By Mark DaCosta- In 2025, Guyana finds itself entangled in a disturbing contradiction: while oil production has surged to nearly 900,000 barrels daily, propelling the economy to unprecedented heights, a staggering number of citizens struggle beneath the weight of poverty. The influx of oil revenues has not translated into tangible benefits for the majority; instead, it has exacerbated inequality, leaving many to grapple with a harsher reality as they confront rising living costs and inadequate support structures under the current government.
Amidst a global spotlight on our country’s economic growth, the grim truth lies in the data: an alarming 58 percent of the population now lives below the poverty line, with one in three existing in conditions of extreme hardship. The Inter-American Development Bank’s 2024-2025 report paints a bleak picture, revealing a profound disconnect between national prosperity and the lived experience of ordinary Guyanese. Local analysts contend that poverty is underreported due to poor data collection and widespread fear of reprisals for telling the truth. Despite the government boasting about a booming GDP — reportedly up in the 40s percentile annually — the harsh reality is that these figures fail to reflect the struggles of the bottom tier of society.
The disconnect is further deepened by the new poverty line adjustment. Transitioning to a “middle-income” status has shifted the threshold to US$6.85 per day, a move that leaves a significant portion of our population unable to keep pace with skyrocketing living costs. Inflation has wreaked havoc, particularly in food prices, pushing the cost of staples beyond the reach of many families. For countless Guyanese, the much-lauded oil boom has translated into higher expenses, from rent to groceries, while wages, especially in the public sector, have stagnated.
A particularly poignant example of this crisis is seen in the ongoing displacement of street vendors — a microcosm of the broader economic malaise. Government efforts to “modernise” urban spaces have led to aggressive evictions in various locations, including Georgetown and Parika. Long-standing vendors, who have sustained their families through this trade, now find themselves facing court orders to vacate their stalls with minimal notice. The Municipal and City Councils, struggling to balance new urban planning ambitions with the survival of the informal economy, have been caught in the crossfire.
Take the case of the Stabroek Market Square, where authorities erected construction barriers overnight just as the busy holiday season approached. Vendors, who have built their livelihoods in these spaces for years, were blindsided, stripped of their income streams under the guise of “upgrades.” While officials argue that these measures aim to enhance the space, the reality is that such actions erode the very foundations of the informal economy that many families rely on for survival.
The displacements have not been isolated incidents; they exemplify the government’s troubling trend of sidelining local governance structures. Several high-profile evictions, including moves mandated by the Neighbourhood Democratic Council and actions backed by Central Government ministries, have showcased a blatant disregard for proper legal procedures. The Municipal and District Councils Act, which designates authority over market management to the Clerk of Markets, has been bypassed repeatedly, raising ethical and legal concerns as government departments invoke infrastructure programmes to justify these moves.
The humanitarian impact is perhaps most salient in the faces of those affected — vendors forced into less accessible locations that do not attract foot traffic or provide the customer base necessary for their businesses to thrive. Amidst the backdrop of massive capital projects like the New Demerara River Bridge, which prioritise physical infrastructure over human capital, critics have rightly pointed out the urgent need for the government to rethink its policy priorities. Without substantial investments in healthcare, social protection, and community support systems, the vulnerable tiers of society will become increasingly marginalised in favour of an emerging “oil elite.”
Certainly, the temporary cash grants distributed in late 2024 may have provided fleeting relief, but they also contributed to inflation, economists say, further tightening the noose around the necks of the disadvantaged. These payments often evaporated quickly in the face of rising prices, leaving families to grapple with their financial woes without any lasting support.
As our country endeavours to strike a balance between the exploitation of its natural resources and the well-being of its citizens, the warning signs are clear. The “oil wealth” narrative must shift towards a human-centered development approach, one that seeks to include all members of society in its benefits rather than perpetuating a divide where wealth is concentrated among a few while the majority continue to struggle.
Reflecting on the current state of affairs, one must ponder: what does it mean to be a prosperous nation when the wealth generated is inaccessible to a significant portion of its populace? If the government does not act decisively to bridge the chasm between rich and poor, our nation risks becoming a land adorned with statues of success while countless citizens remain trapped in cycles of poverty. Thus, the call to action is clear — transformative change is required if we are to ensure that the promise of our oil-rich future translates into a better life for all Guyanese, not just the privileged few.
