Mr. Lowe’s recommendation that Guyana should go the route of pre-production oil revenue borrowing is misguided and a poor economic prescription. Resource-based borrowing should not be confused with pre-production oil revenue borrowing for they are fundamental differences between the two – that main difference being timing. Borrowing on pre-production oil revenue ignores the multiple risks facing the realization of such revenues. While preliminary results show that Guyana may realize the commercial production of oil in the future, these signals should not be taken as foregone conclusions.
A new think tank has emerged that analyzes and dissects budget and public policy issues in Guyana. The Guyana Budget & Policy Institute (GBPI) aims to bring attention to a range of issues that affect the quality of life of residents, economic growth, health, education, job creation, and income through the lens of the national budget and policies.