(2) Productivity Summary and Analysis of Guyana

Determining the well being of a country is often calculated through its ability to produce for itself. Measurements of natural resources, physical capital, human capital and technological knowledge are all key factors when determining a country’s productivity.

According to the CIA world factbook, Guyana’s main natural resources are bauxite, gold, diamonds, hardwood, timber, shrimp and fish. Only 2.23% of Guyana is arable land. In comparison, 18% of the land in the United States is arable. This is equal to 1,500 km² in Guyana and 223,850 km² in the United States. The previous numbers show that agriculture and farming are greater factors in the economy of United States than in Guyana. In terms of capital specifically, Guyana imports much more than it exports. They have built up a deficit of $362 million. They often have to import their machinery from Guyana due to the low amounts of physical capital within the country (U.S. Department of State). Guyana seems to be attempting to support its human capital. The adult literacy rate is currently 99% among educated adults. The country spends a great percentage of its GDP (8.3%) to try to ensure the success of its schools ranking it 13^th out of 182 countries. In comparison, the United States spends 5.3% of its GDP on education, ranking it 52^nd out of 182 countries (CIA World Factbook). With access to the rest of the world through ports of trade in the nation’s capital of Georgetown, the technological knowledge of Guyana grows with the technological knowledge of its main partner in trade – Canada. Effective developments in the mining of bauxite and gold have increased the production rates in Guyana. The lower standard of living in Guyana is in essence caused by the intellectual drain that the country is suffering. Even though much money has been put into the education system, students who are able to leave the country in search of higher learning often do. Some have even cited the Kaieteur News, a Guyanese news production, stating that as much as 89% of Guyana’s graduates live outside of the country. They know that the economic system of Guyana is faulty due to its vast deficit in exports compared to imports. This is bad because even though the country is spending much of its GDP on human capital through education, it is not receiving the benefits of this new educated work force. If all the country’s focus is kept on human capital no real progress will be made. With no arable land and impractical resources, Guyana is a country that is very dependent on trade.

Works Cited

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. .