Guyana can’t survive without remittances from the diaspora

By Stabroek News On In Letters to the Editor |

Dear Editor,

Where would the Guyana economy be without remittances coming in from overseas Guyanese?

What would happen to the economy if the diaspora suddenly stopped sending remittances to Guyana in 2017?

If remittances stopped, you will see how all hell breaks loose.

Here are some of the things that may happen if remittances stopped coming in:

  1. The government may be crippled.
  2. Increase in poverty and crime.
  3. The country would fall into an economic recession.
  4. Many businesses will close down. Increase in unemployed workers.
  5. Increase in migration to other countries.
  6. Some people may lose confidence in the government, which may lead to mass street protests against the government.
  7. Increase in the number of suicides, depression and other mental illnesses.  A lot people will run mad.
  8. It’ll kill the hopes and dreams for the ‘good life.’
  9. Lead to countrywide panic and fear.
  10. Guyanese may experience an era of very little peace and prosperity.
  11. No money to pay for university tuition fees, food, and shelter.
  12. Increase in home foreclosure and decrease in homes sales and  a lot of car repossessions.
  13. Little money to invest in small and medium-sized businesses. Increased burden on the health care and education system.
  14. The working class people may not be able to pay to see a private doctor.
  15. Some parents may not be able to pay for their children’s extra lessons which may lead to a decrease in the number of school children passing their exams.

Editor, Guyana can’t survive without remittances from the diaspora. For example, Guyana receives money transfers equivalent to large amounts of its GDP.

This is according to a report ‘Remittances in Latin America and the Caribbean in 2011: Regaining Growth’ which the Multilateral Investment Fund of the Inter-American Development Bank (IDB) released in 2011.

As a percentage of GDP, remittances to Guyana in 2011 constituted almost 25 percent of the national economy, said the report.

Editor, if remittances stopped, you would be taking away a large segment of earnings from Guyanese and this will put its economy in a serious strain, possibly even creating a sovereign default.

Yours faithfully,

Anthony Pantlitz