Is This the Norway of South America?
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- เผยแพร่เมื่อ 31 พ.ค. 2024
- Guyana’s economy is the fastest growing in the world, driven by a booming oil sector. The South American nation’s reserves are so vast that Venezuela is escalating claims to its neighbor’s oil-rich Essequibo region. Guyana’s fossil fuel supply poses other challenges, too. While natural resource windfalls can create phenomenal wealth, they can lead to hyperinflation, social and political upheaval and severe income inequality.
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Chapters:
00:00 introduction
01:34 Guyana’s economic boom
03:25 The paradox of plenty
4:25 Risk of inequality
5:38 Escaping the resource curse
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There's a technical term for this sort of promotion: it's called a balloon note. That rate only lasts three months. Then it jumps seven-fold or so.
Oops. I checked. Seventeen-fold. Your two bucks a month becomes $34.99.
And your bank will probably round it off to thirty-five bucks.
Hope Guyana becomes wealthy and prosperous
Maduro qill not let it. And, even if Guyana succeeds on it objectives, it will also be targeted by Venezuelan Chavist undermining
@@youxkiothe US wouldn’t allow them to not allow it, as long as Guyana is allies with the UK, US, Brazil, and all the Caribbean, it will be protected
I hope those powers hear you well!!@@MJTH-camrs
@@youxkio really? how is he going to stop the progress?
Invading Esequibo as he is promising. Maduro and Putin have a lot in common.@@amazonwarrior7126
Funniest moment
Kiosk owner: "I got one prerogative. I want my oil money"
Reporter: Vigorously takes notes as if it were some profound life changing statement.
Him want his oil money, that his prerogative
How would he get oil money from running a run down kiosk, am I missing something
Mr president if you want to give the people a better life , you need to increase the minimum wage so the ordinary man can carry home a bigger income for his family
Usually, each citizen is given a share of profits when huge amounts of natural resources are sold. This happens in Alaska, in the gulf countries, oil profits pay for all sorts of social services, I don't know if those citizens directly get money.
"I want the oil money" and that's how you get Venezuala.....
Invest in education.
This should be the main
So true. I have faith that this will turn out well
Hopefully, they will follow Norway's approach.
Nope, Maduro will claim it. Maduro cannot accept a neighbor's economy being much better than Venezuela's with the same means of wealth. Maduro just can't accept the competition and may even be murdered if Guyana proves that Chavist political-economic model does not work.
It is too underdeveloped (therefore needs to bring significant funds into the country to develop it) and inflation is already running deep. Guyana's best bet is to tackle the resource curse head on by staggering (incremental growth) its economy.
they will not follow Norway. Cuz I live here. The current government is using the oil money as a tool for their supporters only. They have not implanted any inflation reduction strategies. The price for food items is up by 400 plus per cent. They have made no progress to reduce the income tax or vat on items imported.
So it will become a resource cursed country.@@jamalcollier7588
@@jongalloway726 Norway had to bring significant funds to develop their industry too. They just did it well,
Guyana is NOT Latin America. It is however, surrounded by Latin America.
From Arab oil countries and Norway we can learn how to manage it correctly for the people. Best of luck Guyana
Arab gulf r absolute monarch,
so even thou they r not as educated as the norwegian when oil was discovered the people r already united & strongly trust the Royal family...
could not say the same for uneducated democracy,
however Guyana low population does give a big advantage
@@fudgerace4356
Not really. Equatorial Guinea is oil-rich with a small population. Barely a million yet 75% live below the poverty line.
Guyana's problem will be inflation, it imports too much, produces too little and too under develop, it will have to tackle the resource curse as investments will take decades to enter the country and transform it; it cannot take the Norway approach. It has to focus on staggering its economy in a delicate way to come out of this better.
Honestly I think the "norway approach" might actually be the perfect solution. If the government can agree to put most of the money, say 80% into assets outside the country they can avoid a lot of inflationary pressures, maybe have a 1-2% max draw out of funds per year. The government made $1 billion in oil revenue, this needs to be kept out of the economy to avoid inflation as their imports were around $4 billion in 2022. Fortunately in 2022 their imports to exports ratio was about equal. Some of their largest exports are unrefined products, hence some of their money, maybe 10%, should end up building infrastructure and loans to help create value adding industries. The remaining 10% should probably be split between healthcare and education subsidies. If you want an example of how to fully pull a country of poverty look no further than South Korea. It has transformed itself into a high income country through a few key areas, a great education system, capitalizing on local businesses, and massive cash injections from the united states. Id say they already have the massive cash injections part down, now its time for them to work on the local business development and education sectors. It won't be quick, but with savy investment they can effectively offer a better economic and lifestyle for its citizens.
I’d invest in decentralised infrastructure like water tanks and solar panels, and septic systems and then internet infrastructure. I’d set a goal for households to produce a percentage of their calories at home and fund grassroots programs to build gardens for families and communities. I’d give the power back to the families and kids to dictate their education methods and curriculum and connect education providers directly with employers
Guyana has no problem with the economy ,the gov is growing all aspects
@@amazonwarrior7126 Guyana’s inflation is high. A classic case of the Dutch disease is beginning to take hold in Guyana. As I said the best way out is to slowly grow the economy.
galloway726 in Guyana we have no problem its only foreigners wishing problems upon us, no inflation and we are building houses for low income families and we have many jobs vacancies
Hyperinflation from resources are a sign of corruption and reliance on one industry.
well no hyperinflation in Guyana for sure
Go Guyana
Yeah, I should ask Norway. How to invest the Oil money.
And how to take control of the corrupting influence of Big Oil! 😑
The fact that Venezuela thinks it needs some of this when they already have the worlds largest reserves AND cannot competently manage what they have should serve as an illustration to us all
100% Unlike America, The Norwegian People Collectively own & benefit from their own shared natural resources like a smart healthy advanced modern civilized society.
@@rosaluxemburg1670 well so is Guyana, we the Guyanese people are really benifiting and we have just started in only 3 years so dont expect norway standards overnight as the jackasses do,but we are getting there.
@@dereksollows9783 Venezuela want's the oil because it's light sweet crude similar to Saudi oil which is low cost to extract. Venezuela has tons of oil but it's heavy sour meaning it's like frozen molasses in the ground and contaminated with sulfates and needs hot water pumped into the hole to liquefy it and extract it. It costs a lot more to extract Venezuelan oil.
5zo why should we ask Norway?
Guyana is in South America, but is not part of Latin America.
Wow that’s interesting. I grew up in Florida and have never heard someone make a distinction.
How is that possible? They're literally in South (Latin) America? Now, if you were to say Guyana isn't Hispanic (peoples rooted in the Spanish language/dialect) that would make some sense.
@@shomaribenton8518 guyana was British Guiana before independence, it is the only english speaking country in S.america. its called west indian or caribbean.
@@shomaribenton8518 remember that Brazil is not Hispanic either, but it is part of Latin America. Guyana is not Latin. They are british, native & african. Little to no Latin influence there.
@@shomaribenton8518 South America isnt Latin America, thats what he's saying. Latin America is specifically countries in America that are Hispanic, not countries that are in South America. Mexico is in Latin America despite being in North America. Also being Hispanic is also racial not just linguistic.
This is the first time in a minute that my home has been the subject of a video... and of course it's about the oil
May Allah shower them with wealth, and most importantly, may Allah guide them to use the resources wisely, I love the Guyanese people 🇬🇾
Invite the Norwegians in for some strategic planning and asset management advice
Problem is it's alot easier to use oil to supplement an economy which is already amongst the richest in the world than to develop a country from the bottom up with oil exclusively.
@@stormoscar2628 What? Worlds biggest OIL boom, divided among under 900,000 citizens should be absolute magic. Norway was not one of the richest in the world when the oil boom started. What distinguishes Norway, and they alone, is that they imposed a coherent policy on Big Oil and stuck to it. They were generally well educated and able to trust their politicians because of a robust political structure. Since Guyana has fewer than a million citizens they will have to hire out for the management of the entire resource. If they were to do so, they would each be multi-millionaires. Like Canada , my home country, they will not. Like Venezuela, they will not.
Would Norway assist with human resource cross border transition.
@@user-hp9kn9uv1x tf that mean? Like export expertise to Guyana? Yo that would help, but say it in English next time aye
@@dereksollows9783 You're wrong though, in the 90's when we began to get a large influx of capital from the Oil industry we were already amongst the 10 richest countries in Europe, the richest continent on Earth. Of course a state owned oil corporation has a large part in why we were able to prosper from the industry, but just look at Saudi Arabia. They have a gigantic foreign wealth fund, they have all the would need and yet their oil money has made it impossible for any industry other than petroleum to be profitable.
If big money enters the government, the Guyanese government will have an opportunity to implement a Singaporean 🇸🇬 housing style for Guyanese citizens. Singaporean flats don’t belong to the people; they belong to the government, but the government lends each flat for a 99-year period. Now that housing prices are not that high in Guyana, this is the time to carry out Singaporean-style housing. Otherwise, housing and renting prices will skyrocket in Guyana just like everywhere else.
Is not a tiny nation... its the size of the UK
Less than a million people, though. By global standards it's a small country
@@DarthFurie we can always import people no problem.
I want my oil money😅
Guyana is not a part of Latin America
Guyana US is coming 🙌
They already trna their best
THERE IS NO OIL CURSE, ONLY BAD LEADERSHIP.
Very funny, Guyana is doing great with the present government 😂😂😂😂😂
@@narinedatseenarine9896 I wasn't talking about the leader in Guyana. It's the ones in countries that did not use their oil money properly.
@@narinedatseenarine9896currently leadership*, the government wasn’t anything special until Ali took over
Guyana needs to invest in education with this influx of money. Push STEM education, motivate students, bring professors, give scholarships and stipends to careers that will help the economy.
wishing them all the best!!!
Let's try the Qatar economic model since both regions have similar pre-oil boom populations
Absolute Monarchy economic model
LOL Guyana is not in Latin America, as English speaking. Its in South America per geography, but not a latin country at all.
They should take advise from Norway!!😊
Why isn't Reliance petroleum sending executives in Guyana
wow many things to learn
They can avoid the oil curse, but they probably won’t.
Respect to Guyana. Your friends here in Britain stand with you against Venezuela and congratulate you on your new riches to come
lol "friends in Britain" 😂
Ask Poland in WW2 if you can trust the British.
Esequibo belongs to Venezuela 🇻🇪
When the day Guyana really becomes rich and powerful and starts defying the Brits, u guys will surely bring up "Global Warming", "Stop Deforestation" etc...
I bet the sharks are out over this! All the wealth will typically land in a few hands.
This . Norway is protected from the sharks by being European
US imperialism manly
I THINK IT'S TIME GUYANA GOT SOME FREEDOM
It's not that tiny if you think in terms of EU dimensions
Geographically not that small, but 800,000 people is small vis-a-vis population.
She didn't mean that
And don't change your culture, your normal family size and your appreciation for your Nature and water and air and land resource. Newly rich people get the Euphoria of Irresponsibility'; that feeling of being infallible. Smarter people, don't do much better. It's more the older that have lived a hard life and fear of returning to that hard life again.
So the older generation needs to speak up for family values, culture values, and protection of Nature and water and land.
Don't be in a hurry to build a bunch of large houses when all you need is your existing houses roof's fixed and better clean water and sanitation methods. Work on improving the basics before you start to live large. This could be Guyana's One Time big blessing. Don't F*#* it up.
hope they follow Norways model, the key factor will be corruption
Wishing them well
Norway should help them set up their own sovereign wealth fund and other legislation and policies.
4:57 a glimps of Wealth or War
With a current president of Guyana who is accused of many unlawful actions, the American oil conglomerates hovering around and Bloomberg reporting the ‚sensation‘, well everyone has to come to his/her/it own conclusion what is going on here and who wants to be at the upper end.
Lots of school buildings
burned down to give close friends contracts
I hope that their government is smart enough to look at positive examples of other Fossil Fuel exporting countries (Norway, Qatar, Q-8) that looked at the oil in the countries lands and waters as a shared National Resource and thus set up SOVEREIGN WEALTH FUNDS to protect basic services like: Education, Healthcare, Retirement, early childcare and development, and subsidized UNIVERSITY EDUCATION -if the student can qualify academically) for the whole of the citizenry.
And then still pay great wages but also charge pretty high (40%) income tax to promote austerity and prudent saving. Otherwise the short term windfall Oil Rush will be a recipe for hyperinflation and then economic collapse and massive unemployment.
Guyana was scammed by Exxon Mobile badly. A normal price for the oil would be normally double as much as Exxon Mobile is paying. Lots of billions US Dollar that the poor Guyana is loosing each year. I think Exxon Mobile has payed some politcians for that for Guyana very bad contracts.
Knock knock
uncle joe wants to spread freedom
Excited: hope we can learn from our! guyanan neighbours!!! Don’t fall for the curse!!
They should do what Alaska does and pay an annual dividend, or introduce UBI. Gotta bring the people with you 🤙
Greed and control should be replaced by love and responsibility
USA military: I think we need to spread freedom there
They can't avoid the oil curse. End of story.
Oil sucks. Keep it in the ground.
I grew up in nearby Trinidad, WI, which has lesser - but adequate - reserves of oil & gas.
The references to Norway's responsible handling of its petroleum reserves?
A facile/ shallow association: Norway has checks and balances, and is a sophisticated society.
Guyana, on the other hand, will more likely see its future massive state income plundered by those in power, &/or wasted on useless, ineffective govt programs and make work projects.
I wish my Guyanese cousins happy & prosperous trails. But i fear that my predictions will come to pass.
Blessings!
Only thing that can help Guyana after discovery of oil deposits would be - UNITY. People should be Unite and find the best way to grow the nation together, and prepare to fight against all the threats that likely to flow from West as well as neighbors.
Just 800 000 people?
Probably that many have fled the country during the 70s through 90s due to oppression, dictatorship government etc
Venezuelan's oil is really magical.
Gayana ... Come on it list doniert lemp ?
Fight for your fair share black folks, sick and tired of taken advantage by the whole world 👏🏿👏🏿👏🏿👏🏿💪🏿💪🏿💪🏿💪🏿🙏🏿🙏🏿
Really? Taken advantage? News unknown to the people they oppressed for decades… the robbery, killings, looting stores etc
Isn't Surinam trying to take those oil fields?? How did that work out??
Where did you get that disinformation from??
It’s Venezuela not Suriname
Guyana should follow the way that Norway managed their oil and gas exploitation.The Guyanans must realize that these oil and gas resources are owned by each and every citizen of their country not foreigners,not multinationals or trans national companies,not corrupt politicians,not greedy businessmen but by the state..Following Norway, It should put up a national oil and gas corporation to manage the exploratoon,development,roduction,sale and earnings.They should also put up their national wealth fun run by incorruptible NWF Council who will use partbof the earnings to sovereign wealth fund.Earnings should go back to every citizen as benefits and fpr nation building and development.
I’m glad we’ve somehow managed to make these lucky people seem like victims. Is this what journalism is now!
Como evitar maldição do petróleo: mantendo distância dos U.S.
They should learn from Norway and open a robust sovereign wealth fund ! Invest in Asia for life time big returns !
Eles nao podemaia evitar ja que a aguia ja esta la com a democracia deles 😂
I have been working offshore there. Hopefully they don't take Angola's path.
US siphoning Venezuela's oil from Guyana.
Guyana has a high Indian origin population that form part of the the Indian indentured labour Carribean work force that settled alongside fellow African slaves. Venezuela's greed is well known along with corruption. Perhaps the Indian diaspora in Guyana can bridge across the fastest growing economy ( India @ 8%) to ensure solid social systems that benefit the PPL is focused on. The problem with oil dependent nations is - the shift away from oil & the push for green energy so there will be oil but it's Gona loose its use. By then these small oil dependent countries need a partner like India that has multiple sectors beyond oil as solutions to their problems.
too bad, corruption will ravage that economy
They should have made contract of oil extraction with the brazilian Petrobras. Any sudden change of regime or privatization wouldn't cause the Brazilian government to retaliate.
hello 431, we in Guyana cannot work with Petrobras as its a corrupt oil company and that would be bad for Guyana
@@amazonwarrior7126 As if the US and European oil companies were also not corrupt IoI Do you know what Chevron has made in Ecuador? Also Exxon Mobil was condemned even inside the US to bribe countries governments all over the world in Angola, Indonesia, Liberia, Malaysia, etc.
@@truth-uncensored2426 so make your point? so Ecuador signed the contract, did they not? are they babys? or did some one put a gun to their head and say sign? so the oil companys are currupt, ok you want Guyana to natiomalise? now have you got the skill to run an oil company? only donkey kong of the PNC will do that
@@amazonwarrior7126 no corruption is carried out without the support of governmental sectors ? is your gov corrupt ?
@@cleitondecarvalho431 no our Gov is not corrupt in Guyana, one or two people say they are, but saying is one thing, but where is the evidence?
the resource curse will strangle the country.
R they a Democracy 🇺🇸
I'm sure all that wealth will be fairly distributed through their population.
USA: Let me tell you something...
Brunei did it without hyperinflation, but religion and a Sultan was involved........
These commentators must do proper research before making outrageous comments like saying that indo guyanese co ntrol 10% of the wealth thus saying that afroguyanse do not have wealth that is not the condition in guyana
n
hb4f its because she is Venezulian she says negative things about Guyana
@@offroadguy7772 are you afro Guyanese or a foreigner pretending to be Guyanese?
@@amazonwarrior7126they tryna divide and rule u people's !
Things in Venezuela os sonbad, there are almos no medical doctors anymore.
They should invest in Touristic areas, close to beaches and create high income neighborhoods, people with higher income, so they can expense that money in the local Guyana Economy…
NO IS THE NEW SWITZERLAND
Oil will always be king.
Dear Bloomberg, 3:42 this data is too narrow and too outdated...... Just saying.
Fingers crossed 🤞 for Guyana that everyone benefits
🇬🇾❤️
Everybody wants ile money but you will never get it beka Gt is all abt frens n fambly. It don’t hut to dreem doh.
Indian origins peoples are the owners of everything, specifically Hindu Indian communities
I'm surprised by the reporter's English.
Oil doesn't make a people prosperous. Guyana is prospering on its oil because they have one of the better education systems around.
Guyana is oil curse
Buy there currency while still cheap
*gyana
Hope our money help the poor people who are suffering and hungry .our teachers strike for more money teachers getting $450 USD per a month .
Teachers striking to get an increase in an oil rich country ....
We Indians got a eye 👀 on the 🛢️ too in Guyana.
Stay away
@@fjtpersian6566 India have blood relationship with Guyana though ! And we are paying and can give them stable customer as Indian market is so huge ! Instead of making Russians or Arabs rich we would pay our lost brothers ! Nearly 50% of Guyana citizens are decedents of India
Even the head of state of Guyana is Indian origin brother ! And India is far more trusted than USA at any day ! Have u ever heared that any Indian oil Company exploited the locals ?
Also.recently Guyana leader signed defense pact with India ! If Venezuela try to act smart Guyana have option of from India's support India also major fastest growing economy our interest looks intertwined
@@svanimation8969 They may have but most of the Diaspora population live in the USA or Canada and hardly any of them live in India and most of them have more connections to America than India .
@@svanimation8969 they have not signed a defense agreement with India .
Ya a wagi dé
LPG
MANKAL
It wasn’t corruption that brought down Venezuela; socialism is to blame single handily.
ASK A VIKING -- NORWAY seems to have nailed it
They should use the wealth to build rail transport to connect all of Latin America instead of tall buildings. Don't be like Gulf Arabs who wantvto have there own of everything. In GCC one state should have owned the rail, another the airline etc instead of them competing to own there own.
Cute little dream. Will never work
@@ricardop9196 and that's because you know of the western division?
America must take part now in construction materials long term commerce and equipment of all kind and household appliances. China is already making the roads. Why America is always slower than China to get in?
How about saying exion need excuse to say why you not rich because...exxion take more money!
The Brunei of South America
That kiosk clerk wants “his oil money”… but doesn’t work in oil or any related fields. Ppl just want something handed to them with no work 🙄.
😅
Guyana will never change.
It has already changed
I want my oil money
Isn't Venezuela going to invade them?
Latin America ?