(1) Guyana's Economic Background

The small South American country of Guyana ranks poorly in many aspects of my study. Its GDP is currently at $2.973 billion, ranking it 174^th of 228 in the world. Based on GDP alone, Guyana has a low standard of living in comparison to the World average. Guyana has a GDP real growth rate of 3%, ranking 126^th of 217. Its GDP per capita is $3,900 in comparison the United States GDP per capita which is $47,500.

Life Expectancy in Guyana is 66.68 which is slightly higher than the world average of 66.57, but wanes in comparison the United States’ expectancy of 78.11 years. The population growth rate of Guyana ranks better than its other aspects, the country ranks 185^th of 233 countries with a growth rate of 0.181%. According to Gregory Mankiv’s Principles of Economics, rapid population growth is unfavorable due to the stretching of resources and GDP that would occur.

An unusual trend in Guyana is that although they have a relatively low GDP per capita, it is not reflected in their population growth rate, which ranks the lowest of any of its statistics. This is indicative of possible growth. In most cases low GDP per capita corresponds to a high population growth rate, but in this country it is not the case. Most mothers are only having 2 children, so there is no indication that families are depending on family-run production to support themselves. Other reasons that mothers are having relatively few children are the monetary expense that comes with them on education and to support them in general. There are no signs of religion or culture making an impact of family planning. It is hard to say whether the low GDP of Guyana has an effect on the quality of living in this country. With an average life expectancy rate of 67 years, this country does much better than the below average GDP per capita would project. It also has a 98.8% literacy rate among its population. With such low GDP there are substantial gains that could be made in economic growth. Guyana’s high literacy rates, life expectancy rates, and favorable age structure could be a budding sign of growth in the near future. Even with all these good statistics a factor may be being overlooked. Guyana is ranked 26^th of 170 in their HIV/AIDs adult prevalence rate, which is 2.5%. The United States ranks 68^th in this category at 0.6%. A possible reason for the country’s overall low level of GDP may be this glaring statistic and its high risk level of major infectious diseases. Worker health has a direct correlation between GDP and standard of living. A sick or malnourished worked is often less productive. Human capital is a direct factor of productivity. Holding all other variables the same, when human capital falls so does a country’s overall productivity. A fall in productivity often leads to a lower standard of living. Even with 68.7% of the population of age to work, disease and sickness may be holding their production back from the level that all other statistics would convey. Another factor that may have led to Guyana’s slow growth is the fact that it recently gained dependence and is a young country. Guyana gained its independence from Britain in 1966 and did not establish a constitution until 1980 (CIA World Factbook). With a recently formed political system, those with power in Guyana often have different views on the direction the country should go in. This has been a factor holding the country back.

		Comparison to rest of the world
GDP	$2.973 billon	174
GDP real growth rate	3%	126
GDP per capita	$3,900	156
Population living below the poverty line	N/A	N/A
Life Expectancy	66.68 Men – 64.99 Women – 69.4	157
Adult literacy	98.8% Men – 99.1% Women – 98.5%
Birth Rate	17.56/1,000	117
Death Rate	8.31/1,000	102
Population Growth Rate	0.181%	185
Age structure	0-14: 25.7% 15-64: 68.7% 65 and over: 5.5%

Guyanese Data Table

Data derived from the CIA World Factbook.

Works Cited

1. "South America - Guyana." C.I.A. World Factbook. Ed. C.I.A. Web. Nov. 2009.

.

2. Mankiw, Gregory N. Principles of Economics. 5th ed. South-Western CENGAGE Learning, 2008. Print.