Suriname and Guyana to share oil and gas wealth with citizens
Suriname and Guyana, both rich in newly discovered offshore oil and gas reserves, are implementing distinct strategies to share this wealth with their citizens.
In Suriname, President Chan Santokhi has launched the “Royalties for Everyone” program. Starting in 2028 when oil production begins, every citizen will receive a share of future oil royalties. An initial sum of $750 will be placed in a savings account for each citizen, accruing 7% annual interest. This approach aims to position citizens as co-owners of the nation’s oil wealth while mitigating the risks of economic instability seen in other resource-rich nations by establishing a sovereign wealth fund inspired by Norway’s successful model.
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Guyana, on the other hand, has already started distributing direct cash grants from its oil revenues. This initiative provides eligible citizens with approximately $500 (equivalent to $100 000 Guyanese dollars) as immediate benefits from oil production, which is already underway. The government plans to expand these distributions to include public servants and pensioners by the end of the year. Additionally, Guyana is exploring ways to jointly develop gas resources with Suriname, focusing on shared infrastructure to maximize benefits and foster regional energy cooperation.
Both nations aim to utilize oil revenues to promote inclusive growth, but their methods highlight different timelines and mechanisms: Suriname’s long-term savings plan contrasts with Guyana’s immediate financial support. These strategies reflect efforts to ensure sustainable and equitable use of resource wealth while avoiding pitfalls like the “resource curse”.
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