GUYANA | AFC Leader Ramjattan Warns of Widening Wealth Gap in Guyana Amidst Oil Boom

GEORGETOWN, Guyana, January 24, 2024 - In the bustling capitalof Georgetown, the debate on Guyana’s 2024 budget took an interesting turn, as Alliance for Change (AFC) Leader and Member of Parliament, Khemraj Ramjattan, voiced a dire warning.

Addressing the National Assembly on the third day of the budget debate, Ramjattan lamented the burgeoning gap between the affluent and the impoverished in Guyana, a nation now riding the wave of an oil and gas boom.

His foreboding message: unless the government reevaluates its fiscal strategies, Guyana risks entrenching a rigid caste system, dominated by a select few.

"The future we are steering towards is one where inequality is not just a passing concern, but a permanent scar on our economy," Ramjattan declared, casting a critical eye on the GY$1.3 trillion budget for 2024.

With a projected oil revenue surge to US $2.4 Billion from $US 1.16 billion in 2023, Guyana stands at a crossroads, boasting the title of one of the world’s fastest-growing economies.

Yet, in Ramjattan’s view, the 2024 budget fails to prioritize equitable prosperity, disproportionately favoring infrastructure over human capital.

The disparity in government spending is a focal point of Ramjattan's critique. He draws a stark contrast between the GY$121 billion earmarked for wages, salaries, and pensions and the colossal GY$662 billion allocated for infrastructure projects. This, he argues, is a clear indicator of the government's misplaced priorities – investing more in concrete and less in people.

"We are marching towards a future where a handful of contractors become the puppeteers of our economy," Ramjattan warned, suggesting that the current fiscal path could deepen societal divisions and elevate a minority to disproportionate economic power.

Ramjattan’s impassioned speech in the National Assembly didn't shy away from addressing the growing discontent among the populace. On his walkabouts, he recounted encounters with PPP supporters who expressed their disillusionment with the government's economic management.

This sense of disappointment, he argued, transcends political affiliations and is a testament to the burgeoning economic divide. "It's not just about infrastructural development; it's about the people whose lives are directly impacted by these economic policies," he emphasized, painting a picture of a government disconnected from the ground realities of its citizens.

Amidst Guyana's economic ascent, powered by its lucrative oil and gas sector, Ramjattan slammed the government's approach to crime and public security.

As a former Minister of Public Security, he recalled efforts under the APNU+AFC government to bolster security, referencing the British Security Sector and Citizens Strengthening Reports of 2019.

"Ignoring these comprehensive recommendations is not just an oversight; it's a deliberate neglect of our nation's safety," he accused, criticizing the current administration's lackluster efforts in crime prevention.

This neglect, according to Ramjattan, is incongruent with the nation's growing wealth and capacity to invest in effective crime-fighting measures.

Corruption, a topic often skirted in political discourse, was laid bare by Ramjattan's unforgiving critique. He alluded to Guyana's standings in the Corruption Perception Index under the PPP government, describing the situation as a "breeding ground for crony capitalism."

By focusing heavily on infrastructural projects, he argued, the government is not only ignoring the plights of the average Guyanese but also paving the way for a small group of contractors to reap disproportionate benefits. This imbalance, he warned, could further entrench inequalities and erode the democratic foundations of the nation.

AFC Leader Khemraj Ramjattan’s contribution to the Budget Debate, highlighted the complex socio-economic challenges faced by Guyana in the wake of its burgeoning oil and gas sector. While the country revels in its newfound status as one of the world's fastest-growing economies, Ramjattan's vehement critique underscored a deep-seated concern about the widening gap between the wealthy and the less fortunate.

He argued that the 2024 budget, heavily skewed towards infrastructure development, risks sidelining the urgent needs of public servants and pensioners, thereby exacerbating the socio-economic divide.

Ramjattan's impassioned discourse extended beyond economic policies to encompass issues of governance and social justice. He raised alarms about the potential creation of a caste system fueled by economic inequalities, warning that the concentration of wealth in the hands of a select few could lead to a disproportionate control over the nation's economy.

His observations were not just political rhetoric; they reflected a growing unease among citizens, including supporters of the ruling party, about the direction of the country's economic management.

In a broader context, Ramjattan's critique also delved into the government's approach to national security and public safety. Despite Guyana's affluence from its oil revenue, he criticized the administration's alleged neglect in addressing rising crime rates and public security concerns.

Referencing the British Security Sector and Citizens Strengthening Reports of 2019, he lamented the missed opportunities for implementing robust crime prevention strategies, which he deemed essential for a country experiencing rapid economic transformation.

As the debate unfolded, Ramjattan's accusations of corruption and crony capitalism further intensified the discourse. He drew attention to the plight of the average Guyanese, struggling to cope with the rising cost of living while a small group of contractors seemingly benefited disproportionately from the state's largesse.

This, he argued, was not only a betrayal of the working class but also a serious impediment to achieving equitable wealth distribution in a nation teeming with natural resources.

He concluded his contribution by reflecting on the challenges ahead for Guyana. As the country strides forward on the path of economic prosperity, propelled by its oil and gas wealth, the concerns raised by Ramjattan highlight the need for a more inclusive approach to development.

Ensuring that the fruits of economic growth are shared equitably among all segments of society remains a pivotal task for the government, one that will define Guyana's trajectory in the years to come.

-30-