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has substantial, unused
non-forested land that can be
converted to productive use, but
lack of infrastructure currently
makes this land inaccessible or
prohibitively costly to develop.
For example, in the Canje Basin,
significant investment in draining
and irrigation is needed to convert
land for agricultural use. In the
intermediate savannas, investment
in roads and related infrastructure
would improve access and provide
infrastructure required for habitation.
By developing infrastructure in
these parts of the country, economic
activity and employment will be reoriented
away from areas which put
pressure on the forest.
• Telecommunications
infrastructure: Guyana’s outsourcing
industry has the potential to
significantly
increase
employment in the
near future, however
telecommunications
infrastructure is
a key barrier to
sustaining growth
in this industry.
Investment in
fibre optic cables
and a technology
park will enable
growth in business
outsourcing and
will also reduce
the cost of
telecommunications
for individuals and
companies nationwide.
Investment and
employment in
high-value, low
carbon economic
sectors
Building on
the priority
diversification
opportunities
outlined in the National
Competitiveness Strategy, Guyana
has identified six priority lowcarbon
economic sectors: fruits
and vegetables, aquaculture,
sustainable forestry and wood
processing, business process
outsourcing, eco-tourism, and
possibly bio-ethanol. Guyana plans
to focus initially on three sectors:
fruits and vegetables, aquaculture,
and sustainable forestry.
• Fruits and Vegetables: Guyana
is well-positioned to expand exports
of fruits and vegetables as it has
major tracts of non-forested arable
land that are potentially suitable for
commercial agriculture. It has ample
labour and can produce these crops
in a cost-effective way. In addition,
Guyana is positioned close to major
fresh fruit and vegetable export
markets in the Caribbean, Brazil and
the United States.
• Aquaculture: Guyana has
an opportunity to provide fresh
and frozen fish to its Caribbean
neighbours and other importing
nations, such as the United
States. While aquaculture will
require significant start-up costs,
the industry, once-established,
would allow Guyana to tap into
large and growing markets in
fresh fish, as well as frozen and
processed seafood. Guyana has
55,000 hectares of state-owned,
uncultivated coastal lands and up to
118,000 hectares in the intermediate
savannahs. In addition, Guyana has
hinterland areas that are suitable for
production of fish or crustaceans,
such as tilapia and shrimp.
• Sustainable forestry: Logging
companies operating in Guyana
could generate substantially more
value from the limited portion of
the forest where sustainable forest
harvesting is appropriate, through
a shift into integrated primary and
secondary processing and more
efficient extraction. New investment
in processing activities in Guyana
would facilitate greater production
of higher-value wood products
that meet international standards
for export and could bring new
capabilities in waste minimization
and recovery, as well as market
linkages to enhance export value
of processed products. In addition,
Guyana will support local and
international firms in increasing
end-user demand for products from
Guyanese species.
Investment in communities and
human capital
Transforming Guyana’s economy
will require striking a balance
between attracting large, longterm
private investors who will
have a catalytic impact on the
national economy, and making
significant investments in human
capital and social services to equip
the population for participation in
the new economy. Key areas of
investment will include:
• Improving job prospects and
private sector entrepreneurship:
Guyana will continue to invest in
targeted education initiatives to
fuel economic growth, potentially
including specialized vocational
training (e.g., for business process
outsourcing), creation of a
management school, and possibly
establishing a centre of biodiversity
excellence.
• Supporting social services:
Guyana will invest in services
such as basic infrastructure (road
maintenance, reliable supplies
of potable water), health and
education services through
discrete projects funded by forestry
payments.
Moving forward with the LCDS
On the 9th of November 2009,
the Governments of Guyana and
Norway signed a Memorandum of
Understanding in which Norway
committed to provide financial
support of up to US$250 million
by 2015 for results achieved by
Guyana in limiting emissions
from deforestation and forest
degradation, which will support
the implementation of Guyana’s
LCDS. At the Copenhagen climate
meeting held in December 2009, the
importance of reducing emissions
from deforestation and forest
degradation (REDD), and avoiding
emissions through conservation
of standing forests (REDD+) was
recognised by global leaders.
This represents an important step
forward which will ultimately allow
Guyana, as well as other forest
countries, to receive payments for
its forests through an international
REDD+ mechanism. Guyana is
currently moving forward in putting
the necessary framework in place to
enable the effective implementation
of the LCDS. Over the next five
years, the country will begin to
execute and deliver on the priority
infrastructure projects needed to
re-orient the economy toward lowcarbon
growth, including investment
in hydropower, high value fruits
and vegetables and aquaculture,
amongst others.
Climate change is a serious
threat to the well-being of human
societies, and developing countries
are particularly vulnerable to its
negative consequences due to their
dependence on climate-sensitive
sectors and their limited capacity
to adapt. However, climate change
can also be viewed in terms of
the opportunities that it provides
for investment in adaptation
and mitigation technology, and
as a catalyst for sustainable
development. It also
provides a platform
for transfer of
financial, technical,
intellectual and
human resources
from developed
to developing
countries, a process
which could begin
to reduce the
inequalities between
rich and poor
nations. Guyana’s
LCDS outlines
how the country
can position itself
to capture the
opportunities that
climate change
presents, while
simultaneously
making a significant
contribution to
tackling the source
of the problem
by reducing
greenhouse
Guyana Business 2010 | 54 Guyana Business 2010 | 55
gas emissions through avoided
deforestation. The LCDS is a leading
example to other developing
countries in demonstrating that
a low carbon, climate⅓resilient
economy can be achieved without
compromising the integrity of natural
ecosystems. In particular, it can
provide the world with a working
model of how a REDD+ mechanism
can operate, and is an example to
other forest countries of how the
world’s forests can be conserved
without sacrificing the development
aspirations of those who live in
them.
For further information contact:
Office of Climate Change
Government of Guyana
www.lcds.gov.gy