Overseas-based Guyanese will soon have a chance to invest in projects at home through a Diaspora Bond. President Irfaan Ali recently revealed his government’s intention to launch this initiative soon.
Not much more information is yet in the public domain.
The reaction from Guyanese has been somewhat mixed and some of the arguments are understandable.
For many overseas-based Guyanese, leaving Guyana decades ago was not merely abandoning home, but escaping the level of economic hardship that existed at the time. Entire generations packed their bundles, convinced that their future lay elsewhere.
Even in this era of unprecedented development, many continue to leave for better-paying jobs, greater future prospects, marriage and yes, in some instances, fear of political persecution or instability. Suffice it to say, migration has always been part of the Guyanese story.
Still, many Guyanese built lives overseas but never truly severed ties with home. Some still send a “top-up” for their families and a few barrels a year. Some build houses they visit once or twice a year. Many fund relatives through school and help kickstart small businesses for family and friends. They show up for our national events and are always ready to give a million and one reasons why it is Chicken Curry and not Curry Chicken. Some even come home to vote, partake in election-related events and are vocal about developments at home. They may not be here physically, but emotionally ever present.
This Diaspora bond could be seen as the government trying to provide a means for those who departed these shores years ago to have a way back in, with a greater say in the developmental trajectory of the country. Also, people tend to want to stay close to their investments. With a reported one million Guyanese living abroad, this initiative could see many returning home. From some who have no intention returning home, it may simply be smart business.
Guyana is transforming and many in the diaspora understandably do not want to feel left behind as the country enters a new era of wealth and development. Also, this is their home, and they have a right to contribute to its development.
Or do they?
Some would argue that overseas-based Guyanese made their choice long ago by leaving and that investment opportunities of this nature should instead be prioritised for citizens living at home, especially those who endured the difficult years. Their taxes, struggles and sacrifices are helping to build this country daily. Why should someone who left now be granted opportunities tied to a booming economy they did not stay to help sustain during the many “Guava Seasons”?
Of course, there are some who would reject that argument entirely. Citizenship and belonging should not expire at the ports.
A Guyanese abroad is still Guyanese. Many of those who left did so because they had little choice economically and emotionally. To now tell them they are somehow less entitled to participate in Guyana’s future could be both unfair and shortsighted.
The arguments in support of this initiative are many. But equally, there are those who are on the fence. Will this Diaspora Bond become a meaningful investment vehicle or merely a white rabbit in Wonderland? Their scepticism is also understood.
Patriotism is one thing, but putting hard-earned foreign currency into a government-backed financial instrument is another. People naturally want assurances. They want transparency. They want stability. And most importantly, they want to know whether their investment will be protected.
There are several important issues that must be addressed before any rollout. Chief amongst them are the processes that will be put in place to check for proceeds of crime. How exactly will the Guyana Government ascertain whether monies coming from overseas-based Guyanese are from legitimate sources? In an age where governments around the world are tightening anti-money laundering regulations and increasing scrutiny on cross-border financial transactions, Guyana cannot afford to operate loosely in this area.
What about the laws and regulations in the jurisdictions from which these monies will be leaving? Governments around the world encourage investment within their own economies. Would they quietly welcome large sums flowing out to Guyana through a Diaspora Bond, or would there be concerns?
Countries want spending, investment and growth to benefit their economies first. Guyana may see this initiative as patriotic financing, but other jurisdictions could very well see it as capital leaving their shores.
For years, many citizens have complained that some foreign-owned businesses operating in Guyana “send away their money” rather than reinvesting it locally. Chinese-owned businesses have been accused of this for many years. “They send away their money to China”. The Venezuelans here are now being accused of using the same tactic.
Well, ladies and gentlemen, perhaps we have now come full circle.
Also, this is where lessons from elsewhere become critical. After all, Diaspora bonds are not a novel idea. Countries large and small have experimented with similar instruments for decades. In the Caribbean itself, the concept has been explored in countries such as Jamaica and more recently Barbados. India and Isreal also have similar initiatives. Their experiences offer insight, not just into what can work, but what can go wrong when issues such as trust, structure and transparency are not properly addressed.
There is also the question of legislation and oversight. Will there be a specific legislative framework governing the bond? Who exactly will regulate it? Will there be independent auditing? What protections will exist for investors? What guarantees will the state provide?
If the government wants the diaspora to invest not just financially but emotionally, then trust must form the foundation of this process. It must show that it can do this, and do it right.
