Distinguished Professor of Economics and Public Policy, Sir Paul Collier has supported the Guyana government’s insistence on using oil revenue to develop “durable assets” that complement the country’s shift toward a developed economy.
The Professor at the Blavatnik School of Government at the University of Oxford was at the time explaining how Guyana could sensibly leverage its oil wealth for critical infrastructure, when he sat down for an interview with Chief Executive Officer of the Guyana Energy Conference & Supply Chain Expo, Kiana Wilburg, on the agency’s ‘Energy Perspectives’ podcast.
Sir Paul told Wilburg that the Guyana Government is making sensible moves to develop in-country infrastructure, which will support economic development long after the oil ends.
He explained that while ExxonMobil is doing what it does best, getting the oil resource out of the ground, the Guyanese government should be focused on getting the expertise that will help to develop the relevant assets atop the ground.
He said that instead of utilising large sums of the oil funds to subsidise consumption, the government is developing sectors and assets that will support citizens’ ability to earn given the growth taking place in sectors across the country.
Sir Pual emphasised that Guyana’s oil will not last. He explained that the best scenario for Guyana is that the oil resource depletes, but the more likely scenario is that sometime in the future, around the 2040s and onward, oil prices will begin to sag as the green environment push continues, while technology and green solutions continue to advance.
By that time, Collier opined, Guyana should have in place the infrastructure that helps to build on the country’s economic successes. He noted therefore that the negative opinions aimed at the Guyanese government concentrating too much of its oil wealth on infrastructure is a “mistake”.
The Professor suggested that while citizens cannot physically eat roads, bridges and highways, “you can eat”, thanks to facilities that enable a lot more economic activity, including citizens finding more ways to earn a living.
Collier, a global-leader in poverty solutions, said that rather than subsided consumption or “handouts” to the public, it is better for citizens to be able to earn a decent living which is possible through business opportunities resulting from decent roads, electricity and other infrastructure.
