Most of Guyana’s political energy in 20th and 21st centuries had been spent in a rivalry between Blacks(Africans) and East Indians parties. Prophetically, Guyanese tepuis Roraima — one of World’s highest table-top mountains — served as the prototype of Conan Doyle’s Lost World.
In 1950 former dentist, Cheddi Jagan founded Marxist-Leninist People’s Progressive Party (PPP). Soon, the former member of PPP and a lawyer Linden Forbes Burnham founded People’s National Congress (PNC). Ever since internal Guyana’s political conflict has, in fact, been about the race — not ideology.
PNC, with its anti-capitalist orientation, had stayed in power for all of XX century. In 1970 Guyana was declared the “cooperative republic” dominated by the doctrine of ‘commune’ ownership of ‘means for production’. PNC ‘kadry’ converted Guyana into highly centralized society. Political liberalization and free market reforms were initiated in mid-1990th. However, those reforms haven’t been fully implemented. Instead, both factions have used new opportunities to strengthen their political positions.
Guyana is the country with very rich and diverse flora and fauna. However, tourism takes only a fraction of Guyana’s GDP. Sugar and rice production, bauxite and gold mining as well as aluminum ore export are the major pillars of country’s economy.
After decades of socialist governments Guyana had tried hard to improve its investment and business climates. Still, it’s not an optimal place to launch your high-tech startup. Country’s economy is largely agricultural and local population is mainly poor. Guyanese telecommunications are outdated and fixed Internet penetration rate is relatively low. At the same time, mobile networks are growing fast and more and more young Guyanese join a rank of e-commerce customers. However, slowing economy, high administrative barriers, brain-drainage and absence of seed capital significantly reduce the potential of local startups ecosystem.
Business Notes for Startups Founders:
- political climate: not friendly;
- economic climate: not friendly;
- regions to focus: locally;
- industries to focus: e-services (tourism), FinTech;
- major limitations: slowing GDP growth rate (currently at 3%), economy depends on agriculture, high administrative and legal barriers to SME, low population density (4/km2), high crime rate, brain-drainage, fixed Internet penetration rate at 40%;
- stimulus: low competition, growing mobile Internet adaption;
- opportunities: to build an e-business orientated on local niche markets in tourism and FinTech.