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The Indicator from Planet Money

Why oil in Guyana could be a curse

The Indicator from Planet Money

NPR

Business

4.79.5K Ratings

🗓️ 10 January 2024

⏱️ 12 minutes

🧾️ Download transcript

Summary

In 2015, Guyana changed forever when ExxonMobil discovered major oil deposits off its coast. The impoverished South American country known for its thick rainforest was suddenly on course to sudden wealth.

But while a mining boom may seem like only a good thing, it can often be bad for countries long-term. Today on the show, how Guyana can still avoid the so-called resource curse.

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Transcript

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0:00.0

NPR.

0:04.0

A little bit north of

0:08.0

A little bit north of Brazil is a country called Guyana. It's only got a population of

0:16.7

800,000 people. It's rich in wildlife and forests. I think the green in Guyana is is greener than anywhere else in the world

0:26.0

Terence Blackman grew up in Guyana.

0:28.0

He's now a mathematics professor at the City University of New York

0:32.0

and Terence says that as idyllic Professor at the City University of New York.

0:32.8

And Terence says that as idyllic as his childhood memories

0:36.3

are, the country did face problems, like power cuts.

0:40.4

Blackouts, we would call them.

0:42.3

And they would occur very frequently and

0:44.7

electricity it's one of it's been one of a really really big challenges.

0:49.2

Income-wise Guyana has been just about the poorest in South America, but in 2015 there was an announcement

0:57.0

that would change everything.

0:59.0

ExxonMobil made a huge discovery of oil that could make the Guyanese the wealthiest people on the continent.

1:05.7

Terence remembers his reaction reading about it after seeing a link on Facebook.

1:10.2

Wow, this is an opportunity to behold and you think, yeah, we're finally, you know, God has finally smiled, God has finally smiled on us.

1:22.0

What a feeling.

1:22.9

I've never had that feeling after following a link on Facebook.

1:25.7

Yeah.

1:27.1

I think that's fair to say, yeah.

1:29.1

So Terrence had this amazing moment,

...

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