By Mark DaCosta-Despite the windfall from natural resources, our nation continues to grapple with staggering levels of poverty. The paradox is striking: while recent estimates suggest that Guyana’s economy has bolted ahead at a remarkable pace, boasting a growth rate fuelled by our burgeoning oil sector and mineral wealth, the reality for many citizens remains bleak.
Statistical revelations indicate that approximately 58 percent of our population exists below the poverty line, a shocking figure that places us among the countries with the most severe poverty rates in the region, alongside nations like Venezuela and Honduras. Even more concerning, an estimated 32 percent of our people endure extreme poverty, a plight that should prompt urgent introspection regarding the allocation of our nation’s newfound riches.
The recent surge in gold prices further exemplifies the strange dichotomy between wealth and poverty. As of January 2026, rates for gold per ounce have soared upwards, reaching nearly US$5,000, with the Guyana Gold Board reporting a significant increase in declared gold outputs. In just a few weeks, from early January, gold prices have moved from just over US$4,386 to approximately US$4,926. It is important to note that last year saw declarations totaling approximately 484,321 ounces of gold, a number that reflects the potential for immense revenue generation. Yet, as wealth accumulates in the coffers of mining companies and a select few, the majority of our citizens face an unfathomable economic struggle.
The grim reality is heightened by the troubling statistic that over 67 percent of those living in extreme poverty are from rural areas, often far removed from the supposed benefits of resource exploitation. Our Indigenous communities bear the brunt of this neglect, as they confront poverty rates that are nearly double the national average. A gold boom should ideally translate into widespread economic uplift; instead, it reveals a pattern of systemic inequality and mismanagement. The wealth generated from our natural resources must be translated into tangible benefits for the population to alleviate this pervasive suffering.
One cannot overlook the significant decline in gold declarations from licensed dealers, which plummeted by 21.5 percent to 121,883 ounces, while output from the major player in the sector, Zijin Mining Group Co. Ltd, saw a boost of 15.5 percent. This juxtaposition raises questions about the dynamics within our mining industry; are those in control prioritising profit over the welfare of the nation? With Canadian mining companies holding approximately 15.5 million ounces of gold at various development stages, the value now exceeds US$75 billion at current prices. Yet, where are the benefits of this mineral wealth flowing? The anticipated public services, infrastructure projects, and economic support promised by our government remain largely unfulfilled.
Amidst this backdrop, the natural resource fund, designed to safeguard against the so-called “Resource Curse,” shows a balance of about US$3.5 to US$3.6 billion. While this might seem reassuring on the surface, the formulas governing fund withdrawals seem inadequate given the urgent needs of the populace. The present arrangement allows for 100 percent withdrawal of the initial US$1 billion earned in the previous year, but what about the tens of billions still locked away? Our nation deserves more than promises — it requires a transparent and equitable plan for distributing a share of these unprecedented earnings among its citizens.
The disconnection between booming revenue from natural resources and the grim poverty statistics can lead to suspicions about systemic corruption. Economic policies appear to disproportionately favour a select few, mirroring the concerns echoed by critics of the current PPP administration. The strain of economic disparity intensifying under this regime points to a need for a thorough inquiry into the distribution of the nation’s wealth. If the proper channels ensured that resource revenues were invested in education, healthcare, and infrastructure, we could uplift the majority rather than enrich the minority.
Furthermore, the rise in living costs and inflation, which are rapidly outpacing wage growth for many Guyanese, exacerbates the situation. Previous government claims made amidst the oil boom suggest a positive correlation between resource income and poverty eradication; however, these assertions require rigorous scrutiny. A genuine commitment to tackling poverty would mandate a comprehensive reevaluation of fiscal policy and a realignment of financial resources toward those most in need.
The sustained economic growth, which reached a dramatic 43.6% in 2024, may serve as a veneer covering deeper issues pertaining to governance and accountability. Without measures to ensure the equitable distribution of wealth generated from our nation’s natural bounty, the gap between the rich and the poor will only widen, perpetuating cycles of poverty and disenfranchisement. The hopeful visions of a brighter Guyanese future can only materialise when we prioritise our people, ensuring that every citizen benefits from the resources under our feet.
Our country stands at a crucial juncture. The promise of wealth from gold and oil should herald an era of prosperity for all, not just an elite few. As we navigate this pivotal moment in our history, it is imperative that we demand transparency, accountability, and a focus on uplifting every citizen, not just those at the top of the economic ladder. If we cannot transform this windfall into meaningful poverty alleviation, then it is clear where our priorities—and our money—truly lie.
