Handouts risk inflation and dependency; make water free instead

Dear Editor,
The recent debate over whether Guyana should give direct cash transfers to citizens from our oil revenues deserves serious reflection. While the intention to share our newfound wealth is understandable, the approach of direct cash handouts has proven, in many countries, to be more harmful than helpful.
Firstly, large-scale cash transfers can fuel inflation. When there is more money chasing the same quantity of goods and services, prices inevitably rise. The very citizens these programmes aim to help end up spending more on essentials, and their real purchasing power diminishes.
Secondly, cash transfers risk creating a culture of dependency. Rather than empowering citizens to work and innovate, they can encourage complacency and weaken the workforce. In a young and developing economy like ours, reducing participation in the labour force would slow national growth and stifle entrepreneurship.
Instead of giving every adult GY$200,000, a better alternative would be to use this money to ease citizens’ cost of living through sustainable, universal benefits. For example, making access to water free for every household would be a direct way to improve living standards without discouraging productivity. Businesses, however, should continue to pay for water, ensuring that the burden does not fall on taxpayers while maintaining incentives for conservation.
Minister of Natural Resources Vickram Bharrat was right to caution that cash transfers from oil revenues have been a failed model in other countries. Those who depended on such programmes often found themselves worse off in the long run, as the easy money dried up and economies faltered. If Guyana follows that path, we risk ending up poorer than when we began this journey into oil production.
Our focus should remain on smart, long-term investments that build resilience – quality education, infrastructure, and targeted social programmes that lift people out of poverty without undermining their drive to succeed.

Yours sincerely,
Sheikh Mohammed