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Guyana (04/01)


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For the most current version of this Note, see Background Notes A-Z.

PROFILE

OFFICIAL NAME:
Co-Operative Republic of Guyana

Geography
Area: 214,970 sq. km. (82,980 sq. mi.); about the size of Idaho
Cities: Capital--Georgetown (pop. 250,000). Other cities--Linden (29,000) and New Amsterdam (18,000).
Terrain: Coastal plain, inland highlands, rain forest, savanna.
Climate: Tropical.

People
Nationality: Noun and adjective--Guyanese (sing. and pl.).
Population (last census 1991): 723,673; (2000 est.) 700,000.
Ethnic groups: East Indian origin 49%, African origin 32%, mixed 12%, Amerindian 6%, White and Chinese 1%.
Religions: Christian 57%, Hindu 33%, Muslim 9%, other 1%.
Languages: English, Guyanese Creole, Amerindian languages (primarily Carib and Arawak).
Education: Years compulsory--ages 5 1/2-14 1/2. Attendance--primary 78.6%, secondary 80.5%. Literacy--96.5% of adults who have attended school.
Health: Infant mortality rate--49/1,000. Life expectancy--men 59 yrs., women 64 yrs.
Work force (278,000): Industry and commerce--36.4%; agriculture--30.2%; services--30.2%;
other--3.2%.

Government
Type: Republic within the Commonwealth.
Independence: May 26, 1966; Republic, February 23, 1970.
Constitution: 1980
Branches: Executive--executive president (chief of state and head of government), prime minister. Legislative--unicameral National Assembly (65 members selected from political party slates; 25 represent regional constituencies, 40 come from national slates). Judicial--Judicial Court of Appeal, High Court.
Subdivisions: 10 regions.
Political parties (voting seats in the National Assembly): People's Progressive Party/Civic (PPP/C) 34; People's National Congress (PNC) 27; Guyana Action Party/Working People's Alliance (GAP/WPA) 2; Rise Organize and Rebuild (ROAR) 1; and The United Force (TUF) 1. Total seats: 65. Elections held March 19, 2001.
Suffrage: Universal at 18.

Flag: Guyana flag

Economy (1999)
GDP: $577 million.
Real annual growth rate: (1999) 3.0%., (2000) 0.5%.
Per capita GDP: $824.
Agriculture: Products--sugar, rice.
Natural resources: Gold, bauxite, diamonds, timber, shrimp, fish.
Industry: Types--gold and bauxite mining, rice milling, beverage, food stuff processing, apparel, footwear assembly.
Trade (1999): Exports--$525 million, $360 million (through third quarter 2000): gold, sugar, bauxite, shrimp, rice, timber. Major markets--U.S. (24.5%), U.K., CARICOM countries, Canada. Imports--$550 million, $437 million (through third quarter 2000). Major suppliers--U.S. (37.7%), U.K., Venezuela, CARICOM, Canada.

PEOPLE
Guyana's population is made up of five main ethnic groups--East Indian, African, Amerindian, Chinese, and Portuguese. Ninety percent of the inhabitants live on the narrow coastal plain, where population density is more than 115 persons per square kilometer (380 per sq. mi.). The population density for Guyana as a whole is low--less than four persons per square kilometer. Although the government has provided free education from nursery school to the university level since 1975, it has not allocated sufficient funds to maintain the standards of what had been considered the best educational system in the region. Many school buildings are in poor condition, there is a shortage of text and exercise books, the number of teachers has declined, and fees are being charged at the university level for some courses of study for the first time.

HISTORY
Before the arrival of Europeans, the region was inhabited by both Carib and Arawak tribes, who named it Guiana, which means land of many waters. The Dutch settled in Guyana in the late 16th century, but their control ended when the British became the de facto rulers in 1796. In 1815, the colonies of Essequibo, Demerara, and Berbice were officially ceded to Great Britain at the Congress of Vienna and, in 1831, were consolidated as British Guiana. Following the abolition of slavery in 1834, thousands of indentured laborers were brought to Guyana to replace the slaves on the sugarcane plantations, primarily from India but also from Portugal and China. The British stopped the practice in 1917. Many of the Afro-Guyanese former slaves moved to the towns and became the majority urban population, whereas the Indo-Guyanese remained predominantly rural. A scheme in 1862 to bring black workers from the United States was unsuccessful. The small Amerindian population lives in the country's interior.

The people drawn from these diverse origins have coexisted peacefully for the most part. Slave revolts, such as the one in 1763 led by Guyana's national hero, Cuffy, demonstrated the desire for

basic rights but also a willingness to compromise. Politically inspired racial disturbances between Indo-Guyanese and Afro-Guyanese erupted in 1962-64. However, the basically conservative and cooperative nature of Guyanese society contributed to a cooling of racial tensions.

Guyanese politics, nevertheless, occasionally has been turbulent. The first modern political party in Guyana was the People's Progressive Party (PPP), established on January 1, 1950, with Forbes Burnham, a British-educated Afro-Guyanese, as chairman; Dr. Cheddi Jagan, a U.S.-educated Indo-Guyanese, as second vice chairman; and his American-born wife, Janet Jagan, as secretary general. The PPP won 18 out of 24 seats in the first popular elections permitted by the colonial government in 1953, and Dr. Jagan became leader of the house and minister of agriculture in the colonial government. Five months later, on October 9, 1953, the British suspended the constitution and landed troops because, they said, the Jagans and the PPP were planning to make Guyana a communist state. These events led to a split in the PPP, in which Burnham broke away and founded what eventually became the People's National Congress (PNC).

Elections were permitted again in 1957 and 1961, and Cheddi Jagan's PPP ticket won on both occasions, with 48% of the vote in 1957 and 43% in 1961. Cheddi Jagan became the first premier of British Guiana, a position he held for 7 years. At a constitutional conference in London in 1963, the U.K. Government agreed to grant independence to the colony but only after another election in which proportional representation would be introduced for the first time. It was widely believed that this system would reduce the number of seats won by the PPP and prevent it from obtaining a clear majority in Parliament. The December 1964 elections gave the PPP 46%, the PNC 41%, and the United Force (TUF), a conservative party, 12%. TUF threw its votes in the legislature to Forbes Burnham, who became prime minister.

Guyana achieved independence in May 1966, and became a republic on February 23, 1970--the anniversary of the Cuffy slave rebellion. From December 1964 until his death in August 1985, Forbes Burnham ruled Guyana in an increasingly autocratic manner, first as prime minister and later, after the adoption of a new constitution in 1980, as executive president. During that time- frame, elections were viewed in Guyana and abroad as fraudulent. Human rights and civil liberties were suppressed, and two major political assassinations occurred: the Jesuit Priest and journalist Bernard Darke in July 1979, and the distinguished historian and WPA Party leader Walter Rodney in June 1980. Agents of President Burnham are widely believed to have been responsible for both deaths.

Following Burnham's own death in 1985, Prime Minister Hugh Desmond Hoyte acceded to the presidency and was formally elected in the December 1985 national elections. Hoyte gradually reversed Burnham's policies, moving from state socialism and one-party control to a market economy and unrestricted freedom of the press and assembly. On October 5, 1992, a new National Assembly and regional councils were elected in the first Guyanese election since 1964 to be internationally recognized as free and fair. Cheddi Jagan was elected and sworn in as president on October 9, 1992.

When President Jagan died in March 1997, Prime Minister Samuel Hinds replaced him in accordance with constitutional provisions. President Jagan's widow, Janet Jagan, was elected president in December 1997. She resigned in August 1999 due to ill health and was succeeded by Finance Minister Bharrat Jagdeo, who had been named prime minister a day earlier. National elections were held on March 19,  2001. Incumbent President Jagdeo won reelection with a voter turnout of over 90%.

GOVERNMENT
Legislative power rests in a unicameral National Assembly, with 53 members chosen on the basis of proportional representation from national lists named by the political parties. An additional 12 members are elected by regional councils at the same time as the National Assembly. The elections system was revised for the 2001 elections. The president may dissolve the assembly and call new elections at any time, but no later than 5 years from its first sitting.

Executive authority is exercised by the president, who appoints and supervises the prime minister and other ministers. The president is not directly elected; each party presenting a slate of candidates for the assembly must designate in advance a leader who will become president if that party receives the largest number of votes. Any dissolution of the assembly and election of a new assembly can lead to a change in the assembly majority and consequently a change in the presidency. Only the prime minister is required to be a member of the assembly. In practice, most other ministers also are members. Those who are not serve as nonelected members, which permits them to debate but not to vote.

The highest judicial body is the Court of Appeal, headed by a chancellor of the judiciary. The second level is the High Court, presided over by a chief justice. The chancellor and the chief justice are appointed by the president.

For administrative purposes, Guyana is divided into 10 regions, each headed by a chairman who presides over a regional democratic council. Local communities are administered by village or city councils.

Principal Government Officials
Executive President--Bharrat Jagdeo
Prime Minister--Samuel A. Hinds (not yet sworn in)
Foreign Minister--Not yet named
Ambassador to the U.S. and OAS--Mohammed Ali Odeen Ishmael
Permanent Representative to the UN--Samuel "Rudy" Insanally

Guyana maintains an embassy in the United States at 2490 Tracy Place NW, Washington, DC 20008 (tel. 202-265-6900).

POLITICAL CONDITIONS
Race and ideology have been the dominant political influences in Guyana. Since the split of the multiracial PPP in 1955, politics has been based more on ethnicity than on ideology. From 1964 to 1992, the PNC dominated Guyana's politics. The PNC draws its support primarily from urban Blacks, and for many years declared itself a socialist party whose purpose was to make Guyana a nonaligned socialist state, in which the party, as in communist countries, was above all other institutions.

The overwhelming majority of Guyanese of East Indian extraction traditionally have backed the People's Progressive Party, headed by the Jagans. Rice farmers and sugar workers in the rural areas form the bulk of PPP's support, but Indo-Guyanese who dominate the country's urban business community also have provided important support.

Following independence, and with the help of substantial foreign aid, social benefits were provided to a broader section of the population, specifically in health, education, housing, road and bridge building, agriculture, and rural development. However, during Forbes Burnham's last years, the government's attempts to build a socialist society caused a massive emigration of skilled workers, and, along with other economic factors, led to a significant decline in the overall quality of life in Guyana.

After Burnham's death in 1985, President Hoyte took steps to stem the economic decline, including strengthening financial controls over the parastatal corporations and supporting the private sector. In August 1987, at a PNC Congress, Hoyte announced that the PNC rejected orthodox communism and the one-party state.

As the elections scheduled for 1990 approached, Hoyte, under increasing pressure from inside and outside Guyana, gradually opened the political system. After a visit to Guyana by former U.S. President Jimmy Carter in 1990, Hoyte made changes in the electoral rules, appointed a new chairman of the Elections Commission, and endorsed putting together new voters' lists, thus delaying the election. The elections, which finally took place in 1992, were witnessed by 100 international observers, including a group headed by Mr. Carter and another from the commonwealth of nations. Both groups issued reports saying that the elections had been free and fair, despite violent attacks on the Elections Commission building on election day and other irregularities.

Cheddi Jagan served as Premier (1957-64) and then minority leader in Parliament until his election as President in 1992. One of the Caribbean's most charismatic and famous leaders, Jagan was a founder of the PPP which led Guyana's struggle for independence. Over the years, he moderated his Marxist-Leninist ideology. After his election as President, Jagan demonstrated a commitment to democracy, followed a pro-Western foreign policy, adopted free market policies, and pursued sustainable development for Guyana's environment. Nonetheless, he continued to press for debt relief and a new global human order in which developed countries would increase assistance to less developed nations. Jagan died on March 6, 1997, and was succeeded by Samuel A. Hinds, whom he had appointed Prime Minister. President Hinds then appointed Janet Jagan, widow of the late President, to serve as Prime Minister.

In national elections on December 15, 1997, Janet Jagan was elected President, and her PPP party won a 55% majority of seats in Parliament. She was sworn in on December 19. Mrs. Jagan is a founding member of the PPP and was very active in party politics. She was Guyana's first female prime minister and vice president, two roles she performed concurrently before being elected to the presidency.

The PNC, which won just under 40% of the vote, disputed the results of the 1997 elections, alleging electoral fraud. Public demonstrations and some violence followed, until a CARICOM team came to Georgetown to broker an accord between the two parties, calling for an international audit of the election results, a redrafting of the constitution, and elections under the constitution within 3 years. Elections took place on March 19, 2001. Over 150 international observers representing six international missions witnessed the polling. The observers pronounced the elections fair and open although marred by some administrative problems.

ECONOMY
With a per capita gross domestic product of only $824 in 1999, Guyana is one of the poorest countries in the Western Hemisphere. The economy made dramatic progress after President Hoyte's 1989 economic recovery program (ERP). As a result of the ERP, Guyana's GDP increased 6% in 1991 following 15 years of decline. Growth was consistently above 6% until 1995 when it dipped to 5.1%. The government reported that the economy grew at a rate of 7.9% in 1996, 6.2% in 1997, and fell 1.3% in 1998. The 1999 growth rate was 3%. The unofficial growth rate in 2000 was 0.5%.

Developed in conjunction with the World Bank and the International Monetary Fund (IMF), the ERP significantly reduced the government's role in the economy, encouraged foreign investment, enabled the government to clear all its arrears on loan repayments to foreign governments and the multilateral banks, and brought about the sale of 15 of the 41 government-owned (parastatal) businesses. The telephone company and assets in the timber, rice, and fishing industries also were privatized. International corporations were hired to manage the huge state sugar company, GUYSUCO, and the largest state bauxite mine. An American company was allowed to open a bauxite mine, and two Canadian companies were permitted to develop the largest open-pit gold mine in Latin America. However, efforts to privatize the two state-owned bauxite mining companies, Berbice Mining Company and Linden Mining Company have so far been unsuccessful.

Most price controls were removed, the laws affecting mining and oil exploration were improved, and an investment policy receptive to foreign investment was announced. Tax reforms designed to promote exports and agricultural production in the private sector were enacted.

Agriculture and mining are Guyana's most important economic activities, with sugar, bauxite, rice, and gold accounting for 70%-75% of export earnings. However, the rice sector experienced a decline in 2000, with export earnings down 27% through the third quarter 2000. Ocean shrimp exports, which were heavily impacted by a 1-month import ban to the United States in 1999, accounted for only 3.5% of total export earnings that year. Shrimp exports rebounded in 2000, representing 11% of export earnings through the third quarter 2000. Other exports include timber, diamonds, garments, rum, and pharmaceuticals. The value of these other exports is increasing.

Since 1986, Guyana has received its entire wheat supply from the United States on concessional terms under a PL 480 Food for Peace program. It is now supplied on a grant basis. The Guyanese currency generated by the sale of the wheat is used for purposes agreed upon by the U.S. and Guyana Governments. As with many developing countries, Guyana is heavily indebted. Reduction of the debt burden has been one of the present administration's top priorities. In 1999, through the Paris Club "Lyons terms" and the heavily indebted poor countries initiative (HIPC) Guyana managed to negotiate $256 million in debt forgiveness.

In qualifying for HIPC assistance, for the first time, Guyana became eligible for a reduction of its multilateral debt. About half of Guyana's debt is owed to the multilateral development banks and 20% to its neighbor Trinidad and Tobago, which until 1986 was its principal supplier of petroleum products. Almost all debt to the U.S. Government has been forgiven. In late 1999, net international reserves were at $123.2 million, down from $254 million in 1994. However, net international reserves had rebounded to $174.1 million by January 2001.

Guyana's extremely high debt burden to foreign creditors has meant limited availability of foreign exchange and reduced capacity to import necessary raw materials, spare parts, and equipment, thereby further reducing production. The increase in global fuel costs also contributed to the country's decline in production and growing trade deficit. The decline of production has increased unemployment. Although no reliable statistics exist, combined unemployment and underemployment are estimated at about 30%.

Emigration, principally to the U.S. and Canada, remains substantial. Net emigration in 1998 was estimated to be about 1.4% of the population, and in 1999, this figure totaled 1.2%. After years of a state-dominated economy, the mechanisms for private investment, domestic or foreign, are still evolving. The shift from a state-controlled economy to a primarily free market system began under Desmond Hoyte and continued under PPP/CIVIC governments. The current PPP/C administration recognizes the need for foreign investment to create jobs, enhance technical capabilities, and generate goods for export.

The foreign exchange market was fully liberalized in 1991, and currency is now freely traded without restriction. The rate is subject to change on a daily basis, but the Guyana dollar has depreciated 17.6% from 1998 to 2000 and may depreciate further pending the stability of the post-election period.

FOREIGN RELATIONS
After independence in 1966, Guyana sought an influential role in international affairs, particularly among Third World and nonaligned nations. It served twice on the UN Security Council (1975-76 and 1982-83). Former Vice President, Deputy Prime Minister, and Attorney General Mohamed Shahabuddeen served a 9-year term on the International Court of Justice (1987-96).

Guyana has diplomatic relations with a wide range of nations. The European Union (EU), the Inter-American Development Bank (IDB), the UN Development Program (UNDP), the World Health Organization (WHO), and the Organization of American States (OAS) have offices in Georgetown.

Guyana strongly supports the concept of regional integration. It played an important role in the founding of the Caribbean Community and Common Market (CARICOM), but its status as the organization's poorest member limits its ability to exert leadership in regional activities. Guyana has sought to keep foreign policy in close alignment with the consensus of CARICOM members, especially in voting in the UN, OAS, and other international organizations. In 1993, Guyana ratified the 1988 Vienna Convention on illicit traffic in narcotic drugs and cooperates with U.S. law enforcement agencies on counternarcotics efforts.

Two neighbors have longstanding territorial disputes with Guyana. Since the 19th century, Venezuela has claimed all of Guyana west of the Essequibo River--62% of Guyana's territory. At a meeting in Geneva in 1966, the two countries agreed to receive recommendations from a representative of the UN Secretary General on ways to settle the dispute peacefully. Diplomatic contacts between the two countries and the Secretary General's representative continue. Neighboring Suriname also claims the territory east of Guyana's new river, a largely uninhabited area of some 15,000 square kilometers (6,000 sq. mi.) in southeast Guyana. Guyana and Suriname also dispute their offshore maritime boundries. This dispute flared up in June 2000 in response to an effort by a Canadian company to drill for oil under a Guyanese concession. Guyana regards its legal title to all of its territory as sound.

U.S.-GUYANESE RELATIONS
U.S. policy toward Guyana seeks to promote democracy, sustainable development, and human rights. During the last years of his administration, President Hoyte sought to improve relations with the United States as part of a decision to move his country toward genuine political nonalignment. Relations also were improved by Hoyte's efforts to respect human rights, invite international observers for the 1992 elections, and reform electoral laws. The United States also welcomed the Hoyte government's economic reform and efforts, which stimulated investment and growth. The 1992 democratic elections and Guyana's reaffirmation of sound economic policies and respect for human rights have placed U.S.-Guyanese relations on an excellent footing. Under successive PPP governments, the United States and Guyana continued to improve relations. President Cheddi Jagan was committed to democracy, adopted more free market policies, and pursued sustainable development for Guyana's environment.

President Hinds joined President Clinton and 14 other Caribbean leaders in May 1997, during the first-ever U.S.-regional summit in Bridgetown, Barbados. The meeting strengthened the basis for regional cooperation on justice and counternarcotics, finance and development, and trade. The U.S. maintains positive relations with the current government.

Following the 1992 elections, Canada, the United Kingdom, and the United States increased their aid to Guyana. U.S. assistance had ceased in 1982 due to economic and political differences with the Burnham regime, but in 1986, the United States began to supply humanitarian food aid to the country, to a total value of nearly $500 million in the years 1986-93. All together, since 1955, the United States has provided Guyana with more than $171 million in assistance.

U.S. military medical and engineering teams have conducted training exercises in Guyana, digging wells, building schools and clinics, and providing medical treatment.

Principal U.S. Embassy Officials
Ambassador--Ronald D. Godard
Deputy Chief of Mission--Andrew Parker
Chief, Political and Economic Affairs--Henry Bisharat
Chief, Consular Affairs--Paul Howard
Economic and Commercial Officer--Benjamin Rockwell
Peace Corps Director--Dr. Hardy Frye
USAID Country Director--Dr. Carol Becker

The U.S. Embassy in Guyana is located at the corner of Duke and Young Streets, Georgetown (tel. 592-2-54900/9; fax: 592-2-58497).

Other Contact Information
U.S. Department of Commerce
International Trade Administration
Trade Information Center
14th & Constitution, NW
Washington, DC 20230
Tel: 800-USA-TRADE

Caribbean/Latin American Action
1818 N Street, NW, Suite 310
Washington, DC 20036
Tel: (202) 466-7464
Fax: (202) 822-0075



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