The 2025 National Budget review highlights Guyana’s advancing status as a Petrostate, driven by intensified dependence on oil and gas production. This reliance confirms the country’s alignment with necessary conditions defining a Petrostate, emphasizing both economic growth and the emergence of significant social and political features.
Since the advent of First Oil in 2019, I have consistently utilized my annual reviews of the national budget to illustrate why I firmly believe Guyana meets the economic criteria to be classified as a Petrostate. To qualify as such, it is widely recognized that two primary conditions must be satisfied: first, a significant reliance on oil and gas production and exportation; and second, the emergence of accompanying social, cultural, political, geopolitical, and institutional characteristics.
In this year’s National Budget review, I observe that the macroeconomic data presented in the 2025 National Budget strongly indicate that, throughout 2024, Guyana has further entrenched its dependence on its developing oil and gas industry. This intensification reflects not only the growth of the sector but also the broader implications of this dependency on societal structures and governance in the nation. Such developments undoubtedly align Guyana more closely with the defining attributes of a Petrostate.
In summary, the 2025 National Budget reinforces the assertion that Guyana is firmly establishing itself as a Petrostate through its increased reliance on the oil and gas sector. As such, it is imperative to consider both the economic and socio-political dimensions that accompany this transition. The ongoing developments indicate a profound transformation within Guyana’s economic landscape, one driven by its burgeoning oil and gas industry.
Original Source: www.stabroeknews.com
