Guyana is still a young democracy with fragile government, civil society and private sector institutions. Years of out-migration of some of the most talented Guyanese, including skilled teachers, have left the country with a limited trained human resource base. With the second highest HIV seroprevalence in the region, Guyana faces increased losses of its young people who are essential for the country's growth and prosperity. Lack of political stability, a favorable investment climate and adequate infrastructure have impeded expansion of domestic businesses and foreign investment. To counter this stagnation and potential losses of preferential European markets, Guyana must aggressively pursue value-added investments and alternative markets for its agricultural and natural resources exports.
Political stability is essential to attract and retain such investment.
Thus advancements in democracy and economic growth are very closely linked. The most positive trend in this regard is the growing voice of the private sector and civil society, which in the past year have played an increasingly important role in brokering compromises among the political parties, and between labor and Government. U.S. support for Guyanese women leaders willing to bridge racial and political barriers, technical assistance to the constitutional reform process, and encouragement of multi-donor support for private sector organizations are helping to increase Guyana's prospects for meeting these challenges. Local currency generated by USDA's commodity import program helps leverage the funding of multilateral banks by assisting the GOG to meet counterpart funding requirements. Bilateral donors are supportive of the multilateral banks' policy agenda and provide sector assistance in areas such as health, education, water, and environment, which complement that of multilateral programs.