Guyana

THE COOPERATIVE REPUBLIC of Guyana was originally home to Dutch, English, and French colonies.

[Page 452]The Dutch obtained possession of most of Guyana by the early 17th century. During the Napoleonic Wars, Great Britain gained possession of three Dutch colonies and established British Guiana in 1831. As a result, Guyana is the only English-speaking country in South America.

After slavery was abolished in 1834, Guyana experienced a period of black urbanization. Indentured servants from east India were brought into the country to work the vast sugar plantations. Guyana's population still mirrors the ethnic diversity of its history, and ethnicity plays a major role in political strife. Half the people are east Indian, 36 percent are black, seven percent are Amerindian, and the rest are white, Chinese, and other mixtures.

After winning independence from Great Britain in 1966, the name of the country was changed back to its original form, Guyana. The nation was subsequently ruled by a succession of socialist-oriented governments. In 1992 the first democratic elections in 28 years were held. Since 2000, Guyana has been involved in disputes with Venezuela and Suriname over contested territory. The outcome of the dispute with Suriname could have a significant impact of the economy on both countries because the land in dispute is coastal land with huge oil reserves.

Guyana has experienced moderate economic growth in the 21st century by expanding agricultural and mining sectors, attracting foreign investors, and enacting a more realistic exchange rate than in the past. Further economic growth has been hampered by a shortage of skilled labor and an infrastructure in need of restructuring. Prospects for a more prosperous economy are dependent on continued privatization, expanded public investment, and the exploitation of bauxite deposits.

Guyana's other resources include gold, diamonds, hardwood timber, shrimp, and fish. The agricultural sector generates 38.3 percent of revenue for Guyana. Industry accounts for almost a fifth of the Gross Domestic Product, and services produce the remaining percent. While the unemployment rate is officially percent, it is widely believed that this figure is under-representative of the extent of unemployment in Guyana.

Despite great potential for economic growth, Guyana's per capita income of $3,800 is one of the lowest in the western hemisphere. Payments on substantial external debts drain the country of resources needed to deal with domestic issues. Currently, poverty in Guyana is estimated at 35 percent. However, the government has done a great deal to reduce poverty since 1988, when the poverty rate rose to 65 percent. Within four years, the number of people living in poverty had been reduced to 43 percent.

Guyana's antipoverty program is based on World Bank guidelines and is geared toward social inclusion and economic growth. There are no current data on particular aspects of poverty in Guyana, but a Household Income and Expenditure Survey that is under way will improve poverty assessments. Data from other sources reveal that 61 percent of Guyanese live on less than $2 a day, and 14 percent of the general population are undernourished. Inequality of resources is prevalent in Guyana. The richest 20 percent claim 49.7 percent of resources while the poorest 20 percent share only 4.5 percent. Guyana is ranked 43.2 percent on the Gini Index of Human Inequality.

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