The target audience is students and researchers who are interested in determining the sources and uses of ODA funding in Guyana. There is a trend showing greater domestic resource mobilisation. As the Guyana economy grows, dependence on ODA declines. At the same time, there are opportunities for improvements in the tax to GDP ratio. The data provides no evidence on energy subsidies. Indeed, these is evidence that ODA resources are being uses to sustain the environment. Further, ODA funding is utilised in a way that promotes sustainable development, poverty reduction and economic growth.

1. FINANCING DEVELOPMENT PROJECT – DIGITAL ARTIFACT
TEXTEXAMPLE
Where
should
development
funds go?

2. The Guyana economy has grown consistently
between 2011 and 2013, the period reported by
aidflow.com. The average growth rate exceeded
the GDP growth rate of Latin America and the
Caribbean and compares favourably with growth
rate experienced by Lower Middle Income
Countries. See table 1.

3. •Since 1980, tax revenue, as a proportion of GDP,
has steadily declined from a high of 32% in 1996
to 25% in 2013 and 24% in 2014.
•The graphs overleaf shows that, between 2003
and 2013, ODA disbursements declined from a
high of $200 million in 2006 to a low of $101
million in 2013. Also, the proportion of ODA to
Gross National Income and ODA per capita also
declined steadily between 2003 and 2013. See
Indexmundi and CIA Factbook.

6. This data demonstrates two (2) key points.
•As the economy grew, Guyana depended
less on ODA and increasingly mobilised
greater domestic resources for development
purposes.
• The decline in tax revenues, as a
proportion of GDP, suggests that there are
opportunities for improved domestic
resource mobilisation.

7. In terms of the declining tax revenues as a proportion of
GDP, the tax base seems to have eroded due to the
“transfer of economic activity from large, easy-to-tax
entities to small companies, whose accounts are hard to
monitor and incomes therefore difficult to tax”. This
proposition, made in 2003, certainly applies today.
In terms of the use of ODA funds, Table 2 shows that these
funds have, to a large extent, been allocated to sectors
consistent with the needs of low income Countries.
Infrastructure, Production and Multi-sectors account for
more than 77% of ODA funds.

9. Another important characteristics of ODA
funding is that a significant proportion is
supported by carbon credits which form part
of Guyana’s low carbon development
strategy. This provides a good nexus
between development funding and sustained
environmental promotion and protection and
demonstrates that a country with abundant
forest resource can earn revenue while
protecting those resources and reducing
greenhouse gases.

10. This artifacts highlights the following concepts as they apply to
development financing in Guyana:
• Evidence of domestic resource mobilisation as demonstrated by declining
ODA in nominal and real terms accompanied by steady GDP growth.
• Options for improved tax collection as demonstrated by the steady
reduction in the tax to GDP Ratio.
• Evidence of allocation of ODA disbursements among sectors relevant to
low income economies.
• Environmental sustainability as evidence by the Low carbon development
strategy.
• There is no evidence in the data that energy subsidy is a major issue
affecting resource use.

11. Sources:
• Egoume-Bossogo, P. Guyana: Experience with
Macroeconomic Stabilisation, Structural Adjustment and
Poverty Reduction. IMF, 2003.
• CIA Factbook: https://www.cia.gov/library/publications/the-
world-factbook/
• Indexmundi: http://www.indexmundi.com/guyana
• Chandarpal, G. Climate Change Impacts on Guyana &
Current Initiatives. Office of the President. May, 2014.