expenditure without a sustainable financial strategy in place. What happens if oil revenues drop? How will the high recurrent expenditures be financed?
History has shown us that relying too heavily on a single volatile source of income can lead to economic instability. The PNCR’s plan echoes the economic mismanagement seen from 1964 to 1992 under the PNC, which led Guyana to the brink of economic ruin. Current price projections for oil add another layer of concern. First, the global shift towards renewable energy and the net zero agenda means that the demand for fossil fuels is expected to decline significantly in the coming decades. Secondly, the International Energy Agency (IEA) projects that under the net zero scenario, oil demand will drop drastically by 2050. This projected decline in demand is likely to result in lower oil prices, which will directly impact countries that rely heavily on oil revenues, such as Guyana.
By focusing on short-term populist measures without a solid foundation for long-term economic stability, the PNCR is setting Guyana up for potential fiscal disaster. Instead of reckless spending, it is crucial to implement a balanced and sustainable economic plan that ensures the country’s prosperity beyond the fluctuations of oil markets.
Responsible governments must diversify the economy, invest in renewable energy, and create a resilient financial framework to safeguard against the volatility of oil prices and the inevitable decline in global oil demand. This is what the PPP/C has been doing.
In contrast, the PNCR’s plan, while appealing on the surface, fails to consider the long-term economic implications and the realities of the global energy market.
Guyana needs prudent and forward-thinking leadership to navigate these challenges, not a return to the reckless policies that previously led to economic ruin.

Yours truly,
Attiya Baksh