Guyana in 2025: The Confluence of a Possible Dénouement of Its Centuries-Long Territorial Dispute and Its Newfound Oil Wealth
DOI:
https://doi.org/10.33423/jabe.v27i1.7500Keywords:
business, economics, Guyana, oil and gas deposits, economic development, VenezuelaAbstract
In recent years Guyana has been featured in the news disproportionally. This paper begins with a short overview of the country’s vital statistics, followed by a brief review of Guyana’s political and economic pre- and post-independence history, incorporating a synopsis of its longstanding territorial dispute with its neighbor, Venezuela. The paper highlights Guyana’s recent recognition as a potentially large oil-producing nation, whose economy since 2020 has recorded the highest growth rate in the world. In 2023, real Gross Domestic Product (GDP) increased by 33%. With the government committed to deploying the country’s newfound wealth towards modernizing the economy and increasing living standards for all its citizens, Guyana’s vulnerability to the “Dutch disease” and the “resource curse” are discussed along with the technical support provided by the International Monetary Fund and the World Bank who are assisting with the country’s development program.
References
Auty, R. (1993). Sustaining Development in Mineral Economies: The Resource Curse Thesis. London: Routledge.
Bahadur, G. (2024, April 6). Is Guyana’s Oil More Blessing or Curse? The New York Times.
Burnham, F. (2024). Retrieved from https://en.wikipedia.org/wiki/Forbes_Burnham
Central Intelligence Agency (CIA). (2024). Guyana Map. The World Factbook, Retrieved from https://www.cia.gov/the-world-factbook/static/maps/GY-map.jpg
Climate Action (United Nations). (n.d.). Retrieved from https://www.un.org/en/climatechange/paris-agreement#:~:text=In%202023%2C%20the%20first%20%E2%80%9Cglobal,fossil%20fuels%20to%20renewable%20energy
Daniels, J. (2023, December 14.). Guyana vows to defend itself ‘by all means. Financial Times.
Dubé, R., & Vyas, K. (2024, August 5). As Venezuela’s Strongman Clings to Power, His People Pack Their Bags. The Wall Street Journal.
Dutch disease. (n.d.). Retrieved from https://en.wikipedia.org/wiki/Dutch_disease
Eaton, C., & Vyas, K. (2023, June 27). OPEC Pursues Guyana for Oil Bloc. The Wall Street Journal.
Eaton, C., & Morenne, B. (2024, May 28). Oil-Patch Brawl Over $53 Billion Megadeal Entwines Three CEOs. The Wall Street Journal.
Energy Information Agency (EIA). (2024, May). US Department of Energy. Retrieved from https://www.eia.gov/todayinenergy/detail.php?id=62103#:~:text=Since%20starting%20production%20in%202019,all%20from%20the%20Stabroek%20block
Forero, J., & Vyas, K. (2024, February 10). Venezuela Boosts Military at Guyana Border. The Wall Street Journal.
Glatsky, G. (2024, December 4). Venezuelan Voters Back Maduro’s Claim to a Neighbor’s Territory. The New York Times.
Guyana. (2024). Retrieved from https://en.wikipedia.org/wiki/Guyana
Human Development Report (United Nations). (2024). Retrieved from https://hdr.undp.org/system/files/documents/global-report-document/hdr2023-24reporten.pdf
International Monetary Fund (IMF). (2023, December). Guyana: 2023 Article IV Consultation Staff Report, (IMF Country Report No. 23/379).
Monga, V. (2024, July 15). Canada’s Bid to Boost Oil Output, Cut Emissions Falters. The Wall Street Journal.
Okafur, C. (2024, May 16). Top 5 largest oil-producing countries in Africa for April. Retrieved from https://africa.businessinsider.com/local/markets/top-5-largest-oil-producing-countries-in-africa-for-april/jewgmef#:~:text=Nigeria%20ranks%20first%20on%20the%20list
Plumer, B. (2023, October 24). Energy Agency Sees Peaks in Global Oil, Coal and Gas Demand by 2030. The New York Times.
Pooler, M. (2024, September 16). The contradiction of Brazil’s oil ambitions. Financial Times.
Resource curse. (n.d.). Retrieved from https://en.wikipedia.org/wiki/Resource_curse
Sachs, J., & Warner, A. (2001). Natural Resources and Economic Development: The Curse of Natural Resources. European Economic Review, (45), 827–38.
Sharp, A. (2023, December 7). Why Is Venezuela Threatening a Land-Grab War in Latin America? Retrieved from https://foreignpolicy.com/2023/12/07/venezuela-maduro-guyana-esequibo-interstate-war-oil-referendum-icj/
Smyth, J., & Daniels, J. (2024, June 25). Guyana: the world’s last petrostate? Financial Times.
Smyth, J., & Johnston, I. (2023, October 30). Chevron follows Exxon to tap Guyana oil riches. Financial Times.
Sohn, I. (2020). Why Is Nigeria—The ‘Giant of Africa’—Still Poor? Journal of Applied Business and Economics, 22(5), 11–41.
Sovereign Wealth Fund. (n.d.). Retrieved from https://en.wikipedia.org/wiki/Sovereign_wealth_fund
Sovereign Wealth Fund Institute. (2024). Retrieved from https://www.swfinstitute.org/fund-rankings/sovereign-wealth-fund
Stott, M. (2023, June 25). Oil remains a safer bet for Latin America than green energy. Financial Times.
The Economist. (2023, December 9). Nicolás Maduro threatens to annex Guyana: A dodgy referendum.
Twilley, N. (2024). Frostbite: How Refrigeration Changed Our Food, Our Planet, and Ourselves. Penguin Press, p.81. New York.
Valle, S. (2024, August 20). Exclusive: Hess Guyana's secret value becomes part of Exxon arbitration, sources say. Reuters. Retrieved from https://www.reuters.com/business/energy/hess-guyanas-secret-value-becomes-part-exxon-arbitration-sources-say-2024-08-20/
Vanguard. (2024, July). Government efforts failing as food imports rise 122%, deficit hits N4.9trn. Retrieved from https://www.vanguardngr.com/2023/08/govt-efforts-failing-as-food-imports-rise-122-deficit-hits-n4-9trn/#:~:text=Despite%20continuous%20government%20efforts% 20to,trillion%20between%202018%20and%202022)
Venezuela territorial dispute. (n.d.). Wikipedia. Retrieved from https://en.wikipedia.org/wiki/Guyana% E2%80%93Venezuela_territorial_dispute#/media/File:Guyana_Venezuela_Locator.png
Vyas, K., & Eaton, C. (2023, November 2). Exxon’s Giant Oil Discovery Transforms a Tiny Nation. The Wall Street Journal.
World Bank. (n.d.). Employment. Retrieved from https://data.worldbank.org/indicator/SL.SRV.EMPL.ZS?locations=GY
World Bank. (n.d.). The World Bank in Guyana. Retrieved from https://www.worldbank.org/en/country/guyana/overview
World Bank. (n.d.). Urbanization. Retrieved from https://data.worldbank.org/indicator/SP.URB.TOTL.IN.ZS?locations=ZJ
