by Randy Gopaul
Since the exploitation of Guyana’s oil reserves began in earnest in 2020, the country has experienced significant economic growth. Yet, for the average Guyanese citizen, the promise of prosperity remains elusive. In fact, the country’s population has become increasingly dependent on remittances from the diaspora to survive the economic challenges at home. A recent World Bank report reveals an eye opening reality remittances from Guyanese abroad increased from US $380 million in 2019 to US $549 million in 2023, marking a staggering 44% increase in just four years. This trend raises critical questions about the effectiveness of the government’s management of the oil windfall and underscores the vital role of the diaspora in sustaining the nation.
The dramatic increase in remittances coincides with the rise in oil revenues, yet the economic benefits of this newfound wealth have failed to trickle down to ordinary citizens. Instead of seeing an improvement in their quality of life, many Guyanese continue to struggle with skyrocketing costs of living, low wages, and limited opportunities. Families now rely more heavily than ever on their overseas relatives to make ends meet. This paradox highlights the government’s failure to translate oil wealth into tangible benefits for its people.
In contrast, during the APNU government’s tenure, remittances were notably lower. While some may argue that this reflected better economic conditions, the reality is far more complex. The increasing financial contributions from the diaspora today reflect not prosperity but desperation—a response to economic mismanagement and growing inequities.
Despite Guyana’s impressive GDP growth due to oil, emigration rates remain alarmingly high. Talented university graduates leave in droves, citing a lack of opportunities, low wages, and a job market dominated by political patronage, ethnic favoritism, and nepotism. Those who stay face an uphill battle to secure meaningful employment, often turning to family and friends abroad for financial assistance.
This dependence on the diaspora also highlights structural issues within Guyana’s economy. For decades, remittances have been a lifeline for many families, but they also point to systemic failures. The government’s inability to create a meritocratic, inclusive, and opportunity-rich society has driven thousands to seek better lives elsewhere while those left behind struggle to cope with inflation and stagnant wages.
The diaspora’s contributions are not limited to remittances. They play a vital role in shaping Guyana’s development through investments, advocacy, and knowledge transfer. However, their increasing financial contributions should not be seen as a sign of national strength. Instead, it reflects the reality that even with oil, Guyana cannot adequately support its citizens.
The government must address the underlying issues driving this dependency. This includes creating more opportunities for young graduates, tackling political and ethnic discrimination, and ensuring that oil revenues are used to benefit all citizens, not just a privileged few. Failing to do so risks perpetuating a cycle of emigration, economic stagnation, and reliance on the diaspora.