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Economy of Guyana

In 2009, the real gross domestic product (GDP) grew 2.3%, compared to 3.1% in 2008. Agriculture and Livestock In 2009 the sugar industry experienced modest performance, with a 3.3% production increase that was the result of inclement weather and lower sugar cane yields during the first crop production and a large number of industrial disruptions during the second crop production. The rice industry output increased 9.2%, recording the highest annual production level in a decade and the second-highest production level in the history of the industry. This strong performance was attributed to increased acreage under cultivation, higher yields, favorable weather conditions, and fertilizer assistance from the government. Other crop sectors experienced 5.8% growth in 2009, as a result of the government’s “Grow More Food Campaign” and increased market access. The livestock sector recorded 2.5% growth, which was attributed to improved livestock breeds and more breeding stock. Fishing The fishing sector fell by 10.5%, as a result of a reduction in demand in export markets and depletion of fishing stock in certain fishing grounds. Forestry The forestry sector recorded a 0.6% decline due to lower demand for forest products in export markets. Mining and Quarrying The mining and quarrying sector recorded mixed performance in 2009, and the sector grew by 0.7%. Gold production increased by 14.7%, spurred by a continued increase in world market prices. The bauxite industry declined by 29%, reflecting a mix of internal and external developments. Diamond declaration declined 14.8%, as a result of productive capacity being diverted to the lucrative gold industry. Manufacturing The manufacturing sector (excluding sugar processing and rice milling) continued to show mixed performance, with some sub-sectors such as aerated beverages, mineral and distilled water, and stockfeed recording increased production, while the other sub-sectors such as rum and malt-based beverages declined. As a result the manufacturing sector remained balanced in 2009. Construction and Engineering The engineering and construction sector recorded a moderate performance resulting in 1.5% growth in 2009, due to an increase in residential construction, lower value-added type construction, and maturing of large construction projects. Services The service sector continued to grow strongly in 2009. The transport and communications sub-sectors grew by 2%. The distribution sector grew by 6.6%. Financial services grew 3%, while rental of dwellings grew by 2%. Other services grew by 3%. Inflation The inflation rate was recorded at 3.6% at the end of 2009 as compared to 6.4% at the end of 2008. Exchange Rate In 2009, there was a marginal decrease in the value of transactions conducted on the foreign exchange market. The overall volume fell by 2.8% to reach U.S. $4.7 billion, consistent with the reduction in value of external current account transactions. The market adjusted in 2009 and the value of the Guyana dollar appreciated by 0.97% against the U.S. dollar. Merchandise Trade The merchandise trade deficit decreased to U.S. $401.1 million in 2009 from U.S. $522.1 in 2008. This reflected a reduction in the value of imports. Export receipts in 2009 amounted to U.S. $768.2 million as compared to U.S. $801.5 million in 2008. This reduction was a result of external price factors. Gold export earnings increased by 38.3% to U.S. $281.7 million as a result of higher production, 24.4% increase in export volumes, and 11.2% increase in average export prices. Bauxite export earnings decreased by 39.3% to U.S. $79.5 million, as a result of external market conditions. Sugar export earnings declined by 10.2% to U.S. $119.8 million, because although the volume of sugar exported increased by 3.4%, the average export price of sugar declined by 13.1%. Rice export earnings decreased by 3.3% to $114 million, because although the export volumes increased by 32.9%, the average export price declined by 27.3%. Guyana's primary export markets in 2009 were: Canada (26.5%), the U.K. (13.7%), U.S. (12.3%), Ukraine (6.3%), Jamaica (4.9%), Netherlands (4.6%), Germany (4.2%), Trinidad and Tobago (3.7%), Barbados (2.1%), and Belgium (1.8%). The value of merchandise imports in 2009 decreased by 11.7%, to $1.2 billion. The decrease reflected activities associated with a 32.5% decrease in the value of imported fuel and lubricants. Other imports decreased by 1.8%, with non-fuel immediate goods declining by 10.3%, while consumption goods increased by 2.9% and capital goods increased by 1.7%. Guyana's primary imports in 2009 were from the U.S. (28.7%), Trinidad and Tobago (19.6%), Venezuela (6.9%), Suriname (5.3%), China (5.1%), the U.K. (3.7%), Japan (3.6%), Finland (2.4%), Canada (2.3), and Netherlands (1.8%).
Debt Management
The stock of domestic debt and external public debt amounted to U.S. $422.3 million and U.S. $933.0 million, respectively. Domestic and external public debt increased by 16% and 12%, respectively, at the end of 2009. The former is attributable to an increase in the issuance of treasury bills to sterilize excess liquidity, while the latter is due to increased disbursements from multilateral and bilateral creditors. Domestic debt services decreased by 28.75% to U.S. $20.9 million and external debt services decreased by 14% to U.S. $17.5 million as a result of lower principal payments. Economy (2009, U.S. $) Nominal GDP: $999.4 million. Real annual growth rate: 2.3%. Per capita GDP (PPP): $3,800. Per capita GDP: $1,298. Agriculture: Products--sugar, rice, shrimp, fish, fresh fruits and vegetables. Natural resources: Gold, bauxite, diamonds, timber. Industry: Types--mining (gold, bauxite, diamonds), agriculture (sugar, rice, livestock, fresh fruits and vegetables), forestry, fisheries, manufacturing (beverage, foodstuff processing, apparel, footwear assembly, pharmaceuticals), engineering and construction, and services (distribution, financial, transport and communication). Merchandise trade: Exports--$768.2 million: gold, sugar, rice, bauxite, timber, fish and shrimp, prepared food, diamonds, and molasses. Major export markets-- Canada, U.K., U.S., Ukraine, Jamaica, Netherlands, Germany, Trinidad and Tobago, Barbados, and Belgium. Imports--$1.2 billion: fuel and lubricants, veterinary medicine, plant equipment, motor cars, iron and steel, electric power machines, cement and fertilizer. Major suppliers--U.S., Trinidad and Tobago, Venezuela, Suriname, China, United Kingdom, Japan, Finland, Canada, Netherlands.

Geography of Guyana

Area: 214,970 sq. km. (82,980 sq. mi.); about the size of Idaho. Cities: Capital--Georgetown (pop. 248,500). Other cities--Linden (27,200) and New Amsterdam (17,700). Terrain: Coastal plain, inland highlands, rain forest, savanna. Climate: Tropical. Location: Northern South America, bordering the North Atlantic Ocean, between Suriname and Venezuela Map references: South America Area: total area: 214,970 sq km land area: 196,850 sq km comparative area: slightly smaller than Idaho Land boundaries: total 2,462 km, Brazil 1,119 km, Suriname 600 km, Venezuela 743 km Coastline: 459 km Maritime claims: continental shelf: 200 nm or to the outer edge of the continental margin exclusive fishing zone: 200 nm territorial sea: 12 nm International disputes: all of the area west of the Essequibo River claimed by Venezuela; Suriname claims area between New (Upper Courantyne) and Courantyne/Kutari Rivers (all headwaters of the Courantyne) Climate: tropical; hot, humid, moderated by northeast trade winds; two rainy seasons (May to mid-August, mid-November to mid-January) Terrain: mostly rolling highlands; low coastal plain; savanna in south Natural resources: bauxite, gold, diamonds, hardwood timber, shrimp, fish Land use: arable land: 3% permanent crops: 0% meadows and pastures: 6% forest and woodland: 83% other: 8% Irrigated land: 1,300 sq km (1989 est.) Environment: current issues: water pollution from sewage and agricultural and industrial chemicals; deforestation natural hazards: flash floods are a constant threat during rainy seasons international agreements: party to - Biodiversity, Climate Change, Endangered Species, Law of the Sea, Ozone Layer Protection, Tropical Timber 83

Government of Guyana

Legislative power rests in a unicameral National Assembly, generally referred to as Parliament, with 40 members chosen on the basis of proportional representation from national lists named by the political parties. An additional 25 members are elected by regional administrative districts. The Parliament is not directly elected; each party presents slates of candidates at the time of national elections. After the election, each party leader selects from the party lists the individuals who will represent the party in Parliament. The president may dissolve the assembly and call new elections at any time, but no later than five years from its first sitting. Executive authority is exercised by the president, who appoints and supervises the prime minister and other ministers. As with members of Parliament, the president is not directly elected; each party presenting a slate of candidates for the assembly must designate in advance a leader who will become president if that party receives the largest number of votes. Any dissolution of the assembly and election of a new assembly can lead to a change in the assembly majority and consequently a change in the presidency. Most cabinet ministers must be members of the National Assembly; the constitution limits non-member "technocrat" ministers to five. Technocrat ministers serve as non-elected members of the National Assembly, which permits them to debate but not to vote. The highest judicial body is the Court of Appeal, headed by a chancellor of the judiciary. The second level is the High Court, presided over by a chief justice. The chancellor and the chief justice are appointed by the president. For administrative purposes, Guyana is divided into ten regions, each headed by a chairman who is appointed by the central government; the chairman presides over a regional democratic council. Local communities are administered by village or city councils. POLITICAL CONDITIONS Race and ideology have long been the dominant political influences in Guyana. Since the split of the multiracial People's Progressive Party (PPP) in 1955, politics has been based more on ethnicity than on ideology. From 1964 to 1992, the People's National Congress (PNC) dominated Guyana's politics. The PNC draws its support primarily from urban Afro-Guyanese, and for many years declared itself a socialist vanguard party whose purpose was to make Guyana a nonaligned socialist state, in which the party, as in communist countries, was above all other institutions. A majority of Indo-Guyanese have traditionally backed the PPP. Rice farmers and sugar workers in the rural areas form the bulk of PPP's support. Indo-Guyanese who dominate the country's urban business community also have provided important support to both parties, depending on which was in power at the time. Following independence, and with the help of substantial foreign aid, social benefits were provided to a broader section of the population, specifically in health, education, housing, road and bridge building, agriculture, and rural development. During Forbes Burnham's last years, however, the government's attempts to build a socialist society, including banning importation of basic foodstuffs, caused a massive emigration of skilled workers, and, along with other economic factors, led to a significant decline in the overall quality of life in Guyana. After Burnham's death in 1985, President Hoyte took steps to stem the economic decline, including strengthening financial controls over the parastatal corporations and supporting the private sector. In August 1987, at a PNC Congress, Hoyte announced that the PNC rejected orthodox communism and the one-party state. As the elections scheduled for 1990 approached, Hoyte, under increasing pressure from inside and outside Guyana, gradually opened the political system. After a visit to Guyana by former U.S. President Jimmy Carter in 1990, Hoyte made changes in the electoral rules, appointed a new chairman of the Elections Commission, and endorsed putting together new voters' lists, thus delaying the election. The elections, which finally took place in 1992, were witnessed by 100 international observers, including a group headed by Mr. Carter and another from the Commonwealth of Nations. Both groups issued reports saying that the elections had been free and fair, despite violent attacks on the Elections Commission building on election day and other irregularities. Cheddi Jagan served as Premier (1957-64) and then minority leader in Parliament until his election as President in 1992. One of the Caribbean's most charismatic and famous leaders, Jagan was a founder of the PPP, which led Guyana's struggle for independence. Over the years, he moderated his Marxist-Leninist ideology. After his election as President, Jagan demonstrated a commitment to democracy, followed a pro-Western foreign policy, adopted free market policies, and pursued sustainable development for Guyana's environment. Nonetheless, he continued to press for debt relief and a new global human order in which developed countries would increase assistance to less developed nations. Jagan died on March 6, 1997, and was succeeded by Samuel A. Hinds, whom he had appointed Prime Minister. President Hinds then appointed Janet Jagan, widow of the late President, to serve as Prime Minister. In national elections on December 15, 1997, Janet Jagan was elected President, and her PPP party won a 55% majority of seats in Parliament. Mrs. Jagan had been a founding member of the PPP and was very active in party politics. In addition to becoming Guyana's first female president, she had also been Guyana's first female prime minister and vice president, two roles she performed concurrently before being elected to the presidency. The PNC, which won just under 40% of the vote, disputed the results of the 1997 elections, alleging electoral fraud. Public demonstrations and some violence followed, until a CARICOM team came to Georgetown to broker an accord between the two parties, calling for an international audit of the election results, a redrafting of the constitution, and elections under the constitution within 3 years. Elections took place on March 19, 2001. More than 150 international observers representing six international missions witnessed the polling. The observers pronounced the elections fair and open although marred by some administrative problems. As in 1997, public demonstrations and some violence followed the election, with the opposition PNCR disputing the results. The political disturbances following the election partially overlapped and politicized a major crime wave that gripped Guyana from the spring of 2002 through May 2003. By summer 2003 the worst of the crime wave had abated, and agitation over the election had subsided. A lack of legal clarity over voter registration rules, in particular the legality of Guyanese remaining on the voter rolls after emigrating, fed a political stalemate that delayed the 2006 elections as opposition parties demanded a full house-to-house verification of the voter list. Ultimately, the election was held using the 2001 voting list--which the opposition had earlier deemed valid--plus new registrations. The Organization of American States and the Commonwealth observed the 2006 elections and considered them to be largely free and fair. A general lack of trust between the predominantly Indo-Guyanese PPP/C and the almost exclusively Afro-Guyanese PNC/R persists. Co-founded prior to the 2006 parliamentary elections by disaffected members of the PPP/C and PNC/R, the Alliance For Change party has attempted to bridge the political and racial divide, but holds only five seats in Parliament and has gained minimal traction. Due to constitutional term limits, President Jagdeo is ineligible to run for reelection again when his term concludes in 2011. There is no established frontrunner. Municipal elections were last held in 1994, and are now more than a decade overdue. In 2008, in anticipation of nationwide municipal elections in 2009, electoral authorities completed a national voter re-registration exercise. This exercise was scrutinized by the major political parties, and was designed to produce a fresh and widely accepted voter list. Municipal elections scheduled for April 2010 have been postponed. No new date has been set, but they are expected to take place before December 1, 2010. Principal Government Officials Executive President--Bharrat Jagdeo Prime Minister--Samuel Hinds Minister of Foreign Affairs--Carolyn Rodrigues-Birkett Ambassador to the U.S. and OAS--Bayney Karran Permanent Representative to the UN--Charge d' Affaires George Talbot Guyana maintains an embassy in the United States at 2490 Tracy Place NW, Washington, DC 20008 (tel. 202-265-6900 Government Type: Republic within the Commonwealth. Independence: May 26, 1966; Republic, February 23, 1970. Constitution: 1980. Branches: Executive--president (chief of state and head of government), prime minister. Legislative--unicameral National Assembly of 65 deputies. The ten administrative regions of the country elect 25 members, 40 are elected from party lists by proportion of the national vote. Judicial--Judicial Court of Appeal, High Court. Subdivisions: 10 regions. Political parties (voting seats in the National Assembly): People's Progressive Party/Civic (PPP/C) 36; People's National Congress (PNC) 22; Alliance for Change (AFC) 5, Guyana Action Party/Rise Organize and Rebuild (GAP/ROAR) 1; and The United Force (TUF) 1. Presidential and parliamentary elections were last held August 28, 2006. Suffrage: Universal at 18.

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History of Guyana

Before the arrival of Europeans, the region was inhabited by both Carib and Arawak tribes, who named it Guiana, which means land of many waters. The Dutch settled in Guyana in the late 16th century, but their control ended when the British became the de facto rulers in 1796. In 1815, the colonies of Essequibo, Demerara, and Berbice were officially ceded to Great Britain at the Congress of Vienna and, in 1831, were consolidated as British Guiana. Following the abolition of slavery in 1834, thousands of indentured laborers were brought to Guyana to replace the slaves on the sugarcane plantations, primarily from India but also from Portugal and China. The British stopped the practice in 1917. Many of the Afro-Guyanese former slaves moved to the towns and became the majority urban population, whereas the Indo-Guyanese remained predominantly rural. A scheme in 1862 to bring black workers from the United States was unsuccessful. The small Amerindian population lives in the country's interior. The people drawn from these diverse origins have coexisted peacefully for the most part. Slave revolts, such as the one in 1763 led by Guyana's national hero, Cuffy, demonstrated the desire for basic rights but also a willingness to compromise. Politically inspired racial disturbances between Indo-Guyanese and Afro-Guyanese erupted in 1962-64, and again following elections in 1997 and 2001. The basically conservative and cooperative nature of Guyanese society has usually contributed to a cooling of racial tensions. Racial tensions, however, do constitute Guyana’s greatest ongoing social stress point. Guyanese politics, nevertheless, occasionally has been turbulent. The first modern political party in Guyana was the People's Progressive Party (PPP), established on January 1, 1950, with Forbes Burnham, a British-educated Afro-Guyanese, as chairman; Dr. Cheddi Jagan, a U.S.-educated Indo-Guyanese, as second vice chairman; and his American-born wife, Janet Jagan, as secretary general. The PPP won 18 out of 24 seats in the first popular elections permitted by the colonial government in 1953, and Dr. Jagan became leader of the house and minister of agriculture in the colonial government. Five months later, on October 9, 1953, the British suspended the constitution and landed troops because, they said, the Jagans and the PPP were planning to make Guyana a communist state. These events led to a split in the PPP, in which Burnham broke away and founded what eventually became the People's National Congress (PNC). Elections were permitted again in 1957 and 1961, and Cheddi Jagan's PPP ticket won on both occasions, with 48% of the vote in 1957 and 43% in 1961. Cheddi Jagan became the first premier of British Guiana, a position he held for 7 years. At a constitutional conference in London in 1963, the U.K. Government agreed to grant independence to the colony but only after another election in which proportional representation would be introduced for the first time. It was widely believed that this system would reduce the number of seats won by the PPP and prevent it from obtaining a clear majority in Parliament. The December 1964 elections gave the PPP 46%, the PNC 41%, and the United Force (TUF), a conservative party, 12%. TUF threw its votes in the legislature to Forbes Burnham, who became prime minister. Guyana achieved independence in May 1966, and became a republic on February 23, 1970--the anniversary of the Cuffy slave rebellion. From December 1964 until his death in August 1985, Forbes Burnham ruled Guyana in an increasingly autocratic manner, first as prime minister and later, after the adoption of a new constitution in 1980, as executive president. During that timeframe, elections were viewed in Guyana and abroad as fraudulent. Human rights and civil liberties were suppressed, and two major political assassinations occurred: the Jesuit Priest and journalist Bernard Darke in July 1979, and the distinguished historian and WPA Party leader Walter Rodney in June 1980. Agents of President Burnham are widely believed to have been responsible for both deaths. Following Burnham's own death in 1985, Prime Minister Hugh Desmond Hoyte acceded to the presidency and was formally elected in the December 1985 national elections. Hoyte gradually reversed Burnham's policies, moving from state socialism and one-party control to a market economy and unrestricted freedom of the press and assembly. On October 5, 1992, a new National Assembly and regional councils were elected in the first Guyanese election since 1964 to be internationally recognized as free and fair. Cheddi Jagan was elected and sworn in as president on October 9, 1992. When President Jagan died in March 1997, Prime Minister Samuel Hinds replaced him in accordance with constitutional provisions. President Jagan's widow, Janet Jagan, was elected president in December 1997. She resigned in August 1999 due to ill health and was succeeded by Finance Minister Bharrat Jagdeo, who had been named prime minister a day earlier. National elections were held on March 19, 2001. Incumbent President Jagdeo won reelection with a voter turnout of over 90%. President Jagdeo won re-election again in national elections held on August 28, 2006, the first non-violent elections held in more than 20 years.

People of Guyana

Guyana's population is made up of five main ethnic groups--East Indian, African, Amerindian, Chinese, and Portuguese. Ninety percent of the inhabitants live on the narrow coastal plain, where population density is more than 115 persons per square kilometer (380 per sq. mi.). The population density for Guyana as a whole is low--less than four persons per square kilometer. Although the government has provided free education from nursery school to the university level since 1975, it has not allocated sufficient funds to maintain the standards of what had been considered the best educational system in the region. Nationality: Noun and adjective--Guyanese (sing. and pl.). Population (2009, Government of Guyana): 777,000. Ethnic groups: East Indian origin 43%, African origin 30%, mixed 17%, Amerindian 9%. Religions: Christian 57%, Hindu 28%, Muslim 10%, other 5%. Languages: English, Guyanese Creole, Amerindian languages (primarily Carib and Arawak). Education (2007): Years compulsory--ages 5-1/2 to 14-1/2. Attendance--primary 93.6%, secondary 93%. Literacy--98.8% of adults who have attended school. Health: Infant mortality rate--30/1,000. Life expectancy--men 64 yrs., women 69 yrs. Work force (2007 Bank of Guyana estimates): 333,900. Industry and commerce--36.4%; agriculture--30.2%; services--30.2%; other--3.2%.
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