Guyana’s Fight Against Poverty: Progress Requires Continuity

Jul 04, 2025 Letters

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Dear Editor,

Kaieteur News – In a recent letter published by one of the local newspapers, the author claimed that Guyana’s inflation and poverty rates are significantly higher than widely recognised. This assertion appears to be based on fabricated figures and overlooks credible sources like the International Monetary Fund (IMF), World Bank, and Guyana’s Central Bank.

In fact, reports from these institutions indicate that both inflation and poverty rates have declined, especially when compared to the last decade. The letter seems less focused on facts and more aimed at criticizing the government’s management of the economy.

As the cost-of-living remains a critical issue for many Guyanese, a pivotal question arises for the electorate: Which political party has the credibility and track record needed to lift our people out of poverty and build a sustainable future? The answer lies not in catchy slogans or social media stunts, but in data, effective governance, and real performance. Since returning to office in 2020, the PPP/C government, led by President Irfaan Ali, has made more progress in reducing poverty and expanding opportunities than any previous administration in recent history (IMF, 2025a).

Poverty extends beyond mere income, it encompasses access to opportunities, dignity, and hope. International institutions like the World Bank and IMF define poverty using both national poverty lines and international benchmarks, such as living on US$5.50 per day (adjusted for purchasing power) (World Bank, 2020). In 2019, before the oil economy began to expand, an estimated 48.4% of Guyanese were living in poverty (World Bank, 2021). In contrast, recent data indicating the state of poverty is forthcoming, but the IMF’s 2025 Article IV Consultation shows a decline since 2020. This is attributed to targeted social transfers, increased public sector wages, free university scholarships through the GOAL programme, and broad-based investments in infrastructure, health, and agriculture (IMF, 2025a). These measures reflect a commitment to effective governance, not mere campaign promises.

Historical context paints a clear picture. Under the PNC’s rule from 1966 to 1992, the economy collapsed, plunging nearly 90% of the population below the poverty line (Thomas, 1993). When the PPP/C regained power in 1992, they initiated the crucial work of economic recovery. Under their leadership, poverty steadily declined, hitting a low of 35% by the mid-2000s (IMF, 2006).

Fast forward to 2015, when the APNU-AFC coalition (a rebranded version of the PNC) took over a growing economy but quickly reversed its progress. They increased VAT on electricity, water, and basic goods, introduced hundreds of new taxes, and left the Treasury in deficit (Ministry of Finance, 2020). When the PPP/C returned to power in 2020, they inherited an economy marred by poor fiscal management and uncertainty. Nevertheless, despite challenges like a pandemic and global inflation, the PPP/C has delivered the fastest economic growth rate in the Western Hemisphere (IMF, 2025b) and has used this growth to improve the lives of working people.

Under President Ali’s administration, old-age pensions have increased, public servant salaries have risen by over 30% since 2020, more than 200,000 children have received school cash grants, and subsidies have reduced fuel and electricity costs (DPI, 2024). These efforts are not merely one-off handouts; they are part of a strategic approach to reducing poverty and fostering long-term opportunities. The IMF confirms that these targeted transfers are increasing real incomes and alleviating hardship across the country (IMF, 2025a).

The agriculture sector, long neglected under the APNU regime, is now experiencing a resurgence due to significant investments in infrastructure, drainage, farm-to-market roads, and seed capital. As Guyana’s non-oil economy grows, demand for local produce, services, and skilled labor is increasing, expanding economic participation (CDB, 2023).

Opposition figures, including Azruddin Mohamed, have emerged, relying on spectacle rather than policy. They fail to present a credible economic platform, tested leadership, or a serious plan to tackle the complex challenges of poverty, infrastructure, or education. Instead, they propose handouts and empty populism, offering a fantasy that quickly unravels under scrutiny. Their qualifications are rooted in robbing the Treasury of Guyana.

While Mohamed may offer cash or cars, he is not providing sustainable solutions for the people of Guyana. He has yet to present a credible framework for poverty reduction, an economic diversification plan, or any experience in managing national budgets or social welfare systems. Relying on personalities rather than policies would betray generations of Guyanese who are striving for upward mobility.

For Guyana to continue reducing poverty, expanding education, creating jobs, and protecting its most vulnerable citizens, continuity under the PPP/C government is not just desirable; it is essential. President Ali’s administration has demonstrated that it knows how to govern effectively, spend wisely, and convert GDP growth into people-centered development.

The choice before the Guyanese people is not merely between political parties but between policy and posturing, a government with a proven record of accomplishment, and a collection of pretenders lacking a credible vision for the future. Reducing poverty is not a magical endeavour; it requires sound fiscal management, social investment, and political courage. On all counts, the PPP/C stands alone.

Sincerely,

Dr. Tilokie Arnold Depoo

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• Dr. Tilokie Arnold Depoo, Guyana Poverty, Guyana’s Central Bank, International Monetary Fund, World Bank

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