ON THE GUYANA $200,000 FINANCIAL EMOLUMENTS: A BETTER APPROACH
By
H.E. Professor Gilbert Morris
Make no mistake about two things:
1. I will not celebrate the oil emporium of Guyana until there is a system that ensures sustainable benefits for ordinary Guyanese citizens.
2. The proposal to distribute $200,000 to each household in Guyana is well-intentioned but indicates poor systems. In situations like this, when systems fail to address citizens’ needs efficiently, governments often bypass standard protocols and resort to direct cash handouts. While this approach might seem like a quick fix, history and economics tell us that even the best intentions can result in adverse outcomes. There are several direct problems with paying $200,000 to each household:
Problems with the $200,000 Payout Proposal
1. A Symptom of Poor System Organization:
If the Guyana Sovereign Wealth Fund had been established six years ago, as I recommended, any payments to citizens would have come from the fund’s investment yields. Such payments would be sustainable and repeatable, occurring only after responsible investments. This would ensure that the benefits of oil revenues are enduring.
2. Regressive and Unfair Distribution:
A blanket distribution of $200,000 per household fails to account for the disparity between wealthy and poor households, as well as variations in household size. Some households may have only one person, while others may have ten. A flat payout, therefore, would be inequitable.
3. Inevitable Inflation:
The $200,000 payments will inevitably stoke inflation and lead to price spikes. As a result, many people will find themselves deeper in debt after receiving the payout, much like countries that have mismanaged their oil revenues, such as Trinidad and Nigeria.
4. Lessons from Singapore and Norway:
Both Singapore and Norway invest the revenues from their natural resources. Financial distributions in these countries come from profits generated by investment funds, not directly from the sale of resources. This system fosters a sense of national pride, as citizens benefit from strategic investments rather than windfalls.
Better Alternatives for Guyana
To my long-suffering Guyanese brothers and sisters, there are better alternatives to these payments:
a. Establish a Strong Guyana Sovereign Wealth Fund:
This fund should be managed by a technical board with specialized expertise. I recommend appointing Professor Terrence Blackman, a celebrated Guyanese mathematician, as Chairman, alongside top-tier Guyanese banking and finance professionals.
b. Create a National Land Bank:
The Sovereign Wealth Fund should aggregate all public lands in Georgetown into a land bank. Each Guyanese citizen would have ownership via a national ID or insurance number, and as Georgetown prospers, the increased value of the land would accrue to the citizens.
c. Establish a National Credit Union:
Linked to the Sovereign Fund, this credit union would allow Guyanese citizens to receive grants against a portion of their share’s value, fostering long-term savings while providing immediate financial relief.
d. Implement Credit Guidance:
Any public funds distribution should be accompanied by credit guidance. For example, the government could use its resources to pay off Guyanese household debts—loans, credit cards, school fees, and car notes—creating true financial freedom. Additionally, home upgrade grants could be issued in the form of vouchers redeemable at local hardware suppliers.
e. Invest in Education and Public Services:
Standardize and reform preschools and pay preschool fees for the next three years. Build children’s parks and activity centers, and improve public transportation. Establish a national health program and fund its premium for five years. Launch a ten-year “Clean Guyana” program, as cleanliness and proper systems are the foundation of the world’s top-performing economies.
f. Support International Education:
Send 500 young Guyanese to 2-6 day executive education programs at top global universities like Harvard, Stanford, Wharton, and Oxford each quarter for the next five years.
g. Develop Cybersecurity Skills:
In collaboration with Huawei and the University of Guyana (after reforms), cybersecurity training will be offered to 10,000 young Guyanese over the next decade.
h. Foster Tech and Finance Startups:
Establish a $300 million fund to support tech and finance professionals starting new ventures in Guyana.
i. Build Second Cities:
Guyana should establish and masterplan two additional cities beyond Georgetown, using the Sovereign Fund to purchase the land. As these cities develop, the leases and rents should flow into the fund to benefit all Guyanese citizens.
Numerous technical and structural issues have not been discussed here. However, my approach would make Guyanese citizens richer, healthier, and happier than simply paying out $200,000 per household. I propose transparency, efficiency, accountability, and, most importantly, sustainability.
This plan would give Guyanese citizens something they have never had—a tangible stake in their country’s future prosperity, much like citizens of Switzerland and Singapore. By investing wisely through the Sovereign Fund, Guyanese citizens would finally have faith in a system designed for their long-term benefit.
His Excellency Professor Gilbert NMO Morris is Ambassador-at-Large for the Commonwealth of The Bahamas. He is a distinguished neuroscientist, philosopher, economist, legal scholar, and poet known for his interdisciplinary expertise and contributions across multiple fields.
