Dear Editor,
Recent media coverage has focused on the $100,000 cash grant, which critics argue should have been distributed before Christmas, citing the President’s promise of “a beautiful Christmas” and his 2025 election pledge to this effect. The government insists that the $100,000 promised cash grants will be budgeted and paid out in early 2026. Aside from this cash-grant pre-occupation, there has emerged another prominent topic: the poverty debate.
Critics argue that the PPP/C government has not sufficiently addressed poverty, referencing the IADB report which cited 58% absolute poverty and 32% extreme poverty based on 2021 data from the ILO’s Labor Force Survey. However, this survey occurred during the COVID-19 pandemic when labour participation was 49.6% and unemployment was 14.5%. The labour force participation rate now is over 60% while the unemployment rate is under 6%, suggesting the IADB data do not reflect today’s labour market or poverty rates. Mr. Alfonso De Armas provided a solid critique of these findings (12/17/2025).
According to the World Bank, Guyana’s poverty rate in 2019 was 48.4%, based on a poverty threshold of US$5.50 per person per day. This threshold has since been revised upward to US$6.85 per person per day as Guyana has been defined as a high income country. Since 2019, the country has experienced significant developments across all sectors of the economy.
A key aim of economic planning is to reduce poverty. The PPP/C government addresses this through the National Development Strategy, A National Competitiveness Strategy, the Poverty Reduction Strategy Papers, the Low Carbon Development Strategy, and internal government research. While poverty continues to decline, the government also encourages wealth creation by offering small business grants, interest-free credit from the Development Bank, financial literacy, and support for home building, among other initiatives. Poverty could not be eliminated through wealth distribution; rather, it could be reduced by “empowerment” through education, healthcare, jobs, housing, and public safety.
There have been substantial increases in personal incomes, and both public education and healthcare are now provided free of charge. There have also been increases in old age pensions and National Insurance Scheme (NIS) benefits. Over 50,000 house lots have been allocated, and more than 14,000 individuals have received technical training through TVET and BIT initiatives. Over 60,000 jobs were created during the past 5 years. The “Because We Care” child grants have increased notably, and since 2020, more than 200 taxes and fees imposed by the previous administration have either been eliminated or significantly reduced. Given these advancements, it is difficult to argue that Guyana’s poverty rate has increased from 48.4% or remained unchanged. These measures have contributed to lifting a considerable number of citizens out of poverty.
Although there has not been an “Income and Poverty” survey since 2000, available qualitative evidence suggests poverty continues to decrease. One way to reduce poverty is through job creation. Employers indicate jobs are open, especially in construction, logistics, transport, and in cane harvesting. A concern voiced by several Guyanese is that many able-bodied individuals choose not to work, for reasons such as lacking qualifications, discouragement from previous job search failures, reliance on family support, or lack of desire. Increased workforce participation could help to further reduce poverty.
Many western democracies have not been able to eliminate poverty; for instance, the US, the wealthiest country in the world and which enjoys 250 years of independence in July next year, still has a national poverty rate of 11.1%, with New York City’s rate exceeding 20%. Poverty reduction efforts in the US have led to increased dependency, often shifting attitudes from contributing to the system to expecting support from it. In Guyana, one can expect poverty reduction to reach single digit rate within this decade. But to expect poverty elimination in Guyana within this or future decades is highly unrealistic.
Amerindian communities in Guyana have long faced higher poverty rates compared to the coastlands, but government initiatives in various sectors: education, health, ICT, agriculture, housing, roads, etc. have improved their quality of living, and their poverty level continues to decline. Mr. Lenox Shuman, a prominent Amerindian leader, says that at the St Cuthbert’s Mission all labour is engaged in productive work. On the coastland, a business leader says that he has over 100 vacancies in all categories, including unskilled, and finds it hard to fill those slots. Another says that he has been forced to hire Cuban labourers. There are several pockets of poverty that spread across the country such as in squatter communities, run-down neighbourhoods in coastal and inner city neighbourhoods, and within the Amerindian communities. These must be targeted for relief.
An “Income and Poverty” survey may support the idea that “empowerment” effectively reduces poverty and justify the PPPC government’s focus on empowerment as part of their economic planning strategy. Is there a better strategy?