Question 1: What is the purpose of the Natural Resource Fund?
Answer 1: The purpose of the fund is to manage the natural resource wealth of Guyana for the present and future benefit of the people in an effective and efficient manner. This includes ensuring volatility in revenues does not lead to volatile public spending, fairly transferring wealth across generations, and using the wealth to finance national development priorities aimed at realizing an inclusive green economy.
Question 2: What are the main sources of revenue for the Natural Resource Fund?
Answer 2: The main sources of revenue for the Natural Resource Fund are royalties, the government’s share of oil company profits, signature bonuses paid by oil companies, and taxes levied solely on oil companies. These petroleum revenues go directly into the fund.
Question 3: How much money was in the Natural Resource Fund as of September 2023?
Answer 3: As of September 2023, there was $3.57 billion US dollars cumulative in the Natural Resource Fund.
Question 4: How much money had been withdrawn from the fund as of September 2023?
Answer 4: As of September 2023, $1.1 billion had been withdrawn from the Natural Resource Fund.
Question 5: What rules govern withdrawals from the fund?
Answer 5: Withdrawals are governed by a schedule laid out in the Act. For the first $500 million deposited in a year, 100% can be withdrawn. For the next $500 million, 75% can be withdrawn. And for any additional deposits, 50% can be withdrawn. Emergency financing is not subject to these limits. Withdrawals must finance national development priorities.
Question 6: Where was the $650 million withdrawn so far in 2023 spent?
Answer 6: It is unclear from the discussion where exactly the $650 million withdrawn in 2023 was spent. More transparency is needed on where money withdrawn from the fund is allocated.
Question 7: What is the Consolidated Fund?
Answer 7: The Consolidated Fund is where all government revenues are deposited by the Bank of Guyana. It is managed by the Attorney General and Ministry of Finance. When money is transferred from the Natural Resource Fund, it goes into the Consolidated Fund.
Question 8: Why does Dr. Adams criticize the Natural Resource Fund?
Answer 8: Dr. Adams criticizes the fund because he believes money should be spent now on basic needs like food, shelter, education, and healthcare rather than saved for the future when people are lacking those things currently. He thinks it makes no sense to invest at 1.3% returns from the fund while paying potentially 10% interest on loans.
Question 9: How was over 40% of the Guyanese population living as of the discussion?
Answer 9: Over 40% of the Guyanese population was living on less than $5.50 USD per day at the time of the discussion.
Question 10: What does Dr. Adams think should be the highest spending priority for Guyana?
Answer 10: Dr. Adams believes providing free education from kindergarten through university should be the highest spending priority for Guyana.
Question 11: Why does Dr. Adams think free education should be the top priority?
Answer 11: He thinks education is the best investment for developing sustainability and attracting foreign investment. An educated society will remain when oil runs out in 20-30 years. Education is what builds a nation.
Question 12: What annual return is Guyana getting on money invested from the Natural Resource Fund versus what interest rate it’s paying on loans?
Answer 12: Guyana is getting a 1.36% annual return on money invested from the Natural Resource Fund while reportedly paying approximately 10% interest on loans it has taken out.
Question 13: What does Dr. Adams recommend instead of putting money into the Natural Resource Fund?
Answer 13: Dr. Adams recommends using the money to invest in developing Guyana now by addressing basic needs like food, shelter, education, healthcare, and agriculture. Then after Guyana is developed in 5-10 years, start saving in the fund like Norway did.
Question 14: What does Dr. Adams recommend to provide more electricity reliability?
Answer 14: Dr. Adams recommends using money from the Natural Resource Fund to put solar panels on people’s roofs to reduce dependency on the unreliable electric grid.
Question 15: What does Dr. Adams say is missing from governance in Guyana?
Answer 15: Dr. Adams says Guyana’s governance is missing a national development strategy and plan that outlines priorities and budgets for short-term and long-term timeframes.
Question 16: How does Dr. Adams say citizens can hold the government accountable?
Answer 16: He says citizens need to pay attention to issues, understand them, and then hold the government accountable by voting based on their performance meeting people’s needs rather than voting based on race.
Question 17: What does Dr. Adams say people should vote for?
Answer 17: Dr. Adams says people should vote for what they see as best for themselves, their families, and Guyana overall instead of what’s best for politicians and their personal interests.
