Analysis and News

Guyana scores 73 out of 100 in SWF sub-component of Globally Respected Index

BY ARMCORE VPI's COO: Kezia Bridgewater‍

Revenue from natural resources is an axiomatic tool for low- and middle-income countries to improve their development outcomes. Revenue streams are susceptible to mismanagement; the widely used example being Nigeria with earnings from its petroleum industry not translating into accountable and dynamic growth.

The 2021 Resource Governance Index assesses how resource-rich countries govern their oil, gas and mineral wealth. The scores are a well-validated indication of the countries’ performances and utilises publicly disclosed information. Guyana has registered a comparatively strong score, given its emerging and young age as an Oil Producer, in the Sovereign Wealth Fund sub-component of the Index. Using the Index’s terminology, the Revenue Management of the Natural Resource Fund is “satisfactory”.  Guyana scored 73 out of 100 points in the “Sovereign Wealth Fund” subcomponent.

The 2021 Report stated that “clear withdrawal rules that control the amount that is transferred to the national budget, constitutes a step toward sound economic policy for the sector.” NRGI notes that in the quest for improvements to ensure enhanced transparent and accountable practices, if the government decides to amend or repeal the related legislation, civil society actors and other stakeholders should be invited to actively participate in the process.”

“The institutional set-up of the NRF shows that Guyana’s government intends to address volatility in commodity prices and save for the future”

NRGI Report, 2021


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