December 6, 2019Updated January 10, 2020
Guyana: An Overview
Located on the north coast of South America, Englishspeaking Guyana has characteristics common of a
Caribbean nation because of its British colonial heritage—
the country achieved independence from Britain in 1966.
Guyana participates in Caribbean regional organizations
and forums, and its capital of Georgetown serves as
headquarters for the Caribbean Community (CARICOM), a
regional integration organization. Current congressional
interest in Guyana is focused on the conduct of general
elections planned for March 2020, at a time when the
country is poised to become a major oil producer.
Figure 1. Map of Guyana
The opposition People’s Progressive Party/Civic (PPP/C),
led by former Prime MinisterPresident Bharrat Jagdeo (1999-2011),
has 32
seats in the National Assembly. Traditionally
supported by
Indo-Guyanese, the PPP/C governed Guyana
from 1992
until its defeat in the 2015 elections.
Guyana at a Glance
Population: 782,000 (2018, IMF est.)
Ethnic groups: Indo-Guyanese, or those of East Indian
heritage, almost 40%; Afro-Guyanese, almost 30%; mixed,
20%; Amerindian almost 11% (2012 est. CIA)
Area: 83,000 square miles, about the size of Idaho
GDP: $3.9 billion (current prices, 2018 est., IMF)
Real GDP Growth: 4.1% (2018 est.); 4.4% (2019 est.) (IMF)
Per Capita GDP: $4,984 (2018 est., IMF)
Life Expectancy: 69.6 years (2017, WB)
Sources: International Monetary Fund (IMF); Central
Intelligence Agency (CIA), World Bank (WB).
Source: CRS.
Current Political Environment
Guyana has a hybrid republican/parliamentary form of
government. The presidential candidate of the party or
coalition receiving the most votes becomes president; the
president in turn appoints the prime minister.
President David Granger leads a coalition that narrowly
won in 2015, with 33 of 65 seats in the unicameral National
Assembly. The coalition consists of Granger’s A
Partnership for National Unity (APNU) and the Alliance for
Change (AFC), led by Prime Minister Moses MagamootooNagamootoo.
The largest party in the APNU is the People’s National
Congress Reform (PNCR), which dominated the political
system from independence until the early 1990s; the party
traditionally has had an Afro-Guyanese base of support. In
contrast, the AFC identifies as a multiracial party.
March 2020 Elections
Originally due by September 2020, Guyana’s next national
elections are now scheduled for March 2, 2020, because the
ruling APNU/AFC coalition lost a no-confidence motion in
December 2018. The coalition lost the motion by a vote of
33-32 when an AFC member crossed the aisle to oppose the
government. A legal challenge to the no-confidence vote
ensued and ultimately made its way to the Caribbean Court
of Justice (CCJ). In June 2019, the CCJ ruled that the noconfidence vote was valid. The opposition had wanted
elections to be held by September 2019, three months after
the CCJ’s ruling. President Granger delayed announcement
of the vote until the Guyana Elections Commission
indicated in September 2019 that it would be ready to hold
the elections by February 2020. The government has
approved several international organizationsgroups to serve as
electoral electoral
observers, including the Organization of American
StatesCarter Center, the Organization of
American States, and the European Union.
President Granger is running for reelection as the
presidential candidate of the APNU/AFC coalition, with
AFC Member of Parliament and Minister of Security
Khemraj Ramjattan the candidate for prime minister.
Granger was diagnosed with non-Hodgkin’s lymphoma in
November 2018 and received treatment in Cuba; in October
2019, Guyanese officials announced that Granger was in
remission. The PPP/C has selected Irfan Ali as its
presidential candidate. Ali currently serves as shadow
finance minister and previously served as housing minister.
Past general elections in Guyana suggest the 2020 race will
be close, but some analysts contendobservers, such as the Economist
Intelligence Unit, maintain that the APNU/AFC’s
https://crsreports.congress.gov
Guyana: An Overview
multiparty and cross-ethnic coalition is likely tomay sustain the
Granger government in power.
Oil Changes Guyana’s Economic Outlook
Guyana’s economy traditionally has been based on
agriculture (rice and sugar) and mining (gold and bauxite),
but it is being bolstered by the discovery of significant
amounts of offshore oil. ExxonMobil leads a consortium
that includes Hess and China National Offshore Oil
Corporation and has been involved in oil and gas
exploration in Guyana since 2008. Since 2015, the
consortium has identified 1415 commercially viable
discoveries in the Stabroek Block, about 120 miles
offshore. Production is expected to begin in December
2019, reachingbegan in December 2019 and is
expected to reach 120,000 barrels of oil per day (b/d) within
several months and more than 750,000 b/d by 2025.
Recoverable oil is estimated at more than 6 billion barrels.
The discovery of offshore oil vastly changes the economic
development prospects of Guyana, which used to be one of
the hemisphere’s poorest countries. Economic growth
averaged almost 3.2% from 2015 to 2018 and is forecast to
be 4.4% this year, according to the International Monetary
Fund (IMF). With the beginning of oil production,
however, the IMF is forecasting almost 86% growth in
2020, with GDP almost doubling to $8.1 billion and per
capita income growing to over $10,000.
Guyana’s development of its oil resources has raised
concerns about corruption and the tendency of some oil-rich
countries to favor oil sector development over other
economic sectors. In early 2019, Guyana’s National
Assembly approved legislation providing a framework for
the establishment of a Natural Resource Fund for managing
Guyana’s oil wealth. The IMF welcomed the action but
called for Guyana to take additional actions, including
establishing a fiscal responsibility framework to avoid
fiscal deficits; promoting effective, transparent management
of the oil wealth; and strengthening anti-corruption efforts.
U.S.-Guyana Relations
U.S. relations with Guyana have improved since the early
1990s, when the government moved away from its socialist
orientation and one-party domination of the political system
and embraced a market economy and free and fair
democratic elections. According to the State Department,
U.S. policy toward Guyana centers on democracy
promotion and civil society development, economic growth,
and the promotion of security and stability.
Bilateral relations are characterized by close security
cooperation through the Caribbean Basin Security Initiative
(CBSI) and expanding trade and investment in the energy
sector. As noted above, ExxonMobil and Hess are currently
involved in the development of Guyana’s offshore oil
reserves. Reflecting growing U.S. commercial interest in
Guyana, an American Chamber of Commerce in Guyana
was launched in August 2018.
Trade. The United States ran a trade surplus of $287
million with Guyana in 2018, with U.S. exports valued at
$540 million, up 43% from 2017 (led by machinery,
iron/steel pipes for oil drilling, and electrical machinery)
and U.S. imports valued at almost $253 million (led by
gold, seafood, and aluminum ores). In 1988, Guyana
became a beneficiary of the Caribbean Basin Economic
Recovery Act (CBERA), a preferential trade program for
Caribbean imports. In 2000, it became a beneficiary of the
Caribbean Basin Trade Partnership Act (CBTPA), a
program that provides enhanced tariff treatment for certain
imports from the region, including goods made with U.S.
yarns, fabrics, and threads. CBERA has no set expiration
date; CBTPA expires in September 2020.
U.S. Foreign Aid. U.S. foreign assistance to Guyana
includes a small bilateral aid program to improve the
capacity of Guyana’s security forces to police its border and
provide security, as well as larger spigots of assistance
through global and regional programs. According to the
U.S. Agency for International Development (USAID), U.S
aid to Guyana amounted to $5.4 million in FY2017 (latest
full year available), with almost half of that for programs to
combat HIV/AIDS. Guyana has received assistance to
combat HIV/AIDS over the past 16 years under the
President’s Emergency Plan for AIDS Relief.
Guyana also receives U.S. assistance through the CBSI, a
program begun in 2009 to help combat the drug trade and
other transnational crime and improve citizen security.
Support for Guyana under the CBSI has included
the provision of patrol boats to increase the defense
force’s maritime operations capability;
a community-based program to reduce crime and
violence and increase opportunities for youth;
support for effective criminal investigations; and
workforce development and educational support for atrisk youth.
The Peace Corps has a program in Guyana currently staffed
with over 60 volunteers working on education, health, and
environmental projects.
According to USAID, the United States also provided
almost $3.6 million in humanitarian assistance from
FY2017 to FY2019 through international organizations for
Venezuelan migrants in Guyana. As of early 2019, there
were over 36,000 Venezuelan refugees and migrants in
Guyana, according to the United Nations.
Congressional Interest. As Guyana approaches its March
2020 elections, some Members of Congress have stressed
the need for the plebiscitevote to be free, fair, and fully
transparent,
particularly as the next government is poised to
gain gain
considerable proceeds from oil. In addition, legislation
has has
been introduced in both houses to extend the CBTPA
until until
September 2030 (H.R. 991 and S. 2473).
Mark P. Sullivan, Specialist in Latin American Affairs
Angel Carrasquillo Benoit, Research Associate
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IF11381
Guyana: An Overview
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