(4) Guyana's International Trade Market

The four main exports of Guyana are sugar, gold, bauxite and alumina. Their economy has grown 3% over the last year (CIA world Factbook). Guyana’s main partners are the United States, Canada and the United Kingdom. Their exports are valued at about $800 million (CIA world Factbook). They import almost all of their resources in the areas of food and machinery. The main imports are manufacturers and machinery from the United States and Trinidad & Tobago. The idea of open trade has remained relatively constant since their independence from the United Kingdom in 1966. Guyana is dependent on their oil imports from other countries as they do not produce any oil but use a considerable amount in their country. One of the most prevalent tariffs in Guyana is that on the exportation of rice. It is in place to encourage those who produce within the country to also distribute within in the country. This is good for buyers, but bad for sellers because it reduces the incentive to sell at the world price due to the government issued tax.

The main factor that is holding Guyana back is its relatively late independence from the UK. With a constitution written in 1980, it is such a young country that they are still struggling to uncorrupt their political leaders. They import much of their food due to the small percentage of arable land. Due to the abundance of bauxite in Guyana they have developed a comparative advantage in this area, not because they produce the most of any country, but that because such few countries can produce it (Minerals UK). This in part with their outward oriented trade policy has allowed them to survive despite their inability to sustain themselves inwardly. The level of development of Guyana will remain relatively constant until they’re able to benefit from their investment in human capital. According to Principles of Economics, it is possible that once this is fixed their growth will at first be rapid and eventually stabilize at a level much higher than the level it currently sits. An increase in the perception of the living standards in Guyana will in the long term increase the reality of the living standard.

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

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

3. Guyana (09/09)." U.S. Department of State. Web. Nov. 2009. <http://www.state.gov/r/pa/ei/bgn/1984.htm>.
4. Ramsaroop, Stella. "Stella says.... Let's turn Guyana 's brain drain into brain gain." The Guyana Groove. Web. Dec. 2009. .
5. "World mineral statistics." British Geological Survey (BGS) - Geoscience information and advice. Web. Dec. 2009. .