Despite the rapidly growing economy, poverty in Guyana remains a serious challenge. Since the beginning of massive oil production, Guyana’s economy has experienced unprecedented growth and transformation. According to the latest data from the World Bank, the country’s gross domestic product (GDP) grew by 43.8% by 2024, making it one of the fastest-growing economies in the world. However, the benefits of this growth did not accrue equally to all communities. Guyana still faces significant problems with poverty, unemployment rates and insufficient infrastructure, especially in rural areas.

Poverty in Guyana and Regional Inequality

The World Bank reports that Guyana reduced its poverty rate from 58.6% in 2006 to 43.4% in 2017. Despite this progress, poverty remained twice as high as the average of 23% for the Latin American and Caribbean region and even higher than the average of 20% for upper-middle-income countries. The World Bank noted that poverty is concentrated in rural and hinterland regions, particularly among Indigenous populations who often have less access to economic opportunities and public services.

Geography contributes significantly to these disparities. Around 70% of Guyana’s population lives in rural areas, where communities are often far from the country’s main economic centers and public services. As a result, many rural residents have not directly benefited from the oil-driven economic growth. They continue to face limited investment in infrastructure, transportation and essential services compared with people living in coastal and urban areas.

Unemployment and Infrastructure Challenges

Poor infrastructure remains one of the main obstacles to fighting poverty in Guyana. According to the World Bank, the country’s transportation network is mainly concentrated along the coastline, leaving many interior and rural areas physically isolated from main economic centers. Additionally, Guyana’s road density is just 0.024, significantly lower than the Latin America and Caribbean average of 0.462. As a result, many residents face difficulties accessing markets, schools, healthcare facilities and other essential public services.

Infrastructure challenges extend beyond transportation. Many hinterland communities continue to face limited access to reliable electricity and digital connectivity, reducing access to education, financial services and economic opportunities. These deficits make it more difficult for rural residents to participate in the country’s rapidly growing economy and benefit from the opportunities created by the oil boom.

Poor infrastructure also limits economic opportunities for the people. Weak transportation networks, high electricity prices and limited access to digital connectivity increase the cost of delivering goods and connecting businesses with consumers. These make it harder to attract investment and create jobs, especially in rural areas. These challenges are reflected in Guyana’s labor market, where unemployment rose from 11.6% in 2010 to 15.4% in 2020. The country returned to its previous unemployment level only in 2022, and this figure has remained unchanged at 12% for the third consecutive year.

Infrastructure deficits have also contributed to long-term migration trends, as many Guyanese leave in search of better economic opportunities abroad. According to the World Bank, approximately 39% of Guyanese citizens live abroad, while nearly half of all Guyanese with tertiary education have emigrated to the United States. Together, inadequate infrastructure, limited employment opportunities and sustained brain drain continue to reinforce poverty and regional inequality, particularly in the country’s interior regions.

Governmental and International Initiatives

Recognizing these challenges, the government of Guyana has sought to use oil revenues to support long-term development through the Natural Resource Fund and the Low Carbon Development Strategy 2030. According to the government of Guyana, these initiatives aim to channel resource revenues into investments in education, healthcare, infrastructure, renewable energy and community development. With this strategy, the government founded the Amerindian Development Fund and implemented Community Development Plans in more than 180 villages.

International organizations have also partnered with Guyana to support inclusive growth. The Food and Agriculture Organization (FAO) and the World Food Program (WFP) have implemented agricultural development programs that help farmers adopt climate-smart practices and improve food security. Thanks to these programs, 77 farmers in Guyana were trained to use new farming techniques to increase their harvests while reducing the negative effects on the environment. As a result, Guyana is becoming a leader in the Caribbean region in terms of food security.

The WFP’s Home-Grown School Feeding Program supports local farmers while providing nutritious meals to schoolchildren. This program feeds 2,600 children using the production of 75 local farmers, 28 of whom are women. It created great opportunities for local businesses and improved the nutrition of schoolchildren.

The United Nations Development Programme (UNDP) has supported the expansion of information and communication technology infrastructure in underserved regions, helping communities gain better access to digital services, education, and economic opportunities. By improving connectivity and establishing 200 ICT hubs, these programs can make it easier for residents of more than 200 Indigenous communities in remote areas to access government services, participate in online learning, and connect with broader markets.

Meanwhile, UNICEF has worked with the government to strengthen healthcare delivery systems, improve immunization coverage, and expand access to essential medical services in remote communities. These initiatives are especially important in areas where distance, limited infrastructure, and shortages of trained personnel have historically made it difficult for families to receive consistent care.

Moving Forward

Guyana’s oil boom presents a historic opportunity to accelerate poverty reduction and improve living standards. However, economic growth alone does not guarantee inclusive development. Continued investment in infrastructure, education, and public institutions will be essential to sustaining long-term prosperity. Through targeted government spending and partnerships with organizations such as the World Bank, UNDP, FAO, WFP, and UNICEF, Guyana is working to ensure that the benefits of its economic transformation reach all citizens. If these efforts succeed, the country’s oil wealth could become a powerful tool for reducing poverty and creating more equitable economic opportunities.

– Dias Assan

Dias is based in Rome, Italy and focuses on Technology and Solutions for The Borgen Project.

Photo: Unsplash