In order for Suriname to prudently manage its oil and gas industry, Senior Analyst at America’s Market Intelligence (AMI), Arthur Deakin, is calling for the South American country to take lessons from Guyana’s oil boom.
In an analysis released to the Suriname Energy, Oil & Gas Summit (SEOGS) on Tuesday, Deakin, who also is the Co-Director of AMI’s energy strategy, recalled that Suriname has discovered billions of barrels of recoverable oil offshore its coast. This, he pointed out, has attracted a flurry of international investors seeking to capitalize on the lucrative sector.
Comments
As always an excellent analysis by Arthur Deakin with three important take home messages . Most importantly when talking about a national sovereign wealth fund: “… also highlighted the need for Suriname to pass a new law that creates a fund specifically for its oil resources. This fund, he said, must be professionally managed by an independent body with no political connections.” The same should apply to Guyana’s Natural Resources Fund.
The Co-Director’s last and “most complex” lesson involves the elimination of the “systematic corruption present both in Suriname and Guyana”.
“A culture of bribes, patronage and nepotism,” Deakin said, “is the greatest danger to the country’s prosperity. Establishing international and domestic accountability bodies, in addition to implementing the necessary framework that prevents the misuse of oil funds is one solution. Independent news outlets and a more robust educational system are also strongly correlated with transparency levels.
WELL…..If Guyana can accomplish any of the above, that solution can be worth more than any money generated from OIL.
This deviant culture developed over many generations, fuelled by the shortage of necessities way back, has become the social norm, introduction of OIL money will
accelerate the behaviour, it will require a complete reversal of the way Guyanese
politicians think and act, in addition the population has to be more active, this OIL is a one shot deal.
Me just Me… does not look promising, but I hope I am wrong.
All good points, Wally. I did not want to dwell on the corruption allegations but rather focus on having a regulation for a transparent and well-managed NRF implemented. This will be the source of lots of Guyanese public wealth in the future. If not taken care of early, it will become a gigantic source of financial favours to the constituency supporting the party in power. The Guyanese have to be vigilant and pro-active. Adopt Guyana adopts the Norwegian model or running a sovereign wealth fund, there will be 3-5% of the oil revenue available for spending by the party in power. The core of the fund would be preserved for future generations.
NOW might be a good time to start looking for these “special” people, last election both governments agreed to the members of Caricom, to over see the recount,a group of people anxious to see the quick demise of the about to flourish, GUYANA, so the government already batting zero.
Maybe Guyanese overseas, just wanting to see the country, move ahead. Remember I already voted for you.
This is going to be hard real hard.
Wally, you have too much confidence in me….. I am just trying to do what’s possible by giving my advice as Guyanese living abroad. However, I am not here to pontificate to the Guyanese back home. It’s them that have to make the final decisions. I am just trying the sensitize the Guyanese public and make them aware of alternatives, like here about options to preserve the oil revenues for the post-oil era in 30 years.
If asked, I would definitely not hesitate to advise any Guyanese government, irrespective of whether its PPP or coalition-led. I guess this will however not happen. For example, communicating with the Diaspora Unit of the Ministry of Foreign Affairs or the President’s Office is impossible. Emails are either returned to sender (mail box full?) or you never get a response back. Hence, I do not know whether they really care about our input from the diaspora.
You seem really willing to help, and you have the knowledge,which to me is a great staring point. Having Guyanese (neutral) in this position will show a maturity that was missing in the past. Sadly, my friend passed away, he had worked with both governments setting up the Marine Boundaries, could have hooked you up.
I am waiting to see what happens.