Wealth Fund must directly address needs of Guyanese – US Ambassador

…urges inclusionary approach with civil society

The Sovereign Wealth Fund (SWF), which has been renamed the Natural Resource Fund, has to be formulated with the specific objective of addressing the needs of all Guyanese.
This is the view of United States Ambassador to Guyana, Perry Holloway. In an op-ed on Monday, the diplomat noted that education, agriculture, security and health were just a few of the areas of expenditure Government must concentrate on.
“Let us be clear.  When I speak of a Sovereign Wealth Fund, I am talking about a

fund that will immediately begin to invest in education, health, infrastructure, agriculture, and security.
“I am referring to a concerted effort by all stakeholders to start a continuous conversation on how best to implement fiscal plans that directly address the needs of all Guyanese now.  The urgency cannot be understated.”
Holloway noted that difficult decisions would have to be made regarding managing the Fund and even on the question of future concessional borrowing. But he said that developing a comprehensive fund structure would ultimately pay off.
“The development of a comprehensive sovereign wealth fund is the opportunity Guyana has been expecting to leverage the prosperity of the future into the development of the present.”
“It is the right call and sends the right message to the Guyanese people and international donors and investors alike, that, above all else, Guyana is ready to come to the table with a plan that puts long-term, sustainable fiscal planning at the service of today’s progress, while protecting tomorrow’s future. “
Noting that Guyana was “poised to be a very rich country for this region”, Holloway was optimistic about the country’s financial future. He urged politicians to use the chance to get the framework right when many other countries have not.
“The input of the Guyanese people into the process will be instrumental to ensure the appropriate funds and mechanisms are in place to protect prosperity and pave a pathway to long-term growth.  Ultimately, that is what will mark success, not a specific type of fund, although excellent examples exist, but a fund that builds on a future aligned with prosperity and hope.”
Natural Resources Minister Raphael Trotman and Finance Minister Winston Jordan have been on trips to countries like Uganda to examine their SWF structure.
Uganda, which found oil in 2006, is also expected to start production around the same time as Guyana.
Trotman had spoken of consideration being given to establishing three sub-funds within the SWF. Those sub-funds – the Stabilisation Fund, Infrastructure and Social Development Fund and Citizens Participation Fund – are all expected to complement each other.
But despite promises from the Government that the SWF policy would have been presented in the National Assembly and debated in 2016, this is yet to happen.