A transparent and rules-based framework is essential for Guyana ahead of its production of oil. This recommendation has been offered by the International Monetary Fund [IMF].
However, Guyana has already being making moves to have a comprehensive framework completed.
Currently the draft local content of this document is at the level of consultations and is expected to entail the role that the local labour force and companies will play in the sector.
The IMF has moreover lauded Guyana’s efforts in this regard.
The IMF, an international organization headquartered in Washington, D.C., United States, consist of over 180 countries working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
Through the fund, and other activities such as the gathering of statistics and analysis, surveillance of its members’ economies and the demand for particular policies, the IMF essentially works to improve the economies of its member countries.
Guyana became a member of the IMF on September 26, 1966.
As part of its mandate, on May 24, 2017, the Executive Board of the IMF concluded its Article IV consultation with Guyana. Under this article, the organisation holds bilateral discussions with members usually every year, where a staff team visits the country, collects economic and financial information, and discusses with state officials the country’s economic developments and policies.
On return to headquarters, the staff prepares a report, which forms the basis for discussion by the IMF’s Executive Board.
The IMF Directors upon reviewing the report, lauded the government’s plans to establish a comprehensive framework for managing its upcoming oil wealth, even as it insisted that such a move was especially important before production begins.