In the capital of Guyana, Georgetown, cranes are everywhere - construction is extremely intensive, and the coast is full of tankers and containers. The new situation in the country is due solely to the oil deposits discovered by the American concern Exxon - a source of hope for some, but also of concern for others. “There used to be mangrove forests here. They are generally protected by law, because they absorb a lot of carbon dioxide”, environmentalist Serlina Nager tells ARD.
The trees also protected against floods. Almost the entire coast of Guyana is below sea level. And 90 percent of the population lives there. It is possible that by 2030, a large part of the coast will be flooded.
The new Eldorado of fossil energy
Guyana is experiencing an incredible transformation - from one of the poorest Caribbean countries to a new "oil Eldorado". It is estimated that the oil reserves under the seabed are at least 11 billion barrels, the value of which, according to Exxon, amounts to at least $ 750 billion.
Kemray Parsram, director of the government's Environmental Protection Agency, is enthusiastic: “Thanks to investments in oil, progress has been made in the economy, in infrastructure, in education and in the lives of Guyanese. This is an extraordinary development".
For example, the government has taken over the costs of studying - since the beginning of this year, higher education has been free, ARD reports. The question is, however, whether the free university changes anything in the labor market. According to the US State Department, 89 percent of graduates left Guyana last year. 40 percent of Guyanese live abroad, while more and more emigrants are coming to the country.
As economist Christopher Rahm told the German public media: “The paradox is that as soon as they have the opportunity, people leave. The oil boom came so quickly that it exceeded our economy and our capacities”.
Investors come, poverty remains
The fastest economic growth in the world logically attracts foreign investors. A new bridge was recently opened on the Demerara River - a true engineering masterpiece from China, ARD points out.
China directly benefits from the oil boom, cooperating with Exxon. But half of Guyana's 800,000 inhabitants continue to live in poverty. "I personally have not made any money from oil so far. The money is going up there, not down here," Roshana Dixon, a market vendor, told the German media.
The consequences of the "Dutch disease"
In Georgetown, the effects of the oil boom are only visible on the construction sites. Many of the streets are unpaved and swampy, the once beautiful British colonial houses are crumbling, cows graze along the streets, and people live among piles of garbage.
The contradiction between oil wealth and the existing great poverty is a symptom of the so-called "Dutch disease," i.e. resources flow where the money is.
In the case of Guyana, this means - to the oil sector. And in traditional agriculture there is a lack of personnel, products are becoming more expensive. At the same time, a lot of US dollars enter the country through exports, which devalue the local currency. Prices are rising.
„For me, there is no good oil country - wherever you look. The fact is the worst consequences of looting, environmental destruction, corruption,", environmentalist Nager tells ARD.
Guyana could become a second Norway if it invests in the welfare state; a second Venezuela, where wealth has led to instability, or a second Nigeria, which suffers from enormous environmental damage.
„The forest is life. We depend on it. "Guyana can be as hot as a sauna, but the forests make it pleasant," Octavius Hendricks, a representative of the indigenous people, told ARD. Eight percent of Guyana's forest areas are under protection, as the forest is already threatened by the oil boom.
Guyana has other resources
Guyana also has deposits of gold, iron and uranium. They are being explored by Chinese and Canadian companies, as well as many illegal gold miners. The mercury and other chemicals used are harmful to the environment and people.
Hendricks explained to ARD that animals are also suffering. “We monitor the otter population. They eat fish. But it has decreased due to the search for gold and the otters have disappeared. They are the most important indicator for us.” The man is critical of oil extraction, but realizes that there is no going back. “I just hope that the extraction will be organized in such a way that it doesn't have a major impact on the environment."
There is no certainty in this regard, Guyana is divided, the German public media outlet points out. Critics fear that the government's contracts with Exxon are not good and that in the event of a natural disaster, the company will not cover the costs in full. The concerns are mainly related to oil pollution, rising sea levels and corruption.
Others, however, are hopeful for social and economic progress. Guyana is at the beginning of a development that will have repercussions for generations to come, concludes the ARD.
Author: Jenny Barke (ARD)