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COOPERATIVE REPUBLIC OF GUYANA
BACKGROUND
Guyana, officially known as the Cooperative Republic of Guyana, and previously British Guiana,
is a country on the coast of South America that is culturally a part of the Anglophone Caribbean. It
is the only English speaking country in South America. Guyana is a member of the Caribbean
Community (Caricom), which has its Secretariat headquarters in Turkeyen, just outside the
capital city Georgetown. Guyana achieved its independence from the United Kingdom in 1966
and is referred to as “the land of many waters”; a reference to the numerous rivers in the country.
Guyana has a land area of 214,969 square kilometers of which over 80 percent is rainforest. The
country has one of the largest unspoilt rainforests in South America. The BBC ran a three part
programme not so long ago called the “Lost Land of the Jaguar” which highlighted the huge
diversity of wildlife, including undiscovered and rare species such as the giant otter and the harpy
eagle. Approximately eight thousand species of plants can be found in Guyana, half of which are
found nowhere else. Unlike other areas of South America, over 70% of the natural habitat
remains pristine. Guyana’s most famous landmark is the Kaieteur Falls which boasts the world’s
highest single drop at 841 feet.
GEOGRAPHY
The country has four distinct geographical areas: the coastal belt, the forested region, the
savannah zone, and the sandy zone. Over 80% of the land area is still forested, and only 2.5% is
cultivated. The country’s coastline lies 1 to 1.5 meters below sea level at high tide necessitating
elaborate systems of drainage canals. The most valuable mineral deposits are bauxite, gold and
diamonds. The main rivers are the Demerara, Essequibo and Berbice.
CLIMATE
Guyana’s climate is equatorial: hot but pleasant for most of the year, with a mean shade
temperature of 27 degrees Celsius and an average temperature range of 24 degrees Celsius to
31 degrees Celsius. The heat is tempered by the sea breezes on the coast. An umbrella is useful
during the two wet seasons, extending roughly through May and June, and from December to the
end of January.
GOVERNMENT
Guyana became independent from Britain in 1966 and a cooperative republic in 1970, when a
non executive President replaced the Governor-General. The Cabinet is headed by the President,
and there is a 65-member National Assembly elected by proportional representation. The form of
Government is Republican Representative System. The People’s Progressive Party-Civic alliance
holds thirty five of the sixty five Assembly’s seats. The current Head of State is His Excellency
Bharrat Jagdeo, President of the Republic of Guyana.
President Jagdeo is in the forefront internationally with regard to addressing the many issues of
climate change and as a pioneer of Guyana’s Low Carbon Development Strategy, which
represent Guyana’s contribution to global efforts to combat the climate change threat.
LANGUAGE
The official language is English, often spoken with a Caribbean Creole flavour.
CURRENCY
The unit of currency is the Guyana dollar, which floats against the US dollar. (Exchange rate:
US$1 = G$200 approximately). US dollars are widely accepted along with the British pound,
Canadian dollar and some other bank notes as well. Foreign currency can be changed at banks,
finance houses, and cambios. Many hotels will also change foreign currency to Guyana dollars,
but generally, they offer slightly reduced rates.
ECONOMY
From independence in 1966 through the 1980s, Guyana’s economy was characterized by some
state intervention and economic regulation.
In 1988, Guyana embarked on an Economic
Recovery Programme aimed at moving towards a market-oriented economy. Major structural
adjustment reforms were undertaken including the liberalization of the exchange rate and trade
regimes, the removal of restrictions on capital flows and reforms in tax policy and administration.
Guyana has undertaken a series of legal, institutional and policy changes to consolidate the
process of economic reform, including the reform of the financial sector, improvements in the
legal and regulatory framework and reform of the judicial system. Gains from the economic
reform process have been visible with Guyana experiencing a positive growth rate for much of the
1990s.
Guyana continues to improve its economic performance, with GDP recording particularly robust
growth during 2006-08. Between 2003 and 2005, GDP growth was slow with real GDP
contracting by 1.9% in 2005 due largely to the effects of heavy floods. However, during 2006-08,
the economy grew at an average real rate of 4.5%, which is considerably higher than the 2.8%
average for the entire period (2003-08).
This reflects a favourable external environment,
particularly high prices for Guyana's main exports and abundant financing capital, as well as
sound macroeconomic policies. Monetary policy has been conducted in a cautious manner and
has been successful in keeping inflation in check. Expansion in GDP was driven by contributions
from most sectors in the economy, with the exception of agriculture and manufacturing; the
fastest growing sectors were bauxite production, distribution services, and telecommunications.
GDP per capita (in current U.S. dollars) increased by 59% between 2003 and 2008, but at
US$1,563 in 2008 it remains low when compared to other CARICOM countries. Therefore,
sustaining economic growth remains vital, and requires continued prudent macroeconomic
policies and strengthened governance.
Guyana is an open economy that relies heavily on international trade. The country’s integration
in the world economy has deepened in recent years, with the trade to GDP ratio exceeding 170%
in 2009.
As a member of the Caribbean Community (CARICOM), Guyana’s trade policy is
underpinned by the country’s rights and obligations under the Revised Treaty of Chaguaramas.
In this regard also, Guyana’s external trade policy is widely coordinated within CARICOM,
including external trade negotiations with third countries.
Internal reforms such as the
introduction of the VAT in 2007 have helped Guyana to significantly streamline tax administration,
strengthen the tax base and reduce the reliance on border taxes.
The Government continues to apply a fiscal policy that is geared towards long-term stability and
growth. Although a significant fiscal deficit remains, there has been an overall downward trend.
Since 2005, the fiscal deficit fell from 13.7% of GDP to 7.9% in 2008. A major achievement
during the past decade has been a significant reduction of foreign debt, which can be attributed
mainly to different debt relief schemes by the international community. External debt fell by 57%
during the review period.
The Government remains firm on the need for greater access to
concessional financing as a key component of its strategy for debt management and sustainable
financing of the country’s development agenda.
Additionally, Guyana is open to foreign investments. Guyana has consistently been ranked very
th
high in UNCTAD’s FDI performance index: For the period 2005-2007, Guyana was ranked 11 in
the “Inward FDI Performance Index”.
The Government actively supports potential investors
through the “Guyana Office for Investment” (GO-Invest). Significant investments have been made
during the review period in all major sectors; however, the Government is seeking to widen the
spread of investments in new areas such as agriculture, agro-industry, information technology
and tourism development.
The economic reform programme is also geared towards improvement of the country’s business
environment. One notable achievement is the “National Competitiveness Strategy”, developed
jointly by the Government of Guyana and the Private Sector Commission in 2006.
As a
partnership between the public and private sector, the aim of the strategy is to improve Guyana’s
competitiveness in a wide range of areas where improvements will be made over the next years.
SOCIAL
Guyana has a population of approximately 752,940 persons with a population growth rate of 0.634% (2009 est.). The major races are divided between the East Indian 43.5%, African 30.2%,
mixed 16.7%, Amerindian 9.1%, other 0.5% (2002 census). The major religions are Hindu 28.4%,
Pentecostal 16.9%, Roman Catholic 8.1%, Anglican 6.9%, Seventh Day Adventist 5%, Methodist
1.7%, Jehovah Witness 1.1%, other Christian 17.7%, Muslim 7.2%, other 4.3%, none 4.3% (2002
census). The native language is English but you can also hear some Amerindian dialects, Creole,
Caribbean Hindustani (a dialect of Hindi) and Urdu being spoken.
EDUCATION
In terms of literacy in Guyana, it is defined as persons age 15 and over who attended school. The
literacy rate of the total population is 98.8% with males accounting for 99.1% and females 98.5%
(2003 est.). School life expectancy (primary to tertiary education is thirteen years. Educational
expenditures account for 8.3% of the GDP (2006) with Guyana being thirteenth in terms of
country comparison to the world in this regard.